Why are movie theaters struggling even when their revenue numbers look decent on paper? The answer lies in a clever trick with numbers that masks a troubling reality.
Movie theaters collected about $9 billion at the domestic box office in 2025, which sounds impressive. However, this figure represents far fewer actual moviegoers than the same amount would have attracted ten years ago. Rising ticket prices have artificially inflated revenue while fewer people actually show up to watch films.
Higher ticket prices create an illusion of success while actual theater attendance continues its steady decline across the industry.
The attendance numbers tell a stark story. Between 2019 and 2025, frequent moviegoers who attend at least once monthly dropped dramatically from 39% to just 17% of the population. Meanwhile, infrequent attendees who go less than once monthly jumped by 23 percentage points to reach 53%. One-third of people went to movies less often in 2025 compared to 2024, while only 13% increased their visits.
Cost creates the biggest barrier to attendance. Two-thirds of people staying home cite expensive tickets as their main reason. Nearly half prefer waiting for movies to appear on streaming services they already pay for. It’s like choosing to eat leftovers instead of ordering pizza when money feels tight.
The industry has responded by releasing more films, not fewer. Theaters showed 111 wide releases in 2025 compared to 94 in 2024, with 115 planned for 2026. This strategy backfires spectacularly because more movies compete for attention from a shrinking audience.
In 2016, fewer films generated $11.4 billion in revenue, proving that less can indeed be more. Individual films performed much better when the average gross per wide release exceeded $108.6 million in 2016, compared to just $79.5 million in 2025.
Only big event films succeed while mid-budget movies struggle to find audiences. Average returns per film have plummeted since studios began flooding theaters with releases. Meanwhile, streaming services continue capturing more consumer dollars as households are projected to spend an average of $122.74 monthly on streaming by 2028.
One bright spot emerges from younger viewers. Gen Z moviegoers aged 10-24 increased their attendance by 25% recently, and 33% now qualify as habitual moviegoers who see at least six films annually. These young fans still view theaters as exciting entertainment destinations. Like savvy investors who use dollar-cost averaging to reduce risk by making regular purchases over time, these younger audiences consistently invest their entertainment dollars in theatrical experiences.
However, this small generational uptick cannot offset the broader decline affecting the industry’s foundation.
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