Gen Z is buying tickets in greater numbers than their parents, yet the theatrical film industry continues its long decline, raising questions about whether youth enthusiasm can overcome structural changes in how Americans spend their leisure time and money.
A January survey by Fandango of 7,000 adults found that 87% of Gen Z respondents had watched at least one film in theaters in the previous 12 months, averaging seven movies in that period. Gen X, by comparison, hit 70% attendance with an average of 6.1 movies. But The Atlantic noted that Fandango's survey pool drew disproportionately from movie enthusiasts, with 5,091 respondents having already seen at least one film in the previous year.
The Reality Behind the Headlines
Other surveys from what The Atlantic described as more disinterested sources told a different story. Gallup data showed that 19 years ago, 18-to-29-year-olds went out to see an average of nine films. Last year, the same demographic saw 4.3 movies. That's less than half. Pew found in a survey last summer that 67% of people ages 18 to 29 had seen a movie in the theater in the past 12 months.
"I think that there's a lot to be optimistic about, but I would not put the return of theatrical back at the feet of Gen Z," said Kevin Goetz, CEO and founder of Screen Engine. "I wouldn't proclaim victory quite yet."
This year brought the runaway success of Backrooms and Obsession, which marked the coronation of YouTube auteurs as bankable directors and drew notably fresh-faced crowds. Even so, the box office is unlikely to return to the heights it regularly reached in the past. More people are staying at home. Seven years ago, the share of the non-moviegoing population was 24%, according to Vista Group, which provides analytics and software for the film industry. Two years ago, that number hit 30%.
Theaters Adapt, But at What Cost
Last year, theaters in the U.S. and Canada sold approximately two tickets per capita, less than half of what they sold in 2002. Matthew Liebmann, Vista Group's chief product, innovation, and marketing officer, said Gen Zers' habits have started to converge with those of the general moviegoing population. Moviegoing used to be a matter of habit meeting spontaneity, but now patrons generally plan visits in advance and decide whether to go at all before choosing what to see.
Theaters have responded by adding amenities that transform the experience into something closer to an entertainment complex. Bob Bagby, CEO of B&B Theatres, said his locations now offer mah-jongg, trivia and bingo, and some have bocce and pickleball courts, while other chains have added ropes courses and axe-throwing. "I've seen it," Bagby said of axe-throwing. "Our insurance people said No, no, don't do that."
Penn Ketchum, managing partner of Penn Cinema, said the Gen Z crowd wants to come in and be somewhere cool, describing a 24-tap self-serve beer wall he installed in one location as part of a $2 million renovation. "They don't want to come through a dingy, dusty, aged lobby," he said. "They want to come in from the parking lot and be somewhere that's worthy of being in the background of their picture."
The Affordability Problem
Alicia Reese, a senior vice president of equity research for media and entertainment at Wedbush Securities, said, "Over time, people have been trained to spend more at the theater when they go." Matthew Liebmann warned that encouraging audiences to associate moviegoing with "all the trimmings and treats" creates an "affordability misperception," which may dampen their appetite for regular visits.
Paul Dergarabedian, a senior analyst for Rentrak, said, "Theatrical films don't have a future if you can't capture the younger audiences of today, who are going to be the older audiences of tomorrow." Gen Z may be filing into more auditoriums than expected, but the experience has been retooled around them and depends on many things beyond sitting in a dark room together as a projector rattles.
Why This Matters:
The debate over Gen Z and cinema reveals a deeper story about accessibility and economic pressure on cultural participation. When moviegoing frequency drops by more than half in less than two decades, it's not just about preference—it's about affordability and what gets squeezed out when household budgets tighten. Theaters have responded by adding premium experiences that require million-dollar renovations and encourage higher per-visit spending, potentially creating a cycle that prices out the very audiences they need for long-term survival. If the theatrical experience becomes something people plan and budget for rather than a spontaneous habit, it risks becoming an occasional luxury rather than a regular part of community life. That shift doesn't just affect an industry; it changes what shared cultural experiences look like and who gets to participate in them.