Photo by Krists Luhaers on Unsplash
July 9, 2024
Can ScreenX Boost the Movie Theater Industry?
This past April, CJ 4DPLEX and D’Place Entertainment announced a partnership to open D’Place’s first-ever ScreenX theater at the Mary Pickford Theatre in Cathedral City, California, in May.
ScreenX, a 270-degree panoramic cinema format, extends two additional movie screens onto the walls of the auditorium for an immersive viewing experience. The immediate advantage is a peripheral viewing experience that adds more complete visual immersion, much akin to how VR goggles elevate a standard viewing screen method or a single computer monitor when playing a video game.
Both companies expressed excitement about enhancing the moviegoing experience and creating memorable moments for their audience.
“We’re excited to join forces with D’Place Entertainment and launch their very first ScreenX auditorium. Together, we’re reshaping the future of moviegoing, and we can’t wait for audiences to experience the magic of ScreenX at the Mary Pickford Theatre.”
Don Savant, President & CEO of CJ 4DPLEX America, via PR Newswire
ScreenX differs from IMAX due to the placement of viewing screens on three of the four walls inside an auditorium, equating to a true panorama. IMAX, on the other hand, retains a flat screen, albeit on a much larger scale than traditional movie theaters. Certain IMAX theaters also offer an OMNIMAX auditorium, however, that projects the IMAX camera image onto a large dome to simulate an increased viewing experience.
CJ 4DPLEX is a Korean company based in Seoul, with offices located in Los Angeles, California, and Beijing, China. It operates the fifth-largest chain of theaters in the world and is also responsible for 4DX auditoriums. These 4DX theaters are also enhanced experiences, and they offer “a multi-sensory cinema-going experience, allowing audiences to connect with movies through motion, vibration, water, wind, snow, lightning, scents, and other special effects that enhance the visuals on-screen. Each 4DX auditorium incorporates motion-based seating synchronized with more than 21 different effects and optimized by a team of skilled editors.”
Currently, there are more than 790 4DX auditoriums worldwide across over 70 countries. In comparison, there are approximately 370 ScreenX auditoriums spread throughout 40 countries.
According to the press release, “D’Place Entertainment designs, builds, manages, and operates Movie Theaters and Entertainment Centers that incorporate a number of upscale, quality attractions like Bowling, Cinemas, and Amusements all fused with great food and beverage options while maintaining the highest levels of guest service.”
The movie industry, especially the theater chain sector, has been increasingly showing signs of trouble.
According to statistics researched by The Numbers, the movie theater industry has been on a steep decline in various areas, such as a significant decrease in overall movie ticket sales and a sizeable reduction in the number of movies released each year by the six major Hollywood studios. For instance, The Numbers reported that around 830 million movie tickets were sold in 2023, compared to over 1.2 billion in 2019 before the pandemic. Additionally, the six major studios — Warner Bros., Walt Disney, 20th Century Fox, Paramount Pictures, Sony Pictures, and Universal — had a total of 67 wide releases last year compared to 87 in 2019.
Interestingly, the number of movies released each year has increased in total output from the combination of other studios, with 83 wide releases last year compared to 43 in 2019. Furthermore, the average ticket price has increased in cost due to factors such as inflation.
Cineworld Group, owner of Regal, has only recently started to recover after emerging from 11 months of Chapter 11 bankruptcy last August. Meanwhile, AMC Entertainment’s share prices have been on a roller coaster, and some analysts are labeling AMC as a meme stock.
Additionally, movie theater culture hasn’t been the same since the advent of streaming services. And with the addition of social media, competition for viewership has increased tenfold, with people’s time and attention spans being stretched thin and pulled in multiple directions.
According to a 2022 Statista survey, 42% of U.S. viewers “prefer to watch newly released movies online,” compared to 40% who said they would prefer to go to movie theaters for premiers. More recently, HarrisX completed a poll for IndieWire and found that only 34% of adults in the U.S. would prefer to go to a theater to watch movies, leaving two-thirds to prefer waiting for movies to be streamed online.
Regardless, the new CJ 4DPLEX and D’Place Entertainment ScreenX theater in the Mary Pickford Theatre is now open and features a 50-foot-wide screen and luxury recliner seats. Upcoming ScreenX films include “Twisters” and “Deadpool & Wolverine.”
Discussion Questions
How might advanced formats like ScreenX and 4DX influence consumer behavior and theater attendance in the face of streaming services and home entertainment?
How can theaters with immersive technologies like ScreenX position themselves as essential entertainment destinations, and what strategies should they use to stay relevant and profitable amid digital content dominance?
With economic pressures and declining ticket sales, what new business models or partnerships can theaters explore to attract and retain audiences and diversify revenue?
Poll
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Ryan Grogman
Managing Partner, Retail Consulting Partners (RCP)
John Lietsch
CEO/Founder, Align Business Consulting
James Tenser
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Some predicted that movie going would be killed-off by streaming and on-demand. It has not been, largely because going to the movies is as much about having an experience as it is about seeing a film. However, there is no doubt that theaters have to keep moving the dial if they want to keep people engaged, and this 4D format is one way of doing that. It’s not entirely new as many theme parks have had this kind of technology for some time, but adapting it to a movie experience is a novelty. Apparently, it has worked well in South Korea, Thailand and Mexico where the 4D experience is already in place and I can see it drawing the crowds in the US too. The question, of course, is how the economics stack up longer term.
I don’t think ScreenX / 4DX alone will boost the entire theater industry; however, it’s yet another innovation in recent years that add’s to the in-person experience. The rise in quality food, alcoholic beverage options, IMAX formats, better sound, etc. are all innovative concepts which have likely kept the theater industry from experiencing greater decline. But for the majority of folks, going to the movies in person will be driven by the quality of the content and the price of the experience. Hollywood’s wide-releases have struggled financially with original IP, and moviegoers have suffered from superhero fatigue, a decline in theater-goer behavior, and increased ticket prices for the better formats. Personally, I’m a huge fan of theaters and catch at least one movie in-person each week, but as home theaters and screens continue to rise in visual and sound quality, the theater chains may need to come up with additional innovation beyond adding peripheral screens to boost revenue.
ScreenX will boost movie theatre business in the isolated theatres that have it, ScreenX will do nothing for the movie theatre business where it doesn’t exist.
The movie theatre industry has been hurt by streaming but also because the movie industry has done very little to promote the movie theatre experience to Gen Z, and even Millennials.
When my wife and I go to the movies, we always notice the absence of younger adults. It seems the only young adults in the theatre are the ones working the concessions. – Db
Agreed. I see more baby boomers and gen x viewers. I only see younger adults when they cone with their older parents.
In 1953 an industry study found that (only) 1/3 of theaters were actually making money on movies; another third were making profits only because of the concession sales, while the remainder were “just plain losing money.” It’s not nearly as bright an outlook today; so yes The movie industry, especially the theater chain sector, has been increasingly showing signs of trouble. But will more and newer technology help ? No, not if the quality of what they’re showing doesn’t improve. In fact, by even further encouraging reliance on a few blockbuster hits to make profits, they’re likely to worsen the situation.
Experiential cinema formats have plenty of potential, IF moviemakers are willing to take on the added cost and risk to produce content to fit their screens.
This is not a trivial consideration, considering how tough it is to find paying audiences for conventional movies these days – big budget or indy. Many films get much of their ROI from streaming revenues, but that makes the fancier formats pointless.
IMAX, 4DX, ScreenX (and possibly the Sphere in Las Vegas) all endeavor to create a more immersive visual “experience” that makes a trip to the venue a worthwhile special occasion. Immersive viewing, super high-def screens, Dolby sound, vibrating chairs and other sensory enhancements are definitely experiential, but they are NOT elements of great storytelling. They cannot convert a “B” movie into a work of art.
Then again, immersive experience venues have other potential. Simulcasting a major concert or Broadway show to an audience of millions in multiple locations comes to mind. Imagine how the “Swifties” would turn out to see their hero perform in a nation-wide event…
The cost to see a movie in this format will play heavy in the acceptance of this format going forward. If I have to pay $30 (for example) for me , my wife and my kids, that becomes prohibitive. Better to wait and see it via streaming (yes I know, you miss the immersive experience, but when it becomes about money to a consumer….)
Innovation in the theater with ScreenX and 4DX will certainly drive traffic but will it be enough to overcome the greater migration of consumers to streaming services who prefer to watch movies any place other than movie theaters? I’d say this will be a difficult task given younger digital native generations who use mobile as their 1st screen.
This will undoubtedly attract interest. It’s been interesting to watch the huge success (so far) of the Sephere in Las Vegas, which offers a similar experience for live performances. My challenges are: What’s the cost of refurbishing existing theatres at enough scale to impact the industry, and how many more tickets have to be sold to make this work?
My wife and I used to go to the movies weekly. There were more than a dozen screens within walking distance from our apartment. Then the pandemic hit. As soon as we felt safe, we returned. Except for big action superhero films, we haven’t been back since. Streaming provides great and current movies, and I make the popcorn. Apple, Amazon, and Netflix are producing Oscar winners.
I don’t think we are talking about the movie business as we know it with Screen X and 4DPLEX. I don’t believe this is a weekly draw. Or a monthly draw. Maybe a few times a year. And only with unique films built to the advantage of these technologies. A comfortable couch and a large-screen TV can suffice for 95% of film presentations.
ScreenX and 4DX features will help influence consumer behavior and drive a little more theatre attendance. However the theater industry is struggling to woe people back to theatres. The pandemic was a big hit to the theater industry and consumer habits switched to streaming movies at home. The streaming business has benefited from this consumer behavior shift and now movies are coming to streaming services sooner than ever. Theatres need to find a compelling reason for consumers to shift their habits. One idea is to provide free popcorn. Popcorn is a low cost item and if it drives more ticket sales and beverage sales, it could be a huge benefit for consumers and theatres.
“Let’s work the problem, people. Let’s not make things worse by guessing.” Gene Kranz, Apollo 13 (great, “movie theatre” movie).
Is the lack of technology the reason people aren’t going to the movies? I’m not convinced and if I allow the “dark side” in me to strip down the movie going experience it’s pretty abysmal: horrible seats, rude neighbors, noise, bad food – popcorn and candy excluded! If I think about why I go to the movies, it’s not the environment itself. Unfortunately, today, the alternatives are plentiful and the switching costs are non-existent. Personally, I’ve limited my trips to the movie-theatre to blockbusters or for movies that must be experienced on “the big screen.” Otherwise, it’s not worth it. Ironically, my GenZ kids rarely go to the movies.
I’m not sure that this is a problem best solved by new technology. It will help and the tech is absolutely cool but I don’t believe the problem is tech based; it’s a combination of content, experience, technology and insanely low switching costs.
This is interesting and certainly needed, however the Movie business needs to start producing better content, content specifically made for this technology. That will happen-but not enough to really “move the needle” here. There are simply too many other distractions competing for our time.
This will help but is not a total elixir. Nothing is, I am afraid.
Very little innovation has taken place at theaters other than 3D glasses and eat-in dining. I do believe that more tech-enhanced developments in entertainment are inevitable and will help to recapture some of the lost consumers. I do think the hayday of movies in theaters are over but can be reinvented with theater only live entertainment (aka, more Taylor Swift concert broadcasts).
The 42% desiring steaming over theatres should be a concern to the movie theatre industry. There’s only one way to drive the number down, and that is to create an experience that the customer can’t get at home and is compelling enough to get them to leave their homes. The new ScreenX is a start, but the industry will still have to innovate and offer the experience that gets their customers to say, “I’ll be back!” (See what I did there? A call back to the Terminator!)
While moving going may not be dead yet, and new innovations certainly help, I pretty much think this ship has sailed and the heyday of going to the movies is over. With high priced food items and sometimes inconsiderate folks in the audience, I gave this up years ago. Nothing will get me back and this point, and I don’t think I’m alone.