Theaters Aren’t Back. They’re Just Borrowing Buzz

A guest essay by Ana Maria Jipa, CEO of Olyn, on why box office spikes can’t mask a deeper shift in film distribution.

Fresh off a record-breaking Memorial Day box office, AMC is celebrating their record-breaking Memorial Day holiday weekend performance. But while they can pop the champagne and tweet “theatrical is back, baby,” let’s not confuse a holiday sugar rush for a structural shift.

A strong Memorial Day weekend box office doesn’t mean audiences are returning to theaters en-masse; it means they’re still willing to show up for eventized moments. Sure, theaters aren’t dead, but entertainment is changing. Premieres like Mission Impossible: The Final Reckoning and Lilo & Stitch dropping on a long weekend created an outlier convergence of multiple different demographics having the time and interest to catch a light flick.

The thing is, theaters need to rethink their role beyond these box office spikes. They shouldn’t be the mandatory starting point for every film release, but rather a powerful extension for titles that are generating demand outside traditional funnels.

For example, look at 2023’s Sound of Freedom, released by Angel Studios. This low-budget film about child trafficking stunned the industry by grossing more than $250 million worldwide, outperforming major studio titles during its release window.

Despite that fact, the film was rejected by major studios and sat on the shelf for years. However, it leveraged crowdfunded distribution and a “pay it forward” model to create a surge of grassroots, digital promotion. It also built momentum by connecting with faith-focused, alternative audiences who are often absent from many opening day weekends. 

Only then, after online buzz reached a critical mass, did Sound of Freedom become a vehicle for mass outreach that might succeed in a theatrical environment.

The power has simply shifted in the film industry, and instead of resisting that fact, theaters should embrace it by becoming the home for films that already earned their place through community demand — not studio mandates.

To stay relevant, theaters need to stop functioning like passive pipelines and start acting like responsive platforms that have come to dominate the industry. That means hosting films that have already resonated online and partnering with platforms or creators before the theatrical window instead of only afterward.

After all, 70% of Gen Z film fans discover movies through social media as opposed to trailers or theater listings. That means theatrical success is increasingly determined by what happens outside the theater, first.

Some chains have already figured this out. While the COVID-19 pandemic forced Alamo Drafthouse into bankruptcy and an eventual sale to Sony, they are thriving once again. But they don’t do it by chasing volume — they curate experiences. They host themed screenings, Q&As, and community events that treat movies like an occasion as opposed to a product.

Studios are learning this, too. Just look at the campaign Universal put on for Trolls World Tour, which generated $100 million via a premium digital release. That wasn’t a fluke, either. It was a shift in consumer behavior.

Films used to be a funnel, going from festival, to distributor, to theatrical, to digital. But now, we have a loop. A film might start on a creator’s platform, gain traction there through communities or influencers, use that to earn a theatrical run and then return to digital or international distribution on its own terms. 

With that in mind, theaters should start thinking of themselves as accelerators for emerging filmmakers rather than acting as gatekeepers. If a film already has traction online, a theatrical release isn’t really about “giving it a shot.” It becomes an opportunity to level that release up.

That way, theaters can break the misconception that only blockbuster fans buy tickets, because indie films with strong cultural relevance, regional identity or activist appeal often activate deep loyalty.

So, to theaters that want to remain culturally relevant (and financially viable), recognize this fact: the most exciting, diverse and community-driven films are increasingly being made outside the studio system. These filmmakers don’t need validation — they need access. Fortunately, theaters are in a perfect position to provide it and share in the mutual success. As long as they’re willing to evolve.

Ana Maria Jipa is the co-founder and CEO of Olyn, a technology solution that enables filmmakers, studios and producers to distribute their films direct-to-consumer, free from the gatekeeping algorithms of modern platforms.