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Seth Schachner, Managing Director at Strat Americas, explains what fueled Hollywood’s $4.7 billion summer and whether movie theaters are truly back.
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00:00Hollywood just wrapped up a big summer at the movies with blockbusters driving the domestic box office to around $4
00:06.7 billion and giving the theater business a much needed boost.
00:11Joining us now to break down what this blockbuster summer means for the future of movie theaters is Seth Shachner,
00:17Managing Director at Strat Americas.
00:20Seth, thank you so much for joining us.
00:22Great to be here, Arnold.
00:24Yeah, now $4.7 billion, that's a huge number.
00:27How strong was this summer really for Hollywood?
00:30You know, it hasn't actually been that strong.
00:34The numbers themselves are, you know, a little bit misleading, actually.
00:38It's actually been very positive in the scheme of things.
00:41There's more movies that are being made available.
00:43I think that was like 40 made available broadly.
00:46And the numbers do look like they've ticked up, particularly compared to like before we went into the pandemic.
00:52But, you know, if you start doing some serious economic stuff like adjusting for inflation and actually looking at the
01:00raw number of attendance seats that were sold, it's actually kind of down, to be honest with you.
01:05But, you know, it's a different time.
01:07People are streaming at home and they don't go to movies as often.
01:09So it's been a very good summer, though, with a lot of great blockbusters and a lot of good stuff
01:15to talk about.
01:15Just not exactly the same as before COVID.
01:18You mentioned streaming, which has been a part of our lives now for a while.
01:23But in 2026, I'm wondering how big of an impact it's playing on what people are considering worth seeing in
01:31the theaters on the big screen.
01:34Well, it's definitely a great question.
01:36I mean, I think if you compare, you know, or you sort of put the two together, I definitely think
01:41streaming is going to weigh off against how often all of us go to movie theaters.
01:45You know, for sure, the theater going experience.
01:47And I always think that it's sort of like the mid-level pictures and even some of the tiny independents,
01:52which I'm a big fan of, that are going to get really impacted.
01:55You know, you're still seeing things like the obvious Spider-Man and, you know, and obviously the Odyssey or even
02:01things that are reasonable successes like the Michael Jackson picture or the last Spielberg picture, which didn't, you know, make
02:08huge headlines.
02:09But I think in general, you know, that big movies, you know, theater experience is going to be about big
02:15tentpole Hollywood blockbusters.
02:18And to be honest with you, IMAX and large format stuff, and it's a little bit more limited than before.
02:23But people are coming back, and it's not going away.
02:27I just think people have so many more choices these days.
02:30Right.
02:30You know, you mentioned the formats, the IMAX, maybe encouraging audiences.
02:36Is there anything else that might have led more people out to the theaters this summer?
02:41Yeah.
02:43Yeah, it's been really interesting.
02:44I mean, you know, the bright spots, for sure, the large format screens.
02:49But, you know, I mean, beyond the obvious blockbusters like the Odyssey, which I think was quite unique, and Christopher
02:54Nolan really appeals really broadly, you know, we're seeing things for Gen Z audiences.
03:00And, you know, very interesting.
03:02I don't know if you saw back rooms.
03:03A lot of people over 35 don't even know what it is, basically.
03:06But, you know, it came out of YouTube, and those people who were using it really know or watching it
03:12really know what it was all about.
03:14Obsession, for sure.
03:15I'll go a little bit further back, not off, you know, this summer, but Minecraft, that are hitting Gen Z
03:21in different ways.
03:22And that's very encouraging stuff.
03:24Some of that comes from, like, IP, from, you know, games like Minecraft or YouTube series and whatnot.
03:30And so that's incredibly appealing.
03:33And I think, you know, the research is showing that Gen Z is coming back to theaters, too.
03:37So there's an appetite for that communal experience.
03:40People just don't want to stay home and stream.
03:41So there's absolutely positive, good stuff going on in there in terms of, like, the news this summer.
03:47I just want to be a little cautious saying it's not totally bad.
03:50It's a different biz.
03:51Right.
03:52Some of those that you mentioned or others that you might not have mentioned,
03:56are there any in particular that surprised you that may have done well this summer?
04:01I mean, for sure, you know, I was, you know, the things that have come up that I think in
04:06some way germinated through social media have been really big surprises.
04:10You know, I mean, you know, to me, that's obviously Backroom's an obsession.
04:13There was a picture called The Invite.
04:15I mean, it was Seth Rogen that I think all of them in their different ways had what I would
04:20call, like, organic authenticity to the themes and the acting.
04:25I'll go a little bit outside of movies, but I'll mention something called Widow's Bay, which is along the same
04:29thing on Apple TV,
04:31where, you know, the cast isn't really taking it all that seriously.
04:34They're actually making fun of themselves.
04:36So I think that factor, I think, is really what's cutting through along with stuff that Gen Z recognizes, you
04:43know, as well.
04:44I mean, I think there have been, on the surprising side, there were some flops for sure.
04:49You know, the Star Wars.
04:50There was something called Supergirls.
04:51You know, Moana didn't do well, and, you know, I don't know if that's a total surprise, but, you know,
04:57there are things that don't work as well in this landscape.
05:00So it's mixed.
05:02Right.
05:02Between the blockbusters and the flops, what does the overall health look like of the theater business, and what does
05:10it look like moving forward?
05:11I mean, it's not very positive, to be honest with you.
05:15You know, I mean, so to be clear, I mean, I think they're still really struggling in many different ways
05:21to create roles for themselves and new business models for themselves where they can somehow pull more revenue in.
05:28Everything from selling popcorn to subscription to offering subscriber benefits.
05:33You know, I mentioned, I know you're in New York, we're in L.A.
05:36We've got independent theaters here.
05:37They're not all over the country, but, you know, I'm seeing a lot of things in those theaters where directors
05:42are showing up, the casts are coming in.
05:44I think we saw the Odyssey here in L.A.
05:48I mean, they were offering free beer or something on Monday nights, even the theater owners.
05:52So I think theaters are doing a lot of attempts to reinvent themselves.
05:56I'll also mention, you know, Sony has got this thing called the Alamo Drafthouse, which is, you know, dine and
06:02have a beer, have a burger and watch the movie.
06:04And I believe they've invested in something called Cosm, which is kind of a mini sphere as well, which is
06:10a 3D completely immersive experience that goes way beyond movies.
06:13You can watch, you know, Yankees or Dodgers games, whatever it might be, sports.
06:17And so that environmental immersive stuff that they're trying to do is very exciting.
06:22So there are things that are moving in really positive directions.
06:25It's just, I think that's the toughest part of the business that really needs to be reinvented.
06:30Right.
06:31And so it doesn't sound like you feel that audiences are returning back to movie theaters as a habit.
06:37It sounds like maybe a lot of us are just showing up for these big events.
06:42Do you think the studios are doing a good job of creating these experiences and events around the films?
06:48And what else could they be doing to get more audiences out?
06:51Well, it's a great question.
06:52I mean, I think, I think the, I don't want to say to you that, you know, Arnold, that the
06:55habit going is dead because I think people are coming back.
06:58And I think there were encouraging signs this summer.
07:00I think there was 40 pictures in what they call wide release, which is more than a couple thousand screens.
07:05So it's everywhere from Kansas to Florida, all over the country.
07:09And so I think that's coming back.
07:11I just want to be guarded about how strong it comes back, because I think you can still hang out
07:16at home and stream something on demand, right?
07:18On whether it's Netflix or rent it with a pizza, with your family, whatever it might be.
07:23And I think that's all that has really impacted it, basically.
07:27Yeah, and so I think that and for these special events around the, you know, theaters are probably going to
07:33help things.
07:33You know, I come from a music background, and, you know, there's been things like, I'll mention Taylor Swift or
07:39other artists are actually cutting their own direct deals with theater chains.
07:43So you can go see the Ares Tour, which was a couple years ago, or other things like that in
07:47theaters.
07:48And I think that's very positive stuff as well.
07:51So, look, they're not going away.
07:53They're still a very vital part of the industry.
07:57Directors, actors, all the creative talent want them to be there.
08:01So, of course, they're going to still be around.
08:03I think it's just I want to be measured about the prospects for them in the future.
08:08Anything to look forward to in the fall and winter as well?
08:11I know we've got a couple of big films coming up at the end of the year that are expected
08:16to be big blockbusters.
08:18Who knows if they'll do well or not?
08:21But I think there is a lot of excitement.
08:24Yeah, for sure.
08:25You know, out here in Hollywood, there's a lot of concern.
08:28You know, it looks like we're going to put two studios together.
08:31So I think, you know, almost all the dialogue here, I don't think I've had someone bring up Christmas releases
08:37yet.
08:38You're the first actually on air.
08:39But, you know, I think there's the focus here is on what happens with Paramount merger, you know, with Warner
08:46and how that goes.
08:47And if it goes to and if it will, by the way, impact the number of pictures that are going
08:51to be in theaters as well.
08:53And, you know, broader things like we're hoping for some support, I think, at the federal level from our government
08:59for, you know, incentives to help our production business to stop some of the runaway production that's been running out
09:05of Hollywood all over the world.
09:06So there's some pretty big structural things alongside of all the good stuff with movies coming out.
09:13And finally, Seth, just if you had to bet on one trend that is shaping the movie business over the
09:19next year, what would you say it is?
09:21Oh, my gosh, it's definitely consolidation, you know, and I think and how how one reinvents a film studio for
09:28the future.
09:28That's what's driving the consolidation and frankly, the debate between, you know, a party that wants to buy Warner Brothers
09:35Paramount as well as estates that are kind of pushing to stop it, basically.
09:39And I think everyone's eyes on both YouTube and Netflix out here and how you figure out a way to
09:45compete with them.
09:46They're very multifaceted.
09:48Everything from shorts to podcasts to sports are going in there.
09:52And what do you do if you're you're Paramount or Warner or Sony?
09:55And I think that's really the thing.
09:57Consolidation and how you reinvent yourself, I think, is the big thing for the end of the year.
10:02Absolutely.
10:03Hopefully we see some some good momentum here in the next the rest of the year and the next year
10:09as well.
10:09Thank you so much for talking to us, Seth Schachner, Managing Director at Strat Americas.
10:14It's been a pleasure.
10:15Great to be here.
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