Major movie theater chains announce a $2.2 billion remodeling plan

North American movie theater operators plan to invest $2.2 billion in upgrading their venues to capitalize on Hollywood’s box office recovery this year.

The National Association of Theatre Owners announced on Thursday that its members will be committing new funds over the next three years to enhance the moviegoing experience and continue attracting audiences away from home viewing.

“There is no question that movie fans of all ages love heading to the local theatre to see great movies on the big screen. But the competition for consumers’ hard-earned dollars is fiercer than ever,” NATO president and CEO Michael O’Leary stated, as theater owners continue to face stiff streaming-era competition.

“Going to the theatre is an unparalleled entertainment experience, and exhibitors are dedicated to making every visit to their theaters memorable. This investment reflects that commitment in a tangible way that every moviegoer will see and enjoy,” O’Leary added.

Eight movie theater companies in the United States and Canada—AMC Entertainment Inc., Regal Cinemas, Cinemark, Cineplex, Marcus Theatres Corp., B&B Theatres, Harkins Theatres, and Santikos Entertainment—will contribute to the new theater space. With more than 21,000 screens combined, the national and regional circuits account for slightly more than two thirds of all box office receipts in North America.

The three-year commitment coincides with a recent rebound in box office receipts after two strikes in Hollywood and the Covid-19 outbreak that closed cinemas and restricted the amount of films. Luxurious theaters that provide an improved viewing experience, such as IPIC Theaters and Alamo Drafthouse, are a rival to large chains. Sony Pictures Entertainment recently purchased the latter.

The most recent investment from theater owners in North America will go toward improving the food and beverage offerings, adding arcades and bowling to locations, improving the lighting, signage, carpeting, and air conditioning of the theaters, and upgrading locations with laser projection technology and immersive sound systems.