A Big Assumption About Why Movie Theaters Are Struggling Seems to Be Wrong

You don't need to follow the entertainment industry too closely to notice that movie theaters are in rough shape. The box office is down, movies that would've made a billion dollars less than a decade ago are bombing, and it's clear that many viewers would rather wait for a film to hit streaming rather than shell out for an expensive ticket and overpriced popcorn. However a new study has some silver linings, and suggests that it's not necessarily young people who are to blame. 

Cinema United, the world’s largest exhibition trade association, released the results of a study on the theater industry on Wednesday that found that Gen Z are going to the movies. Among all age groups, it was Gen Z who increased the frequency by which they go to the cinema the most, averaging 6.1 film screenings a year. This is up from 4.9 from the previous year, an increase of 25%. According to the study, 41% of Gen Z visit the movie theater at least six times a year, a cohort known as "habitual moviegoers." Back in 2022, that figure was only 31%.

Premium large format screens, the ability to order food and drinks at their seat, and deluxe/lounge seats were all cited as reasons why members of Gen Z go to movie theaters, suggesting the appeal is at least partially because the theatergoing experience offers physical amenities that streaming something on a laptop on a couch simply can't compare to. 

There were other positive findings in the study. The number of habitual moviegoers grew by 8%. Membership in cinema loyalty programs grew by 15%. In total, more than 200 million people — 77% of Americans aged 12-74 — saw at least one film in theaters in 2025. 

Weekend box office is important, but a more accurate measure is looking at the industry on an annual basis and considering myriad other factors in the marketplace to get a more complete picture of the strength of the industry,” Michael O’Leary, President and CEO of Cinema United, said in a statement. “2025 is a perfect example of a year where an inconsistent box office threatens to overshadow other variables that point to a bright future for movies on the big screen.”

Despite the Good News, the State of Movie Theaters Is Still Troubled

Although Cinema United's study suggests that Gen Z isn't going to be the death of cinema, there are still plenty of reasons to be concerned about the long-term future of movie theaters. According to Box Office Mojo, the 2025 domestic box office is $8,013,081,384. That's a marginal increase from 2024, though considering the film industry was still recovering from the effects of the actors and writers' strikes and 2025 had a lot more blockbusters that looked like sure things on paper, it's not especially inspiring.

Generally, the box office is way, way down compared to pre-pandemic days. The domestic box office peaked in 2018 at $11,892,160,011, and 2019 wasn't too far behind. Then the pandemic sent things off a cliff, and audiences that were already getting used to waiting for things to stream at home rather than hoofing it to theaters got calcified in their ways. 

Especially with the news that Netflix, the company largely responsible for audiences' shift to streaming, looks poised to buy Warner Bros., it's unclear what the long-term future of movie theaters is going to be. At least we know that Gen Z is interested in seeing films on a huge silver screen.