Hollywood Bets Moviegoers Are Ready to Return to Theaters

In 2021, as the pandemic raged, the talk of Hollywood was Project Popcorn: an initiative from WarnerMedia (then owned by AT&T Inc.) to simultaneously release all its films in theaters and on its HBO Max streaming service. Although Warner’s decision—scorned by filmmakers including Christopher Nolan and Denis Villeneuve—and Covid-19 weren’t solely responsible for felling the business of theatrical exhibition, Project Popcorn was a seminal moment for an entertainment industry facing the reality that many, if not most, people prefer to watch a movie from the comfort of their homes. It simply takes less time, money and effort than going to the theater, and some viewers say it amounts to roughly the same experience.

That watch-at-home habit has been tough for studios to deal with. Even with the health crisis receding throughout 2022, the year’s $7.5 billion in North American box office receipts remained about a third below pre-pandemic levels. That’s wounded major theater chain owners such as AMC Entertainment Holdings Inc., which is making desperate moves to survive, including buying a stake in a gold mine, and Regal parent Cineworld Group Plc, which has filed for bankruptcy.