Just about a year ago, we saw the largest cinema circuits in North America pledge to invest north of $2B in modernizing and upgrading the American cinema experience. How far have they gotten? We have our entertainment attorney at Blake & Wang P.A., Brandon Blake, to share the news.
$1.5B Already Invested
Over the last 12 months, over $1.5B in upgrades and new builds, including $920M from the largest 8 chains, has been spent. Not bad, for the first year in a three-year plan. Especially as we see box office volumes, on the audience and the slate side, accelerating alongside them.
These upgrades and modernizations have been identified as a key facet in adapting the exhibition industry to the “new normal” of younger, more demanding audiences wanting their entertainment choices to be more experiential and offer more value than sitting on the couch with their streaming services.
Knock-On Impacts
We are seeing new fits cover everything from revitalized multi-screen theaters and reopening those that had shuttered. However, we are also seeing some chains, especially those looking for a luxury “rebrand” of sorts, explore options from bringing in alternate entertainment (from bowling to, reportedly, axe throwing) to improving the behind-the-scenes experience with new projectors, screens, and sound systems. Adding extended food and beverage options, up to near-restaurant experiences in some cases, has also been popular.
Bringing new life back to the cinema as an entertainment focal point isn’t just about the chain’s pockets, either. Recreating the cinema experience as a go-to entertainment destination helps to feed back into the communities they support as well, making it a win-win for everyone.
All in all, it’s encouraging to see cinemas take the need to modernize so seriously, and it will be interesting to see how these upgraded and enhanced amenities contribute to the box office in the coming years.
Film and Television 