CinemaCon: Stars Flop, Studios Fight, Theaters Panic!

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This year’s CinemaCon in Las Vegas was meant to honor the enchantment of the silver screen and the potency of cinematic storytelling. However, it turned out to be a tense and contentious event that brought forth underlying disagreements between studios and theater owners, threatening to reignite past conflicts. The accumulated frustrations from the previous five years, marked by a pandemic and two labor disputes that greatly diminished the movie theater industry, almost reached a breaking point.

2025 is being hailed as a comeback year for movie theaters, with operators and Hollywood studios anticipating a resurgence of ticket sales due to an influx of superhero movies, star-studded productions, and fantasy epics. However, revenues have dropped by 10% compared to 2024, as films like “Snow White” and “Mickey 17” failed to impress at the box office. Who is responsible for this shortfall?

Movie studios feel that exhibitors have not gone far enough in terms of innovation. They believe that many cinemas are outdated and that cinema operators have been reluctant to implement discounted pricing to attract budget-conscious audiences. Theater owners counter that their businesses have suffered due to the studios’ practice of releasing new films for home entertainment shortly after their theatrical premiere. Additionally, they would appreciate it if more films were produced.

In the grandeur of Caesar’s Palace’s Colosseum, these disagreements added an intriguing, albeit occasionally awkward, dynamic. Here are five key insights gleaned from this year’s CinemaCon, which spotlighted the severe existential predicament the film industry is currently grappling with.

All About the Windows

At CinemaCon, Aron was accompanied by various associates. During this event, cinema executives debated how the emerging distribution strategies were eating into their business. Michael O’Leary, the leader of Cinema United, presented evidence to support his claim. He utilized his opening speech to demonstrate that blockbusters are still thriving, but as one moves away from the highest-grossing films, there is a significant gap between pre- and post-pandemic earnings. O’Leary advocates for a 45-day window for movies (which was previously closer to 90 days before the pandemic). This proposal might be challenging for some studios, as they believe that keeping films in theaters for extended periods could hinder their ability to maximize marketing efforts.

At least one established participant showed understanding. Disney garnered some of the conference’s loudest cheers as its distribution head utilized his speech to emphasize that his company keeps its films in theaters for a longer duration compared to any other competitors.

Andrew Cripps, Disney’s Chief Distribution Officer, assured us, ‘This isn’t just a coincidence.’ We prioritize the cinematic experience,” he said.

The Return of “Us vs. Them”

Previously, CinemaCon took place just three months following the significant 2023 Hollywood labor strikes. The atmosphere was filled with empathy, as stars appeared grateful to showcase their projects once more. However, it took longer than anticipated for studios to restart the flow of content through the vast pipeline of cinema. This year, exhibitors showed no such understanding due to disagreements regarding the theatrical window and scarcity of fresh material.

Movie theater owners are annoyed because studios have made it seem like anything that’s not based on a comic book should only be watched online. One studio executive expressed disappointment towards the exhibitors, especially since big production companies invest a lot of resources in promoting movies (many of which aren’t even finished yet) by flying talent to Las Vegas and making exciting trailers. The exec described the situation as “us against them” again.

Will Amazon MGM fill the 20th Century Fox void?

Movie theater owners have long expressed concerns about a lack of films to show. They argued that low ticket sales weren’t due to a lack of interest in movies, but rather because studios were releasing fewer films. (This is accurate. Before the pandemic, around 120 wide releases were scheduled each year, but this number has dropped significantly to the high double digits.) Part of this gap can be explained by the disappearance of one major studio following Disney’s acquisition of 20th Century Fox in 2019.

Amazon’s MGM division appears to be a significant prospect for meeting the current gap in production. At its inaugural CinemaCon presentation, Amazon MGM’s head Mike Hopkins declared an ambitious plan to deliver “15 large-scale films annually to theaters by 2027,” with 14 movies already scheduled for 2026. This move is a game-changer for cinema exhibitors, who are eagerly seeking diverse genres like sci-fi, fantasy, action-adventures, romantic thrillers, and family-friendly content to screen between blockbusters. The challenge now lies in attracting moviegoers to these new offerings.

Curb Your Exhibitors

For numerous employees who make up the heart of the exhibition industry – such as theater managers, concession stand workers, projectionists, and ticket sellers – CinemaCon is an opportunity to witness cinematic deities up close (and sometimes gamble late into the night). However, this year’s attendees seemed harder to impress. The tepid response began with Leonardo DiCaprio (“One Battle After Another”), a prominent box office draw, and continued with Scarlett Johansson, who received more wide-eyed stares than standing ovations. Are theater owners no longer captivated by celebrity allure? The only instances of genuine excitement were for Tom Cruise, who touched the audience’s hearts by observing a moment of silence for his late “Top Gun” costar Val Kilmer, and for the beloved duo from “Wicked”, Cynthia Erivo and Ariana Grande. Apart from these instances, the theater community seemed less stirred and moved by the charms on display.

Survive Until… ‘26?

The original call-to-action for studios and theater owners was “Hang on until age 25,” but they found that a full recovery at the box office wasn’t imminent. A new objective, “Last until age 26,” may not sound as catchy, but it represents their current aim for restoring normal box office performance. In 2026, we will see sequels to some of the most iconic film franchises like “Avengers,” “Spider-Man,” “Minions,” and “Toy Story” hit theaters once more. Additionally, upcoming films from directors such as Christopher Nolan and Steven Spielberg are expected to contribute to a remarkable comeback. On paper, at least, this sets the stage for an impressive rebound.

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2025-04-04 23:18