Hollywood’s ‘new business model’ comes into view as Gen Z shows a moviegoing taste that combines ‘fast food and fine dining’

The movie industry has achieved its largest summer box office ever, generating $4.765 billion in ticket sales across the U.S. and Canada from May 1 to Labor Day. However, adjusted for inflation, this summer's box office remains 17% below 2019 levels, and theaters sold nearly 249 million fewer tickets during the same period than in 2019.

Paul Dergarabedian, head of marketplace trends at box-office analytics firm Rentrak, suggests that the more instructive baseline is 2020, when theatrical attendance collapsed to nearly zero. This emerging post-pandemic business model relies on higher prices and premium screenings to generate more revenue from fewer customers, leading to questions about the long-term sustainability of a business built on $20 tickets and a handful of event films.

Hollywood is evolving, with filmmakers and studios thinking outside the box, inspired by trends in other industries, such as vegetarianism. Gen Z moviegoers are seeking a mix of "cinematic fast food" and "cinematic fine dining," with their tastes different from previous generations. High-profile films like "Odyssey" and "Spider-Man" have each grossed over $1 billion worldwide, accounting for nearly one-third of the summer box office.

Cinemark's success story shows how theaters are leveraging premium large-format screenings and increasing concession revenue to boost profitability, even with fewer theatrical releases and the growing availability of movies through streaming.