Cinema Operators Upgrade Theaters to Boost Attendance
In a bid to revive flagging movie attendance post-pandemic, major cinema chains are investing heavily in premium large-format screens, advanced sound systems, and luxurious seating options. This strategic shift, highlighted by recent announcements from industry leaders like IMAX and AMC, aims to differentiate the theatrical experience from home streaming services. As box office revenues show signs of recovery in 2025, these enhancements are seen as crucial for the long-term viability of the cinema industry.
The Revival of the Big Screen
The movie theater industry, battered by the COVID-19 pandemic and the rise of streaming platforms, is undergoing a significant transformation in 2025. On September 17, reports emerged detailing how operators are pouring millions into upgrading venues with massive screens, immersive audio technology, and comfortable recliners to entice audiences back to cinemas. This move comes amid a partial recovery in global box office figures, which reached $32 billion in 2024, still shy of the pre-pandemic peak of $42 billion in 2019.
The timeline of this resurgence traces back to the early 2020s. The pandemic forced widespread theater closures in 2020 and 2021, leading to a sharp decline in attendance as consumers turned to services like Netflix and Disney+. By 2022, as restrictions eased, chains began experimenting with premium formats. IMAX, for instance, reported installing over 100 new screens globally in 2023, a trend that accelerated into 2025. This year alone, IMAX announced partnerships for 50 additional installations, including in emerging markets like India and Brazil. Similarly, AMC Theatres revealed plans in early September 2025 to retrofit 200 locations with reclining seats and Dolby Atmos sound systems, with the first upgrades completed by mid-month in key U.S. cities such as Los Angeles and New York.
Industry executives argue that these investments are essential to combat the 'streaming fatigue' affecting consumers. "People are craving experiences that can't be replicated at home," said Rich Gelfond, CEO of IMAX, in a recent interview. "Our massive screens and booming sound create an event-like atmosphere that turns a movie into a spectacle." Gelfond pointed to the success of blockbuster releases like the latest Marvel film, which grossed over $1 billion in 2025, with premium formats accounting for 25% of tickets sold.
Background context reveals a sector in flux. Historically, cinemas thrived on the communal aspect of film viewing, a tradition dating back to the early 20th century. However, the advent of home entertainment— from VHS in the 1980s to high-definition streaming in the 2010s—has eroded that dominance. The pandemic exacerbated this, with U.S. theater attendance dropping 80% in 2020. Economic pressures, including rising ticket prices and competition from ad-supported streaming tiers, have further challenged operators. Yet, data from the Motion Picture Association indicates a rebound: premium large-format (PLF) screenings, such as IMAX and 4DX, saw a 40% increase in revenue from 2023 to 2024, driven by films optimized for these technologies.
Stakeholders offer varied perspectives on the strategy's efficacy. Analysts at Deloitte predict that PLF could represent 30% of global box office by 2030, but warn of accessibility issues. "These upgrades are great for high-end markets, but they risk alienating budget-conscious families," noted Sarah Jenkins, a media analyst at Deloitte. "Ticket prices for premium seats can exceed $20, compared to $10 for standard ones." Eyewitness accounts from moviegoers echo this sentiment. In Los Angeles, patron Maria Gonzalez described her recent IMAX experience: "The recliners and sound made it feel like I was in the movie, but it's pricey— I won't do it every time."
Other chains are following suit. Cinemark Holdings announced on September 15, 2025, an investment of $150 million to expand its XD premium screens, featuring laser projection and enhanced audio. In Europe, Vue International is partnering with Samsung for Onyx LED screens, with the first UK installation opening in London on September 18. These developments are not without challenges; supply chain disruptions for high-tech components have delayed some projects, and economic uncertainty could dampen consumer spending.
The implications of this trend extend beyond the box office. Economically, the cinema industry supports millions of jobs worldwide, from projectionists to concession workers, and contributes to related sectors like film production and advertising. A successful revival could stabilize these ecosystems, potentially adding $5 billion to global revenues by 2027, according to projections from PwC. Societally, it reinforces the cultural role of theaters as communal spaces, fostering shared experiences in an increasingly digital world. However, if upgrades lead to higher prices, it might widen inequalities in access to entertainment, prompting calls for subsidies or tiered pricing models.
Policy-wise, governments are taking note. In the U.S., the Federal Trade Commission is monitoring antitrust concerns amid consolidations, while in China, state incentives are boosting domestic PLF installations to rival Hollywood's dominance. Environmentally, the push for energy-intensive technologies raises questions about sustainability; IMAX has pledged to offset carbon emissions from new builds starting in 2026.
As the industry bets on these enhancements, the coming months will test their appeal. With major releases slated for late 2025, including sequels to popular franchises, theaters hope to convert casual viewers into loyal patrons. Yet, the shadow of streaming looms large—Disney reported 200 million subscribers in 2025, underscoring the competition. Success will depend on balancing innovation with affordability, ensuring the magic of the movies endures for generations.
Challenges and Future Outlook
Critics argue that while premium features address short-term attendance dips, they may not solve underlying issues like content quality and piracy. "Technology is a band-aid; we need compelling stories to draw crowds," said film critic David Ehrlich in a September 19 commentary. Indeed, box office hits in 2025 have been driven by event films, but mid-budget dramas continue to struggle.
Looking ahead, the integration of virtual reality and interactive elements could further evolve the experience. Companies like 4DX are experimenting with motion seats and sensory effects, with pilots in South Korea showing promising results. If these innovations take hold, 2025 could mark a turning point, transforming cinemas from mere screening venues into immersive entertainment hubs.
In summary, the theater industry's investment spree reflects a calculated gamble on experiential luxury. As Gelfond of IMAX put it, "We're not just selling tickets; we're selling memories." Whether this strategy pays off will shape the future of film consumption in a post-pandemic era.