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Furthermore, theaters have sharply increased their number of screens — from roughly 4,900 a decade ago to over 8,000 today — nearly doubling their footprint. This expansion, while a sign of ongoing confidence in the market, also entails higher operating costs, from rent to staffing. The combined effect puts theaters in a precarious position: more screens and higher expenses, but fewer paying customers.
Underlying Challenges: Why Aren’t Theaters Fully Recovered?
Several factors have contributed to this persistent decline in theater attendance and profitability: