Generation Z Is Revitalizing Movie Theaters

Box Office Recovery Remains Slow, but Audience Loyalty Hits Record High
$1.5 Billion Poured into Theaters for the Ultimate "Experience"

Generation Z (ages 18 to 24) is emerging as a new growth driver for the North American box office. While the box office recovery has been slow due to the spread of streaming services, moviegoing is establishing itself as an "experiential consumption" trend among younger audiences. This is leading to both greater audience loyalty and increased demand for premium theaters. In response, the theater industry is accelerating qualitative growth by investing in facilities and creating differentiated viewing environments.

Still cut from the movie 'Minecraft Movie'.

According to industry sources as of July 1, 2026, the North American box office generated approximately $9.05 billion in revenue last year, an increase of only 3.8% compared to the previous year. This figure is still about 22% lower than the pre-COVID-19 level in 2019 ($11.4 billion). However, audience loyalty and moviegoing rates among younger generations are showing a clear recovery, leading to a structural transformation in the market.

A survey by National Research Group (NRG) found that 77% (approximately 200 million people) of Americans aged 12 to 74 watched at least one movie in theaters in the past year. The proportion of "habitual moviegoers," defined as those who visit theaters at least six times a year, also rose to 33%, up 8% from the previous year.

Generation Z has been the main driver of this growth. Their average annual moviegoing frequency reached 6.1 times, a 25% increase in one year. During the same period, the number of movies released in North American theaters rose to 620, up about 9% from the previous year, expanding opportunities for moviegoing.

IMAX.

The moviegoing audience is also getting younger. According to Fandango's "2025 Moviegoing Trends Report," people aged 18 to 54 accounted for more than 80% of the total audience. Millennials (ages 25 to 44) made up the largest share at about 43%, while Generation Z posted the highest growth at 22%. Notably, Generation Z tends to view movies as a social activity to enjoy with friends, rather than simply consuming content. They have shown strong interest in premium formats such as IMAX and 3D, as well as event-type content including concert films and sports broadcasts, leading new moviegoing trends.

The theater industry has responded to changing demand by ramping up investment. Focusing on enhancing large screens, premium seating, audio systems, and food and beverage (F&B) offerings, the number of new sign-ups for North American theater loyalty programs increased by 15% year-on-year.

Growth in premium large formats (PLF) has been particularly notable. Although IMAX, Dolby Cinema, ScreenX, and 3D screens account for only 5% to 10% of the total, they generated over 15% of total box office revenue. IMAX achieved a record-high $1.28 billion in box office revenue from 1,829 screens worldwide. Proprietary premium formats such as Dolby Cinema, Cinemark, and Regal also expanded, and CJ 4DPLEX continued to grow its market by signing additional installation contracts with North American theater chains.

Still cut from the movie 'Lilo & Stitch'.

In the content market, strategies centered on proven intellectual properties (IP) and franchises were further strengthened. The top spots at the North American box office were dominated by titles based on existing IPs, such as "Minecraft Movie," "Lilo & Stitch," "Zootopia 2," "Superman," and "Wicked: For Good." Disney achieved global box office revenues of $6.58 billion for the year, with "Zootopia 2," "Avatar: The Last Airbender," and "Lilo & Stitch" each surpassing the $1 billion mark worldwide. Meanwhile, mid- and low-budget films such as horror and drama have increasingly shifted to streaming platforms due to declining profitability.

However, structural challenges remain for the theater industry. The window between theatrical release and streaming release has shortened from the previous 90 days to about 30 to 45 days, putting pressure on theater profitability. The theater industry is calling for a minimum exclusive theatrical window of at least 45 days to become the industry standard, and some major studios are moving to adopt this approach.

Streaming usage has already become widespread. According to a survey by the AP-NORC Center for Public Affairs Research, about 75% of American adults said they watched a new movie via streaming instead of going to the theater in the past year. Only 16% reported going to the theater at least once a month.

Nevertheless, the industry sees the theater’s competitive edge in the "experience" it offers. With immersive viewing environments, premium services, and a shared culture creating new value for Generation Z, the industry is not just recovering revenue but also driving a fundamental transformation in the theater sector.

Ha Eunsun, a U.S. correspondent for the Korean Film Council who recently compiled the "2025 U.S. Film Industry Report," assessed, "Last year, the theater industry was unstable in terms of box office numbers, but showed positive changes in audience engagement and loyalty, making it a 'year of qualitative transformation amid delayed recovery.'" She added, "This year, the success of the film industry will depend on achieving a new balance through strategic commissioning, efficient production, diversified platform strategies, and transmedia approaches targeting fandoms."

This content was produced with the assistance of AI translation services.