As a lifelong movie enthusiast who has witnessed the evolution of cinema from the golden age of Hollywood to the digital revolution, I can confidently say that the future of theatrical exhibition looks brighter than ever. Despite the initial gloom cast by the box office numbers for 2024, a closer look at the industry paints a more optimistic picture.
In 2024, the National Association of Theatre Owners is emphasizing the robustness of cinema-going, arguing that ticket sales alone don’t fully convey the situation.
A NATO report published on Wednesday reveals that annual income could decrease by as much as 5% compared to 2023. This drop is attributed to a slowdown in product sales due to labor strikes and delays in post-production caused by the pandemic. However, there’s some positive news: revenue loss was only 11% before Thanksgiving.
Michael O’Leary, head of NATO (North Atlantic Treaty Organization, not Ryanair), argues against using box office earnings as the sole indicator of a movie’s success. He suggests that, more than any other industry, the performance of films is often measured by weekly box office returns. However, this traditional approach does not provide a complete picture of the health or potential of the film industry or exhibition, according to O’Leary. As we approach 2025, it’s crucial to delve deeper and examine other key factors that highlight the resilience and promising future of movie theaters.
In preparing its report, NATO collaborated with multiple independent research organizations. The focus of this collaboration was on key indicators such as customer interest, financial commitments within the market, and expansion of loyalty schemes.
According to the report, about 76% of Americans aged 12 to 74 went to at least one movie theater this year, which equates to roughly 200 million individuals. This finding aligns with moviegoing trends prior to the pandemic, as stated by NATO. Notably, movie theaters attract more people each year than all of the NFL, MLB, NBA, and NHL combined.
As a gamer, I’d be thrilled if by 2025, 85% of fellow Americans would be planning to hit the cinemas just as much, or even more frequently, than they did this year! Can’t wait for those blockbuster experiences on the big screen.
72% of the participants in a global cinema-going poll (over 96,000 individuals from 14 different countries surveyed by the Global Cinema Federation) have either increased their visits to the cinema or maintained the same frequency over the past six months.
According to the study’s findings, it was discovered that for both girls and boys within the Gen Z age group (10-24 years old), going to watch a movie on its opening weekend is their most favored activity, taking precedence over other activities regardless of time or financial constraints. This preference is particularly strong among female Gen Z members, with the second favorite activity being different for male Gen Z individuals.
In the year 2024, Latino cinema-goers significantly contributed to the box office success, accounting for 27% of those who watched six or more films. Furthermore, a notable 45% of Latino viewers expressed a preference for watching movies on their opening weekend, which is 11% higher than the general movie-going audience as a whole.
The NATO report highlighted that the leading eight exhibition circuits are planning to invest over $2.2 billion in enhancements over the next three years. These improvements span a wide range, including advanced projection, sound systems, larger screens, updated food and beverage facilities, improved signage, lighting, and common areas for a more modern and appealing experience.
A notable surge in consumer interest is observed for high-end cinemas with expansive screens, such as Imax. As per Comscore, there are currently 950 theaters in North America equipped with large-screen formats, marking a 37% growth compared to five years back. Furthermore, the global count of these premium large format (PLF) screens has significantly risen from 2016, reaching approximately 5,700, according to Omdia.
According to the NATO report, although people seem to be attracted to different large-screen formats, it’s crucial to remember that these screens account for just 9% of the total annual domestic box office revenue. Moreover, each cinema at your local theater offers a premium viewing experience.
The NATO report further emphasized that while blockbusters are essential for the film industry’s prosperity, they aren’t the whole story. The report suggested that to ensure longevity and profitability, lower-budget films should also have a place. It pointed out that genres such as comedies, family movies, horror flicks, and others are equally popular among audiences in cinemas. Notably, the number of comedy films shown in theaters grew by 5% in 2024, while horror saw a significant jump of 38%. Moreover, the release of independent films in 2024 increased by 25% compared to 2022.
Another notable point: There was a 12% increase in new memberships for loyalty programs in the U.S. and Canada between 2023 and 2024, with now more than 118.9 million individuals enrolled as loyalty club members.
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2024-12-18 21:56