The National Association of Theater Owners touted strong moviegoing momentum in 2024, saying box office numbers don’t tell the whole story.
Nato released a new report on Wednesday projecting full-year domestic revenue to be down as much as 5% from 2023, which many believe is the result of a slowdown in product production due to worker strikes and late-stage production delays. The good news: Before Thanksgiving, revenue was down 11%.
NATO Secretary-General Michael O’Leary said it was a mistake to judge the strength of theaters based solely on box office numbers. “Perhaps unlike other industries, the success or failure of filmed entertainment is judged by its weekly box office. However, this traditional tradition does not paint a full picture of the industry or the strength of the exhibition. “With 2024 As we near the end, it’s important to delve deeper and consider other fundamental factors that speak to the strength and bright future of theater exhibitions. ”
NATO collaborated with a number of third-party research organizations to produce the report, which focuses on several indicators, including consumer enthusiasm, market investment and the growth of loyalty programs.
Regarding consumer interest in the theater experience, the report found that 76% of Americans ages 12 to 74 have seen at least one movie in a theater this year, which translates to approximately 200 million Americans. Nato said this was consistent with pre-pandemic viewing data. Movie theaters continue to attract more viewers each year than the NFL, MLB, NBA and NHL combined.
A total of 85% of Americans say they plan to see the same or more movies in 2025 as they did this year.
Another survey of more than 96,000 moviegoers in 14 countries, conducted by the Global Cinema Federation, showed that 72% of respondents went to cinemas as often as six months ago.
Across demos, the report found that regardless of time and money (or women between the ages of 10 and 24), going to the movies during opening weekend was the No. 1 preferred activity for Gen Z women, followed by Gen Z men. preferred activity.
Latino moviegoers also continue to be a big driver of the box office, accounting for 27% of those who saw six or more movies in 2024. , this figure is 11%.
As for the measures exhibitors are taking to attract consumers, the NATO report reminds that the top eight tracks will invest more than $2.2 billion in upgrades over the next three years. The investments will cover everything from improved projection, sound and screens, to modern food and drink options, as well as improved signage, lighting and public areas.
One area where consumer demand is growing dramatically is in premium big-screen format auditoriums, including Imax. According to Comscore, 950 theaters in North America have big screens, a 37% increase from five years ago. According to Omdia, the number of PLF screens worldwide has more than doubled since 2016 to 5,700.
“While consumers are responding to a variety of large-screen format offerings, it’s important to note that these screens account for only 9% of annual domestic box office, and local theaters provide a premium experience in every auditorium,” the NATO report states.
The Nato report also warns that while the pillars are crucial to the success of the film industry, they are only one part of it. “In order to truly thrive and stay in business, small and medium-budget films must find a place. Comedies, family movies, horror films and other genres are also fan favorites on the big screen. And the number of independent films released in 2024 will increase by 25% compared to 2022. %.
Other highlights: New subscriptions to loyalty programs in the U.S. and Canada will increase by 12% from 2023 to 2024 (there are currently more than 118.9 million loyalty club members).
