MONEY & LIFE

Changes Could Be Coming to a Theater Near You

By: Jenny Montoya · September 26, 2024 · Reading Time: 2 minutes

Investing $2.2 Billion

It’s been a big year for the movies, and theaters are taking note. Many movie theaters are instituting widespread renovations to capitalize on the strong box office performance seen so far in 2024.

The eight largest movie chains across the U.S. and Canada — including AMC (AMC), Regal, and Cinemark (CNK) — are investing a total of $2.2 billion over the next three years to upgrade their theaters, per the National Association of Theater Owners (NATO).

Up Next: Upgrades

Movie theaters have faced adversity over the past few years with pandemic-era restrictions and dual strikes from Hollywood writers and actors.

With both strikes resolved, 2024 is off to a strong start, with major releases like Disney’s (DIS) Inside Out 2 and Deadpool & Wolverine smashing box office records. Theaters are now deploying capital in hopes of capitalizing on this momentum.

Most of the announced investment will go toward enhancing the in-theater experience, per NATO. This includes adding laser projection technology and immersive surround sound systems, improving food and drink options, and in some cases, even adding additional sources of entertainment, such as arcades or bowling to the theaters.

VIP Experience, Premium Pricing

The rise of streaming has made it easier than ever for consumers to watch movies. For one relatively low fee, they can get access to hundreds or even thousands of movies.

In response, movie theaters are trending in the opposite direction. With this investment, cinemas seem to be signaling an intent to transform moviegoing into a higher-end experience — a move that may eventually entail premium prices too.

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