The movie theater industry finds itself at a pivotal crossroads as cinema attendance slowly recovers but remains fragile compared to pre-COVID levels.
While more moviegoers have returned to theaters this year compared to 2023, domestic ticket sales continue trailing pre-pandemic numbers by roughly 20%. The rise of streaming platforms has created fierce competition, and industry insiders express concern about potential consolidation effects on film releases as Warner Bros. faces possible new ownership under Paramount.
Against this uncertain backdrop, film industry executives and cinema operators are meeting this week in Las Vegas for CinemaCon, the yearly trade conference that gained wider recognition through Seth Rogen’s series “The Studio” and its portrayal of “old school Hollywood buffet” culture. However, real entertainment industry leaders face more pressing matters than party planning.
Producer Jerry Bruckheimer, known for “F1” and “Top Gun: Maverick,” recently stated: “We are at a defining point in the future of this industry.”
Bruckheimer has joined forces with “Oppenheimer” producer Emma Thomas and “Sinners” director Ryan Coogler to tackle these challenges head-on. Cinema United, representing approximately 60,000 movie screens across the United States and internationally, announced last week that Bruckheimer will lead their new filmmaker leadership council, with Thomas serving as deputy chair and Coogler among the founding participants.
The council also includes Brad Bird, Celine Song and Jason Reitman, who will provide guidance on key industry challenges such as theatrical release windows – the exclusive period films play in cinemas before becoming available for home purchase or rental – and market consolidation.
“Our industry is strongest when it works together to promote the singular experience of seeing a movie on the big screen,” Cinema United president and CEO Michael O’Leary said in a statement. “The importance of having Jerry and Emma at the helm of this initiative, at such a critical time for our industry, cannot be overstated.”
Much discussion will center on Paramount’s proposed acquisition of Warner Bros. Both companies plan separate presentations to theater owners – Warner Bros. on Tuesday and Paramount on Thursday. Industry observers wonder whether executives will directly address the merger concerns from the stage, similar to former 20th Century Fox Chair and CEO Stacey Snider’s approach during the 2018 Disney acquisition discussions.
Although Paramount Skydance chairman and CEO David Ellison has expressed intentions to expand the combined studio’s annual film output to over 30 movies, organizations like Cinema United remain apprehensive.
Historically, studio consolidation has resulted in fewer theatrical releases. The pandemic, industry strikes, streaming service expansion, and financial uncertainty have already impacted release schedules. In 2019, theaters showed 112 wide releases – films opening in more than 2,000 venues. This year marks the first time since the pandemic that number has increased, reaching 115 according to Comscore data.
Despite challenges, CinemaCon typically maintains an upbeat atmosphere. Studios invest significantly in bringing stars and exclusive footage, indicating genuine optimism about upcoming projects.
Universal’s domestic distribution president Jim Orr described the conference mood as “very optimistic.”
“The first part of the year we’ve seen some extraordinary titles and great business, including our own ‘Super Mario Galaxy Movie,’” Orr said. “I think it should be quite the celebration in Vegas this year.”
This summer’s lineup includes Christopher Nolan’s “The Odyssey,” a Steven Spielberg science fiction film, a Star Wars installment, live-action “Moana,” a fifth Toy Story movie, and a new “Spider-Man” film. Later this year brings another Marvel release, “Avengers: Doomsday” and the third “Dune” film, both scheduled for December 18. Some wonder if this “Dunesday” could replicate the “Barbenheimer” phenomenon.
Recent positive developments include growing audience interest in premium large-format experiences like IMAX and 70mm screenings, plus a surge in PG-rated film success indicating families and younger viewers haven’t completely abandoned theaters for home viewing.
Recent hits like “Project Hail Mary,” “Hoppers” and “Wuthering Heights” demonstrate that non-franchise films can still draw audiences, though tentpole releases like “The Super Mario Galaxy Movie” remain crucial.
“At least from the box-office perspective, we are going in on a very positive note,” said Paul Dergarabedian, who heads marketplace trends for Comscore.
Industry veterans frequently note that the business has weathered previous existential threats, including streaming, piracy, VHS, and television.
Thomas, who is producing “The Odyssey,” highlighted the “profound cultural value in gathering together with a group of strangers and connecting while experiencing something special on the big screen” in her statement about partnering with the theater trade organization.
“That is what this is about: making sure that cinemas of all sizes, around the world, can continue to present our stories in the best possible setting, so movie fans of all ages can enjoy them as they were intended to be seen,” Thomas said.
