Lily Kholar's blog : Are Things Looking Up for Exhibition in 2025?
Despite some industry speculation that AMC, one of the largest theatrical chains in the US today, could be headed for Chapter 11 bankruptcy proceedings, there are signs that the wider theatrical industry can look forward to a bigger, brighter 2025. While the continuing knock-on effects of the pandemic lockdowns are still causing chaos in some of the more established theatrical chains, there are some signs that we could be moving forward in a positive direction within the wider industry. Our Blake & Wang P.A. expert, entertainment lawyer Brandon Blake, shares some good news.
Brandon Blake
An End to the Bankruptcies?
With Cineworld only just having left Chapter 11 proceedings, and AMC continuing to ward off speculation on the matter without really explaining how they plan to avoid it, it is easy to still see the exhibition industry through the negative lens COVID thrust upon it. Especially with much gnashing of teeth around the disrupted content pipelines for 2024, which will inevitably have a knock-on effect on theatrical profitability.
However, let’s not also lose sight of the fact that Cineworld is doing better after its difficult Chapter 11 proceedings. The wider entertainment landscape has changed dramatically over the last few years, and it is inevitable we will see some venue closures, and possibly even the loss of key names in the exhibition industry. This is the sort of change that is inevitable with any industry shift.
2023 also showed how a strong theatrical release is a money-generating powerhouse for later streaming releases. This future of exhibition and streaming partnerships may look different from the industry we are used to, but that is also a sign that it can shift and adapt to meet the new entertainment environment instead of stagnating.
The Big Box Office Question
Additionally, the 2025 and 2026 box office is looking a lot better than many predicted. Some have gone as far as to suggest we will see a return to pre-pandemic levels despite the disruptive strike atmosphere last year. After all, the highly coveted $8B box office of 2023 was built off of only 64 releases, a target that is still achievable even with that throttled pipeline. With the world also embracing small-scale and indie releases in an unprecedented way, and the growing appeal of non-English language releases (even in primarily English markets), there’s a lot of positivity to embrace.
While theater closures tend to grab the headlines, let’s not lose sight of the fact that even beleaguered AMC, which closed 160 locations, also opened 60 new ones. Many of these are opening in more profitable markets- the current claim is that those 60 new locations generated $100M more than the closed locations. Let’s think of this as some logistic reshuffling, rather than doom and gloom. Even the streaming platforms are engaged in some heavy belt-tightening and market exploration right now, and it would be unrealistic to not expect the same from the exhibition industry. Plus, Amazon and Apple’s promises to release more movies in theaters are looking a whole lot more significant than they did a year ago, as both have made significant gains in the wider market.
In short? The future of the exhibition industry is looking a whole lot brighter by the metrics than we may expect from the headlines. Let’s hope to see even more good news for this sector in the coming months.
- Digital
- Expert