As the box office surges, the exhibition industry confidently invests in the future
LOS ANGELES, CA – September 19, 2024 – Theatre owners across the United States and Canada today reaffirmed their commitment to providing moviegoers with the memorable entertainment experiences they expect and deserve. The National Association of Theatre Owners (Cinema United), which represents theatre owners around the world, announced that the eight largest theatre chains in the United States and Canada, representing over 21,000 screens and 67% of the box office, will invest more than $2.2 billion to modernize and upgrade theatres of all sizes over the next three years. Since the inception of exhibition over a century ago, reinvesting in theatres has been a hallmark of the industry. Today’s announcement signals a continuation of that legacy that will benefit moviegoers in communities everywhere.
“There is no question that movie fans of all ages love heading to the local theatre to see great movies on the big screen. But the competition for consumers’ hard-earned dollars is fiercer than ever,” said Cinema United President & CEO Michael O’Leary. “Going to the theatre is an unparalleled entertainment experience, and exhibitors are dedicated to making every visit to their theatres memorable. This investment reflects that commitment in a tangible way that every moviegoer will see and enjoy.”
Cinema United projects that the funds will be used on an array of projects to modernize and improve theatres of all sizes. These updates include adding the latest laser projection technology and immersive sound systems, installing more comfortable seating, enhancing food and beverage offerings, creating family entertainment options such as arcades and bowling, and investing in core site elements like state-of-the-art air conditioning, lighting, signage and carpeting.
“Today’s consumers rightly demand the best possible experience when they visit our theatres. Operating a theatre today is a capital-intensive operation,” said Cinema United Executive Board Chair and CEO of B&B Theatres, Bob Bagby. “This investment of resources is the next step in our industry’s ongoing commitment to ensuring that going to the theatre remains a unique and special experience for generations to come.”
The investment projections above came from a range of Cinema United members that included national and regional chains. Movie theatres are cornerstones in their local communities, providing first jobs, hosting first dates, offering affordable and accessible entertainment, and attracting consumers to retail and entertainment centers. The eight companies that reported to Cinema United represent over 1,600 site locations and cover all 50 states and Canada: AMC Entertainment Inc., Regal Cinemas, Cinemark USA, Inc., Cineplex, Marcus Theatres Corp., B&B Theatres, Harkins Theatres, and Santikos Entertainment.
Cinema United’s The Cinema Foundation hosted a session at the Toronto International Film Festival on Sept. 6 titled “How Theatres are Event-izing the Moviegoing Experience.”
Moderated by Bryan Braunlich, Executive Director of The Cinema Foundation, the TIFF event was a standing-room-only session, featuring RogerEbert.com film critic Monica Castillo (who is also senior film programmer for the Jacob Burns Film Center in Pleasantville, NY), Sara Moore, the Chief Marketing Officer for Cineplex Entertainment, and Erik Davis, Director of Social Content & Strategy for Fandango. The panelists shared observations, anecdotes and data on how elevated concessions and rewards, community connection, live entertainment, creator engagement, alternative content, must-have merchandise, and memorable in-theatre activations are all contributing to moviegoing enjoyment. Many thanks to the TIFF industry Conference Team, Beth Janson at The Cinema Foundation, and Michelle Saba at Cineplex for their support in putting together a fantastic event.
Amanda Martin brings a distinctive background to her role as the National Association of Theatre Owners’ Chief of Staff, including experience in the video game industry and the U.S. Congress. Martin previously worked with Michael O’Leary, Cinema United president and CEO, at the Entertainment Software Association (ESA). Before her time at the ESA, she worked as district staff for Eric Swalwell, a California congressman. Martin’s familial ties to the movie theatre industry have provided a meaningful connection to her work at Cinema United, marking a significant chapter in her professional journey.
What are your core responsibilities as chief of staff at Cinema United?
My biggest responsibility is helping to manage the strategic and operational direction of Cinema United. I work closely with all of the great people at Cinema United and theatre owners on various issues. An important example is our three-year strategic plan. I work closely with the Cinema United Strategic Planning Committee, Cinema United members, and Cinema United staff to implement the plan. I have projects that I am responsible for, but I am also here to support and help everyone at Cinema United to be successful. I also work closely with Michael as a sounding board to help him focus on the organization’s priorities.
What specific initiatives are you working on that you are excited about?
We are always focused on providing value to our members. This year, we launched a webinar series to promptly educate our members on important issues. It’s an ever-evolving project where the Cinema United team identifies meaningful topics, puts together panels, and executes the webinar. This has been a fun and rewarding effort that directly benefits our members.
You came to exhibition from the video game industry. Did you take anything from your time in video games that has helped you in this industry?
My biggest takeaway from the video game industry is their commitment to innovation. Video games are a relatively new form of entertainment, but I was amazed at how many companies don’t just view their video games as entertainment. They use them in education, military training, medical training, and even disease treatment. That innovative thinking and use of entertainment in nontraditional ways to help people is something I like to explore with my approach to exhibition.
You led the effort to create the “Behind the Screens: Faces of Exhibition” video series that was a hit at CinemaCon. What did you learn from that process?
“Behind the Screens” was an amazing project to work on. The process showed me the power of telling our members’ stories and that our members’ stories resonate and inspire people outside of exhibition. I think of Emelyn Stuart, who initially got into exhibition because she wanted a place to see the stories she cared about. How many people across the country and globally can be inspired by and relate to going out and filling a gap in their community? Or Shankweiler’s Drive-in, where Lauren McChesney and Matt McClanahan saw that a drive-in they loved would be sold to a developer. They didn’t want to lose that important cultural hub for their community, so they bought and now operate that theatre. As an advocate, I talk about theatres’ cultural and economic impact, but the stories in these videos make it real, and people responded positively to them.
When you look to the future, what is the most important thing Cinema United can do for exhibition?
One of the core things any successful trade association must do is prioritize education for its members, making them aware of trends, new technologies, and innovations by other exhibitors and outside industries. We launched the webinar series, the ITOC calls, education at CinemaCon, and the Fall Summit as a way for Cinema United to help our members look forward. Everything we do should help our members succeed in the marketplace.
In your capacity, you work with many Cinema United members of all sizes and from different places around the world. What is your biggest takeaway from the theatre owners you talk with?
The greatest joy I have in interacting with members of all sizes is seeing their passion for the industry and the theatrical experience. Our members from big cities, small towns, and across the globe are always innovating and looking to elevate the experience for moviegoers. They are also willing to jump in and volunteer to help—not just the Cinema United staff but their fellow members—and it has been a driving force behind the work we do here at Cinema United.
In addition to being chief of staff, you are also a government affairs advocate for exhibition at the state and federal level. Tell us about that. Is it something you enjoy?
I have always had an interest and passion for politics, for better or for worse, so scratching that advocacy itch on the state and federal level has been fun. I was eighth-grade class president, ran a political club in college, worked on campaigns, and worked for my local congressional member, so it is nice I have been able to do this throughout my career. The political nerd in me still gets excited to go up to Capitol Hill and talk with congressional staffers.
You worked for a member of Congress, in the video game industry, and now in exhibition. Was there a point in your career or background when you thought you might work in the movie industry?
I never thought I would work in the movie industry, but it became a full-circle moment for me and my family. rom the ‘60s to the ‘90s, my grandpa Ralph L. Martin and family owned several movie theatres and drive-ins in California, mostly in the Bay Area and Central California, and many were devoted to Spanish language movies. They ran the gamut. My grandpa worked at his first theatre in Mountain View, California, with his uncle in the 1930s. Later on, he owned theatres with former Cinema United Chair Phil Harris, and with longtime family friend, Cinema United member Jerry Harrah.
On Wednesday, August 7th, the Cinema United Technology Committee, represented by Matt Basford (Regal), Cynthia Pierce (AMC), Brock Bagby (B&B), Kirk Griffin (Harkins), Chris Johnson (Classic Cinemas), and Mark Latimer (AMC) spent a day in Los Angeles visiting with studio leaders at Disney, Universal, Warner Bros. and Paramount, as well as DCI (Digital Cinema Initiatives). Michael O’Leary and Erin Von Hoetzendorff also joined the meetings.
The Cinema United delegation discussed important topics of mutual interest between exhibitors and studios regarding the ever-evolving landscape of cinema presentation technology. These meetings were a collaborative effort that recognizes the shared interest of exhibition and distribution to ensure that audiences continue to have the best moviegoing experiences in cinema auditoriums across the world. Topics ranged from captioning on trailers to immersive audio and high dynamic range images. Given the rapid pace of technological advancement in cinema, these were another set of constructive discussions, and something the tech committee plans to continue to build on in the future.
Cinema United members can tune in for a recap of the meetings and important technology updates from the Tech Committee leaders on Wednesday, August 21 at 9:30 am PT/12:30 pm ET.
By Michael O’Leary President & CEO, National Association of Theatre Owners
As we enter the final weeks of the summer season, this is a moment to take stock of where the theatrical exhibition business stands and how we have performed against the expectations that were set in January. While predictions are always that the sky is falling for theatrical, the truth is that our industry continues to demonstrate adaptability and resilience–amidst wholesale reinvention and change in the entertainment industry–that should give both movie fans and investors optimism for the future.
First, we entered 2024 knowing that the 2023 labor impasse would be a temporary setback, and we responded by finding new ways to bring consumers through the doors during a difficult time. The impact of the strike was real, but it was also simply the latest hurdle for our industry to overcome. Our industry has not had a “normal” marketplace for a meaningful period in nearly five years. But the success we are seeing this summer–setting box office records for the biggest animated film of all time (Inside Out 2) and the biggest domestic R-rated movie of all time (Deadpool & Wolverine)–is a strong signal that audience loyalty endures when theatres deliver a viewing experience that can’t be found anywhere else. The release of fewer new movies was a temporary setback, not a new reality.
Second, we saw continued evidence this year that studios of all sizes are committed to the theatrical experience. Why? Because they understand that the return on investment for a single movie—both culturally and economically—cannot be realized without a robust theatrical release. This is truer than ever in our fractured media environment.
Third, young audiences–one of the most desired demographics with the most competing demands on their entertainment time–continue to enthusiastically seek out the big screen. 18-24 year olds made up 31% of Deadpool & Wolverine‘s record-setting $211 million debut, which made them the largest age group to embrace the superhero flick. For Inside Out 2, 51% of the audience was between 18-34, and the largest age group was 13-17 years old with 31%. Last year, young audiences embraced the Barbenheimer phenomenon: 18-24 year olds were the biggest part of Barbie‘s opening weekend with a 27% share, while 18-24 year olds also led all demos with 33% of Oppenheimer‘s debut. The suggestion that young people are not going to the theatre is incorrect. Like audiences of all ages, young people respond when there is something compelling to see. Through dynamic social media campaigns, movie theatres have been able to build a relationship with their customers–particularly young customers–online that creates loyalty and enthusiasm. These campaigns produce a cultural impact that no other out-of-home entertainment option can come close to matching.
Finally, it’s important to recognize that the structure of our industry is constantly changing. While there are fewer movie screens in the United States than there were a few years ago, that doesn’t tell the whole story. Many closed theatres are purchased, upgraded, and successfully re-opened. The total number has always ebbed and flowed, and that is true today as well. But the reality is that theatres are economic anchors in communities around the world, generating more spending in the restaurants and stores around them. There is so much great innovation taking place across the country to provide consumers of all ages the experiences they want. Ultimately, the marketplace will set the number of screens as it always has, but the enthusiasm for moviegoing remains strong.
As an industry, theatrical has demonstrated a resilience and consistency that make us well equipped to continue to evolve and thrive as the entire entertainment industry continues to grapple with change and reinvention.
“We are thrilled to see Deadpool & Wolverine bringing people to theaters for the biggest opening weekend ever for an R-rated movie,” said Michael O’Leary, Cinema United’s President & CEO. “This is the kind of movie you want to experience on the big screen and the historic level of enthusiasm this weekend reminds us yet again that audiences know there is no experience like theatrical. We also know that when people go to the movies, they want to come back — so we are excited to capitalize on this weekend’s energy with a robust theatrical slate in months to come.”
The National Association of Theatre Owners/Cinema United has announced that Mike Bowers, President & CEO of Harkins Theatres, has been appointed as the new chair of its non-profit organization, The Cinema Foundation. Bowers takes over from Tim Handren, who recently retired as CEO of Santikos Theatres. Tori A. Baker, the CEO and President of the Salt Lake Film Society, will continue to lead as the Vice Chair of The Cinema Foundation.
With nearly 40 years in the theatre industry, Bowers has introduced groundbreaking innovations to the moviegoing experience and has led Harkins Theatres through significant growth and expansion from a local operator with six locations to the 5th highest grossing exhibitor in the United States and the highest performing company per location. In addition to his new role as the chair of The Cinema Foundation, Bowers is the Vice Chair of the Cinema United Executive Board, a member of The Greater Phoenix Leadership Council, on the committee for CEO’s Against Cancer for the American Cancer Society, a frequent consultant for the theatrical entertainment industry and a member of the International Council of Shopping Centers.
“I’m thrilled to join the team behind The Cinema Foundation led by Bryan Braunlich with the goal of strengthening the cinema industry and engaging moviegoing audiences around the country,” says Bowers. “It’s a true honor to serve as the chair of this foundation for a great industry.”
“Mike is one of our most strategic, dedicated and passionate ambassadors for the cinema industry and for the importance of movie theatres as cornerstones serving our communities” says Bryan Braunlich, Executive Director of The Cinema Foundation. “We’re fortunate to have him as our chair.”
Since its inception, the Foundation has collaborated with Cinema United members, studios, vendors, partners and creatives to organize industry promotional events like National Cinema Day, National Popcorn Day and other programs bringing millions of film fans to theaters in overwhelming numbers.
Phoenix Theatres opened a brand-new theater destination at Great Northern Mall in North Olmsted, Ohio, on Thursday, June 13, 2024. The cinema boasts state-of-the-art features including Cleveland’s largest screens, up to 60 feet wide, equipped with Dolby ATMOS for immersive sound. Each auditorium features heated reclining seats with reserved ticketing options. The new theatre aims to redefine the movie-going experience with advanced technology and classic design elements, including a specially designed vertical sign reminiscent of the classic signage associated with 1920s movie palaces. The grand opening featured premieres of Inside Out 2 and Bad Boys 2, and continues through the summer with a lineup of blockbuster films.
Celluloid Junkie has released their annual Top Women in Global Cinema list, and Cinema United’s Erin Von Hoetzendorff made the list this year.
From Celluloid Junkie: Erin Von Hoetzendorff currently serves as the Director of Membership and Global Affairs at the National Association of Theatre Owners (Cinema United). Over her six plus years at Cinema United, she has excelled in establishing and nurturing relationships with members of varying sizes, spearheading key initiatives such as Cinema United’s Ambassador Program, and managing member interactions. She oversees multiple committees and communities within Cinema United, including Young Members, Membership, International, and Technology. She also works as a staff liaison to the Global Cinema Federation. Von Hoetzendorff is active in the industry, currently serving as Secretary of Film Row, and formerly serving as administrator of Inter-Society, underscoring her commitment to advancing the global cinema sector.
Statement of the National Association of Theatre Owners Regarding the Proposed Paramount Global and Skydance Media Merger
On behalf of theatre owners across the United States and around the world, Cinema United will look closely at the details of the proposed merger of Paramount Global and Skydance Media. Our guiding principle in this analysis will be whether this transaction will result in more movies being made for the global theatre-going audience or less. We are encouraged by the commitment that David Ellison and the Skydance Media team have shown to theatrical exhibition in the past.
A transaction that reaffirms Paramount’s historical commitment to theatrical exhibition will benefit consumers by ensuring a wide array of films, across all genres and budgets, that are synonymous with Paramount’s proud legacy. Movies like The Godfather, Top Gun: Maverick, Mission: Impossible, Terms of Endearment, Beverly Hills Cop, Ferris Bueller’s Day Off, Forrest Gump, Raiders of the Lost Ark, among others, all of which are best experienced in a theatre full of movie fans.
Conversely, a merger that results in fewer movies being produced will not only hurt consumers and result in less revenue, but negatively impact people that work in all sectors of this great industry – creative, distribution and exhibition.
A Paramount that recognizes the unique place of theatres in communities across this nation and around the world will be a catalyst for more movie options being available for movie fans today and for generations of new fans in the years ahead.
We look forward to hearing more about this proposal and working with all interested parties in achieving the critical goal of more movies on the big screen.
New Look.Same Mission.
The National Association of Theatre Owners is now Cinema United. Founded in 1948, Cinema United is the largest exhibition trade organization in the world, representing more than 31,000 movie screens in all 50 states, and more than 30,000 screens in 80 countries worldwide. Its membership includes theatres of all sizes, from the largest cinema chains to one-screen theatres in cities and towns around the world.
