Why movie theaters are going down-stream

The steady fall of today’s movie theaters

Movie theaters have dramatically lost their popularity in recent years, causing economic hardship for the industry.

For decades, going to the movie theaters has been an activity enjoyed by people of all ages. It’s seen as a time to bond with family and friends over our similar interests in movies, or simply unwind after a long week.

However, this tradition has been slowly fading away, and is in serious danger of not existing at all in the near future.

This leaves with the question of why exactly are movie theaters suffering in the first place.

The movie theater experience has quickly gone downhill due to ongoing recovery efforts from the COVID-19 pandemic, competition with streaming services, and an overpriced experience.

The ramifications of coronavirus were felt through all the industries in the world, with movie theaters not being an exception to this.

According to CNN.com, Regal Cinemas has decided to close 39 theaters across the country this year, with 11 of them being in California. This comes after its parent company, Cineworld, filed for Chapter 11 bankruptcy.

On the other hand, fellow Movie theater giants Cinemark have been able to slowly build their way back up in terms of revenue, with around a 200 million dollar increase in revenue since 2021.

However, it’s still projected that this spike still won’t be able to fully make up for the losses endured during the pandemic.

The movie theater industry was one that had already been seeing a decrease in overall sales in prior years, with the pandemic only seemingly sealing it’s fate.

When paired up with the fact that streaming services have been dominant in recent years, it makes more sense why movie theaters have been left in the dust as of late.

With options from Netflix, Disney plus, Amazon Prime Video, Hulu, and more, it’s getting increasingly more difficult for people to be convinced that going out to a Movie Theater is the better option.

In fact, Prime Video even has their own section of movies where films that are still showing in theaters are available for streaming only days after their initial release.

This leaves many wondering why they would even think that leaving the comfort of their own home is the better option.

The overall pricing difference between the two also doesn’t necessarily help the cause for movie theaters.

Sure streaming service subscription costs can accumulate very quickly, but it may be a more beneficial investment in the long run. You’re paying to have access to hundreds of movies and TV shows, while the selection of current movie theater options don’t always compare.

For example, the average price for a single ticket at a movie theater in the US is $11.75. This doesn’t include concessions, with a small bag of popcorn alone coming in at an average price of $10. This can add up in a hurry, especially when you go out with friends and family.

In comparison, a Prime Video subscription is going to cost you $8.99 a month. This allows you to watch the latest movies from wherever you’d like, without having to pay extra for snacks.

This wouldn’t of even been a debate even a couple of years ago, but with the quick advancement of streaming services, it’s gotten harder for some to justify paying for movie tickets.

Going to the movies will always be a tradition cherished by millions of people across the country, no matter the circumstances. The industry will more than likely find ways to counter the advantages streaming has.

Movie Theaters are still going to be the more viable option for many across the world. Some people don’t have access to an internet connection at home for streaming services, so going to a movie theater may be their only option.

However, when both options are on the table, it’s pretty easy to see why Movie Theaters continue to struggle.