Movie chains are souping up their theaters to draw in customers

• Movie theatre chains are beefing up their facilities.
• Top chains are investing $2.2 billion to modernize their theaters across the US.

The National Association of Theater Owners, a trade organization that represents the eight largest theater chains in the US and Canada, announced in a press release on Thursday that theaters will invest more than $2.2 billion over the next three years to modernize its properties.

Part of that money will go toward renovations that many movie theaters across the country desperately need, such as more comfortable seats, higher-quality projection technology and sound systems, and better snacks.

The association said other crucial updates will include installing better air conditioning, lighting, carpeting, and signage.

But that's not all. The group said movie theater chains will also invest in adding more family entertainment options, like bowling and arcades, to their facilities.

One B&B Theatres location in Texas — which is part of the National Association of Theater Owners — even has an outdoor pickleball court in its theater complex.

The group's president and CEO, Michael O'Leary, told Variety that audiences are returning to theaters.

"Consumers today are very demanding and they want to have a range of things that they can do in any given setting," O'Leary told Variety.

The theatre association represents AMC Entertainment Inc., Regal Cinemas, Cinemark USA, Inc., Cineplex, Marcus Theatres Corp., B&B Theatres, Harkins Theatres, and Santikos Entertainment — which together account for 1,600 locations and make up 67% of the box office, according to the group.

An industry insider with knowledge of the investment told BI that though there were media reports of pickleball courts and ziplines being added to some theaters, it's not something that is widely planned.

By investing in higher-quality facilities and diversifying their entertainment options, the theaters are betting that the updates will help draw more people in after years of sliding attendance and declining sales.

Correction language:

Correction: September 23, 2024 — An earlier version of this story mischaracterized a detail about movie theaters' plans. There are no widespread plans to add pickleball courts to outdoor areas near theaters. Speculation that they might do so appeared in media reports but was not corroborated by Michael O'Leary. The story also misattributed the announced source of the $2.2 billion investment. The National Association of Theatre Owners said theater chains were making that investment, not that the association itself was making it.