The National Association of Theatre Owners is highlighting the vitality of moviegoing in 2024, emphasizing that box office figures alone do not convey the full narrative. A recent report by NATO on Wednesday reveals that domestic revenue for the entire year is expected to be down by as much as 5 percent from 2023. This decline is attributed to factors such as labor strikes and post-production delays stemming from the pandemic. However, prior to Thanksgiving, revenue had already dropped by 11 percent. NATO chief Michael O’Leary firmly believes that it is a mistake to solely rely on box office numbers to assess the strength of theatrical. He argues that, unlike other industries, the success or failure of filmed entertainment is typically judged through weekly box office results. This traditional approach, he contends, fails to provide a comprehensive picture of the industry's strength or the future of exhibition. As 2024 comes to a close, it becomes crucial to delve deeper and consider other fundamental aspects that showcase the industry's strength and promising future.

Key Metrics and Consumer Enthusiasm

In compiling the report, NATO collaborated with several third-party research entities and focused on several key metrics. These included consumer enthusiasm, investment in the marketplace, and the growth of loyalty programs. Regarding consumer appetite for the theatrical experience, the report indicates that 76 percent of Americans between the ages of 12 and 74 have attended at least one movie in a theater this year. This translates to approximately 200 million Americans, which is in line with pre-pandemic moviegoing data. Moreover, movie theaters continue to attract more patrons annually than the NFL, MLB, NBA, and NHL combined. Additionally, 85 percent of Americans expressed their intention to go to the movies as frequently or more often in 2025 compared to this year. In a separate survey of over 96,000 moviegoers across 14 countries conducted by the Global Cinema Federation, 72 percent of respondents reported coming to the cinemas more or the same as they did six months ago. These findings clearly demonstrate the enduring popularity and potential of the theatrical experience.

Gen Z and Latino Moviegoers

The report also sheds light on different demographics. It found that going to see a movie on opening weekend is the top preferred activity among Gen Z females, regardless of time and financial constraints (those between ages 10 and 24). Gen Z males also rank it as the second preferred activity. Latino moviegoers play a significant role in bolstering the box office, accounting for 27 percent of those who saw six or more movies in 2024. Furthermore, 45 percent of Latino moviegoers expressed a preference for seeing movies on opening weekend, which is 11 percent higher than the overall moviegoing population. These insights highlight the diverse and influential nature of different moviegoing demographics.

Investments and Premium Formats

When it comes to attracting consumers, the NATO report notes that the top eight circuits are investing over $2.2 billion in upgrades over the next three years. These investments will cover a wide range of areas, from enhanced projection, sound, and screens to modernized food and beverage options, as well as improved signage, lighting, and common areas. One area that has witnessed a substantial increase in consumer demand is premium large-screen format auditoriums, including Imax. According to Comscore, there are 950 theaters in North America with large-format screens, representing a 37 percent increase from five years ago. Worldwide, the number of PLF screens has more than doubled since 2016, reaching 5,700, as reported by Omdia. While consumers are responding positively to these large-screen offerings, it is important to note that they only make up 9 percent of the annual domestic box office. Nevertheless, every auditorium at local theaters provides a premium experience.

The Role of Different Genres

The NATO report cautions that while tentpole movies are crucial to the success of the movie industry, they are only one part of the equation. To sustain and thrive, smaller and medium-budgeted films must also find a place. Comedies, family films, horror, and other genres are also fan favorites on the big screen. In 2024, the number of comedies released in theaters increased by 5 percent, while horror saw a significant spike of 38 percent. Additionally, the number of independent films released in 2024 was 25 percent higher than in 2022. These figures demonstrate the diverse range of films that are appealing to audiences and contribute to the overall health of the movie industry.

Loyalty Programs and Subscriptions

In the United States and Canada, loyalty programs have seen a 12 percent increase in new subscriptions from 2023 to 2024. Currently, there are over 118.9 million loyalty club members. These loyalty programs play a vital role in retaining and attracting moviegoers, providing them with additional benefits and incentives to continue supporting the theaters.