The National Association of Theatre Owners (NATO), an industry group representing North America's major movie chains, including AMC Entertainment, Regal Cinemas, and Cinemark, has announced a $2.2 billion renovation plan. The plan, which will span three years, aims to modernize and improve theaters of all sizes, affecting nearly 70% of the North American box office, or around 21,000 screens.
The renovation plan comes in response to the recent resurgence at the box office following dual Hollywood strikes and the Covid-19 pandemic, which had previously shuttered theaters and limited the number of releases. The plan also aims to compete with luxury theaters like IPIC Theaters and Alamo Drafthouse, which offer enhanced viewing experiences.
The renovations will include the latest in projection technology, improved sound systems and seating, upgraded concessions, and the addition of arcades or bowling. The plan also includes better air conditioning, new signs, and revamped carpeting. The funding for the renovations will come from profits and fresh capital, according to NATO.
CNN reports that Paul Dergarabedian, a senior analyst at Comscore, sees the $2.2 billion investment as a reflection of confidence in the future of movie theaters. He stated, "While the movie theater business has its ups-and-downs like any other, the through line is that you should never bet against the big screen experience as it has survived and thrived through decades of challenges and intense competition and yet remains an essential part of the entertainment diet for people around the world."