Annual box office revenue in the market remains about 20 percent lower compared to pre-pandemic periods, competition from streaming services has only intensified, and there is palpable anxiety as Warner Bros. awaits a new ownership structure under Paramount.
It is precisely under such uncertain circumstances that Hollywood executives and cinema owners are gathering this week in Las Vegas for CinemaCon, the annual trade show and exhibitor convention celebrated—or at least made somewhat less obscure—by Seth Rogen’s series "The Studio" and its "old school Hollywood buffet." However, the real Hollywood bosses have far greater concerns than organizing parties.
As producer of "F1" and "Top Gun: Maverick" Jerry Bruckheimer stated in a release last week: "We are at a pivotal point for the future of this industry."
Bruckheimer, "Oppenheimer" producer Emma Thomas, and "Sinners" director Ryan Coogler are joining forces to take action. Just last week, Cinema United announced that Bruckheimer will chair a newly formed advisory council of filmmakers, with Thomas as vice chair and Coogler as one of the inaugural members. Among other members are Brad Bird, Celine Song, and Jason Reitman, who will advise on key issues for the future of theatrical exhibition, including so-called windows—the number of days films are exclusively shown in cinemas before becoming available for purchase or rental at home—and further studio consolidation.
"Our industry is at its strongest when we work together to promote the unique experience of watching a film on the big screen," said Cinema United President and CEO Michael O'Leary in the release. "The importance of Jerry and Emma leading this initiative, at such a critical time for our industry, cannot be overstated."
Much of the discussion will revolve around the impending acquisition of Warner Bros. by Paramount. Both studios will present their upcoming films to cinema owners in separate presentations: Warner Bros. on Tuesday and Paramount on Thursday.
Although Paramount Skydance President and CEO David Ellison has stated he aims to increase the combined annual film output of Paramount and Warner Bros. to more than 30, there remain serious concerns from organizations like Cinema United.
Historically, fewer independent studios have meant fewer films produced for theatrical distribution, and between the pandemic, strikes, the rapid growth of streaming services, and general financial instability, the release calendar has suffered the most. In 2019, there were 112 "wide release" titles, meaning films shown in over 2,000 cinemas. This year, for the first time since the pandemic, that number has risen to 115, according to Comscore data.
However, doomsday scenarios rarely dominate the mood at CinemaCon. Studios would not spend huge sums to bring stars and exclusive footage if there were not a degree of optimism and excitement about what lies ahead. Universal's President of Domestic Distribution, Jim Orr, says he believes the pre-conference mood is "very optimistic."
"In the first part of the year, we've seen some great titles and excellent business, including our own 'Super Mario Galaxy Movie,'" Orr said.
The upcoming summer brings Christopher Nolan's "The Odyssey," a sci-fi spectacle from Steven Spielberg, a new "Star Wars" film, a live-action version of "Moana," the fifth "Toy Story," and a new "Spider-Man." Later in the year, cinemas will welcome the new Marvel film "Avengers: Doomsday" and the third "Dune"—both scheduled for the same day, December 18.
The film industry has recently seen some bright spots, including growing audience interest in premium large formats like IMAX and 70mm projections, as well as a surge in box office revenue from PG-rated films, suggesting that families and younger audiences have not entirely abandoned the big screen for smaller ones.
Recent successes of films like "Project Hail Mary," "Hoppers," and "Wuthering Heights" also show that audiences are not drawn to cinemas solely by franchises—though it would be a mistake to underestimate the importance of blockbusters like "The Super Mario Galaxy Movie."
"At least from a box office perspective, we're heading to Las Vegas on a very positive note," says Paul Dergarabedian, who leads market trend analysis at Comscore.
Insiders often remind us that this industry has already survived a series of existential crises—from television, VHS, and piracy to streaming platforms. Thomas, who is producing "The Odyssey," emphasized in her statement about collaborating with the exhibitor organization "the profound cultural value of gathering with a group of strangers and connecting while experiencing something special on the big screen."
"That is precisely the goal: to ensure that cinemas of all sizes, worldwide, can continue to present our stories in the best possible environment, so that film fans of all ages can enjoy them as they were meant to be seen," Thomas stated.