As the showbiz saying goes, \u201cthe show must go on,\u201d and theaters are trying to keep up. <\/p>\n
In the last several years, theaters faced the COVID-19 pandemic of 2020, the industry strikes of 2022 and 2023 and the rise of streaming, leading to concern that movie theaters had fallen behind in the entertainment industry\u2019s everchanging landscape. USC\u2019s School of Cinematic Arts had a different idea.<\/p>\n
Moderated by the SCA Assistant Dean of Programming and Special Events Alessando Ago, the \u201cExhibition Ecosystem\u201d discussion focused on the adaptive strategies of theater executives and how theaters are embracing original content and curative marketing.<\/p>\n
\u201cWhat has really shown as a form of disruption is actually how resilient theaters are in destruction,\u201d said Jack Heller, founder of Assemble Media<\/a>, a production and IP creation company. According to the L.A. Times<\/a>, the summer cinema surge revenue in the U.S. and Canada reached a historical record of $4.76 billion, a nearly 30% jump from 2025. <\/p>\n \u201cThrough some of these challenges with the consolidation amongst the studios, we realized we had to step up our game,\u201d said Regal Global Entertainment\u2019s chief financial officer Thomas Song when talking about theaters\u2019 strategies. \u201cIt wasn\u2019t good enough to be open and waiting for films to come along. We actually had to increase and enhance our experience for the consumer. What we learned during this time was that a habit was broken.\u201d <\/p>\n With traditional formats like IMAX becoming popular again and films staying longer in theaters, indie films are finding their way into theaters.<\/p>\n \u201cI\u2019m more excited than anything else,\u201d said Elton Holt, a first-year film production MFA student. \u201cI\u2019m more optimistic that what\u2019s happening right now is shaping this industry in a different direction, but for the better of us. I envision more original IPs, more stories being told from people whose stories haven\u2019t already been told, but just more ideas like what we saw this year with \u2018Obsession.\u2019\u201d<\/p>\n Recently, original Warner Bros. and Paramount blockbusters, such as \u201cSupergirl<\/a>\u201d and \u201cPractical Magic 2<\/a>,\u201d underperformed at the box office. However, low-budget and original IPs<\/a> such as \u201cObsession\u201d and \u201cBackrooms\u201d generated over $300 million combined; \u201cObsession\u201d generated $225 million and \u201cBackrooms\u201d earned $135 million. Those numbers suggest that audiences are craving something new. Last year, Regal Cinema created the program Month of Masterpieces<\/a>, a series of films curated by their film department that included acclaimed filmmakers. This year, the series featured selections from Chlo\u00e9 Zhao, Rian Johnson, Gina Prince-Bythewood and Edgar Wright.<\/p>\n Forms of alternative content and usage of novelty merchandise such as popcorn buckets<\/a> have become a growing way for theaters to increase revenue. Concessions have always been a way for theaters to generate revenue and making them more personalized to a particular film generates greater interest in the film itself. Alternative content, which would include Beyonc\u00e9\u2019s Renaissance concert or the featuring of indie movies, has also helped increase theater economics. <\/p>\n \u201cWith the increase of indie projects that are garnering a lot of attention, it\u2019s putting a mirror up to the industry,\u201d said USC MFA screenwriting student Davon Cecil. \u201cIt\u2019s starting to pivot back to the creator and us being the ones who make the decisions ultimately.\u201d <\/p>\n However, others have suggested that this creator-economy isn\u2019t so true.<\/p>\n Last week marked the settlement of the Paramount Skydance and Warner Bros. merger. The conglomerate reached a $110-million agreement to proceed with the merger, a practice familiar to Hollywood\u2019s roots. <\/p>\n \u201cThis is how the studio system was founded in the 1920s,\u201d said Luci Marzola, assistant chair of the Cinema & Media Studies of the USC School of Cinematic Arts. \u201cThe difference right now is that we already have a few powerful companies and it\u2019s just getting fewer and fewer.\u201d<\/p>\n This comes after the longstanding attempts to prevent a merger. However, due to a sudden 180 on their stance on the settlement, David Ellison, California\u2019s Attorney General Rob Bonta and other attorney generals came to an agreement that would centralize film, television<\/a> and news production<\/a>. <\/p>\n