Cinemark CEO Sean Gamble was upbeat at an ongoing box office turnaround that started in April box and touted Amazon MGM’s newfound commitment to theatrical releases. On a call with analysts after quarterly earnings, he said M&A in exhibition may finally pick up, and also recalled the industry’s historically sturdy performance during periods of economic uncertainty — which appears to be upon us.
The chief executive of the nation’s third largest theater circuit weighed in on the lively debate around windows that dominated CinemaCon last month, backing 45 days for most films.
His wide ranging comments followed mixed first quarter financials that saw losses widen to $39 million, from $25 million the year earlier on a shockingly soft box office. Hollywood strikes continued to ripple, some films underperformed and others were moved out the frame, Gamble said. Cinemark revenue rose 7% to $541 million.
Gamble’s M&A comments stood out because that’s subject has been DOA for years. He recalled that deal expectations were high post-Covid, which gut-punched the industry. Many theaters and chains received government subsidies allowed them to hang on. Those that made it may finally start to find buyers since the box office at last appears to be in the early stretch of a long-awaited recovery. “It’s a better time now than before to bring assets to market if you’ve survived. I believe we’ll see a little bit more [M&A] as we get to a better place.”
The rebound started with The Minecraft Movie, spilled into Sinners and moves into Thunderbolts this weekend. Gamble sees the box office roll continuing given the “strength and breadth” of content in the pipeline including fare studios showcased recently at CinemaCon enhanced by a ramped up theatrical commitment at Amazon, MGM. The studio took the stage at Vegas for the first time with plans to release 14 to 16 films into theaters by 2027, maybe 14 by next year.
“Their message was highly encouraging with regard to the further recovery of overall wide release volume in 2026 and beyond, and so too was the quality and scale of their films, as well as how far along they are with the titles they have in motion,” Gamble said. On Apple, it’s dipping a toe with F1 this summer, then we’ll see.
As things normalize, however, he acknowledged the lively ongoing debate between chains and studios on windows. Gamble agrees with some, Universal, for instance, that there’s no clear evidence that putting films out on PVOD short circuits a theatrical run. Short windows to the home or windows that jump around can confuse consumers, however, although that’s harder to measure. The window from the theater to the home needs to be long enough across a majority of films to allow the movie to build a “cultural moment” without confusing the consumer, Gamble said.
“It’s an active topic … while we don’t think it’s one size fits all, we do think that the 45-day average across the bulk of films” may be the way to do.
Meanwhile, enthusiasm around the films and theatrical support by studio partners and consumers is matched, he said, by optimism “regarding our ability to navigate an uncertain and evolving macroeconomic landscape.”
The Trump administration has launched a global trade war imposing steep tariffs on goods coming into the U.S. It’s a messy and constantly evolving situation but one that is seen raising prices for consumers and slowing economic growth Stateside and in other countries.
“Over the years, our industry has been more closely tied to the strength of film content than swings in economic cycles, both domestically and internationally. In fact, in six of the past eight U.S. recessions, the North American box office has grown,” Gamble said.
“Likewise, even with the frequent economic and political turbulence that often exists throughout Latin America, our industry and business have held strong when favorable movies are in the marketplace. Based on our observations, during strained economic periods, people continue to pursue out of home experiences, and they tend to prioritize value and affordability. Going to the movies remains one of the least expensive, high quality, localized entertainment options for spending two to three hours of time.” Nor is there evidence that people cut down on premium formats or concessions in tough times, he added.