Exhibitors are following through on their pledge to make significant investments to upgrade their theatres, betting that the future of cinema depends on offering moviegoers as premium an experience as possible. The scope of these investments was described this week in a press release from Cinema United, listing $1.5 billion spent by North American theatres over the past 12 months, with $920 million of that amount coming from the eight largest cinema chains. One year ago, Cinema United announced a commitment by the top eight North American exhibitors to invest $2.2 billion over the following three years in facilities upgrades.
Typical upgrades include the installation of new digital and laser projectors, premium sound systems, and larger movie screens. Outside of the auditorium, some exhibitors are adding full bar service and kitchens to their locations, with dine-in purchases now making up over 10% of the total North American box office. Exhibitors are also putting other forms of entertainment into their facilities, such as arcades with game redemption centers, bowling, and even axe-throwing.
These investments are the foundation for a continued recovery of the North American box office. The 2025 box office is tracking 23% lower than 2019 levels, and attendance is down by an even steeper amount. Exhibitors have responded by improving their facilities, increasing ticket prices, and adding new concessions and entertainment options.
The ticket to see a movie in a premium large format (PLF) auditorium costs $5 more on average than a standard ticket. By offering arcades, bowling, and other entertainment options, customers are spending more time in the building and spending more money on average.
