Imagine heading to the movies these days and having to choose between a standard screen or something truly epic. In 2025, that choice became clearer than ever for a lot of us—and it paid off big time for one company while leaving others in the dust.
Last year wasn’t kind to the traditional movie theater business. Ticket sales stayed stuck below pre-pandemic highs, Hollywood pumped out fewer films, and people got pickier about when they’d actually leave the house for entertainment. Yet amid all that gloom, one name stood out like a beacon: IMAX.
The Standout Performer in a Tough Year
IMAX shares climbed more than 44% over the course of 2025. And that was before the company dropped the bombshell that it had pulled in a staggering $1.28 billion from global box office receipts—a new all-time record. To put that in perspective, it was up over 40% from the year before and even beat the previous high from back in 2019.
Compare that to the rest of the pack. Major theater chains saw their stocks absolutely hammered. One big player dropped more than 60%, another lost around 28%, and a third shed about 25%. It was a rough ride for anyone holding traditional cinema stocks.
I’ve followed the entertainment sector for years, and honestly, this kind of divergence feels like a turning point. The industry isn’t just recovering—it’s evolving. And right now, IMAX is riding the wave while others are struggling to keep their heads above water.
Why the Box Office Remains Stuck
First, let’s talk about the bigger picture. Domestic ticket sales have bounced back from the pandemic lows, but they’re still roughly 25% below the peak years. Heading into 2025, analysts were hoping for around $9 billion in total sales. We didn’t quite get there.
Part of the problem? People are being more selective. With tighter budgets and endless streaming options at home, heading to the theater has to feel worth it. Streaming isn’t going anywhere—it’s convenient, it’s cheaper for families, and it’s packed with content.
On top of that, Hollywood itself scaled back. Mergers, cost-cutting, and lingering effects from strikes meant fewer movies made it to the big screen. When there are fewer must-see films, attendance suffers across the board.
When the slate is thin, consumers become even more choiceful about their entertainment dollars.
Industry analyst observation
It’s a tricky cycle: fewer films lead to lower attendance, which makes studios even more cautious about greenlighting projects. Everyone in the business is still trying to figure out what the “new normal” really looks like.
The Premium Experience Advantage
Here’s where things get interesting. When moviegoers do decide to go out, they’re increasingly choosing the upgraded experience. Premium large format screens—better known as PLFs—are taking a bigger slice of the pie.
In 2025, over 16% of domestic tickets sold were for these premium setups. That’s up from 15% the year before and even higher than the 13.8% in 2023. People aren’t just watching movies anymore; they’re seeking immersion.
And it makes sense. Regular tickets averaged around $13.29, while premium ones fetched about $17.65—a nice upcharge for theaters, and one that customers seem happy to pay for spectacle.
- Bigger screens that fill your vision
- Superior sound systems that rattle your seat
- Comfier seating and sometimes even motion effects
- The feeling that you’re getting something special
Big blockbusters thrive in these environments. Explosive action sequences, sweeping visuals—they hit different on a massive screen. As studios focus more on tentpole releases and send smaller films straight to streaming, premium formats become essential.
Perhaps the most fascinating part? IMAX screens make up less than 1% of all movie screens worldwide, yet they’re capturing a disproportionate share of revenue. That’s efficiency in action.
Looking Ahead to 2026 and Beyond
The future looks bright for premium players. Several high-profile films slated for 2026 were shot specifically with large-format cameras in mind. Think epic sci-fi, sweeping adventures, and groundbreaking visuals that demand the biggest possible canvas.
Company leadership is optimistic, forecasting another record year with global box office potentially hitting $1.4 billion. They’ve got a solid backlog of new screen installations and partnerships around the world.
The momentum shows no signs of slowing, as audiences worldwide continue to embrace the premium experience.
Company CEO statement
Other chains are trying to catch up by adding their own premium offerings—some with partnerships, others building proprietary formats. But upgrading auditoriums isn’t cheap, and many operators are still carrying heavy debt from past expansions and pandemic closures.
Business Models Make All the Difference
This is where IMAX really shines. Their approach is remarkably lean. They don’t own the buildings or deal with most of the overhead that traditional chains face. Instead, they partner with exhibitors: install the technology, share in the ticket revenue, and move on.
No massive rent bills, no utility headaches, no concession staffing woes. It’s an asset-light model that keeps costs low and scalability high. When a blockbuster hits IMAX screens, the company gets a direct cut without bearing the full operational burden.
Traditional operators, meanwhile, split ticket revenue with studios and rely heavily on popcorn and soda margins to stay profitable. When attendance dips, those fixed costs become a heavier weight.
In the first three quarters of 2025, IMAX posted consistent profits, with net income jumping significantly year-over-year. Several major chains, on the other hand, reported losses in at least one quarter, highlighting the vulnerability of the old-school model.
| Company Type | 2025 Profit Trend | Key Strength |
| IMAX | Consistent profitability | Revenue share, low overhead |
| Traditional Chains | Mixed, some quarterly losses | Concessions margin |
Of course, the chains aren’t standing still. Many are renovating, adding premium options, and trying to diversify. But catching up to a company that’s been perfecting this niche for decades takes time—and money.
What This Means for Investors
If you’re looking at the entertainment space, the lesson from 2025 seems pretty clear. The industry isn’t dying, but it’s segmenting. Casual moviegoing for mid-tier films is declining, while event-style, premium experiences are growing.
In my view, companies positioned at the high end of the experience spectrum have a structural advantage right now. They’re less exposed to the risks of a thin slate and more aligned with where consumer preferences are heading.
That doesn’t mean traditional chains are doomed—many have loyal customers, prime locations, and strong concession businesses. But turning around a large fleet of standard theaters in a shifting market is a heavier lift.
One thing feels certain: the gap between premium leaders and everyone else could widen further if the trend toward fewer, bigger releases continues. Investors will want to watch upcoming slates closely—because a strong lineup of spectacle-driven films could supercharge premium performance even more.
At the end of the day, 2025 reminded us that not all theater stocks are created equal. Some got crushed under changing habits and economics. Others—like IMAX—found a way to thrive by delivering exactly what today’s selective audiences crave: an unforgettable night at the movies.
The question now is whether this premium shift is a temporary blip or the new foundation of the industry. From what I’ve seen, I’m leaning toward the latter. And if that’s the case, the winners and losers might stay divided for years to come.
