How the Pandemic Affected Cinemas and Altered How People Watch Movies

Have you thought about your last trip to the cinema with friends? The pandemic has drastically changed cinemas, once bustling spots for entertainment. In this article, we explored how the pandemic has affected cinemas and altered the viewing habits through four key points:

• The number of cinemas per capita varies based on the state's development level

• Cinemas are still struggling post-pandemic. In 2023, the box office and attendance are only at 76% and 64% of pre-pandemic levels in 2018

• Extra paid services like IMAX and dining options have not seen much growth

• More people are now turning to online streaming, with a significant increase of 51% in streaming subscribers in the US from 2017 to 2023

The Number of Cinemas per Capita Varies by the State's Development Level

Through a study of cinema, population and GDP by state in the US, we discovered that the number of cinemas per capita is closely related to states' economic development. States with higher GDP have more people sharing one cinema, with an average of 59,115 individuals per cinema in the top 10 states by GDP, 49.4% higher than the bottom 21 states.

This is partly due to the decline in the popularity of moviegoing, as evidenced by a survey showing that 44% of respondents watch fewer movies in the cinema than five years ago. While some still prefer cinemas, this kind of entertainment is less favored overall, especially in higher GDP states where more entertainment options exist, leading to fewer cinemas per capita.

Cinemas Are Struggling - In 2023, Box Office and Attendance Only Recovered to 76% and 64% of the Levels in 2018

After the pandemic, cinemas in the US have not been as crowded as expected. Instead, the number of screens has actually decreased, with 2,437 or 6% fewer screens in 2023 compared to 2018. The revenue generated by each screen has also decreased by 19% in 2023. This decline in screens and revenue reflects the struggle faced by cinemas. While the box office in 2023 has increased, it is still 24% lower than pre-pandemic level in 2018, returning only to the level of 2001. Additionally, the number of moviegoers in 2023 is only 63.9% of the attendance in 2018.

The growth rates for box office and attendance have been decreasing since 2021, making it unlikely for cinemas to return to their pre-pandemic prosperity. In addition, inflation has somehow covered up the poor box office performance, with the average ticket price increasing by 32% from 2014 to 2023.

Challenges beyond Movies: Declining Demand for High-End Services in Cinemas

AMC's annual reports show a rise in IMAX, Dolby theaters, and theaters with dining and premium seating options before the pandemic. However, during and after the pandemic, the growth has stagnated or even decreased.

This is because people are less likely to spend on luxury services due to the economic downturn. Even though more people are willing to visit cinemas again, they are hesitant to pay for extra services. Despite a partial attendance recovery post-pandemic, it has not reached pre-pandemic levels, leading theaters to hold off expanding paid services.

The Growth of Streaming: Obstacles for Cinemas in the Changing Post-pandemic Viewing Behavior

Before the pandemic, cinema attendance maintained a stagnant 0% growth. However, the pandemic hit cinemas hard, with attendance dropping sharply 80.7% in 2020.

During the pandemic, streaming became more popular among movie fans, gaining more subscribers and revenue. A Statista survey showed that during the pandemic, a shift from 28% strongly preferring cinemas in 2018 to 14% in June 2020, while those strongly favoring streaming rose from 15% to 36%.

There was some recovery in movie attendance post-pandemic, increasing 1.9 times in 2021 and 3 times in 2022, compared to 2020. However, there is still a gap from 2018 levels. By 2023, US streaming subscribers surpassed 157.29 million, reflecting a 51% increase since 2017.

During the pandemic, people changed their viewing habits, favoring home viewing over cinemas, with streaming remaining popular post-pandemic. Subscription costs matter as well, with a single movie ticket averaging $10.53, while Netflix costs only $6.99 per month. Based on our research, using coupon extensions can save an average of $150 annually. This amount could cover the cost of monthly movie views or Netflix subscription for 20 months.

Methodology

We obtained data from Cinema Treasures and Wikipedia to find the number of cinemas per state and the population data. After calculating how many people share a cinema in each state, we looked at GDP data to see if they have any potential connections.

Next, we obtained the total number of movie screens in the US from the National Association of Theater Owners and gathered box office and attendance data from both the National Association of Theatre Owners and Comscore to see the current operational status of cinemas.

Analyzing AMC's annual reports, we collected information on cinemas with special features like IMAX and dining options to see how these services evolved during and after the pandemic.

Finally, we obtained the number of streaming subscribers in the US from Statista and compared it with movie attendance data to understand the shift in viewing habits.

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