September 13, 2026 Post by : Editorial Industry News

Walk into a modern multiplex and you'll notice the changes before the movie even starts. Reclining seats, reserved seating, expanded menus, and a bar in the lobby. These aren't just amenities — they're survival strategies. With attendance still below pre-pandemic norms, theaters have had to rethink where the money comes from. The answer, increasingly, is everywhere except the ticket.

Exhibitors have always made a chunk of their revenue from concessions, but the ratio has shifted. Studios take a large share of ticket sales, especially in the early weeks of a release, so theaters see more profit from a tub of popcorn than from a seat. That reality has pushed chains to invest in food and beverage like never before, turning lobbies into casual restaurants and auditoriums into places where you can order a meal without leaving your seat.

Premium Formats as a Profit Engine

The other big lever is premium formats. IMAX, Dolby, and other large-format screens command higher ticket prices, and audiences have shown they're willing to pay for the upgrade — especially for event films. A single premium ticket can generate two or three times the revenue of a standard one, which makes those auditoriums disproportionately valuable. That's why chains keep adding them, even when overall screen counts stay flat.

Premium formats also help theaters compete with streaming on something other than convenience. You can watch a movie at home, but you can't watch it on a 60-foot screen with a sound system that rattles your seat. The experience is the product, and exhibitors are leaning into that. Some are adding immersive elements, like themed events or director Q&As, to make a night at the movies feel like an occasion rather than a default.

The Delicate Balance of Price and Value

There's a risk, of course. If tickets and snacks keep climbing, audiences may decide the value isn't there. Theaters are aware of this, which is why many have introduced subscription programs, discount days, and loyalty perks. These initiatives trade a bit of margin for frequency, betting that a customer who comes once a month is worth more than one who comes twice a year at full price.

The broader lesson is that the movie theater business is no longer just about showing films. It's about running a hospitality operation with a cinema at its center. That shift has been painful for some operators, but it's also created opportunities for those willing to adapt. The theaters that thrive in the next decade will be the ones that treat every visit as an experience worth leaving the house for — and that means the popcorn is no longer a side dish. It's part of the main course.

• Share:

Back to blog

Small Business Owners Make it Happen in 2025

Small Business Owners Make it Happen in 2025