Cinemark CEO Optimistic Streamers Will Follow Studios “Leaning Into” Theatrical; Ultimately, “We Could Find Ourselves With More Volume Than We Ever Had”

deadline.com:

The nation’s third largest theater chain saw sales jump 50% and losses narrow sharply last quarter, underscoring the rebound of moviegoing despite a sluggish release schedule in August and September. “We have high confidence in the ongoing recovery of content and box office as delays caused by Covid fully subside, and studios derive increasing promotional and financial value from theatrical,” said CEO Sean Gamble.

In an investor call following earnings, the chief executive took pains to lay out the main drivers of the business — three and clear: consumer interest in films; the availability of films; and the value of theatrical release to providers of filmed entertainment.

The first is a big ‘yes’ check — consumer interest is “vibrant,” Gamble said. As that becomes increasingly evident, “We see studios leaning more heavily back into theatrical.” That said, the pipeline is still limited by production lags from Covid and “will take a couple of years to get fully back to where it was.” Meanwhile, he’s “very optimistic” that “not just traditional studios, but streamers will also lean more heavily into theatrical.

We are getting signs from them.” That will fill gaps in the slate. Eventually, considering all the players out there making movies, “We could find ourselves with more volume than we ever had.” It’s needed.