Sure, the Movie Industry Is Rebounding, But It Was Already Retreating Well Before COVID-19

Is it time to reopen movie theaters to operate at their full capacity? The case in favor is sound enough: The number of vaccinated residents of the United States is going up, while the number of coronavirus infections is going down. Indeed, the number of newly diagnosed cases of COVID-19 in the U.S. is lower now than it was in June of last year.

It may be safe to take the next step back toward normal, just in time to enjoy a new slate of potential blockbuster film releases. Shareholders of theater chains like AMC Entertainment Holdings (NYSE: AMC), Cinemark Holdings (NYSE: CNK), and Regal Cinemas owner Cineworld Group (OTC: CNNW.F) (OTC: CNWGY) are understandably excited.

If you're in that crowd, however, be forewarned: The film-screening business was already struggling before the coronavirus pandemic hit. Any recovery now is still ultimately going to be capped by that long-standing downtrend. Indeed, the explosion of new (and revamped) streaming services since just last year will only make any rebound that much more challenging.

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Source Fool.com