Michael O’Leary, CEO of the U.S. theatrical exhibition trade group Cinema United, told The Wall Street Journal that “when legacy studios are absorbed, there is a significant decline in production.” The sale of Warner Bros. Discovery would likely result in fewer theatrical releases and shorter periods of exclusivity before movies move to streaming platforms — even if Netflix promised to keep supporting theatrical releases.
Cinemas are currently facing multiple roadblocks, among these, real estate expenses (including rent, taxes, insurance and maintenance), which are up by more than 30 percent since 2019.
This year, domestic (U.S. and Canada) box-office sales are expected to total about $8.8 billion, a roughly 3 percent increase from 2024. To return to broad profitability, theaters would need to reach about $10 billion in annual box-office revenue, according to the Journal.
The highest-grossing year worldwide was 2019 with $42.5 billion globally and $11.4 billion domestically.
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