Movies and Movie Theaters: What’s Next?

There is plenty of uncertainty in the world today, especially stateside where numerous states continue to struggle with the outbreak of cases and increasing death rates. As state governments attempt to open cautiously and carefully, one industry continues to be on the backburner: movie theaters. 

The unfortunate reality is that movie theaters were already struggling before COVID-19 hit. According to the New York Times, 2019 attendance totaled roughly 1.2 billion, a 25% drop — even though the U.S. population increased by approximately 15%. Revenue had remained high by raising ticket prices, but the increase in streaming services and the convenience of watching films at home continue to cut into the market share of movie theaters.

AMC vs. Universal Pictures

Since March 2020, movie studios and movie theaters have struggled to see eye to eye. Movie theaters across the country closed, and have almost entirely remained closed since then. Tensions between AMC Theaters and Universal Pictures reached a fever pitch in late April when the world’s largest theater chain announced they would no longer play films from one of the biggest Hollywood studios.

The real battle was ignited when NBCUniversal’s CEO Jeff Shell suggested that Universal may begin simultaneously releasing some movies in theaters and on-demand, even after the pandemic.

Regal’s Wishful Thinking

Just last week Regal Cinemas announced their plans for re-opening on August 21st. As the nation’s second-largest movie theater chain their bold plans did not go unnoticed — but the curious part is that next to zero health departments across the country have even given movie theaters permission to open. On the positive side, the precautions they laid out appear to be well-thought-out, including: 

  • Contactless payment
  • Sanitizing every auditorium and sear after each movie with electrostatic “fogger” equipment
  • Masks required for staff and guests
  • No vending machines, water fountains, self-serve condiment stands, or arcade games
  • Limited seating capacity (50%) and two empty seats between groups

A Renaissance for Drive-in Theaters

Outdoor movie theaters have enjoyed renewed and vigorous interest across the country in the midst of the pandemic, and there’s even talk of Floating Cinema coming to California and other states. But both of these exciting ways to watch film will only further drive the proverbial nail into the coffin of modern movie theater companies.

The Unfortunate Truth

The cold, hard truth of movie theaters is that they continue to be shunted aside — whether it be government health officials or customers opting to stream movies and stay home. Many online services have not slowed down since the pandemic; most notably Hulu recently released Palm Springs (July 10) on their streaming platform, which has received a very positive reception. 

Movie theaters are fighting an uphill battle on two fronts, and the future appears bleak for them right now. I’m hopeful that we can fight back the virus, that the vaccine will be readied in record time — but I worry that going to the movie theaters is one activity that will continue to die a slow death if things don’t change drastically and quickly. 

The only bright spot is that Hollywood continues to churn out movies, whether it’s Netflix, Hulu, or the major studios — and we can expect them to be showing at a streaming service near you. Now I’m going to go watch Palm Springs again and cheer myself up!

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Contributor, designer & admin for JohnHart Gazette.

About JohnHart Real Estate

Contributor, designer & admin for JohnHart Gazette.

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