🌅 Gen Alpha May Save Hollywood

SOURCE

National Research Group

WHAT TO KNOW

• A new report from the National Research Group found 59% of Gen Alpha say they prefer watching movies in theaters rather than at home, far more than the shares among Gen Z (48%), Millennials (45%), and Gen X (46%). Gen Alpha is also more likely to view moviegoing as a social experience: 55% prefer to see movies in a large group, outpacing Gen Z (40%), Millennials (31%), and Gen X (21%), while 68% view movies as a chance to spend time with family and friends, again surpassing  Gen Z (60%), Millennials (59%), and Gen X (63%).

WHY IT MATTERS

• Despite growing up online, Gen Alpha has a distinct preference for live experiences of all kinds, from sports (50% prefer watching live vs. 28% who prefer watching at home), to video games (50% favor playing in person with friends vs. 30% who choose online), and even eating (58% choose to dine out vs. 25% who choose delivery). However, Gen Alpha aligns with previous generations’ clear preference to stay home when it comes to one area: music. When it comes to music, 51% of Gen Alpha prefers to listen at home while 29% opt for live concerts, essentially the same preference split as previous generations.

CONNECT THE DOTS

• The report comes after a disappointing summer season for Hollywood. May to Labor Day revenue in the U.S. and Canada is projected to reach $3.75 billion, up 2% from 2024 but more than 8% below the $4.01 billion generated during the Barbenheimer-fueled 2023 season. Zooming out the picture gets even worse: prior to the pandemic, yearly domestic box offices routinely topped $11 billion, however, since 2021, total sales have yet to surpass $9 billion in any year.