The Cinema in '24

 It's easy to be pessimistic when you look at the reality of the current cinema market. But are these woes overstated? Yes, the industry is being challenged but movie owners look forward to a much steadier footing for 2024. 

Moviegoers are returning to cinemas.

2023 biggest takeaway, for me, was the introduction of concert movies and their direct distribution to theaters. The huge success of the "Taylor Swift: the Eras Tour" and "Renaissance" A Film by Beyonce" opened a whole new revenue stream for cinemas and opened a lot of eyes regarding the screening of not just Hollywood films but an array of entertainment that will be theater-lead. The Paris Olympic Opening Ceremony which will be live-streamed at IMAXs across the U.S. is a great example. 

What's in Store for '24

I believe smaller studios will have a greater impact going forward, for example, 'Civil War' by A24 studio will be a significant box office draw. 'Sound of Freedom" was a perfect example of a great big-screen success by a small studio last year.

Cinema owners/managers need to become marketers and not rely on the major studios to do 100% of the marketing - the exhibition industry is beyond that. Let's look at the collectibles and merch business. Many moviegoers are also big fans of the movies they view at cinemas. Collectibles are a major part of the concession sales at cinema. The special cup, the T-shirt, the hat, etc. are all examples of merch cinemas can sell and, in many cases, wrap that merch around concession items. 

As it turns out, going to the cinema is now one of the most economical of entertainment spends. It's much less expensive to go to the movies then attend a game, concert, museum, live performance, etc. According to the National Association of Theater Owners (NATO), cinema loyalty programs are highest in households with income under $40,000 per year vs. those with incomes over $120,000.

So, pessimistic no - there are many trends that appear to be favorable for exhibitors over the next 3-5 years.

By: Jim Lavorato, Entertainment Equipment Corp.