Box-Office Rebound Won’t Keep Film Exhibitors From Shedding Theaters

Note: This article is based on content from Variety Intelligence Platforms special report Across the Movie-Verse, a comprehensive data dive into the state of the cinema biz, available exclusively to subscribers.

Last week saw the closure of two Bay Area cinemas: The two-screen 88-year-old Albany Twin, operated by Landmark Theatres, and Cinemarks nine-screen San Francisco Centre location.

Cinemark cited a decrease in sales and foot traffic as the reason for pulling out of the San Francisco location as mall owner Westfield decided to give up the entire location, highlighting the precarious nature of where and how to operate theaters in the digital age post-COVID.

Variety Intelligence Platforms special report Across the Movie-Verse examines the state of theaters and exhibitors alike in the years since the pandemic brought film exhibition to a standstill.

All in all, the number of operational theaters at the end of April 2023 was 5,000. While a loss of 500 theaters from January 2020 doesnt seem as cataclysmic as when fewer than half that number were open a year later, it doesnt change the fact that the biggest film exhibition chains have been in a years-long struggle to achieve profitability again, as underperforming sites like the ones around San Francisco are a drag on expenses.

While analysts have predicted that non-bankrupt chains like Cinemark, Marcus Theatres and large-screen format aficionado Imax will turn a profit this year, the same isnt expected for AMC Theatres, despite its status as the largest such company that has been scooping up locations left and right since COVID, largely because of the sheer expense of operating so many sites.

It could take AMC another year to halt its losses, with Cinemark expected to remain the most profitable, while its other competitor, Cineworld, which operates Regal Cinemas, aims to have clawed its way out of Chapter 11 bankruptcy by July.

While the actual box office continues to see unexpected tentpoles in films such as The Super Mario Bros. Movie, the weeks between major releases remain a struggle, as the weekend box office tends to dip far below pre-pandemic baselines, even if new-release weekends manage to hit past standards more and more.

Ironically, streaming entities could be one solution to fill these gaps, as Amazon and Apple are pouring billions into films intended for theaters. The former saw modest returns in Ben Afflecks Air in the spring, while the latters Killers of the Flower Moon and Napoleon, from directors Martin Scorsese and Ridley Scott, respectively, are eyeing hopeful runs through major-studio partners in the fall months.