Expanded theatrical windows, an increase in young moviegoers and strength in emerging forms of content are ushering in a new phase, and a better one, at the box office, according to a pair of exhibition CEOs.

The head of Marcus Theatres lauded the “well-balanced” mix of films that buoyed the second quarter. “Ultimately, a sustainable, resilient box office requires strategic balance, leveraging trusted sequels to generate dependable cash flow while actively nurturing bold, original stories that expand the total movie-going audience — and this quarter we saw a balance of both,” he said on a call with analysts after earnings.  

“While established IP and sequels were certainly an important core component to the overall box office, the breakout success of new originals like Obsession and Backrooms connected with Gen Z and young adult audiences to deliver huge surprise contributions to the box office. The success of small and mid-sized original films played a critical role in diversifying the box office and making the industry less dependent on the success of individual tentpole films,” he said, calling original cinema “the essential lifeblood of the theatrical ecosystem … and the primary engine of creative innovation. Original films like these are an opportunity to engage new demographics, create fresh cultural touchstones, and deliver the thrill of discovery that draws audiences out of their homes.”

The nation’s fourth largest chain reported strong results for the June quarter earlier today. So did the considerably bigger no. 3 exhibitor, Cinemark, led by CEO Sean Gamble.

Both said younger demos turning out are in part making up for a more reticent older audience, a trend that’s been building but crystalized in Q2.

Gamble said attendance by the 25 and younger crowd is rising sharply as more films resonate. “We are getting into these generations that have grown up with devices in their hands and there was some question, would going to movies and being asked to disconnect be alienating [but] it’s the opposite … They are valuing it more than other generations.”

He also praised the mix of “franchise and non-franchise films” including Obsession, Backrooms and Iron Lung from social media stars Curry Barker, Kane Parsons and Markiplier. All are social media creators with strong fan bases.

Both CEOs said studios have started to honor commitments to a 45-day exclusive theatrical window although it will take some time to see the full impact. The industry is essentially retraining consumers to get out to theaters instead of waiting for a film to appear in their living rooms. “We are certainly optimistic about the positive benefits that will yield,” said Gamble.

“It doesn’t just benefit us, it benefits the distributors and the creators,” said Marcus. The more windows, the better to maximize revenue, he said. “Everything old is new again.” The transactional window also got “way too short,” he noted.

Distributors had tended to push back against multiple marketing campaigns, he noted, but they’ve gotten better. “Fortunately, their marketing has been more effective, talking directly to consumers. Yes, you’ve got to do multiple marketing campaigns but it is different, and I think the setting is more conducive to longer windows than it has been given the ability to reach consumers directly.”

Theater chains are helping, said Gamble, especially in drawing younger demos. “We have a fantastic marketing team [in] digital and social, influencer networks, where the younger audiences are.” A new brand campaign launched last fall – tagline ‘It’s Show Time!’ — was intended to resonate with younger audiences.  

Something to work on, he said, are films “bunching up “ on the calendar, which can risk capacity constraints at theaters. “We are hopeful that even some of the more traditional, larger Hollywood films will spread out, into February and March and off periods [away] from summer and year-end, and find they work great.” Meanwhile, non-traditional, creator, anime, faith-based and foreign films help level things.

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