Exhibitors are especially anxious for moviegoers co return to the theater because the industry has invested an estimated $ 1.6 billion to convert cheaters from film to digital projection since 2005 (see Exhibit 4). The main promises of digital projection are decreased distribution costs, 3D capability, and the potential to show alternative content. Despite the sizable investment, financial benefits have yet to materialize for exhibitors. Attendance decreased in five of the eight years since conversion began.
So, which represents the current and future state of the movie exhibition industry: the bright lights of a red carpet Hollywood premier or a dimly lit marquee?