Cineplex CEO Ellis Jacob is optimistic about the supply of Hollywood movies improving in 2024. He believes that there will be enough films reaching theaters this year and next to alleviate the film supply issues that arose following the end of the dual writers and actors strikes.
Jacob noted positive signs such as Disney’s announcement of Moana 2 for a theatrical release on November 27 and the upcoming release of Dev Patel’s action thriller Monkey Man. These developments are seen as good news for the exhibition sector, according to Jacob.
He anticipates Hollywood’s production schedule returning to normal throughout 2024 and into the following year. Looking ahead to the last quarter of the year, Jacob highlighted several titles, including Joker: Folie à Deux, Gladiator 2, Moana 2, Lord of the Rings, another Karate Kid movie, Mufasa: The Lion King, and Sonic the Hedgehog 3, which are expected to drive box office recovery.
This marks a significant change from 2023, when Cineplex relied on fewer Hollywood releases, such as Black Panther: Wakanda Forever and Aquaman 2, to drive box office sales. Jacob sees March as a crucial month, with Denis Villeneuve’s Dune: Part 2 serving as a major test for exhibitors.
To compensate for short-term supply challenges from Hollywood, Cineplex is also looking to international film titles. Despite challenges, the exhibitor saw overall revenues rise by 1.7 percent to $315 million during the fourth quarter, with theater attendance increasing by 4.2 percent to 9.59 million patrons.
Top-performing Hollywood titles during the latest quarter included Taylor Swift: The Eras Tour, The Hunger Games: The Ballad of Songbirds and Snakes, and Five Nights at Freddy’s. However, box office revenues for the fourth quarter were only 68 percent of pre-pandemic levels in 2019, resulting in a net loss of $9 million for Cineplex during the latest financial quarter.
Key metrics also showed a slight decrease in box office revenue per patron but an increase in concession revenue per patron compared to the same period in 2022. Despite ongoing challenges, Jacob remains hopeful about the future of the exhibition industry and the return of Hollywood movies to theaters.
