Movie Theater Chains Invest $2.2B In Upgrades Amid Box Office Rebound

North American movie theater owners are committing $2.2 billion to theater upgrades over the next three years, aiming to capitalize on Hollywood’s box office recovery in 2024. The National Association of Theatre Owners announced the fresh investments on Thursday, as exhibitors seek to lure moviegoers back to cinemas with enhanced amenities and a more premium viewing experience.

“There is no question that movie fans of all ages love heading to the local theater to see great movies on the big screen,” said Michael O’Leary, NATO president and CEO. “But the competition for consumers’ hard-earned dollars is fiercer than ever.”

The industry has been facing challenges in the streaming era, as audiences have more options for at-home entertainment.

The planned upgrades come after major box office successes in 2023, with studio hits such as Inside Out 2, Deadpool & Wolverine, Bad Boys: Ride or Die, It Ends With Us and Despicable Me 4 drawing large crowds to multiplexes. The theater investments are part of a broader strategy to continue enticing cinema-goers despite competition from streaming platforms and the lingering impacts of the pandemic.

“Going to the theater is an unparalleled entertainment experience, and exhibitors are dedicated to making every visit to their theaters memorable,” O’Leary added. “This investment reflects that commitment in a tangible way that every moviegoer will see and enjoy.”

The funding will come from eight major theater chains in the U.S. and Canada, including AMC Entertainment, Regal Cinemas, Cinemark, Cineplex, Marcus Theatres, B&B Theatres, Harkins Theatres and Santikos Entertainment. Together, these chains operate over 21,000 screens and account for more than two-thirds of the North American box office.

The upgrades will include luxury recliners, laser projection technology, immersive sound systems, expanded food and beverage offerings and additional amenities like arcades and bowling. Theater owners are also focusing on improvements to air conditioning, lighting, signage and carpeting to further enhance the moviegoing experience.

These enhancements follow a rebound in box office performance, driven by films like Kingdom of the Planet of the Apes and Twisters, and highlight the role of premium offerings such a IMAX in boosting revenue per customer.