Here's Where I Believe The Movie Theater Business Is Heading

Hi! My name is Dallas White and I'm an actor and producer within the film industry. I'm just like you right now, probably sitting back at home watching one of the many streaming services out there. It's convenient and I enjoy a good television show binge, but I do miss the movie theater. I remember going to the movie theater almost every day.

With the COVID-19 worldwide pandemic causing businesses to shut down including the most recent news of Cineworld considering to shut down all Regal Cinemas venues in the U.S., this really comes down to reinventing the way movie theaters work. I'm no expert but I tend to sit back and see the "big picture."

Around 85% of profit comes from concessions. The other 15% is advertising. What's coming back at full speed are drive-in theaters and they can be super profitable. Here's why I think that. Imagine a huge parking lot. Most of the perimeter is bordered with 20-25 foot high walls. That's where I believe drive-in theaters will be making their profit; advertising. Not just commercials before the movie, but also print advertising.

You have the outside of the walls advertising the movies playing with some sort of solar lights making them shine to cars passing by. It would look similar to driving by the Warner Brothers lot, except shorter walls. The inside of the walls have sponsors; sort of like what surrounds a baseball game with big brands and companies. This would serve as major recurring revenue. In addition, part of the inside wall will act as the "screen" on which the projector illuminates on. These walls also serve exclusivity and avoid those attempting to watch from a distance. Before the movie starts, all of the inside walls are illuminated by solar lights to show the sponsors and advertisements. For concessions, it's simple. In-house food trucks or sponsored food trucks where they pay the drive-in theater to be there. Bathrooms would be outdoor portable restroom trailers.

If I were someone looking into opening a drive-in theater, I would start looking into land. That's the key. Any business that has lots of land (cough-cough, Walmart) or even the infields of Nascar speedways can easily start their new stream of revenue by having drive-in theaters. The real reason why drive-in theaters can be very profitable is because there's little to no infrastructure and very minimal maintenance.

Once I arrive to a movie screening, I pull up to a gate greeted by a drive-in worker, pay for my ticket there or show a QR code from when I bought my ticket online, and they wave you through. I don't imagine they would assign parking. You simply park where there's an open marked spot and enjoy the show.

Have thoughts? Please feel free to comment.

Best regards,

Dallas White