Only 3 US Blockbusters Over $1 Billion This Year... "Recovery Unlikely Until 2025"

US Largest Movie Theater Chain AMC Hits 52-Week Low
Impact of Prolonged Pandemic... Audience Recovery Is Key

[Asia Economy Reporter Jeong Hyunjin] 'Jurassic World: Dominion' (June), 'Top Gun: Maverick' (June), 'Avatar: The Way of Water' (December)

These are the films that surpassed $1 billion (approximately 1.3 trillion KRW) in ticket sales at the US box office this year. Only three films reached this milestone in 2023. There were no films earning over $1 billion in 2020 and 2021. However, considering that nine films earned over $1 billion in 2019 before the COVID-19 pandemic, the current performance is still sluggish. Although theaters have shown some recovery this year, they continue to struggle to attract audiences.

Movie 'Avatar: The Way of Water' Director James Cameron
[Image source=Reuters Yonhap News]

Can movie theaters, which collapsed due to the pandemic, revive? The growth of over-the-top (OTT) streaming services and the stagnation of the film market have significantly reduced theater attendance. Market experts predict that it will be difficult for audience numbers to return to pre-pandemic levels even by 2025.

According to CNBC and others on the 28th (local time), AMC, the largest movie theater chain in the US, closed at $3.84 per share, down 4.71% from the previous day. This marks a drop of over 85% since the beginning of the year and a 52-week low.

AMC faced bankruptcy last year due to the impact of COVID-19. Although it has recovered somewhat this year, CNBC reported that it still struggles to generate profits. The poor performance of Hollywood films, production delays, and declining ticket sales have taken a toll. The market believes AMC's significant debt level is affecting its stock price.

According to research firm Comscore, North American box office revenue increased by 68% this year to $7.23 billion, rebounding from the worst performance during the pandemic. However, it remains lower than in 2019, with ticket sales down 40% compared to 2019, according to Bloomberg and other foreign media. AMC recorded a loss of $685.9 million from January to September this year.

[Image source=Reuters Yonhap News]

In response to the situation, Adam Aron, CEO of AMC Entertainment Holdings, requested the board of directors to freeze his salary and announced that other executives would follow suit. He tweeted, "Shareholders are suffering, and I do not expect more."

The US film industry, centered in Hollywood, views the ongoing struggles of theaters amid the pandemic's aftermath as serious.

Jason Blum, producer at Blumhouse Productions, known for horror films such as 'Happy Death Day,' 'Get Out,' and 'Insidious,' tweeted on the 4th, "I don't want to die by streaming," emphasizing the need to go to movie theaters.

American film critic Wesley Morris wrote in a column for The New York Times (NYT) on the 1st, "There are now almost no films that allow an actor to grow into a persona or reach stardom like Tom Cruise," describing the situation as a crisis that the film industry is aware of.

[Image source=AP Yonhap News]

Bloomberg noted that the trend of audiences going to theaters for specific genres has disappeared over the years, with drama and comedy already affected and animation recently showing a similar trend. The average revenue of five major animated releases this year was around $400 million, less than half of the 2019 level, Bloomberg reported.

With the situation worsening, the recovery of the theater industry is expected to be slow. Based on analysts' analysis, CNBC reported, "There is no doubt that the global box office will strongly revive next year," but also noted, "It will be difficult to fully return to pre-pandemic levels by 2024 or 2025."

The recession in the international film industry has also significantly impacted the Korean film market. This year, only 'The Outlaws 2' (12.69 million viewers) attracted over 10 million viewers in Korea. Due to the ongoing effects of COVID-19, audience attendance has not fully recovered, and except for a few films, many recorded below-expectation results. Among the major releases this year, only 'Hansan: Rising Dragon' (7.26 million viewers) surpassed 5 million viewers, while highly anticipated films like 'Alienoid Part 1' (1.53 million viewers) and 'Emergency Declaration' (2.05 million viewers) performed below expectations.