Knoxville-headquartered Cineworld bounces back after pandemic hit
Eduardo Acuna, the Chief Executive Officer (CEO) of the company spoke to Premier Partners at the Knoxville Chamber about the well-known theatre company's strategy to bounce back, better than before.
The pandemic dealt a significant blow to movie theaters. For half a year, cinemas across the country closed their doors. Date nights in front of the big screen, popcorn sales, and birthday parties all came to a halt. Even as restrictions were lifted, other industries resumed operations quickly, but theaters faced a different challenge—there were no new films to release, as movie production had also been paused.
For Cineworld, one of the largest international theater companies and the owner of Regal in the U.S., this period was especially difficult. The company’s Chief Executive Officer (CEO), Eduardo Acuna, explained how just before the pandemic, Cineworld was in the process of acquiring Canada’s Cineplex. When revenue dropped in 2020, the deal fell apart, and Cineplex sued Cineworld for nearly $1 billion in damages.
“We were the biggest theater company in the world,” Acuna said. “But between the pandemic and the lawsuit, we had to file for Chapter 11 bankruptcy in the U.S. Now, our focus is on moving forward, and we’re making great strides.”
The Road to Recovery
During the Knoxville Chamber’s first Premier Partner event of the year, dozens of business leaders gathered to hear Cineworld’s comeback story, particularly how the company has been rebuilding from its Knoxville base.
One of the biggest questions Cineworld faced was: “What will entice people to return to the movies?”
Research revealed that moviegoers weren’t concerned about the number of seats in a theater; they valued comfort and space. Cineworld responded by making theaters more luxurious, with spacious, reclining seats. They found that customers were willing to pay more for this elevated experience. A local example of this model is the Regal Cinebarre at West Town Mall.
Additionally, as competitors offered meal deals and other perks, Acuna decided to expand Regal’s food service. Theaters began offering a full-service dining experience with waitstaff, serving everything from classic buttered popcorn to hot wings and cocktails.
“As we look ahead, we want Regal to be a one-stop-shop for date night,” Acuna said. “No need to do dinner and a movie separately anymore.”
Investing in AI to Enhance Customer Experience
Alongside these physical upgrades, Cineworld has also invested heavily in artificial intelligence (AI) to enhance the customer experience. One example is the use of custom emails that recommend movies, promotions, and food based on customers’ previous purchases.
“If a customer regularly watches horror movies and orders hot wings, there’s no need to send them promos for romantic comedies and popcorn,” Acuna explained. He described how AI compiles these preferences to create a personalized experience for each customer.
“I’m a big fan of AI. Even though it can be intimidating, you have to embrace it or risk falling behind,” Acuna said. “We also use AI for optimizing showtimes, A/B testing ticket prices, and other initiatives.”
The Future of the Movie Industry
In early 2024, Cineworld launched a capital raise to fund its technological innovations and meet the needs of a shifting market. Acuna said the company raised $250 million and is on track to achieve $55 million in year-over-year cash flow growth.
“In many ways, we’re really a tech company, even though the public doesn’t see us that way. Seventy percent of our ticket sales are made through mobile devices, and our model is increasingly focused on creating a frictionless customer experience,” Acuna said with a smile. “But don’t worry—robots won’t be serving your food anytime soon.”
He wrapped up the Premier Partners presentation with a look ahead at the films coming to theaters in the next three years. Blockbuster titles like Zootopia 2, Wicked Part 2, and Avengers give him hope for Cineworld’s continued rise to the top of the global movie theater industry.
Learn more about Cineworld’s Knoxville headquarters.
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