This article was written by The Zillennial Zine’s spring editorial intern Ian Ferdock. Find him on Instagram at @ianferdock. If you would like to share an article with The Zillennial, send us an email at thezillennialzine@gmail.com.
Sitting down in the dark theater, the smell of copiously buttered popcorn, the crinkle of overpriced candy wrappers, and your hand creeping ever closer to your crush’s as you reach past a massive soda – all are central to many of our childhood memories. Going out to see a movie with friends or family was a cornerstone of American culture. However, today it’s become a rarity. Between the high cost of tickets and concessions and the ease of streaming, there just doesn’t seem to be the same incentive to go out to see a movie anymore. Box office success is no longer the trademark of epic movies. An entire industry has changed over the last few years. But the real question is, will movie theaters survive?
Pandemic Woes
We might as well start with the obvious. Nearly every aspect of the economy was negatively affected by the pandemic. However, some industries were harder hit than others. Those that revolved around social interaction were among the heaviest casualties. Naturally, the movie theater industry was decimated. Once life started to regain normalcy, there were signs of a remarkable comeback.
Even though theaters rebounded from their abysmal pandemic-related decline, that growth seems to have plateaued significantly. According to AP News, box office sales actually worsened from 2023 to 2024. Reuters reports that in 2024, US and Canadian box office revenue was still 25% lower than in 2019. To further illuminate the current state of affairs, Forbes claims that the entire May 2024 ticket sales were less than Avengers: Endgame in its first eight days in 2019. You must go back to May 1998 to find a worse start to the summer which only grossed $510M.
Covid changed the way Americans interact with the entertainment industry, but it goes beyond health concerns. It seems that a temporary pause from social interaction managed to rewire decades-long habits that may have altered the movie scene forever, but will movie theaters survive those transformations?
Streaming
One of the biggest factors at play here predates the pandemic, which merely accelerated inevitable shifts in the industry. Streaming is now the primary way most people consume movies and television. I remember how cable used to dominate my weekly schedule. I always made sure to tune into the right channel at the right time to catch the latest episode of my favorite shows. But that was basically back when dinosaurs roamed the earth.
Today we can all watch just about whatever we want, whenever we want, wherever we want. The main motivation pushing people to theaters was the only real chance to watch a film for a few months before it came out on DVD. Now, most movies either come directly to streaming platforms or you can rent them within a few weeks of their release. Why would I spend money on tickets and overpriced concessions when I can wait and rent it for $6.99 on Amazon Prime?
In response to the struggle between streaming platforms and theaters, Reuters reports that Cinema United, a trade organization representing the interests of theater owners, has requested a 45-day exclusivity for films aimed at boosting box office revenues. Which is still less than the traditional 90-day monopoly they once harbored. Even if they were able to strike a favorable deal, I’m skeptical it would make a noticeable difference. There’s just so much content available to view on demand. Would a longer delay really reduce the incentive to wait for titles to start streaming?
Exorbitant Prices
Aside from the convenience of streaming, price is also relevant. Most people subscribe to at least a few platforms. When movies become available on Netflix or Max, there is no fee. You just tune in and watch. Even on Amazon Prime, it’s often just a few dollars to watch a recent release. Comparatively, seeing a movie costs as much as it does to fill up my car with gas.
To prove my point with some degree of accuracy I did some in-depth market research. By that I mean I checked the ticket prices of two local theaters. Two tickets at an AMC theater are a whopping $41.05, only $7 less than my last Shell receipt. They sell bundles including popcorn, soda, and candy for nearly $25. So, your basic movie experience actually costs almost $70, and that’s if you split the popcorn. At that price point, there are a lot of things I’d rather do. Luckily, in my neck of the woods, there are some more bougie options. Relatively the same distance from my house is an iPic theater. Tickets are a bit pricier at $46.80 for two, but you do get bigger, comfier seats and a less crowded theater. Plus, with a full dinner menu and bar, I can get buttermilk fried chicken for $19.50 and a beer for $7. Now that’s a much better deal in my eyes.
Yes, these prices will fluctuate depending on where you live, but the point still stands. Going out to see a movie is more expensive than ever. With an already high cost of living, it’s hard to argue that it’s worth it for many people. Especially when you consider the ease and cost-effectiveness of streaming.
Declining Quality
My last hypothesis for the downfall of American movie theaters is entirely anecdotal and my own opinion. I think new movies just kind of suck. There have been a few diamonds in the rough, but overall newer movies are just a bit cumbersome to get through.
For one, a lot of the storylines are overused. Disney has been rampantly releasing remakes of animated classics. Many of which have received tepid reviews at best from viewers. Others, like Snow White, have even resulted in controversy. I’m not going to open that can of worms, but the argument remains.
While they are a subsidiary of Disney, Marvel was once a record-breaking box-office giant. Their classic May releases used to be a crucial part of my birthday-related activities. However, I am so exhausted by the over-used and repetitive multi-verse storylines. Post-Endgame, it’s just not the same, and box office numbers reflect that.
I think producers and directors may be a bit too concerned about the performance of their products. It is tough to make successful movies in a media environment that is increasingly crowded and competitive, but I think productions have suffered as a result.
I see posts all the time about how graphics have become cheesier for a lot of viewers. One example is my all-time favorite movie trilogy, the Lord of the Rings. The original movies relied heavily on makeup and special effects, while their prequel trilogy, The Hobbit, used CGI extensively. The Hobbit was never going to eclipse The Lord of the Rings, but the graphics made it never stand a chance of coming close in my opinion.
Will Movie Theaters Survive?
So, will movie theaters survive? Despite an overwhelmingly negative outlook, I don’t think movie theaters will entirely disappear. However, I do think our relationship with them has changed.
A piece by Marketplace offered a rather sad justification for their resilience. And that’s because of their distinctive architecture. The infrastructure required for movie theaters is so unique that they’re problematic to repurpose. If that is what the industry is holding onto for survival, it certainly doesn’t exude much hope.
For movie theaters to retain an ounce of relevancy, they must evolve. In an age of streaming where choices are often made out of convenience, I don’t think American movie-going culture will ever revert to its pre-Covid levels. But movie theaters can still play an important role in movie culture going forward.
The survival of theaters depends on their ability to offer guests something that staying at home can’t. One example is theaters like iPic. Even though it’s slightly more expensive, it offers an elevated experience. I don’t have to go to two places to get dinner and a movie, it’s all wrapped in one. However, AMC is taking strides to set itself apart as well. They now offer AMC Screen Unseen where the movie is only unveiled at showtime. The element of surprise provides something unattainable at home.
A More Positive Outlook
AP News also offers some seeds of optimism. They argue that the dip from 2023 to 2024 could be in part from the logistical hurdles brought on by strikes. Now that the situation has been resolved, upcoming productions won’t be impacted in the way 2024 releases were. Throughout last year, the release schedule was haphazard with some months barely seeing any films, while others were more crowded. Interestingly, when fewer overall movies are being offered, they all suffer. More films on deck lead to better numbers for all titles.
Additionally, they cite a renewed focus on rereleasing older movies. But I would counter with the point that it just creates an even more stale environment. Another interesting anecdote is that PG movies tended to fare better than others. Moving forward it may make sense for the industry to focus on family-friendly releases for box office sales while placing more mature films on streaming platforms earlier.
Conversely, Axios offers a more realistic assessment even in the face of increased optimism for 2025. Box offices are still a major source of revenue that studios rely on. If they can’t make up ground, then it could be a bad sign for the future. Even as studios have focused on playing sequels and continuing franchises, results haven’t been as good as expected.
Honestly, the downfall of movie theaters makes me kind of sad. It was once such a huge part of my life, but I don’t have the same level of desire to go to a theater anymore. Today I believe the experience I can create at home is better. My dog certainly agrees.
What’s your take, will movie theaters survive? Let us know in the comments!
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