From blockbusters to barely breaking even

The cinematic landscape is in a state of flux. The first quarter of 2025 continued a post-pandemic trend of underwhelming box office returns, a situation that even the summer blockbuster season struggled to rectify.

The launch of a new superhero cinematic universe with James Gunn's "Superman" garnered a respectable $600 million, yet this figure paled in comparison to the supra-hits of the pre-2019 era.

Similarly, Marvel's 2025 offerings and the high-budget "F1" also hovered around that same financial marker, signalling a broader industry recalibration rather than isolated underperformances.

This downturn is multifaceted, rooted in a growing cultural shift away from the traditional theatre outing. Anecdotes abound of moviegoers' frustrations: rowdy audiences, the steep cost of concessions, and concerns over cleanliness.

The theatrical experience itself has been elongated, with AMC Theatres' pre-show reels now stretching over 30 minutes. In an age of unparalleled at-home convenience, the argument for leaving the house has weakened.

Why endure the hassle and expense when a new release will be available on a streaming service mere months later? The allure of thousands of titles available on-demand, in the comfort of one's living room, presents a formidable challenge to the silver screen.

Celebrated author Stephen King recently contributed a novel theory to this discourse on the social media platform Threads. He posited that modern film acting, particularly among younger performers, often prioritises a naturalistic style characterised by whispering and mumbling.

For viewers at home, this is easily remedied by enabling subtitles—a tool that renders otherwise incomprehensible dialogue clear. In a movie theatre, however, no such option exists.

King suggests that this simple technological advantage is giving streaming a significant edge, making narratives at home easier to follow than in a cavernous, sometimes noisy, auditorium.

Yet, just as one narrative points toward cinema's decline, another emerges offering a glimpse of its potential salvation. According to a new study by entertainment researchers NRG, the future of movie theatres may rest with its youngest patrons: Generation Alpha, children born from approximately 2013 to 2025.

The data, drawn from two studies of roughly 6,100 U.S. moviegoers aged six to 60, reveals a striking generational divide. Approximately 59% of Gen Alpha respondents stated they enjoy watching movies in theatres more than at home.

This compares to 48% of Gen Z (born 1997-2012), 45% of Millennials (born 1981-1996), and even lower figures for older generations. The study's authors, as reported by Variety, suggest this inverse trend is a direct product of the on-demand era.

For Gen Alpha, streaming is the default; there is no novelty in a home movie night. The act of physically leaving the house to see a film is therefore transformed into a special event.

Crucially, for Gen Alpha, moviegoing is an inherently social occasion. The study found that 55% of them prefer seeing films at the cinema with a group of friends, a significantly higher rate than the 31% of Millennials and 40% of Gen Z who agreed.

This defies the popular conception of a generation terminally glued to their devices. The NRG study found that fewer than one in 10 children under 13 habitually use their phones in theatres, and their attention spans are not markedly shorter, with most across all generations agreeing that the ideal movie length is just over two hours.

Their preferences are also clearly defined. When asked which franchises hold the most social cachet, Gen Alpha's top five were dominated by video games: "Roblox," "Minecraft," "Fortnite," "Grand Theft Auto," and "Pokemon."

Traditional superhero fare like "The Avengers," "Spider-Man," and "Batman" ranked lower, indicating a shift in cultural touchstones. This data clarifies the success of experiential releases like the singalong version of "KPop Demon Hunters," which became a hit months after its streaming debut.

Twenty-nine per cent of Gen Alpha expressed interest in such interactive screenings, but an overwhelming 65% preferred premium large formats like IMAX, and 54% wanted more 3D or virtual reality experiences.

The conclusion is clear: the industry is at a crossroads. The convenience of streaming and the perceived deficiencies of the modern theatre experience, from technical issues like inaudible dialogue to practical annoyances, have indeed siphoned off a significant portion of the audience.

Yet, simultaneously, a new generation is emerging that views the cinema not as a relic, but as a novel, social destination. Their expectations are different—they demand spectacle, immersion, and a shared event that cannot be replicated on a smartphone screen.

The future of movie theatres may depend on its ability to fully embrace this, transforming the auditorium from a passive viewing room into an experience worth leaving the house for.