- Cinema industry shows signs of recovery, with screen count up 2% in 2025.
- Premium large format and luxury dine-in theaters are driving the rebound.
- Gen Z and Generation Alpha are increasing their frequency of theater visits.
- Theaters are investing over $2.2B in major premium upgrades and amenities.
Premium Format Drives Cinema Industry Revival
According to Bisnow, the US cinema industry is rebounding after years of decline. Rising demand for premium large format screens and luxury dine-in theaters is driving this recovery. Christopher Nolan’s upcoming film Odyssey has fueled early interest. Imax 70mm tickets sold out months in advance and now resell for high prices.
Although US movie screens declined 12% since 2020, the industry added locations in 2025. Screen count rose 2%, marking the first net growth in five years. Analysts credit this shift to a consumer focus on immersive, event-style viewing over standard multiplexes.
CRE Adapts to New Cinema Landscape
Developers are pivoting from traditional multiplexes to boutique cinemas with upscale dining. SJC Ventures added a 33K SF dine-in Alamo Drafthouse to its Virginia holdings. Experience-focused theaters are replacing outdated formats in many retail centers.
Landlords remain cautious due to high construction costs and pandemic fallout. Still, operators spent over $1.5B on upgrades last year. These investments reflect a growing belief in premium, resilient cinema formats.
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Changing Demographics Signal Long-Term Growth
The latest data reveal that Gen Z and Generation Alpha are fueling the cinema industry’s revival. Movie attendance among Gen Z rose 25% last year, and 59% of Generation Alpha prefer attending movies in theaters over watching at home. Cinema owners have responded with event-based programming and partnerships with retail centers, drawing younger crowds through themed nights and interactive showings. These evolving habits align with how Gen Z is reshaping expectations around urban experiences, favoring cities that offer cultural depth, flexibility, and community-focused design.
What’s Next for Theaters
Analysts expect the cinema industry revival to continue as more blockbuster franchises return to screens in 2026. The combination of premium large format offerings, targeted events, and evolving consumer habits suggests the industry is moving toward a new, more sustainable model. Rightsizing in the number of screens and investment in amenities are projected to foster long-term health and growth in the sector.
