National Association of Theater Owners Ditches ‘NATO’ Acronym as Box Office Bombs Explode

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Looking back, the acronym NATO was needlessly complex for a trade association that supports movie theater owners. For six decades, the National Association of Theatre Owners (NATO) has advocated for the interests of cinemas – ranging from large chains to small, one-screen family businesses. Despite this, they often receive correspondence intended for the other NATO, the North Atlantic Treaty Organization.

However, the theater owners’ association is aiming towards the future, adopting a fresh identity as Cinema United. As per the AP on Tuesday, President and CEO Michael O’Leary announced this new moniker.

As someone sharing a moniker with a renowned global defense organization, I found it somewhat perplexing. Over time, we came to realize the need for a fresh identity, which led us to contemplate a rebranding process.

In simpler terms, O’Leary stated that they aimed for the fresh name to embody the “ardor and dynamism of those who operate cinemas.” The goal was to emphasize movie exhibitors and theaters once again. Cinema United represents over 32,000 screens in the U.S. and more than 30,000 screens across 88 countries. Essentially, their purpose, as O’Leary clarified, is to boost and aid theater exhibition. The tagline for this venture is “Going to the Movies,” which encapsulates their objective.

Over the last few years, we’ve faced some tough times, but with every day that passes, we seem to be leaving those difficulties further behind us. At this moment, our attention is firmly fixed on what lies ahead. I believe we are standing on the brink of a remarkable new era for cinema.

An Oscars rallying cry for moviegoing

Only a few weeks past, the filmmaker Sean Baker of “Anora” fame passionately advocated for cinemas on a national platform during his Best Director Oscar acceptance speech. He used this moment to rally support for the theatrical experience – urging filmmakers to continue producing films for the big screen and studios to keep distributing them in this format.

O’Leary remarked that everyone was extremely excited about it. He has gained an unwavering loyalty from theater owners worldwide due to his consistent backing throughout the years, undoubtedly including at the Oscars.

2020 saw a severe impact on both large and small movie theaters due to the pandemic; many had to shut their doors permanently. Furthermore, the Hollywood strikes in 2021 led to a reduced number of film releases, which added to the hardships they faced. Consequently, domestic box office earnings have yet to recover to pre-pandemic levels. Last year (2024), the total revenue stood at approximately $8.7 billion, marking a 3.3% decrease compared to 2023 and a significant 23.5% drop from 2019’s figures.

This year, we anticipate a more comprehensive release plan, however, the box office earnings are approximately 5% lower than what the industry had at this same point last year.

O’Leary emphasized that it’s crucial not to focus solely on the year 2025. Instead, our efforts should always be geared towards continuous development, progression, and growth,”

or more informally:

“O’Leary reminded us that we shouldn’t get too hung up on the year 2025. We should keep building, growing, and moving forward all the time.

Regardless of obstacles, it continues to be a universally appealing and budget-friendly leisure activity. As per a report by the National Research Group published in 2024, an astounding 76% of Americans aged 12 to 74 went to at least one movie screening that year.

Highlighting movie theater upgrades

Despite theater closures frequently grabbing attention, similar to the E Street Cinema in Washington D.C., where Cinema United is based, there has also been an uptick in investments and renovations for theaters across the nation. Some of these projects are even spearheaded by renowned filmmakers and actors.

As a movie enthusiast, I find myself captivated by the recent acquisition of the iconic Village Theater in Los Angeles, dating back to 1931, by an impressive collective including Jason Reitman, Steven Spielberg, Christopher Nolan, and Bradley Cooper among others. Furthermore, Patrick Wilson has followed suit by investing in the restoration of a historic theater in New Canaan, CT, joining the ranks of esteemed filmmakers such as Francis Ford Coppola, Martin Scorsese, and Quentin Tarantino who have also invested in movie theaters. It’s exciting to see these cinematic titans preserving the legacy of the big screen for future generations!

Recently, it was announced that the eight largest theater chains in the U.S. and Canada intend to spend over $2.2 billion on modernizing approximately 21,000 movie screens over the next three years. This encompasses improvements in areas such as projectors, lighting, sound systems, and even the concession stands. However, O’Leary pointed out that theater upgrades are not a novel concept; they are simply highlighting these developments.

O’Leary stated that the entire membership consistently invests in their cinemas on a regular basis. One reason for this disclosure is because I believe it’s not immediately clear to many that cinema owners are continually evolving and investing in themselves.

Gearing up for 2025’s summer movie season

The announcement arrives slightly more than a week prior to approximately 6,000 cinema workers from various parts of the globe gathering in Las Vegas for the yearly CinemaCon meeting, an event organized by Cinema United.

The primary film studios like Disney Studios, Warner Bros., Universal Pictures, and Amazon/MGM will all present grand, celebrity-filled exhibits on the main stage at Caesar’s Palace. Here, studio executives and stars will unveil exclusive footage and trailers to convince viewers that their upcoming films are worth watching in theaters.

Showcasing that many theaters are small businesses

In 1965, NATO – an alliance – was born as a combination of the largest movie theater trade associations in the nation: The Theater Owners of America, founded through a merger in 1948, and the Allied States Association of Motion Picture Exhibitors, which traces its roots back to the 1920s.

At Cinema United, they often express that “we’re not part of the glamorous Hollywood scene. Instead, we’re a reflection of everyday life on Main Street.

In essence, most of our membership consists of small businesses, which means they experience the same pressures and opportunities that other small enterprises encounter across the U.S. and globally, as stated by O’Leary. Notably, the main offices of our largest members are located in cities such as Knoxville, Dallas, and Kansas, rather than Los Angeles or New York.

via Breitbart

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2025-03-22 19:46