Ray Nutt discusses the return of moviegoers, a changing relationship between theaters and streaming, and Fathom Events' move toward longer specialty-distribution runs.
At CinemaCon 2023, Fathom Events CEO Ray Nutt sat down with FlickDirect's Allison Rose to discuss the state of theatrical exhibition and how the company's strategy is evolving as audiences return to movie theaters.
A year earlier, much of the industry conversation centered on whether streaming would permanently hurt theatrical exhibition. By CinemaCon 2023, the mood had changed considerably, with theaters continuing their recovery and audiences showing a willingness to return when the right content was available.
Nutt said Fathom was seeing significant traction with the type of content it acquired and distributed. In 2022, the company's business reached approximately 86% of its 2019 level, the last full year before the COVID-19 pandemic disrupted theatrical exhibition.
Nutt remained confident that audiences would continue finding their way back to theaters, particularly as stronger content returned to the big screen.
Rose also revisited their conversation from the previous year about the perceived battle between streaming services and movie theaters. By 2023, that relationship appeared to be becoming more collaborative.
Nutt agreed, noting that studios operating their own streaming services were increasingly recognizing the value of a theatrical window. A theatrical release can generate meaningful revenue while also helping build awareness for a film before it eventually reaches a streaming platform.
Fathom itself was also beginning to evolve. Nutt described the company's next step as a move further into specialty distribution, including films with larger revenue potential than the smaller event releases Fathom had traditionally handled.
Rather than simply increasing the number of events on its calendar, Fathom planned to become more selective and give certain films longer theatrical runs. Instead of appearing for a single night or a limited number of screenings, some titles could remain in theaters for a week with one or two showtimes per day.
One example of Fathom's evolving strategy was its partnership with The Chosen. Nutt said faith-based programming accounted for approximately half of Fathom's content during the previous year, demonstrating the audience that could be reached through targeted theatrical releases.
Rose welcomed the idea of longer runs, noting that Fathom had offered events in the past that audiences might have missed because of their limited availability.
For Nutt, expanding those theatrical windows ultimately comes back to one of the qualities that distinguishes theaters from watching entertainment at home: the communal experience.
By keeping select Fathom titles in theaters longer, the company hopes to make its programming available to more people while continuing to bring audiences together to experience movies and special events as a group.
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