I remember what it was like going to the movies back in the day. Watching a movie at a theater was more of an adventure than entertainment. 

The theater enables you to fully immerse yourself in the story, to cry or laugh with the characters, enjoy the music, and just fully forget about the everyday struggles for about two hours. It’s a wonderful experience. 

As someone with a theater background who loves everything about the seventh art, I am fully aware of shifting trends in the industry. Now more than ever, directors are struggling between the artistic presentation they believe in and feel passionate about and the interpretation that will make the audience want to spend money and time at the theater. 

Striking a satisfying compromise between the two is a challenge.

The movie industry was also heavily impacted by the Covid pandemic. However, independent films experienced a strong theatrical resurgence in 2024-2025. “Films like ‘Nosferatu’ ($181 million worldwide), ‘A Complete Unknown’ ($140.5 million), ‘Anora’ ($57 million), and ‘The Brutalist’ ($50.4 million) proved that audiences will still turn out for quality independent cinema,” writes Mark Litwak in a blog post titled Navigating a transformed industry landscape in 2025.  

Industry data confirm the challenges movie theaters face due to the ever-growing popularity of streaming services. Global box office revenue rebounded to about $42 billion in 2024, while streaming platforms now generate roughly 48% of total film revenue, a significant rise from 32% in 2020, according to data from ReelMind. 

In the most recent news, a popular independent theater chain has abruptly closed three locations. 

LOOK Dine-In Cinemas has shuttered three locations in metropolitan Los Angeles.

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LOOK Dine-In Cinemas suddenly closes 3 locations in Los Angeles area 

Texas-based LOOK Dine-In Cinemas has suddenly closed three locations in metropolitan Los Angeles due to financial challenges, reported KTLA 5.  

“This was not an easy decision and is in no way a reflection on the dedication, talent or hard work of the teams in these locations,” the company said in a statement. “California has been an important part of our company’s history, and we are deeply grateful for the commitment our team members bring to our customers and communities every day.”

LOOK Dine-In Cinemas locations now closed include its theaters in Downey, Redlands, and Monrovia. Its Glendale location at 128 Artsakh Ave. remains open.

LOOK’s parent company filed for Chapter 11 bankruptcy protection in the Northern District of Texas on Nov. 14, 2024, Inforuptcy indicated. The theater chain’s recent financial reports suggest a challenging situation due to significant debt and negative equity, reported Redlands News.

The January 12, 2026, court filing revealed that LOOK Cinemas II would not assume its master lease for the California properties. The company was authorized to operate only through January 31, 2026, after which it was required to turn possession of the Downey, Redlands, and Monrovia sites back to the landlord. 

In local community forums, such as r/Redlands, customers documented receiving automated emails and app notifications starting around midnight on February 2, 2026. These messages informed them that their upcoming reservations for the next several weeks had been canceled and processed for refunds.

The closures have left an unknown number of employees out of a job. 

“Supporting our team members is our top priority. We are committed to working closely with those affected by these closures to explore opportunities within our organization wherever possible, and to provide support and resources during this transition,” the company said.

Shifting consumer trends led to declining attendance at many theater chains 

Thanks to the boom of streaming services over the last decade and economic headwinds, movie theaters have been having a harder time attracting audiences. The trend accelerated during the pandemic, which led to its parent company’s bankruptcy filing two years ago. 

Smaller independent chains are more vulnerable to this streaming trend shift. 

“The bigger theaters like Cinemark and AMC, even they are complaining that they’re in trouble. It is extremely sad. It is the state of the industry, and just the direction things are going,” said KTLA movie critic and host Scott Mantz. 

Cinema United CEO Michael O’Leary highlighted that theater owners are spending more than $1.5 billion on next-gen tech upgrades including 4DX or Laser IMAX to compete with larger chains like AMC or Cinemark. 

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Independent chains such as LOOK — already navigating bankruptcy reorganization in 2024 — often lack the capital to reinvest in such upgrades, suggesting a struggle to compete. 

And while big-budget blockbusters such as the “Avatar” series or Disney’s live-action remakes are still able to draw crowds and sometimes generate more than $1 billion, Mantz stressed that moviegoing is still on the decline. 

“There’s definitely a percentage of people who will continue to go to the movies — a passionate but dwindling bunch,” he said. “The theaters are going to survive. There just won’t be as many of them.”

Movie theater bankruptcies and major closures (2020-2026)

  • Cineworld/Regal Cinemas (2022 bankruptcy): The parent company of Regal, the second-largest chain in the U.S., filed for Chapter 11 in September 2022. As part of its restructuring, it closed more than 50 locations across the country, according to Kroll Restructuring Administration – Cineworld Case.
  • Pacific Theatres & ArcLight Cinemas (2021 permanent closure): In one of the most significant losses for film fans, parent company Decurion revealed in April 2021 that it would not reopen any of its Pacific or ArcLight locations, including the iconic Cinerama Dome in Hollywood, Variety reported.
  • Metropolitan Theatres (2024 bankruptcy): A century-old family-owned chain, Metropolitan filed for Chapter 11 bankruptcy on February 29, 2024. The filing was intended to help it exit underperforming leases while maintaining its most profitable community hubs.
  • Alamo Drafthouse (2021 bankruptcy): The popular dine-in chain filed for Chapter 11 in March 2021. It emerged from bankruptcy in June 2021 after a sale to an investment group. During the process, Eater Austin reported, it closed several underperforming locations, including its Ritz theater in Austin.
  • CMX Cinemas (2020 & 2025 bankruptcies): CMX was the first major U.S. chain to file for bankruptcy during the Covid pandemic in April 2020. The chain struggled again, with reports indicating a second filing and additional closures of high-cost luxury sites in late 2025.
  • Studio Movie Grill (2020 bankruptcy): This dine-in pioneer filed for Chapter 11 in October 2020 to address a debt load of more than $100 million. It emerged in 2021 under new ownership but with a smaller footprint, according to Studio Movie Grill and Restaurant Business Online. 
  • LOOK Dine-In Cinemas (2024 bankruptcy & 2026 closures): LOOK Cinemas II filed for Chapter 11 in late 2024. In February 2026, Community Forward Redlands reported, the company shuttered three major Southern California locations (Redlands, Downey, and Monrovia).

Matt Damon: going to the theater to watch a movie is like going to church 

In my previous coverage of the January 16, 2026, episode of “The Joe Rogan Experience”, I shared actors Matt Damon and Ben Affleck’s take on the financial and cultural shifts making theatrical releases increasingly risky.

Affleck noted the high barrier to entry, explaining that a $25 million film often needs to gross $100 million just to break even after marketing and distribution. 

This financial pressure, combined with the convenience and cost-effectiveness of streaming subscriptions for families, has led studios to favor digital releases over traditional theaters.

Damon highlighted how this shift has fundamentally changed the way movies are made. He revealed that streamers like Netflix now encourage “distraction-proof” filmmaking, such as placing big action sequences in the first five minutes and repeating plot points in the dialogue to accommodate viewers who are often on their phones. 

He compared the theater to a “church-like” shared experience that demands total presence, contrasting it with the fragmented attention people give to films at home amid household distractions. 

“I always say it’s more like going to church. You show up at an appointed time. It doesn’t wait for you. It’s just a very different level of attention that you’re willing, or that you are able to give to it. And that has a big effect. And it also ends up having an effect or starting to have an effect on how you make movies,” Damon said. 

Important movie industry statistics 

  • Projected market size: The global movie theater market is projected to reach $73.17 billion in 2026, up from $68.37 billion in 2025, according to Fortune Business Insights.
  • Ticket sales: The estimated number of North American ticket sales for 2026 is approximately 555 million, with an average ticket price of $11.31, compared to $1.23 billion at an average price of $9.16 in 2019, according to data from The Numbers. 
  • The “frequent viewer” gap: A significant challenge is the decline of the “habitual” moviegoer. In 2025, only 17% of adults attended the cinema at least once a month, down from 39% in 2019, reported S&P Global.
  • Indie success stories: Independent films are still pulling major numbers when they achieve “event” status. For example, the indie horror film “Iron Lung” (by YouTuber Markiplier) opened to a shocking $21.7 million global debut this month, writes The Times of India.
  • Key findings in the 2025 update by Cinema United include the following.
    The number of habitual moviegoers (those who see at least six movies in theaters annually) grew by 8%. 

    77% of Americans aged 12-74 saw at least one movie in a theater in 2025, representing a total of more than 200 million Americans. 

    Cinema loyalty programs in North America saw a 15% jump in new subscriptions between 2024 and 2025. 

    Among all age groups, Gen Z went to movie theaters more frequently, averaging 6.1 visits, up from 4.9. 

    41% of Gen Z audiences went to the movies six times or more, up from 31% in 2022.

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