Independent cinemas strive to remain open during streaming-induced drops in movie attendance
The popularity of watching movies through streaming continues to increase nationwide. Many smaller movie theaters, specifically arthouses, have been impacted negatively as a result. What does the future hold for these theaters?
Even as audiences continue to return to theaters after the pandemic slump, movie industry insiders worry about how soon it will take for movie theaters to recover. AMC Theatres says the box office will return to pre-pandemic results until 2024 or 2025. Smaller movie theaters often help to provide entertainment for communities that otherwise would not have a big screen.
However, streaming has become more popular. A study done by Statista found that 52% of consumers in the U.S. had some form of streaming service in 2015. In 2021, that number increased by 26%, with 78% of consumers having at least one “top three” streaming service. On top of this, consumers may be too used to the comfort of staying at home.
Brian Mossman, the owner of the Glenwood Arts Theater in Overland Park, Kansas that his customers are returning to theaters after a COVID-induced “cabin fever”. Mossman says that every day someone says to him “‘This is my first film I’ve been to since COVID.’”
As movie theaters reopen, studios still often release films onto streaming services, sometimes on the same day as their in-person releases. For example, in 2021, “Dune” and “The Suicide Squad” werereleased on HBOMAX on the same day of their release. “In The Heights” famously bombed in 2021, yet it was released on streaming at the same time, making it difficult to gauge if audiences truly rejected it. In 2020, 575 films went straight to streaming platforms when they premiered.
Mossman, however, believes that a certain generation of filmgoers prefers to see movies in theaters. He also stated that The Glenwood started making handbills to give to customers at the theater with future movie times and release dates of films to help reach his older clientele.
These clients used “to go to the Kansas City Star and get their [movie times] information,” Mossman said.
Mossman also notes that the younger generation is “used to AMC” as their regular movie theater. Some independent cinemas, such as the Glenwood, have had to lower the number of screenings they have.
Streaming has had a significant impact on movie theaters, particularly since the advent of subscription-based streaming services like Netflix, Amazon Prime Video and Hulu. The rise of streaming has led to a decline in movie theater attendance, translating into reduced box office revenue. Mossman says “a lot of [his] customers don’t stream” films helping him to maintain clientele. However, he also notes that his clientele largely comes from a “generation that really prefers to see [films] in a theater setting.”
The decrease in ticket sales has also meant that fewer movies are released in theaters. The preference for movie theaters has decreased nationwide. A study done by Statista found that in June 2020, 14% of people strongly preferred to watch a movie for the first time in theaters, and 36% strongly preferred streaming. This makes it difficult for independent and smaller production studios to get their films shown in theaters, as they lack the marketing budget of larger studios. Often smaller films will struggle to remain in an independent cinema if they are not heavily seen in their first weekend.
Keith Watson, who runs Arkadin Cinema & Bar in St. Louis along with his wife, Sarah Barbara, says that some smaller movies have forgone the theatrical release completely, and won’t get the film until a week after it has been released on streaming platforms. This has led to a shift in negotiating power, with streaming services gaining more influence and control over content.
While streaming services offer convenience and access to a wide range of content, they cannot replicate the unique experience of going to the movies. According to Watson, Arkadin’s customers “want to go out and do something and they want to be around people” without the distraction of phones. Mossman also notes that when it comes to “audience participation: there’s nothing like it” when it comes to replicating that experience at home.
Although independent cinemas account for only 12%of the total theaters in the country, they are often located in smaller communities, providing movies to communities sometimes ignored by the major chains.
Independent theaters have been forced to be more creative and innovative to attract customers in the face of competition from streaming services and larger theater chains. The staff at Arkadin Cinema & Bar are constantly experimenting with new events and programs to try and keep their audience enticed. They did a Leprechaun double feature on St.Patrick’s day and had a “stoner night” on 420.
Independent theaters may also partner with local organizations and businesses to build relationships with their local community. These theaters aim to foster a sense of community by hosting events and screenings that bring people together.
Watson says that they’re all about creating a comfortable environment, and that there’s a “mini-community that forms when you’re watching a movie in a theater.”
Independent theaters hold extreme importance in small towns that do not have the market to attract bigger chains such as AMC Theatres. Theater owners continue to stress the importance of these theaters remaining for people across the country to enjoy films on the big screen. As Mossman remarked “It would be extremely sad that we would say [in the future] ‘Remember when we used to go to movie theaters?’”.
Edited by Egan Ward | eward@themaneater.com& Annie Goldman | agoldman@themaneater.comCopyedited by Shirin Rekabdar-Xavier and Mary Philip