Why Small Theaters Are Thriving While the Industry Struggles

The story of movie theaters has long been framed around survival. Every new technology—whether radio, television, VHS, cable, or streaming—was once declared the death knell for cinema. The COVID-19 pandemic reignited that narrative, with analysts pointing to falling box office revenue and the dominance of streaming. But in Brooklyn and beyond, independent theater owners are showing a different story: small theaters aren’t just surviving; many are thriving.

The Human Factor: Community First

For Emelyn Stuart, the first Afro-Latina to own a movie theater in the United States, cinema is more than business—it’s a responsibility. Her Stuart Cinema & Café in Greenpoint was built on the belief that movies bring people together, and accessibility is key.

Stuart offers senior and children discounts, $5 tickets for SNAP recipients, and even buy-one-get-one promotions to ensure everyone has access. “What am I doing with a movie theater if my own people can’t watch movies?” she explained. That philosophy carried through the pandemic, when her theater gave out meals and laptops to struggling neighbors. The result? A loyal community that has continued to support her business through turbulence.

Reinventing the Experience

Big chains depend on volume—lots of screens, blockbuster titles, and expensive concessions. Small theaters, with fewer screens and leaner operations, must adapt differently. For Matthew Viragh, founder of Nitehawk Cinema, that meant breaking the mold.

Blocked by an outdated prohibition law that banned alcohol in New York theaters, Viragh fought for change and became the first exhibitor allowed to serve drinks. Today, Nitehawk is known for its dine-in service, movie-themed menus, and curated programming tailored to neighborhoods like Williamsburg and Park Slope. Pairing indie films, family-friendly hits, and unique events like 35mm screenings or filmmaker Q&As, Viragh turned Nitehawk into an experience no living room can match.

“The more you offer, the more people spend,” he said, noting that food and beverage service has become just as critical as ticket sales. Unlike a multiplex with identical auditoriums, Nitehawk leans into distinctiveness, creating an atmosphere that makes going to the movies an event.

Business Strategies That Work

Despite the creativity, the financial reality is tough. Small theaters pay the same studio licensing fees as AMC or Regal—often 50 to 60 percent of ticket sales. That means survival depends on what happens outside the box office.

• Concessions and food: Both Stuart and Viragh emphasize high-quality, appealing menus. From empanadas to specialty cocktails, small theaters make eating part of the experience.
• Events and rentals: Birthday parties, private screenings, and community gatherings act as insurance policies when a film underperforms.
• Creative promotions: Discounted second-visit coupons and community-based marketing keep audiences returning.
• Social media engagement: Independents thrive at building hyper-local followings online, a strength chains often fail to replicate.

Programming remains the biggest gamble. With one to three screens instead of 15, every decision carries weight. A single flop could mean a serious loss. But the flip side is agility: small operators can pivot faster, experiment more, and take risks on films tailored to their audiences.

Why They’re Winning

While large cinema chains wrestle with debt, corporate shareholders, and an overreliance on tentpole blockbusters, independent theaters are succeeding because they embrace flexibility and humanity. They are in tune with their communities, offering pricing that is sensitive to local realities and experiences that feel special, not transactional.

As Stuart put it: “I am a servant first. I care about the community. And I think that’s important. Because we are here for them, they are here for us.”

A Future Built on Value

Theaters will continue to face challenges—shifts in studio distribution, streaming competition, and changes in viewing habits. Yet, the outlook from independent owners is far from doom and gloom. They believe the shared moviegoing experience is more valuable than ever, precisely because it can’t be replicated at home.

“There’s nothing like the moviegoing experience,” Stuart said, “We’re not going anywhere.”

For small theaters, thriving isn’t about beating Hollywood blockbusters—it’s about reminding people that movies aren’t just watched, they’re experienced. And in that space between community, culture, and creativity, independent cinemas have found their way forward.