Theaters that show movies have been a staple of American culture for more than a century. But now that streaming services and other types of digital entertainment are available, the question of whether movie theaters still make money arises. Yes, but with qualifications.
The COVID-19 pandemic severely affected the movie theater business in 2020. Government regulations drove many theaters to close, and even once they were permitted to reopen, many moviegoers were reluctant to visit them. Compared to $11.4 billion in 2019, North American box office income in 2020 was only $2.2 billion, claims the National Association of Theatre Owners (NATO). The industry is gradually recovering, though, thanks to the introduction of the vaccine and the relaxation of regulations.
In light of this, drive-in theaters have become more popular, providing a safer option to conventional indoor theaters during the pandemic. According to the United Drive-In Theatre Owners Association, there will be about 305 drive-in cinemas in the country as of 2022. There are currently five drive-in theaters open in Colorado.
The installation of a drive-in movie car requires a few essential components. A projector and screen are first things you will need. An FM transmitter is then required to transmit the sound to the car radios. In order to put up the screen and allow for parking while watching the movie, you will also need a parking lot or field. A food and beverage setup may also be required since some drive-in movie theaters sell concessions.
As of 2021, AMC Entertainment Holdings Inc. is the owner of the distinction of operating the biggest chain of movie theaters. AMC is a significant player in the industry with more than 1,000 theaters and 11,000 screens worldwide. In 2020, the pandemic will cost the company more than $4.5 billion in losses.
In conclusion, while movie theaters continue to turn a profit, the pandemic has significantly hampered the sector. There is hope for the industry’s future thanks to the resurgence of drive-in theaters and the gradual return of indoor theaters. The long-term effects of streaming services and other digital entertainment platforms on the market, however, are yet to be seen.