Bain Report Reveals Strategies to Boost Movie Theater Attendance

Cinema attendance has struggled to return to pre-pandemic levels, prompting industry stakeholders to seek strategies to attract audiences back to theaters. A recent report from Bain & Co. presents several insights aimed at reviving the cinematic experience.

The Challenges Facing Cinemas

Bain’s research indicates that the film industry is at a critical juncture. Despite increased consumer spending on video streaming over the past decade, North American box-office revenue has shown a decline when adjusted for real inflation since 2010. This is concerning as ticket prices have remained relatively stable while the overall cost of a cinema visit has increased due to rising concession prices.

The pandemic intensified existing trends, significantly affecting cinema attendance. As of November, domestic movie attendance was at just 64% of pre-COVID levels. Concurrently, major studios have published fewer wide releases, leading to a reliance on smaller studios to fill the void.

The ‘Flooded Era’ of Media

The Bain report categorizes the current media landscape as the “Flooded Era,” where consumers are inundated with a vast array of content. This increase in available media makes it challenging for cinemas to attract audiences willingly.

Strategies to Boost Movie Theater Attendance

• Premiumization: Cinemas should market themselves as a premium experience, presenting movie-watching as a special event more desirable than attending a concert.
• Community Engagement: Building community through social events, discussions, and interactive experiences can encourage attendance. Independent cinemas often host themed events and Q&A sessions that foster a sense of belonging.
• Partnerships: Collaborating with other media outlets can help cinemas provide varied programming, including innovative content such as concert films and live broadcasts.
• Personalization: Tailoring experiences to individual preferences can enhance customer satisfaction and loyalty.

Content Matters

To draw audiences in this competitive environment, theaters must offer fresh and diverse content. Bain emphasizes the importance of popular intellectual property (IP) while also dedicating resources to create original films and events that can engage viewers.

Innovative formats and collaborative partnerships can further expand cinema offerings. The report highlights that concert movies and live sports events have been effective in drawing in crowds, underlining the necessity for cinemas to reimagine the traditional movie-going experience.

Conclusion

The journey toward revitalizing cinema attendance is complex, but Bain’s recommendations suggest a focused approach on premiumization, community involvement, and creative content can yield significant positive changes. By adapting to the evolving landscape of media consumption, cinemas can offer compelling reasons for audiences to return to their seats.