Phoenix Theatres has invested $5 million to revamp its 10-screen cinema at Cleveland’s Great Northern Mall, transforming it into a luxury entertainment hub with massive screens, immersive sound, and plush reclining seats. The upgrade has already shown results, with summer audiences filling premium showings of blockbusters such as Superman and Jurassic World: Rebirth.
Across North America, theater operators are making similar moves. Chains like AMC, Regal, and Cinemark have collectively spent more than $1.5 billion over the past year to modernize theaters, adding larger screens, enhanced sound, and luxury seating. AMC recently told investors that its upgraded auditoriums attract nearly triple the occupancy of traditional theaters, underscoring the draw of premium experiences.
Cory Jacobson, president and owner of Phoenix Theatres, explained the strategy simply: “In terms of seating, picture quality, and sound quality, it’s got to be better than what you can get at home.” Research confirms the trend. Formats like IMAX, Dolby Cinema, and ScreenX now account for a record 14.9% of tickets sold in the U.S. and Canada this year, compared with 9.8% in 2019, according to Comscore data.
Cinemark alone has invested $225 million this year to improve its global theaters, according to Cinema United. With owners charging an average $5 premium per ticket for these upgraded formats, the strategy helps offset a 23% decline in ticket sales since 2019. Industry analysts note that while attendance has not fully returned to pre-pandemic levels, higher ticket prices and premium experiences are fueling recovery.
Eric Wold, analyst at Texas Capital Securities, said the box office could return to pre-pandemic revenues largely because of these premium upgrades rather than a full rebound in attendance. Michael O’Leary, president and CEO of Cinema United, echoed that sentiment, stating that reinvestment proves the belief that the big-screen experience remains unmatched.
Moviegoers seem to agree. Magnolia Neu, who recently attended a ScreenX showing at Apple Cinemas in Greece, New York, said the 270-degree projection made the outing worthwhile. “If it weren’t for the large format or premium screening, I probably would not pay money to go to the movies in the first place,” she explained.
This summer marked a crucial test for Hollywood, with studios banking on sequels, reboots, and new originals to drive audiences back. Following a record-setting Memorial Day weekend powered by hits like the live-action Lilo & Stitch and the newest Mission: Impossible, summer box office totals reached $3.67 billion, only slightly below the prior year. Analysts see this as proof that theaters, bolstered by premium experiences, are staging a strong comeback.
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