Ahead of its annual summit in the fall, the National Association of Theater Owners reported that all major North American theater chains have committed to investing a combined $2.2 billion to modernize and upgrade two of their theaters over the next three years.
“There is no doubt that moviegoers of all ages love going to their local theater to see the latest blockbusters on the big screen. Competition for consumer dollars has never been fiercer,” said NATO President and CEO Michael O’Leary. “Going to the theater is an unparalleled entertainment experience, and exhibitors are committed to making every visit to their theaters memorable. This investment reflects that commitment in a tangible way that all viewers will see and enjoy.”
The new initiative reflects a top priority for O’Leary and his NATO team since taking over the exhibitors’ trade body in spring 2023. While cinemas expect to resume showing movies in 2025, without pandemics or industry crises, NATO is trying to solve a common complaint among audiences: a theatrical experience that is plagued by poor-quality images and outdated auditoriums.
To this end, major theater chains are making significant capital investments in renovations, including two state-of-the-art laser design systems.
Technology and surround sun systems, installation of more comfortable seats,
Improving food and beverage offerings, creating family entertainment options, such as fil-rama and bowling, and investing in building essentials, such as air conditioning, lighting, signage and the latest generation of carpeting.
Other channels included in the NATO projects include AMC, Regal Cinemas, Cinemark, Cineplex, B&B Theatres, Harkins Theatres, Marcus Theatres, and Santikos Entertainment.
“Today’s consumers, for one reason, demand the best possible experience when they visit our theaters. Operating a theater today is a capital-intensive operation,” said Bob Bagby, chairman of the NATO Executive Board and CEO of B&B Theaters. “This investment in resources is the next step in our industry’s ongoing commitment to ensuring that going to the theater remains a unique and special experience for generations of visitors.”
