That expanded menu. That collectible popcorn bucket. Reclining seat. These amenities and large screen format offerings are all part of the way the North American exhibition industry has reinvested more than $1.5 billion in theaters over the past year.
Based on last year’s pledge to invest $2.2 billion, the first year of investment continues to attract viewers to cinemas with the theatre chain’s commitment to striving for film experience.
The latest film investment report by theater owners organization Cinema United shows how cinemas are captivating audiences with loyalty programs and subscriptions, appealing and appealing to a new kind of film fan base.
Elsewhere, Regal Chain has now upgraded theaters with brand new luxury recliners and digital enhancements in many parts of the United States.
In the report, Eduardo Acuna, CEO of Regal, said: “Each theater upgrade has an impact on the community. As we continue to invest in providing the best film-ordered experience, our customers enjoy improving and digital upgrades in the theater.”
Cineplex jumped into the entertainment experience by opening Cinéma Cineplex Royalmount, a brand new theatre in Montreal. The new Cinema Entertainment Center will have five auditoriums with full recliner seats, laser projectors and D-box seats available in one of the auditoriums.
Marcus Theaters upgraded several locations with a large premium auditorium and newly renovated social spaces.
Speaking to Variety, Michael O’Leary, president and CEO of Washington, DC-based Cinema United (Fomerly NATO), said “we’re seeing this evolution of this theatre becoming these big, inclusive places where families and film fans can spend their time.”
As theatres continue to expand their offering to viewers, O’Leary says it feels good again this year, with attractions like novelty popcorn buckets, and films like “Lilo and Stitch” and “Minecraft” dominating the box office.
O’Leary also talked about viewer trends, how Gen-Z has influenced the film director’s experience, and how they are driving their investment.
What do you think about the past year and some of the numbers reported in films like “Sinner,” “F1,” and “Lilo and Stitch”?
I feel very positive about how this year progresses. We are excited about what’s right in front of us between now and the end of the year. Let’s go around the end of the year and holidays, take a deep breath and see where we are.
That being said, there have been a lot of incredible stories this year. For the first time, we’re putting a ton of films in the market. There are a wide range of films of all kinds, with audiences of all ages responding to them. There have been some films that have surprised people as they are true every year, but there is a lot of enthusiasm for going to the theatre. We feel this is part of a continuing positive trend, and 2026 will be even more.
Are there any success stories that got stuck for you?
There are many of them. “Lillo and Stitch” was a hit for Disney, and “Sinner” captured people’s imaginations. But I think the real story is the broad nature of all the different things there. I previously talked about all the different kinds of movies in the theatre, and about going to different things and checking out. Ultimately, that’s where we have strength.
You mentioned “Lillo and stitching” and there is “kpop demon hunters”. What do you think about those success stories? Are young children interested in films?
absolutely. We were encouraged by the numbers seen from a report from the National Research Group, which talks about the number of film fans of Gen Z who watched more than six films last year. It has increased by 8% since 2023, and is now up to 37%. That’s a really encouraging sign. I think there’s energy from the young people to go to the theatre to see different things. They are greedy consumers of content and are extremely experiential. They want something special and I think we do a good job of providing it. A large part of our investment is making sure we continue to create unique experiences. If you do that, not just young people, but people of all ages will say, “There’s something special going on in the theatre, so I want to be a part of it.”
I was at AMC the other day, and many people had popcorn buckets of “devil murderers.” What do you think about the popcorn bucket trends that portray viewers in cinemas?
It’s another example of giving customers what they want. They want to have something special that remembers a trip to a movie or a theatre. You’ll see a very positive audience response to that type of product. It’s probably a field our industry is still speeding up, but there are a lot of opportunities out there as people want it.
Last year you talked about pickleballs in the theater. How many actually offer it? Are there any other fun activities in the theatre?
The pickleball lived its own life. I mentioned there is a theatre in Dallas with a pickle ball court and the next thing you know is headlined everywhere. I’m sure there are other pickle ball courts too. Others like bowling alleys and arcades are included in cinemas. Combining it with restaurants and bars, many theatres are becoming places where families can go financially for 4-5 hours. You will be these big inclusive places where families and movie fans can go and spend hours on the evolution of this theatre. It is safe, economical and a new trend in our industry.
Another trend is audiences who want to watch films on IMAX or 70mm film. What do these premium formats look like? Do you think a higher return from the premium format will compensate for the less screens in the future?
The market decides how many screens there are. Large formats play an increasing role in the market. People want to go see them. Last year alone, 200 PLFs have been added, with global numbers around 6,000, but even those numbers are a very small percentage of products available in theaters. One of the things we strive for is to make sure there is an experience there that will satisfy what you are looking for when you go to the theatre. There are many options and you can choose the one that suits you best. We are trying to make the simple point that all the experience in the theatre should be premium. PLF alone cannot sustain this industry. It’s a small part and we need to make sure there is an exciting and experiential place for people.
Please read the report below.
