Hollywood’s Recovery: The Impact of Dune: Part 2
The impact of the global pandemic and the Hollywood Strike rippled across the movie industry in more ways than one. From canceling theatrical releases to losing work for many crew members on set, the movie industry is still trying to manifest the success seen on pre-pandemic production levels. Yet, moments have been shimmering with hope for the movie industry’s return. Most recently, the success of Dune: Part 2 has been making waves, with Cineplex CEO saying the film has been keeping the box office afloat.
Box office sales at the start of the year were down by nearly 18% from the same period in 2023, with just over $866 million in ticket sales. Still seeking sales that reclaim the $10 billion in annual ticket sales seen before the COVID-19 pandemic, Warner Bros. and Legendary Entertainment hope to find an oasis amid this revenue in the release of Dune: Part 2.
Cineplex’s Marketing Success Amidst Box Office Struggles
With no big-budget blockbusters appearing at the start of the year, theaters were preparing for the anticipated flood of moviegoers for the release of Denis Villeneuve’s Dune: Part Two, and Cineplex’s tentpole marketing proved to pay off.
Tentpole marketing is a strategy the movie industry uses for movies that have yet to be released but are generating quite the buzz. Typically, these movies cost studios quite a penny to produce, and they expect to profit significantly. It is called tentpole marketing because it refers to the pinnacle of buzz generated before and after a movie’s release, with all marketing before and after the main event aimed at generating maximum exposure and relevancy.
Jump-starting this industry trend, Cineplex saw higher box office revenues in its first financial quarter 2024. At several Cineplex locations, general admission tickets to see Timothée Chalamet’s ride a gigantic sandworm were increased by $1 more for the film’s weekend release, a tactic the movie theater company also used for the releases of Oppenheimer and Barbie.
Yet, the increased ticket sale price did not stop swarms of moviegoers from heading out to see Dune: Part 2. The movie theater chain’s revenue rose to $125.1 million in its first quarter—an increase that Cineplex CEO Ellis Jacob credited to the French-Canadian director’s promotion of the movie.
The CEO revealed that “On the first weekend, the Fairmount Cinema and its Imax screen was the highest-grossing theater in North America,” a testament to the power behind solid teams and Villeneuve’s effort.
Cineplex’s increase in box office sales during the first three months of this year saw a 6 percent decline in its first quarter North American box office for Hollywood films compared to 2023. However, the CEO revealed that “On the first weekend, the Fairmount Cinema and its Imax screen was the highest-grossing theater in North America,” a testament to the power behind strong teams and Villeneuve’s effort.
“I came out of there feeling really good about the business going forward… now there’s an opportunity as we see it to move through to the second half of this year, and even the next number of months will be fine,” Jacob reported.
Cineplex continues to make moves in the movie industry by better targeting its diverse audience with films that help grow the movie market in northern Ontario.
