CineEurope Sparks Transformation: 5 Key Takeaways for the Thriving Future of Theatrical Experiences

By Julien Marcel | Data & insights from Boxoffice Pro

Another amazing CineEurope edition has come to a close, reaffirming the unwavering determination of the theatrical industry to forge ahead on the path to recovery. It was an honor to be part of this event and to share some insights with the esteemed International Union of Cinemas (UNIC) marketing group, comprising marketing experts from across Europe. Here are the key topics I addressed during our session:

1. The Narrative Shift:

The way we talk about the industry has undergone a remarkable and much-needed transformation. Hyperbolic discourse is an unreliable means for understanding the true state of our industry’s affairs. The pandemic, for example, posed an immense challenge to our industry, but it did not mean it was dead. Challenges are inevitable for any industry. They come and go, and now we’re finally witnessing a positive shift in public perception, as people increasingly recognize the value and unique experiences that cinemas have to offer.

It’s an exciting time to be part of this evolving narrative. The 2023 domestic box office has already more than doubled 2020’s figures and matched 2021’s overall performance. Ticket sales are currently forecasted to reach between $8.4 to $9 billion by year’s end. While that improvement may signal a larger return to theaters from audiences, it is most likely attributable to a higher number of theatrical releases. The number of high-profile studio titles that are skipping theaters entirely has decreased, and more films are enjoying exclusive runs in cinemas before being made available online. Major streaming companies like Apple (Killers of the Flower Moon) and Amazon (Napoleon) are planning to launch their biggest titles exclusively in theaters later this year, while Netflix is expected to continue experimenting with exclusive theatrical runs as it did with last year’s Glass Onion: A Knives Out Mystery.

And while challenging times may be behind us, we cannot fall prey to the narrative that they are behind us forever. As we put one behind us another eventually arises. The domestic box office is still projected to fall between 20 to 25% below 2019’s pre-pandemic levels. However, such a comparison may be somewhat unfair, as 2019 ranks as the third-highest-earning year on record in North America. While more titles will hit theaters in 2023, the number is still expected to fall significantly behind the number of titles being made available to theaters prior to the pandemic. As for the WGA & SAG-AFTRA strikes, it’s too early to say what impact they will have on our industry. It could impact the 2024 slate, with the actors’ strike having more immediate repercussions on marketing and promotions. These are yet another set of major challenges that need to be considered and whose consequences are largely unpredictable at this moment in time. That being said, we can be certain about one thing. They won’t end in the death of our industry.

2. Partnering for Success:

The narrative shift also signals an opportune paradigm shift. We can no longer remain in survival mode. The current landscape presents a ripe opportunity to prepare for the industry’s next chapter by forging new partnerships, expansion, and digital transformation. In most markets, for example, the online ticketing rate has grown by 20–25% in comparison to rates prior to COVID-19. It’s even common to see online ticketing rates of 50% or higher. This sort of collaboration is the key to unlocking the industry’s fullest potential. By joining forces with like-minded organizations and experts, we can create synergies that propel our industry forward, fostering growth and innovation.

3. Environmental Priority:

At CineEurope we learned just how much our patrons not only appreciate but also expect movie theaters to take environmental concerns seriously. It’s crucial for us to prioritize sustainability and demonstrate our commitment to a greener future. It’s worth mentioning that the environmental concern is far higher in Europe than in the U.S. But perhaps North America can take a leaf out of the European market’s book. By implementing eco-friendly practices throughout operations, we not only reduce our carbon footprint but also resonate with the growing values of our audiences. Our patrons want to see that their movie theaters are actively addressing this crucial question, and in doing so, creating a positive impact on both the environment and the overall cinematic experience.

4. Digital and Premium Transformation:

The cinema experience is undergoing a digital revolution, and embracing this transformation is crucial. We have the opportunity to enhance the moviegoing journey by leveraging technology, providing immersive experiences, and offering premium services that captivate and delight audiences.

5. Innovative Formats:

The future of cinema lies in exploring new formats and redefining our addressable market. From boutique, independent cinemas to captivating family entertainment centers, there are endless possibilities to engage diverse demographics and expand our horizons.

Looking to join forces with cinema-industry experts? Interested in learning more about cinema-dedicated tools to transform the way you drive customers to your theater? Find out more here.