Movie theaters are in crisis. Despite a surge in streaming subscriptions, cinema attendance remains stubbornly low, leaving theaters fighting for survival. A recent report by Bain & Co. sheds light on this dilemma, offering a roadmap for studios and exhibitors to lure audiences back. But here's where it gets controversial: Bain suggests that simply relying on big-budget franchises isn't enough. They argue that the key lies in creating premium, personalized experiences that can't be replicated at home.
Bain partners Chris Xanthakis, Nicole Magoon, and Daniel Hong emphasize a shift towards 'premiumization, personalization, and partnerships'. They believe audiences haven't abandoned theaters entirely; they're just waiting for a compelling reason to return. The report, completed before the Netflix-Warner Bros. Discovery deal further muddied the waters, paints a stark picture. It highlights a two-decade-long struggle to fill seats, now amplified by the pandemic's impact on viewing habits and the rise of streaming.
The pandemic accelerated existing trends, pushing cinemas into what Bain calls the 'Flooded Era' – a world saturated with 'good enough' content. Anyone can create and distribute media now, but standing out in this crowded landscape is tougher than ever. So, how can cinemas compete? Bain points to the unique strengths of the theatrical experience: immersion, spectacle, and shared moments. However, these strengths clash with the growing preference for short-form, interactive, and digital content.
This is the part most people miss: Bain suggests that cinemas need to become destinations, offering premium auditoriums, exceptional service, and personalized touches that make a trip to the movies an event, not just a way to watch a film. Think Taylor Swift concert-level excitement, but more accessible.
Building a sense of community is another crucial element. Independent cinemas have long thrived by fostering film clubs, hosting Q&As, and creating themed events. Bain encourages mainstream theaters to follow suit, leveraging social media platforms like Instagram and TikTok to amplify these experiences. Their 2025 survey reveals that 64% of U.S. entertainment venue attendees share their experiences online – a powerful form of free marketing that cinemas can actively nurture.
But what about the content itself? While established franchises remain important, Bain argues for a focus on fresh content and innovative formats. Concert films and live sports broadcasts have proven successful in drawing audiences, demonstrating the need for theaters to explore new partnerships and content types.
The report concludes with a stark reality: cinema executives have no choice but to reinvent the movie-going experience. Success will belong to those who invest in premium, personalized offerings that simply can't be replicated in the comfort of one's living room.
Do you agree with Bain's assessment? Can cinemas truly compete with streaming by focusing on premium experiences and community building? Share your thoughts in the comments below!
