Theaters trumpet the power of watching movies

The National Association of Movie Theater Owners is trumpeting the strength of movie viewing in 2024, saying box office numbers don’t tell the whole story.

A new report released by NATO on Wednesday comes as full-year domestic revenue looks set to fall as much as 5 percent from 2023, which many believe is the result of a slowdown in output due to labor strikes and post-production delays due to the pandemic. The good news: Before Thanksgiving, revenue fell 11 percent.

NATO chief Michael O’Leary says it’s wrong to judge the strength of theaters based on box office numbers alone. “Perhaps like no other industry, every week the success or failure of filmed entertainment is judged through the weekly box office. This inherited tradition, however, does not give a complete picture of the strength of the industry or the exhibition,” according to O’Leary. “As 2024 draws to a close, it is important to look deeper and consider other foundations that illustrate the strength and bright future of theatrical exhibition.”

NATO, which worked with a number of third-party researchers to compile the report, focused on several metrics, including consumer enthusiasm, market investment and loyalty program growth.

In terms of consumer appetite for the theater experience, the report found that 76 percent of Americans between the ages of 12 and 74 saw at least one movie in a theater this year, which equates to roughly 200 million Americans. This is in line with data on cinema viewing before the pandemic, according to NATO. China continues to bring in more people annually than the NFL, MLB, NBA and NHL combined.

And a combined 85 percent of Americans said they plan to go to the movies as often or more often than this year in 2025.

In a separate survey conducted by the Global Cinema Federation of more than 96,000 moviegoers in 14 countries, 72 percent of respondents are going to theaters more or the same as six months ago.

In terms of various demonstrations, the report found that going to see a movie on opening weekend is the #1 preferred activity among Gen Z women regardless of time and money (or those between the ages of 10 and 24), and the #2 preferred activity among men generation Z.

Latinos also continue to significantly increase moviegoing and accounted for 27 percent of those who saw six or more movies in 2024. Also, 45 percent of Latin American moviegoers said they preferred watching weekend movies, 11 percent higher than overall moviegoers.

As for what exhibitors are doing to attract consumers, the NATO report notes that the top eight tracks are investing more than $2.2 billion in upgrades over the next three years. These investments will range from improved projection, sound and screens, to modernized food and beverage options, as well as improved signage, lighting and common areas.

One area that has seen a surge in consumer demand is premium large-format theaters, which include Imax. According to Comscore, there are 950 theaters in North America that have large-format screens — a 37 percent jump from five years ago. The number of PLF screens worldwide has more than doubled since 2016 to 5,700, according to Omdia.

“As consumers respond to the variety of big-screen format offerings, it’s important to note that these screens only account for 9 percent of the annual domestic box office, and every screen in your local movie theater provides a premium experience,” the NATO report said.

The NATO report also warns that tent poles are crucial to the success of the film industry, but are only part of the equation. “In order to really thrive and sustain business, low- and medium-budget films have to find a place. Comedies, family films, horror and other genres are also fan favorites on the big screen,” the report said, noting that the number of comedies released in theaters increased by 5 percent in 2024. Horror saw a big jump of 38 percent, while the number of independent films released in 2024 increased by 25 percent compared to 2022.

Other: Loyalty programs in the US and Canada saw a 12 percent jump in new subscriptions from 2023 to 2024 (there are currently more than 118.9 million loyalty club members).