COVID-19 hit the United States in early 2020, and the overwhelming, fast-moving pandemic quickly became the topic of every conversation. Lives and businesses were dramatically altered during this time of global fear and worry. Cinemas were among the industries that suffered the most from the virus. Box offices experienced a significant decrease in sales after the pandemic hit.
People were quarantined to prevent the spread of the illness, and movie theaters were empty as a result. There was a notable increase in watching films at home at a fraction of the cost and with just the touch of a button.
About $11.8 billion in U.S. cinema revenue was reported in 2019. However, this number has dramatically decreased over the past few years. In 2024, it dropped to $8.9 billion, and it isn’t expected to fully recover until 2030.
There are many ongoing challenges that the cinema industry currently faces, including the average American’s current anxieties around the cost of living, easy accessibility to at-home movie platform services and the overall cost of film production.
About 29% of Americans report financial pressures, and this can be very mentally draining. The pandemic’s impact also made typical moviegoers less open to visiting theaters and more comfortable with home movie nights. With the rise of these more affordable screening platforms in recent years, a trip to the movie theater seems too costly if you can watch the same film at home.
Michael O’Leary, Cinema United president and CEO, recently addressed these box office issues at the most recent CinemaCon.
“If you compare the box office results of the top 100 films per year, pre- and post-pandemic, we see that the top 20 movies declined by 10% but the box office of the next 80 movies – the small and mid-size movies that are so important – declined by a full 32%.”
Overall, the immediate satisfaction of seeing a movie when it is first released in theaters has been overshadowed by considerations of travel and entertainment costs.
However, while many stand firm in their belief that sales have dropped due to the high cost of living and new movie platforms, some directors believe that a change can be made within the industry to boost sales. In a recent Rolling Stones interview, James Gunn, the award-winning director of Guardians of the Galaxy and Superman, believes that there are more internal issues at play.
“I do believe that the reason why the movie industry is dying is not because of people not wanting to see movies. It’s not because of home screens getting so good. The No. 1 reason is because people are making movies without a finished screenplay."
James Gunn recently directed the global phenomenon Superman. The film is targeted to reach $680 million globally, as it is doing very well at the box office. However, it’s still estimated to break even because production was so expensive.
By the end of 2025, the box office is expected to increase to $33 billion globally. Sales are predicted to continue rising and one day return to pre-COVID levels while striving to improve moviegoers’ overall experience.
While watching movies on your home TV is comfortable, theaters also have their pluses, such as reclining on a cushioned chair while eating buttery snacks, surrounded by other film enthusiasts. The cinema experience can leave you immersed in the moment of anticipation leading up to a film’s release. You can also find a unique experience by looking for rereleases of your favorite movie at a local theater.
The effects of COVID-19 have left cinemas and movie production companies looking for ways to bring film fans back into the theaters. While there is no place like home, nothing is quite as special as seeing a new release on the big screen.