Hollywood executives, stars and theater owners gather for CinemaCon

The future of theatrical moviegoing stands at a critical crossroads despite a modest uptick in audience attendance compared to last year. While more people are returning to cinemas, domestic box-office receipts remain approximately 20% below pre-pandemic figures, and the industry faces mounting pressure from streaming services.

Against this backdrop of uncertainty, Hollywood executives and theater owners are convening this week in Las Vegas for CinemaCon, the annual exhibition and trade show. The gathering takes place amid serious concerns about industry consolidation, particularly regarding Warner Bros.’ potential new ownership under Paramount.

“We are at a defining point in the future of this industry,” stated Jerry Bruckheimer, the producer behind blockbusters like “F1” and “Top Gun: Maverick.” Bruckheimer has taken action by chairing the newly established filmmaker leadership council for Cinema United, a trade organization representing around 60,000 movie screens in the United States and internationally.

The council, which includes “Oppenheimer” producer Emma Thomas as vice chair and “Sinners” director Ryan Coogler among its founding members, aims to address pressing issues facing theatrical exhibition. Other notable members include acclaimed filmmakers Brad Bird, Celine Song, and Jason Reitman. The group will advise on key industry concerns, including exclusivity windows—the period during which films play exclusively in theaters before home release—and the impacts of industry consolidation.

Michael O’Leary, Cinema United’s president and CEO, emphasized the significance of this initiative: “Our industry is strongest when it works together to promote the singular experience of seeing a movie on the big screen. The importance of having Jerry and Emma at the helm of this initiative, at such a critical time for our industry, cannot be overstated.”

The pending acquisition of Warner Bros. by Paramount looms large over the convention. Both studios will showcase their upcoming slates in separate presentations—Warner Bros. on Tuesday and Paramount on Thursday—but industry insiders are watching closely to see if executives will address the merger directly from the stage, as former 20th Century Fox Chair Stacey Snider did in 2018 when Disney’s acquisition was imminent.

While Paramount Skydance’s chairman David Ellison has expressed intentions to expand the combined studios’ annual output to more than 30 theatrical releases, Cinema United and other organizations harbor significant concerns. Historically, consolidation has led to fewer theatrical releases. After years of pandemic-related disruptions, industry strikes, and streaming competition, the theatrical release calendar is just now showing signs of recovery. According to Comscore, 2023 will see 115 wide releases (films opening in over 2,000 theaters), finally surpassing the pre-pandemic total of 112 in 2019.

Opposition to the merger is growing. On Monday morning, over a thousand Hollywood professionals—including Denis Villeneuve, Kristen Stewart, J.J. Abrams, and Joaquin Phoenix—signed an open letter warning that further consolidation would eliminate jobs across the industry.

Despite these concerns, CinemaCon traditionally maintains an optimistic atmosphere. The studios invest significantly to showcase upcoming releases and bring star power to Las Vegas. Angel Studios, for instance, announced five new projects on Monday, including a Cold War drama starring Jeff Daniels as President Ronald Reagan, an action film with Owen Wilson and Alan Ritchson, and a remake of “Angel and the Badman” featuring Tommy Lee Jones.

“The mood going into the conference is very optimistic,” said Universal’s president of domestic distribution Jim Orr. “The first part of the year we’ve seen some extraordinary titles and great business, including our own ‘Super Mario Galaxy Movie.’ I think it should be quite the celebration in Vegas this year.”

The upcoming release schedule offers reasons for optimism. Summer will bring Christopher Nolan’s “The Odyssey,” a Steven Spielberg sci-fi spectacle, a Star Wars installment, the live-action “Moana,” and a new “Spider-Man” film. The year will culminate with simultaneous December 18 releases of “Avengers: Doomsday” and the third “Dune” film, prompting speculation about another potential cultural phenomenon like “Barbenheimer.”

Recent bright spots include increased audience interest in premium viewing formats like IMAX and 70mm screenings, along with a surge in family-oriented PG-rated films, suggesting younger audiences haven’t completely abandoned theaters for streaming services. The success of original films like “Project Hail Mary,” “Hoppers,” and “Wuthering Heights” demonstrates that non-franchise movies can still draw crowds.

“At least from the box-office perspective, we are going in on a very positive note,” observed Paul Dergarabedian, who analyzes market trends for Comscore.

Industry veterans also note that cinema has weathered previous existential threats, from television to VHS and digital piracy. Emma Thomas, producer of “The Odyssey,” emphasized the enduring value of the theatrical experience: “There is profound cultural value in gathering together with a group of strangers and connecting while experiencing something special on the big screen. That is what this is about: making sure that cinemas of all sizes, around the world, can continue to present our stories in the best possible setting, so movie fans of all ages can enjoy them as they were intended to be seen.”