Major movie theater chains unveil a $2.2 billion makeover plan
The three-year investment comes amid a recent resurgence at the box office following dual Hollywood strikes and the Covid-19 pandemic that shuttered theaters and limited the number of releases.
By Jordan Valinsky, CNN
New York (CNN) — With movies hitting streaming services faster than ever and consumers cutting back on spending, moviegoers might feel a bit less enthused to head to their multiplex these days. That’s why the biggest theater chains in the United States and Canada have a $2.2 billion plan to bring them back.
An industry group that represents the eight largest chains including AMC Entertainment, Regal Cinemas and Cinemark announced a multibillion dollar renovation plan that encompasses 21,000 screens — or nearly 70% of the North American box office — and affects every part of the theater experience from signage to snacks and snazzier seats.
The three-year investment comes amid a recent resurgence at the box office following dual Hollywood strikes and the Covid-19 pandemic that shuttered theaters and limited the number of releases. Large chains are also facing competition from luxury theaters offering an enhanced viewing experience, like IPIC Theaters and Alamo Drafthouse. The latter was recently bought by Sony Pictures Entertainment.
The National Association of Theatre Owners (NATO) said Thursday that it recognizes “competition for consumers’ hard-earned dollars is fiercer than ever” and that the renovations are a “tangible way” for moviegoers to experience.
The renovations will “modernize and improve” theaters of all sizes, including the newest in projection technology, better sound systems and seating, plus improving concessions and even adding arcades or bowling, NATO said. Better air conditioning, new signs and revamped carpeting are also included in the plan.
A breakdown of how much each theater chain would spend wasn’t released. The funding will come from the influx of profits and fresh capital, according to the trade group. In July, Regal announced it would spend $250 million to remodel its 400 locations following its parent company’s exit from bankruptcy.
The $2.2 billion investment shows “no better reflection of confidence” about movie theaters’ future, Paul Dergarabedian, senior analyst at Comscore, told CNN.
“While the movie theater business has its ups-and-downs like any other, the through line is that you should never bet against the big screen experience as it has survived and thrived through decades of challenges and intense competition and yet remains an essential part of the entertainment diet for people around the world,” he said.
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