To the Operators and Stakeholders of Theatrical Exhibition:
This is all my opinion, but I believe it is time to acknowledge a reality that the legacy studios have been telling you with their actions: Hollywood is no longer in the movie theater business. They might even consider you to be in their way.
The recent merger of Paramount and Warner Bros. Discovery is the final signal of a massive consolidation. These entities are huddling together to protect their own interests, cutting slates, and funneling their biggest assets into “walled gardens” that often treat the theatrical window as an afterthought, at best. If theaters continue to act as passive landlords waiting for a corporate handout to fill their screens, you are simply waiting for the lights to go out.
The Opportunities of Innovation Are Calling, but…
The current climate is defined by what can only be called “growing pains.” The industry is scrambling, feeling insecure, and groping in the dark for a new model. In this environment, the world’s largest chains are making a fatal mistake by bowing to the loudest voices in the room rather than the most innovative ones.
“By refusing to show AI-assisted films, theaters are essentially banning the only content that can bridge the current supply gap.”
Take the recent incident with AMC Theatres. They had a chance to show “Thanksgiving Day,” an award-winning short from the Frame Forward AI Film Festival. It was a chance to prove that the big screen is the home for high-fidelity storytelling, regardless of the tools used. Instead, AMC folded under the pressure of a conditioned and agenda-driven social media mob, in the form of the same attitude that has been tanking audience attendance for the past decade. By distancing themselves from a pioneer, they didn’t protect “art,” they just signaled to a new generation of filmmakers that the theater is a closed shop.
The Agile Alternative: Looking Beyond the Studio Lot
While the major chains are playing it safe, others are “getting real” about the grass-roots movement. LOOK Dine-In Cinemas has provided a blueprint for what a modern theater-filmmaker partnership looks like. They don’t just rent out rooms; they invest in the interests of the creator.
Independent projects like Iron Lung, which recently pulled in $20 million at the box office with almost zero traditional studio support, prove that there is a massive audience ready to show up for fresh, non-corporate voices. Theaters need to stop waiting for Hollywood’s approval and start planting their own seeds for the future.
How to Boost Content Outside the “Club”
To ensure long-term survival, theaters must realize they have the power to create their own supply chain. This requires three immediate shifts:
Become a P&A Partner: Instead of giving the best terms to a merged Paramount-WBD behemoth, theaters should offer marketing support and prime scheduling to independent filmmakers who bring a built-in, loyal digital audience.
The “Independent Pop-Up” Revenue Stream: Theaters can boost their bottom line by allowing creators to host physical media “pop-up” displays and merchandise tables in the lobby. This turns a movie screening into a community event that draws eyeballs and a high-margin revenue night for the venue. Bring back the marquees, which were once huge and showy. Invest in trailer space for your investment at the beginning of studio pictures to lend indie films the credibility they deserve from a mainstream audience.
“Theaters need to stop waiting for Hollywood’s approval and start planting their own seeds for the future.”
Embrace Technical Agility: Stop being afraid of AI-assisted filmmaking. These tools are the only way an independent can achieve the visual fidelity required for the big screen on a non-studio budget. By refusing to show these films, theaters are essentially banning the only content that can bridge the current supply gap, which is what Hollywood wants, and is no good for your business.
Planting Seeds for 2027 and Beyond
Investing in grass-roots filmmakers isn’t just about filling a screen tonight; it’s about ensuring there are movies to show three years from now. When theaters take a chance on a decentralized market of new voices, they are building an ecosystem that Hollywood cannot control or censor. Imagine a time where there are real competitors to Hollywood throughout the world, who can offer you choices, so that you can decide what to show in your theaters and bring in the biggest audiences, year-round.
The studios have their “Golden Parachutes.” They are going to be fine. But for the people who own the brick-and-mortar cathedrals of cinema, the time to take a chance on something new is now, before it’s too late.
Stay agile. Stay real.
Christopher Moonlight is an animator, special effects artist, and the director of the ‘Award This’ winning movie, The Quantum Terror. His upcoming animated sci-fi adventure, Escape From Planet Omega-12, combines traditional film-making special effects with AI to create something never seen before in independent film. You can follow the behind-the-scenes, including tutorials, tips, and tricks, on his YouTube Channel and Substack.
