Theater Owners Plan to Spend $2.2 Billion to Modernize and Upgrade Moviegoing Experience

The eight biggest theater chains in the U.S. and Canada announced Thursday that they plan to invest more than $2.2 billion to modernize and upgrade more than 21,000 screens over the next three years. The investment will cover everything from improved sound and projection to upgrading dining experiences — plus, in some locations, investing in attractions like pickleball and ziplines.

“Across the industry, we’re feeling that perhaps we’ve turned a corner. The audiences are coming back to the theaters. There’s just a very positive kind of feeling about the future,” Michael O’Leary, president and CEO of the National Association of Theatre Owners, told Variety.

The upgrade plans come as the after-effects of the pandemic and Hollywood strikes continue to affect the exhibition business, with summer box office totals running about 13% below last year. In addition, moviegoers often complain on social media that theaters are dirty or have substandard seats or projection.

O’Leary says theater owners will focus on “making sure the common areas, the lobbies, the concession areas are new and fresh and well maintained.”

“It’s making sure that the seats are comfortable and there’s a whole range of seating options that are available to moviegoers. Making sure that all of those things exist and that you have good lighting, good signage, but also in the actual auditorium itself that you have great sound and great projection,” he said.

The theater chains that reported their investment goals to NATO are AMC Entertainment Inc., Regal Cinemas, Cinemark USA, Inc., Cineplex, Marcus Theatres Corp., B&B Theatres, Harkins Theatres and Santikos Entertainment.

NATO projects that theaters will use the funds for laser projection technology, immersive sound systems, more comfortable seating, state-of-the-art air conditioning, lighting, signage and carpeting.

“Consumers today are very demanding and they want to have a range of things that they can do in any given setting,” O’Leary said. In some cases, that means adding pickleball courts, ziplines, arcades, bowling alleys and more attractions to keep moviegoers busy at theater complexes, in addition to dining and cocktails.

“Today’s consumers rightly demand the best possible experience when they visit our theaters. Operating a theater today is a capital-intensive operation,” said NATO 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 theater remains a unique and special experience for generations to come.” B&B Theatres has opened locations that include pickleball (pictured above) and bowling, among other activities.

O’Leary said he’s also heartened by seeing the work that independent theaters are doing to revitalize their communities, such as New Canaan, Connecticut’s Playhouse Theater. “It has a very unique feel to it,” he said, including an upstairs members lounge with a bar. Closed during the pandemic, it reopened in June. “They have brought it back to life and it’s really a special place,” O’Leary said.