Introduction to transforming cinemas into entertainment centers!

Cinemas are going through an era of transformation, where they are evolving well beyond their traditional functions of showing films. Faced with growing competition from streaming platforms and changes in consumer habits, cinema operators are innovating to attract new audiences. One of the most significant developments in this industry is the conversion of movie theaters into comprehensive entertainment centers, offering a range of activities that go beyond watching movies. These cinema entertainment centers (CECs) position themselves as essential leisure destinations, integrating catering, games, and sometimes even sporting activities.

Indeed, it’s a crisis in cinemas

The COVID-19 pandemic has exacerbated the already deep crisis that cinemas were experiencing in the face of the rise of streaming platforms like Netflix. Theater attendance has fallen significantly, with declines of up to 40% in the United States between 2019 and 2021. The global box office has felt these hard hits. 

Meanwhile, streaming platforms have seen their popularity soar, with Netflix reaching 231 million subscribers in 2022, while video streaming revenue jumped 21%, reaching around $71 billion in 2021. The period was also marked by an evolution in the distribution model for films, with simultaneous releases in theaters and on streaming platforms, thus eroding the traditional exclusivity of cinemas. 

The reasons for this disaffection with theaters include the increased comfort of streaming at home, the high cost of cinema releases, the rising quality of original productions on platforms, and the reduction in exclusivity of cinemas. In this difficult context, the film industry is forced to review its model to remain competitive in the face of an ever-richer home entertainment offering.

Cinemas have not said their last word, what response has been put in place?

How ? 

To accommodate these new activities, cinemas had to completely rethink the layout of their establishments. This has sometimes involved the removal of certain projection rooms, in favor of spaces dedicated to leisure activities. These redevelopments allowed the introduction of bowling facilities, laser tag, virtual reality, rides, arcade machines, and action games. In addition to these activities, catering services have been added, providing a richer and more complete experience for visitors. This strategic change not only extends the duration of visits but also diversifies sources of income.

Why this change?

The objective behind this diversification is clear: increase customer retention, boost less busy time slots, and attract a wider and more varied clientele. By offering a variety of activities, cinemas hope not only to retain their existing clientele but also to attract new market segments who might not have considered going to the cinema.

What are the results?  

The first results of these transformations are promising. Cinemas that have adopted this diversification model report a notable increase in their attendance. Multifunctional spaces attract not only movie fans but also those seeking a more complete entertainment experience. For example, channels like Santikos Entertainment saw their attendance increase by around 24%, thanks to these additions, thus strengthening their position in the market.

Why is this a winning strategy?  

Cinemas have an undeniable competitive advantage: their locations. Often located in premium areas, with great visibility and accessibility, they are ideally placed to attract the general public. Their large surface area and spatial configuration also allow them to offer experiences that few other spaces can offer. By transforming cinemas into diverse leisure spaces, they maximize the use of their location and enhance their attractiveness, making them a long-term investment for owners.

A French example!

The transformation of movie theaters into entertainment centers is not limited to the United States; it is also starting to be felt in France. A recent example is that of the Pathé franchise, which launched an innovative initiative in its Plan de Campagne establishment in Marseille. This space has been redesigned to include a catering service with the Pathé Café, following the trend of cinemas reinventing themselves to attract a wider audience.

Are you concerned? Do you want to invest?

If you are faced with this situation or are considering investing in transforming your cinemas into entertainment centers, we are here to support you. Drawing on our expertise in the leisure industry, we have already helped more than 1,000 parks around the world, representing more than 4 million m² operated and attracting more than 42 million visitors per year. Thanks to our experience and our unique visibility on the market, we are perfectly positioned to advise and guide you in carrying out your projects.

Whether you are looking for innovative ideas to reinvent your spaces or are ready to take the investment step, we offer you a turnkey service, from design to implementation, to transform your cinemas into entertainment destinations attractive and durable. Contact us to discuss your projects and find out how we can help you maximize the potential of your establishments.