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It’s Not Just an Expensive Popcorn Bucket, It’s an ‘Experience’

(Bloomberg) -- The dual releases of Gladiator II and Wicked are projected to reap a combined $165 million this weekend at the box office. And that’s not even counting the popcorn buckets. 

In advance of Ridley Scott’s much-anticipated sequel, Cinemark Holdings Inc., in conjunction with merch maker Golden Link Inc. and studio Paramount, unveiled its exclusive “Gladiator II Popcorn AR-ena Coliseum” bucket, designed to look like the exterior of the Roman Colosseum. Scan a QR code and point your phone inside, and you can watch two augmented reality gladiators fighting each other in a virtual arena. It goes for $23, popcorn not included.

Meanwhile, to keep hungry Glinda and Elphaba fans satisfied, Regal partnered with Universal Pictures to create mix-and-match Wicked popcorn tins and toppers (including a $40 Emerald City lantern-shaped popcorn holder), along with collectible foam headbands and movie-themed snacks such as churros drizzled in emerald icing and pink-and-green-colored caramel popcorn. 

While hoopla is nothing new in Hollywood, this has been the era when extravagant concessions and experiences became meme-able fodder for the masses, all explicit attempts to woo theatergoers who have continued to stay away post-pandemic.

“The movie alone isn’t going to do all the work,” says Daniel Loria, senior vice president for content strategy and editorial director at Boxoffice Pro. “You have to make sure the experience does the other half—and what experience are you going to offer?”

In the past year, collectible buckets, immersive screenings such as 4DX (with its motion-enabled chairs) and Smell-O-Vision (last popular when Scent of Mystery released in 1960), and themed events have exploded in popularity, supplying social media buzz and marketing awareness around the release of blockbusters and prestige indie offerings.

Adding Value

In January, with theatrical attendance down 33% compared with 2019, theater chains began more earnestly trying to differentiate themselves in an attempt not only to attract more moviegoers, but to squeeze more money out of them with tchotchkes they couldn’t get on their couch. Not many figures exist to show whether collectibles equate to ticket sales, but according to the Hollywood Reporter, 15% of Mean Girls opening weekend attendees cited “merchandise inducements” as the reason for buying a ticket.

“The more people post about their new movie swag, the more everyone else wants it,” David Haywood, Cinemark’s senior vice president for food and beverage, said in an email. “We’ve seen this consumer trend play out in record-breaking box office performances and increased indulgence in premium amenities.” (Hence the chain’s own tongue-in-cheek promotion of its “Colossal”-size bucket on TikTok.) 

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Last year, merchandise made up about $54 million of AMC Entertainment Holdings Inc.’s revenue, or about 3% of its total food and beverage revenue, and a kernel compared to its $4.81 billion total. But as Haywood notes, guests continue to push for “creative designs that lend themselves to fun conversations online” and, by extension, bragging rights at home. Tickets’ QR codes are harder to show off than a Thor’s hammer popcorn container on your shelf.

On an earnings calls for the third quarter of 2024, Cinemark Chief Executive Officer Sean Gamble said the chain’s merchandise sales “are growing and contributing to per capita growth,” elaborating that the company is expanding e-commerce channels to sell these items beyond theaters.

A Recent Surge

Today’s battle of the buckets can be traced back to Zinc Group, the marketing and design agency behind AMC’s Dune: Part Two-themed bucket. The commemorative lid, meant to resemble the mouth of the giant sandworm Shai-Hulud, went viral when photos leaked online in January thanks to its sphincter-looking hand opening, which was lined with toothlike plastic bristles. Its anatomical shape inspired TikTok reaction videos, blog posts and a Saturday Night Live parody sketch, inadvertently starting a monthslong ad campaign that the studio quickly embraced. 

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“It became a phenomenon that was really unstoppable,” says Rod Mason, Zinc’s vice president for business development. The buckets typically require a yearlong development process that includes studio licensing deals and theater oversight. “It really has acted as a catalyst for people to understand how powerful these items can be,” he says, “not only from a revenue standpoint but also from a social media impression standpoint.”

A few months later, actor-producer Ryan Reynolds jumped into the fray with an expedited and sexually suggestive Deadpool & Wolverine bucket, one of several variations that theaters chains promoted ahead of the movie’s release. Other major releases—Despicable Me 4, Alien: Romulus, Beetlejuice Beetlejuice and Venom: The Last Dance—followed suit with their own snack vessels. All range from about $20 to $60. “It makes the cinema a destination,” Mason says. 

Other Attractions

It’s not just merchandise. Theaters are emphasizing the experiential component of movie attendance with giant Imax screens and amusement-style viewings called 4DX, which shocked Twisters moviegoers with rumbling seats, wind blasts, water sprays and fog machines. Tickets to these showings come at a premium. Oppenheimer and Dune: Part Two earned about 20% of their ticket sales from Imax showings, and Twisters took home $2.1 million in 4DX screenings during its first weekend this summer.

The RDX technology, which made its US debut in 2014, “is the second-biggest premium large format after Imax—and it’s the most popular immersive seating format,” Variety reports. Other special theatrical configurations include D-Box (seats moving in conjunction with screen action) and Screen X (which uses additional side screens to incorporate 270 degrees of visuals).

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A week before the release of studio A24’s psychological horror film and Hugh Grant awards vehicle Heretic, Alamo Drafthouse Cinema put together a one-night-only marketing event across a handful of the national chain’s locations. Thanks to a collaboration with fragrance company Joya Studios, theaters piped in blueberry pie smells during a specific scene involving—you guessed it—blueberry pie. The scent lasted just a few minutes, smelled surprisingly accurate (even against the theater’s competing food items) and effectively complemented and enhanced the storytelling on the screen.

“We are always open to trying new things and making the experience as immersive as possible,” says Chaya Rosenthal, Alamo’s head of marketing. The theater chain, which Sony Pictures Entertainment acquired in June, is famous for pioneering the in-movie dining experience back in 1997. “It didn’t even require much on our end.”

Alamo is also offering its own movie-related merch, including Wicked-branded lunchboxes and chalices, a $25 Lion King blanket and a Squishable for the next Paddington movie. “We lean in as much as we can on brand differentiation,” says Rosenthal. “There’s a reason to come out to the theater if you can get a blanket on you.”

Next on the agenda? Pickleball courts. The country’s top eight theater chains recently agreed to invest more than $2.2 billion over the next three years in modernizing and upgrading their cinemas. The idea is to transition strictly from movie houses to multipurpose recreation zones and event destinations that can also include retail and batting a ball back and forth as part of an expanded scope. The price of movie tickets might still be more expensive than a night at home, but at least you’ll have a souvenir, a windswept ride or a scented moment. 

“We are selling memories right now,” Rosenthal says, “and those things linger.”

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