Are Theatres in Critical Condition?
The movie industry is going through a transformation, and as with any change, some things will survive while others won’t. With the rise of subscription-based streaming services like Netflix, Prime, Max, etc., the American public is increasingly relying on them. This is causing some major movie chains to struggle financially.
Every entity has contributed to a change in America’s viewing habits. Hollywood has been incorporating politically and socially charged messages into many of their movies. However, most of these themes and messages are from the woke far left, and they have not been well-received by the audience. Disney is a prime example of this trend. They have recently released a string of unsuccessful movies that cost the studio a whopping $1.4 billion last year. The public is sending a clear message, but Hollywood has failed to listen to it thus far. People watch movies for entertainment, not to be indoctrinated or lectured.
The traditional starting point for new movies was in theaters. However, even before the Hollywood indoctrination era, theaters were becoming expensive. The cost of two tickets, popcorn, some candy, and a couple of drinks could easily exceed $35-$40.
Not that long ago, we used to think that paying a high price for a movie ticket was normal as long as we enjoyed a good movie. However, the problem was that not every movie was worth the price, and we often left the theater feeling disappointed. Nowadays, the situation is different. With so many entertainment options available at home, many people no longer feel the need to leave their house. They can comfortably snack, take a bathroom break, pause the movie, and do whatever they want while at home. Additionally, if they don’t like the movie they’re watching, they can simply switch to something else. Moreover, the prices of everything have gone up, including the cost of gas required to get to the theater.
The traditional way of distributing movies is undergoing a significant transformation as evidenced by the recent decline of AMC Entertainment’s stock price. The company, which runs the largest cinema chain in the United States, experienced a 16% drop in its stock last week, as reported by Deadline.
AMC is currently facing a difficult financial situation due to its pre-COVID expansion. To offset the debt, the company is considering selling $250 million in stock. According to Deadline, the company’s poor financial management, combined with low cash flow from a soft box office, has left the expansive theater chain in a precarious position. Unfortunately, the outlook for AMC at present is not positive.
The bloom is clearly off the rose concerning the movie-going experience. According to a March IndieWire poll, two-thirds of American adults preferred watching movies at home via streaming, over going to the movies. Learning that 75 percent of adults prefer to avoid your product is not good news for theatres.
.Based on the results of 2023, it seems like this year’s box office returns won’t be any better. Studios are starting to realize the dangers of investing huge budgets in movies. Massive budgets require equally big box office returns, and that’s becoming increasingly risky as more people are choosing to stay at home instead of going to the movies.
This social change is well underway and although it won’t happen overnight theatres seem to be heading down the same path as dinosaurs and the Dodo bird.
