The Future of Movie Theaters in a Streaming World

The 2025 North American box office generated approximately $8.6 billion, down 3% from 2023 and significantly below pre-pandemic highs. Between 15% and 20% of regular moviegoers stopped attending theaters after the pandemic and have not returned. Over 5,700 movie screens have shut down across the country. AMC Theatres posted a $298 million loss. And yet the movie theater is not dying. It is transforming into something different, more premium, more event-driven, and increasingly entangled with the streaming platforms that were supposed to replace it.

The Theatrical Window Debate

The most consequential change from the pandemic era was the compression of the theatrical window, the period during which a film plays exclusively in theaters before becoming available for home viewing. Before 2020, that window was 90 days. During the pandemic, studios cut it to as little as 17 days, with some films releasing simultaneously in theaters and on streaming platforms.

The experiment proved that shorter windows hurt theatrical revenue without proportionally boosting streaming subscriptions. AMC CEO Adam Aron has pushed to re-establish a minimum 60-day theatrical window, arguing that films need time to build word-of-mouth audiences before moving to home platforms. Studios have largely cooperated, with most major releases in 2025 maintaining 45 to 60-day windows.

IMAX: The Bright Spot

While the broader theatrical market struggles, IMAX had a record year. The company generated $1.28 billion at the global box office in 2025, a 40% increase over 2024 and 13% above its previous record from 2019. IMAX stock rose 44% in 2025.

The lesson is clear: audiences will leave their homes for experiences they cannot replicate at home. IMAX’s oversized screens, immersive sound, and premium presentation create a genuinely different experience from a living room television. Films like Dune: Part Two, Oppenheimer, and the latest Mission: Impossible installment drove massive IMAX attendance because the format added something tangible to the viewing experience.

Netflix Comes to Theaters

In perhaps the most surprising development, Netflix, which long dismissed theatrical distribution, has begun releasing films in theaters. The animated hit Kpop Demon Hunters received a theatrical run through a deal with AMC, and Netflix has indicated that more theatrical releases will follow for its biggest titles.

The logic is straightforward. Studios realized that films made exclusively for streaming failed to generate the cultural impact of theatrical releases. There is no streaming equivalent to the shared experience of watching a movie with a packed audience. The theatrical debut creates an event that drives conversation, and that conversation then drives streaming viewership when the film moves to the platform. Theaters and streaming are not competitors; they are sequential parts of the same marketing pipeline.

What Theaters Are Becoming

The surviving theater chains are investing in premium experiences. Luxury recliners, dine-in options, reserved seating, improved food and beverage, and premium formats like IMAX and Dolby Cinema are becoming standard rather than exceptional. The goal is to make every theater visit feel like an event worth the $15-20 ticket price.

The mid-range multiplex showing ten movies on standard screens is the format most at risk. These theaters compete on convenience, and streaming is always more convenient. The theaters that will thrive are those offering something streaming cannot: massive screens, communal energy, and a reason to leave the house.

The Economics Going Forward

Fewer films will receive wide theatrical releases. The movies that do reach theaters will be larger, louder, and more spectacle-driven, the kind of films that benefit from a big screen and a big audience. Quieter dramas, comedies, and mid-budget films will go directly to streaming, where they can find audiences without the overhead of theatrical marketing and distribution.

This bifurcation is already happening. In 2025, the box office was dominated by franchise sequels, animated family films, and event releases. Original adult dramas were almost entirely absent from theaters, having migrated to platforms like Netflix, Max, and Apple TV Plus where they can find audiences through algorithmic recommendation rather than opening-weekend box office performance.

What This Means for Moviegoers

If you enjoy going to the movies, the experience is getting better and more expensive simultaneously. Premium formats and luxury amenities raise the quality of each visit while raising the cost. A standard ticket may cost $12-16, but IMAX and Dolby Cinema screenings run $20-30.

The trade-off is worth it for the right film. Some movies are simply better in a theater. The communal experience of laughing with a crowd or sitting in stunned silence with strangers adds something that no home setup can replicate.

For more on navigating the streaming and theatrical landscape, see our streaming wars 2025 analysis and our guide to where to stream every 2025 Oscar nominee.