The State of Movie Theater Attendance Amid Industry Challenges
While some may believe that movie theaters like Cineplex are struggling to turn a profit, the reality is more nuanced. According to data, movie theater attendance in the US and Canada has been on a steady decline. Specific factors like the timing of movie releases and the rise of streaming services are contributing to this trend.
Is Cineplex Making Any Money?
When it comes to Cineplex, or any other theater chain, revenue can fluctuate greatly depending on the time of day and the movie being shown. For example, a theater might be nearly empty in the early morning or afternoon. Witnessing this firsthand, I attended a screening of Guardians of the Galaxy Vol. 2 in the late morning hours and found the theater surprisingly empty, with only a handful of other patrons in attendance.
However, it's important to consider the timing. Most people choose to attend movies during evening hours, when ticket sales are at their peak. Even though this might not always be the case, it's crucial to note that people still do go to the movies. In the 14 weeks prior to writing this piece, I managed to watch nine different films, a testament to the enduring popularity of cinema.
Industry Trends in Recent Years
According to Bloomberg, movie theater attendance in the US and Canada hit its lowest point since at least 1992. Box Office Mojo estimates that around 1.24 billion tickets were sold in 2017, representing a 5.8 percent drop from the previous year. Despite higher ticket prices, domestic revenue also saw a decline of 2.7 percent, from 11.4 billion to 11.1 billion.
While the domestic market is experiencing a slump, the global box office revenue has been on the rise. The Hollywood Reporter reported that the global box office revenue hit a record 40 billion, an increase of 3 percent worldwide. This suggests that while theaters in North America may be struggling, international audiences are still enthusiastic about cinema.
The slump in domestic ticket sales can be attributed to several factors. One of the main issues is the poor performance of summer blockbusters. According to the LA Times, the number of tickets sold from May through Labor Day in 2017 was down 16 percent from the previous year. Ethereal films like The Mummy, Baywatch, and the Pirates of the Caribbean franchise had a particularly poor showing during this period.
Challenges Facing Theaters
The movie theater industry is facing numerous challenges, including the rise of streaming services. Platforms like Netflix, Amazon, and HBO Go offer an increasing number of entertainment options, making it more appealing for people to stay at home. Additionally, ticket prices continue to rise, which can be a deterrent for moviegoers. In an attempt to address this, startups like MoviePass are introducing subscription services to enhance the movie-going experience.
Despite these challenges, cinema remains one of the most popular forms of entertainment. The highest-grossing film of 2017, Star Wars: The Last Jedi, has earned over one billion dollars worldwide, showcasing the enduring appeal of blockbuster movies and the enduring strength of the movie theater industry in international markets.
The future of movie theaters may be uncertain, but data indicates that Cineplex and other theater chains continue to struggle with attendance fluctuations. However, by understanding the complex factors at play, we can better appreciate the importance of cinema as a cultural institution and the role it plays in our lives.