Home / Business and Economy / Cinema's Crisis: Bain Urges Premium Experiences for Survival
Cinema's Crisis: Bain Urges Premium Experiences for Survival
9 Dec
Summary
- Cinema attendance remains significantly below pre-pandemic levels.
- Audiences perceive moviegoing as too expensive compared to streaming.
- Bain suggests premiumization, personalization, and community events.
The movie theater industry faces an existential threat as attendance remains far below pre-pandemic figures. Audiences increasingly view cinema as an expensive outing, especially when compared to the surge in video streaming subscriptions. A report by Bain & Co. highlights that while consumers wish to attend more in-person events, this sentiment has not translated into a recovery for theatrical exhibition.
Bain partners Chris Xanthakis, Nicole Magoon, and Daniel Hong suggest that successful companies will invest in premiumization, personalization, and partnerships. They argue that cinemas must reframe themselves as premium experiences, offering an event that cannot be replicated at home. This includes leveraging community through social spaces and events, as well as utilizing social media to amplify shared experiences.
To thrive in the current "Flooded Era" of abundant media, theaters need to offer novelty beyond established franchises. Innovative original movies, live streams, and concert films have demonstrated alternative ways to draw audiences. By forging new partnerships and delivering creative content and formats, cinemas can recapture their audience and ensure their future.
