Are Movie Theaters And Box Office Gross Dying Before Our Eyes?

It seems like the conversation about the film industry dying pops up on social media every few months, and now that Memorial Day weekend has come and gone, it’s back again. This time focusing on the recent releases of The Garfield Movie and Furiosa: A Mad Max Saga. Weekend box office numbers show that this past weekend’s numbers, typically the beginning of the summer blockbuster season, are the lowest it’s been in years.

Everyone online seems to have an answer for why they think nobody is going to the theaters. While people tend to stick to one particular point, there are a multitude of reasons both inside and out of the entertainment industry. Unfortunately, the internet has never been good at arguing with nuance. This particular situation deserves it. The “death” of the film industry is one to give a bit of time to, so I thought I’d do just that.

Film Has Always Been Dying

Our current conversations about the death of movies are not the first in the 100+ year history of the industry. In 1930, the Hays Code was introduced. A voluntary set of guidelines that kept films “safe” with a set of morals. The crackdown on doing so came from religious and political figures but also showed the public that purchasing a ticket to the theater was worthwhile. By the 1960s, when people were tired of “safe” films, the code disappeared, and a new set of filmmakers took over. Movies turned up the volume on violence, language, and sex to bring in revenue.

Additionally, the film industry has had to shift many times to keep the general public returning. In recent years, there’s been an influx of sequels and well-known intellectual property, but in the 1950s, it was 3-D and gimmicks like it. William Castle was famous for his added tricks during movies. Skeletons may drop from the ceiling. Hand buzzers attached to the bottom of seats go off during an intense moment. These are things you’d typically find at a theme park these days, but they were used in the ‘50s to outperform I Love Lucy and Mr. Ed.

The Post-Pandemic Problem

Now that you know a little history, you might wonder what changed in recent years to bring us to this point again. That is a loaded question filled with several answers. The most significant thing to happen isn’t just related to the film industry. Covid-19 changed almost every industry. Restaurants are still trying to figure out how to adapt to customers in 2024. The simplest answer I can give is this: habits. The entire world population changed habits. Some came forcefully, and some voluntarily. Regardless of the how we have changed.

Regarding movies, theaters closed, and we were all forced into our homes. With the movie and television industry having to focus on streaming and digital purchases to stay afloat, we’ve become accustomed to that experience. As theaters reopened and new films shifted back to theaters from streaming, audiences have seldom shifted with the industry.

An article from Forbes talks about how our homes have become our “safe” place more so than ever. Habitually, we now see our lives being lived within the walls of our homes rather than outside of them. There is a comfort and safety we associate with watching a movie on Netflix that doesn’t exist in theaters.

Movie Theater Etiquette

Pixar Soul Turning Red Luca theaters

One of the major arguments for the film industry dying is how people no longer go to theaters based on how people behave. Returning to habits formed during the pandemic, we’ve become less tolerant of others. When you haven’t had to deal with the public for a long period of time, becoming agitated is easier. On top of that, society has grown accustomed to scrolling through our phones or talking to those we share a home with during a movie because that is acceptable in private.

I don’t fault theaters for the behavior of moviegoers. Rarely do people speak up to management. While we’ve become less tolerant of people, the pandemic has made many people more introverted and non-confrontational. We’d rather not go to theaters than hold down the rules of theater etiquette.

The Cost of a Ticket

Another major argument solely blames movie theater prices. I can agree that some screenings, specifically those specialty 4DX ultrawide screen prices, are crazy. Do you know what’s crazier? The entire cost of living!

I’ve never been good at math so forgive me, but statistics show that movie ticket prices have grown along with us at a steady rate. Yes, popcorn and sodas are a bit high priced, but that hasn’t changed in decades. The reality is that while movie theaters haven’t changed much, everything else around us has. When basic necessities become the priority, entertainment becomes one of the first things to get cut from the budget. That’s simply just being responsible. Add to that how inexpensive streaming services are compared to a theater ticket. The argument that movies are expensive should be more about how grocery bills and rent have skyrocketed, leaving us with little finances for an evening out.

Bloated Studio Budgets

Outside of audiences, the studios have to take some of the blame as they have yet to adjust their film budgets. Hollywood has made $300+ million films as if nothing has changed. The risk is growing for them, and it’s not in their favor. Trends in what people want from films have always existed. When the Westerns and gangster films died, they were replaced with dramas and raunchy comedies. What audiences want now is shifting. We’ve had superheroes and multi-part IP sagas for the last 25 years. Audiences are looking for something different. I don’t think anyone knows what that is yet, but studios are choosing not to see it yet. Instead, studios keep making nearly half-a-billion-dollar movies, hoping you’ll be interested in Thor this time around.

If anything, I’d argue we are currently in a much more niche place. Almost nothing appeals to the masses, but smaller portions of people enjoy different genres. The film industry isn’t dying in that sense. It’s diversifying. It’s almost best to appeal to them with a smaller-budget film you know can break even. Horror films seem to be having a heyday, for example. While horror isn’t appealing to everyone, recent films from directors like Jordan Peele or Ari Aster have found audiences very interested in spending money on their stories.

Where is the Marketing?

Inside Out 2

Along with budgets to make movies, a marketing budget usually accompanies a movie. One argument I often see with movies that don’t break the bank at the box office is how people didn’t even know about the movie or that it was in theaters. As someone who writes about movies daily, it’s difficult for me not to see trailers and press releases. I also know I’m not like the majority of people. The reality is that the places where most people saw advertising either don’t exist or don’t get the eyes they used to. When was the last time anyone picked up a newspaper? Do you watch terrestrial television and sit through commercials?

Most of us skip over the ads on YouTube videos or pay that extra $2 to not see ads with streaming. Most websites gear their advertising towards the type of website it is. We aren’t going to see the latest Jurassic Park sequel advertised on a website about health and wellness. Even if studios use their advertising budget like they used to, it’s not going to be seen by the number of people it used to because people just aren’t in those spaces.

The side effect of the internet age is that we, as the consumers, now have to seek out the things we want to see. They are no longer being fed to us in the same ways they used to. If you don’t know that the latest Pixar film is coming out in a few weeks, it’s because you weren’t looking for it. Even when studios rely on sites like ours to share news about Inside Out 2 or to hire influencers to get the most out of their audience, it still isn’t as many eyeballs on the product as there once was.

Is the Film Industry Really Dying?

Circling back around, I think the idea of the film industry dying is over-exaggerated. It isn’t dying. It’s changing. In the same ways it has. It’s surviving any way it can. The unknown is scary, and there could be some serious missteps on the road to recovery. We’ve already seen the battle with generative AI be a major talking point. Unfortunately, if we are asking for smaller budgets, studios currently see AI as a tool to do just that. The peak of 2019’s box office summer may not happen again. It might be 20 years until movies are that profitable again. 

Regardless, movies will still be around in some form or another. Art doesn’t die. Studios collapse. Movie stars come and go. Movie theaters open and close. The art, though! People will always want to make it, and we will always want to watch it. We are a society of storytellers and creativity. That’s part of the human experience.

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