North American theaters have spent $2.7 billion over the past two years on upgrades aimed at drawing audiences back after pandemic lows. The investment covers everything from heated recliners to expanded food and beverage services, according to Cinema.
The spending spree comes as the summer box office reaches an all-time high, with many chains eager to keep moviegoers interested. Chains like AMC and Cinemark are leading the charge, installing premium large formats and adding bars and lounges in flagship locations.
Heated recliners are a centerpiece of these upgrades. AMC announced plans to add heated seats and wider recliners in more than 500 theaters across the United States. Cinemark confirmed it has replaced traditional seats in dozens of locations with plush, heated recliners, aiming to improve comfort and encourage longer stays.
Food and beverage options are also expanding. Cinemas now serve more craft beers, cocktails, and gourmet snacks. Cinemark told TheDeathReports that some theaters are adding full bars, with some locations offering 24-hour service. AMC said it has increased its concession menu, including alcohol sales in select theaters.
Premium large formats are another major focus. Dolby Cinema, IMAX, and other high-end screens are being installed or upgraded. Cinema claims that the investment in these formats accounts for a significant share of the $2.7 billion spent.
The trend appears to be a response to a changing moviegoing landscape. As streaming services grow and competition from home entertainment intensifies, theaters aim to offer experiences that cannot be replicated at home. The upgrades are designed to make theaters a destination for social outings, not just a place to watch a film.
The increased spending is also part of a broader industry push to recover from the fallout of the pandemic. Many chains faced closures and significant revenue drops in 2020 and 2021. The National Association of Theatre Owners reported that the industry’s revenue in 2022 reached nearly $8 billion in the U.S., up from $4.2 billion in 2020.
The timing coincides with blockbuster releases like Marvel’s "Guardians of the Galaxy Vol. 3" and Disney’s "The Little Mermaid," which drew large crowds. Industry insiders say the upgrades are an effort to keep audiences coming back for more than just the latest blockbuster.
Some theater operators have expressed concern about the cost. A spokesman for AMC told TheDeathReports that the company is investing heavily in amenities, but did not specify how much of the $2.7 billion is allocated to heated recliners or bars specifically.
Despite the high costs, many chains see the upgrades as necessary. Industry analysts say the focus on comfort and amenities reflects a broader trend toward experiential entertainment. Theaters are competing not just with each other, but with everything from streaming to outdoor events.
While the $2.7 billion figure covers a wide array of investments, the emphasis on premium comforts signals a shift in the industry’s priorities. Theaters want to be places where audiences are willing to spend extra for added comfort and social experiences.
The question remains whether these investments will pay off long-term. Industry observers note that the pandemic accelerated a decline in theater attendance that was already underway before 2020. The latest upgrades may help reverse that trend, but only if consumers continue to see theaters as destinations worth their time and money.
According to Variety.