The demand for out-of-home movies has grown since theaters began reopening post-lockdowns, but visitor preferences and behavior have changed significantly. And in the new normal of movie-going, theaters are reinventing their offerings and the visitor experience.
In their latest white paper, Placer.ai, a location analytics company that collects geolocation data from mobile devices, uncovered three trends driving movie theater traffic in 2023.
Concessions and Other Reasons to Leave Home
Concessions have undergone a transformation – going far beyond popcorn and soda. Many cinemas now offer a bar and full-fledged gourmet meals worthy of a night out, so concession spending per visitor is on the rise. Concessions have a larger profit margin than ticket sales. The trend amplifies the impact of renewed foot traffic on theaters’ bottom line. And experts predict that adding supplementary activities alongside movies – such as arcades and bowling alleys – will soon become the norm.
Although ticket prices are higher on average than they were pre-pandemic, the cost of going to the movies is lower than in 2019 when adjusting for inflation. This makes movie theaters a relatively economical entertainment option in the current economic climate and could mean that going to the movies is becoming especially popular among budget-conscious consumers.
Gen Z’s Excitement for Movie-Going
Theater chains’ recent investment in sound and picture quality likely appeals to Gen Z visitors who’ve grown accustomed to cutting-edge technology at home. Gen Z’s excitement for movie-going indicates the potential for theaters to have continued success. Chains that earn Gen Z’s loyalty with a quality movie experience can capitalize on the many years of movie-going this young crowd has ahead of it.
As the movie industry recovers from the pandemic and introduces many exciting innovations to get consumers off their couches and into theater seats, 2023 gives the confectionery industry opportunities to succeed in theaters. BBI can assist with representation in this space.