That expanded menu. That collectible popcorn bucket. The reclining seats. Those amenities plus large screen format offerings are all part of how the North American exhibition industry has re-invested more than $1.5 billion in their theaters in the past year.
Building on last year’s pledge of investing $2.2 billion, the first year of investment shows theater chains’ commitment to enhancing the moviegoing experience in an effort continue to draw audiences to movie theaters.
The latest Cinema Investment Report by theater owners organization Cinema United shows how movie theaters are engaging audiences in loyalty programs and subscriptions to create and appeal to a new kind of moviegoer.
Elsewhere, the Regal chain has moved to upgrade its theaters with brand-new luxury recliners and digital enhancements in many of its U.S. locations.
In the report, Eduardo Acuna, CEO of Regal, says, “We see the impact on the community every time we upgrade a theater. As we continue to invest in providing the best moviegoing experience, our customers are enjoying in-theater improvements and digital upgrades.”
Cineplex has jumped on the entertainment experience by opening Cinéma Cineplex Royalmount, a brand-new theater in Montreal which boasts the company’s first ever Quebec location of The Rec Room — a wildly popular concept that combines arcade games and cinema. The new cinema entertainment center features five auditoriums with full recliner seating, laser projectors, and D-Box seats available in one of the auditoriums.
Marcus Theatres has upgraded several locations with premium large-format auditoriums and newly renovated social spaces.
Speaking with Variety, Michael O’Leary, president and CEO of Washington, D.C.-based Cinema United (fomerly NATO), said, “You’re seeing this evolution of theaters becoming these big inclusive places where family and movie fans can go and spend hours on end.”
As theaters continue to expand their offerings to audiences — including attractions like novelty popcorn buckets — O’Leary says he feels good about this year, and with movies like “Lilo and Stitch” and “Minecraft” dominating the box office, he feels he needs to make sure that there are places that are exciting and experiential for people.
O’Leary also spoke about audience trends and how Gen-Z has had an impact on the moviegoing experience and how they’re driving investments.
How are you feeling about the year to date and some of the numbers being reported with films like ‘Sinners,’ ‘F1’ and ‘Lilo and Stitch?
We feel very positive about the way this year is going. We’re excited about what lies in front of us between now and the end of the year. Let’s get to the end of the year and around the holidays, take a deep breath, and see where we are.
Having said that, there have been a lot of tremendous stories this year. For the first time, we’re getting a volume of movies into the marketplace, which is getting closer and closer to what it was four or five years ago. There’s a wider array of different types of movies, and audiences of all ages are responding to them. As is true every year there have been a few movies that have surprised people, but there’s a lot of enthusiasm for going to the theater. We feel like this is part of a continuing positive trend, and 2026 is going to be more of that.
Is there a success story that has stuck out for you?
There have been a number of those. “Lilo and Stitch” was a hit for Disney and “Sinners” caught the imagination of people. But I think that the real story is the broad-based nature of all the different things that are out there. I talked earlier about all the different types of movies that are in theaters and giving people different things to go and check out. Ultimately, that is where our strength lies.
You mentioned ‘Lilo and Stitch,’ and there’s ‘KPop Demon Hunters.’ What do you think of those success stories? Are young kids interested in the movies?
Absolutely. We were encouraged by the numbers that we’ve seen from a report from the National Research Group talking about Gen Z and the number of Gen Z moviegoers who have seen six or more movies in the last year. It has increased 8% since 2023 and is now up to 37%. That’s a really encouraging sign. I do think there is an energy from young people to get to the theater to see different things. They are voracious consumers of content and are very experiential. They want something special, and I think that we’re doing a good job of providing that. A big part of the investment is about making sure that we continue to create unique experiences, so that not just young people, but people of all ages will say, “There’s something special going on at the theater, and I want to be a part of it.”
I was at an AMC the other night, and so many people had the ‘Demon Slayer’ popcorn bucket. How do you feel about the popcorn bucket trend drawing audiences to movie theaters?
That is another example of giving customers what they want. They want to have something special to remember the movie or the trip to the theater by. We’re seeing very positive audience response to that type of offering. It’s probably an area where our industry is still getting up to speed, but there is a lot of opportunity there because people want that.
Last year, you talked about pickleball in theaters. How many are actually now offering that? Are there other fun activities at theaters that you can highlight?
The pickleball thing took on a life of its own. I mentioned that there was a theater in Dallas that had a pickleball court, and the next thing you know, it’s in the headlines everywhere. I’m sure there are other pickleball courts out there. Other things like bowling alleys and arcades are being included in movie theaters. You combine that with restaurants and bars, and many theaters are becoming places where a family can go and spend an economical four or five hours. You’re seeing this evolution of theaters and becoming these big inclusive places where family and movie fans can go and spend hours on end. That’s safe, it’s economical, and it’s an emerging trend in our industry.
Another trend is audiences wanting to see a movie in Imax or on 70mm film. How do you see those premium formats? Do you think the higher returns from premium formats will compensate for there being fewer screens in the future?
The marketplace will decide how many screens there are. Large formats are playing an increasing role in the marketplace. People want to go see those. There were 200 PLF added just in the last year alone, and the global numbers are around 6000, but even with those numbers, it’s a very small percentage of the offerings that are available at the theater. One of the things that we strive for is to make sure that when you go to the theater, there is an experience there that will satisfy what it is you’re looking for. There are a ton of options, and you can pick the ones best suited to you. We’re trying to make the simple point that every experience at the theater should be a premium one, not just because it has the biggest screens and sounds. You cannot sustain this industry solely on PLF; it’s a small fraction, and we need to make sure that there are places that are exciting and experiential for people.
Read the report below.
