2 Things That Can Save the Corner Multiplex

These are dark days for movie theater chains. The 12 highest-grossing films took in a mere $51.5 million in domestic ticket sales over the Labor Day weekend, the worst box-office tally during the holiday weekend since 2000. The crummy showing comes a week after multiplex operators had their worst weekend in more than 15 years.  

There are a lot of things working against the industry these days. High-definition TVs keep getting cheaper, improving the value proposition of staying home. Streaming services keep growing their catalogs with compelling content. Studios are also narrowing release windows, trying to make up for the lack of ticket and DVD sales by offering up their content digitally while it's still fresh in the minds of consumers. You also have the decaying state of retail where many theaters are located. If folks are shopping online, they don't need to be at the mall, making it more burdensome to plan a trip to the movies.

Wall Street sees the writing on the red curtain-covered wall. Leading multiplex operator AMC Entertainment (NYSE: AMC) has seen its stock plunge 57% this year. IMAX (NYSE: IMAX) -- the provider of premium-priced enhanced screenings -- has taken a 37% hit in 2017. Investors seem to think the theater house is on borrowed time, but it doesn't have to be that way. The benefits of the shift to digital projection systems and making a night at the movies more of an experience are the keys to saving celluloid exhibitors.

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Source: Fool.com