Why Cinemas Need to Adapt to Stay Relevant in 2024
The Cinema Sector in 2024
Guest Blog for The Leisure Property Forum
By Zachary Pulman, Competitive Socialising and Leisure Hospitality Interior Designer
In the ever-evolving entertainment landscape, cinemas are facing a critical juncture. With shifting consumer preferences and technological advancements, traditional movie theatres must adapt to stay relevant in 2024. One promising avenue for this adaptation lies in the integration of competitive socialising elements, which can help increase revenue and appeal, especially among Millennials and Generation Z.
The State of Play
Cinemas have long been a staple of entertainment culture, offering a communal space for audiences to enjoy the latest blockbusters on the big screen. However, in recent years cinemas have faced challenges as consumer behaviours and preferences undergo significant shifts. The rise of streaming services, coupled with changing social dynamics and technological advancements, has led to a decline in traditional cinema attendance.
According to Savills, when comparing 2022 admissions to the first nine months of 2019, the last full year of trading before the onset of COVID-19, the industry sat at 70% of admissions despite the absence of lockdowns (source).
To combat this decline, cinemas must reimagine their offerings to provide more than just a movie-watching experience. They need to transform into vibrant entertainment hubs that cater to a diverse range of interests and demographics.
Cinema Chains on the Up
According to Savills, high-end, dine-in cinemas tended to rebound post-pandemic much faster than larger format rivals. Everyman, which offers plush sofa seating and a waiter service for food and drink, increased its market share to 4.5% in 2022, up from 3% in the first half of 2019. For brands like these, the ethos is about bringing people out for an evening of hospitality, food and drink and not just a film, making them less reliant on blockbusters.
The Rise of the local Independent Cinema
In London, UK, for example, we’ve witnessed the rise of local, independent cinemas such as Genesis in East London, PeckhamPlex in, you guessed it, Peckham, and The Ritzy in Brixton.
These independent cinemas have gone the extra mile to tempt people back to the big screen post-pandemic, such as hosting live music events, offering low-cost tickets and more luxurious experiences, including plush sofa seating, snacks and cocktails in screening rooms, and a strong connection with their local area.
Experiential Cinema
Companies like Secret Cinema and Backyard Cinema are bringing everyone’s favourite movies to life with experiences that encompass theatre, costume, lighting design, music and dance. This resonates particularly well with Millennials and Generation Z, who value and are willing to spend extra on Instagram and TikTok-worthy experiences.
The Benefits of Competitive Socialising
The innovative concept of bringing competitive socialising elements to cinemas and shopping centres has been gaining momentum and comes with several benefits. Firstly, it diversifies the entertainment options available to customers, attracting a broader audience base beyond traditional moviegoers. By offering activities like mini-golf, arcade games, live music and an elevated food and beverage experience, cinemas can appeal to families, groups of friends, and corporate gatherings alike. By transforming cinemas into multi-purpose venues, “downtime” when the big screens are typically closed, can become revenue generating.
Moreover, competitive socialising taps into the growing demand for experiential activities over material possessions. Millennials and Generation Z, in particular, prioritise experiences that are unique, interactive, and shareable on social media. By creating Instagram and TikTok-worthy environments and leveraging technology to enhance gameplay, cinemas can create memorable experiences that resonate with younger audiences.
Elevation is Key
Why not make the popcorn on offer, the best your customer has ever tasted? Or get experimental with food packaging design to create something unforgettable?
The impact of the Barbie movie on cinema in 2023 shows that innovative ideas, such as placing Barbie’s signature pink photo booths in cinemas, can make a huge difference to the bottom line. The team behind the Barbie movie recognised the importance of a multi-platform marketing approach. This attraction became hugely shareable on social media, providing another compelling reason for the target audience to experience the movie on the big screen.
Related future-forward ideas could include the integration of 5D screens with VR qualities and a high-quality mind-bending audio experience. Cinemas with arcades could collaborate with films to produce games for new releases or focus on classic movie-themed games. Ideas like these are designed to increase buzz on and offline, increase dwell time and all-important revenue.
Case Study – The Funderdome for HOYTS
Hoyts, one of the largest cinema chains in Australia, asked Zachary Pulman Design Studio to expand the scope of entertainment options on offer for their customers with a new competitive socialising concept. By converting half of their screens into attractions including mini-golf courses, retro-inspired arcades, and beach-themed bars, Coney Island-inspired “The Funderdome,” provides a playful and immersive experience that goes beyond just watching a movie.
Cinema Sector – Looking Ahead
As cinemas navigate the changing entertainment landscape, adaptation is key to staying relevant and competitive. By embracing the principles of competitive socialising and incorporating innovative elements, cinemas can create dynamic and engaging experiences that resonate with modern audiences.
In conclusion, the future of cinemas lies in their ability to evolve and diversify, offering more than just a passive viewing experience. By integrating competitive socialising elements and embracing future-forward ideas, cinemas can transform into thriving entertainment destinations that capture the imagination and excitement of moviegoers in 2024 and beyond.
About Zachary Pulman Design Studio
Creating unique and innovative spaces since 2007, innate style and expertise have made Zachary Pulman Design Studio an international leader in competitive socialising design. We strike the perfect balance between playability and design aesthetic. The results? Spaces that evoke imagination, conversation and memorable experiences.
Founded by one of London’s transcendent designers, Zachary Pulman, our team comprises creative gurus, including experts in their fields of architecture, design, engineering and construction. We pride ourselves on our united passion to create exceptional design and unique spaces that inspire and engage. Competitive socialising never looked so good.
This article was originally published by LPF as a guest blog.