Can Movie Theaters Steal the Show from Streaming?

It wasn’t long ago that original streaming films dominated studio strategies, with major players slashing theatrical releases and scrambling for digital-first blockbusters. This era gave rise to a seemingly unstoppable streaming boom, but after the pandemic dust settled, cracks began to show. Declining subscriber growth, saturated markets, and the yearning for shared experiences off-screen forced studios to reevaluate.

Enter the newly merged Paramount Skydance. CEO David Ellison has boldly declared that original streaming movies are no longer the company’s main priority; instead, Paramount is supercharging theatrical output—raising its film slate from 8 to 20 movies annually. This dramatic shift marks one of the most aggressive industry pivots back to the big screen in recent memory, supercharging optimism among exhibitors and sending shockwaves through Hollywood financial circles.

Industry heavyweights like AMC CEO Adam Aron are embracing the boost. “We’ve thought for a long time that Paramount in David Ellison’s hands would be very good for exhibition,” Aron noted, pointing to the studio’s legacy hits like Top Gun: Maverick—a film widely credited with sparking renewed interest in the theater experience. Since SkyDance’s box office coups, studios are again recognizing that theatrical releases can drive bigger cultural moments, longer revenue tails, and higher per-head spending than digital debuts.

AMC’s recent numbers lend weight to the comeback: theater attendance soared 26% last quarter, while revenue jumped 36%. Thanks to premium formats, innovative concessions, and experiential add-ons—collectible popcorn tubs, branded merchandise, dine-in services—actual profit per moviegoer is up 48% compared to pre-pandemic levels. Audiences are not only coming back, they’re spending more and lingering longer.

But the battle isn’t over. Some analysts predict overall box office earnings won’t hit pre-pandemic heights until 2029. Still, theater owners are less worried, having streamlined costs and diversified revenue streams in recent years. For AMC and other chains, the focus is on making each patron more valuable—not just filling seats.

Paramount Skydance’s new strategy could prove a bellwether. With 20 new theatrical titles each year—across genres and budgets—the studio is chasing more “event” films that draw fans off the couch and into auditoriums. Meanwhile, streaming platforms will need to adapt, either by forming new partnerships or refining their role as launchpads for fresh talent and niche content.

Ultimately, audiences are signaling what they want: memorable nights out, unforgettable premieres, and the collective thrill of the movies. As one CEO put it, “It all starts with great movies.” With the world’s biggest studios pivoting back toward the silver screen, movie theaters look poised not only to steal the show, but also to rewrite Hollywood’s future.