North American movie exhibitors are set to invest $2.2 billion in new theater upgrades to take advantage of Hollywoods overall box office rebound this year.

On Thursday, the National Association of Theatre Owners said its members were plowing fresh money into the theatrical experience over the next three years to continue drawing cinema-goers out of their homes after studio tentpoles like Inside Out 2,Deadpool Wolverine andDespicable Me 4filled the local multiplex earlier this year.

There is no question that movie fans of all ages love heading to the local theatre to see great movies on the big screen. But the competition for consumers hard-earned dollars is fiercer than ever, NATO president and CEO Michael OLeary stated, as theater owners continue to face stiff streaming-era competition. The new investment in theaters also comes as the exhibition industry also looks to shake off pandemic-era and post-strike overhangs with a steady supply of Hollywood tentpoles and other event pics heading into 2025.

Going to the theatre is an unparalleled entertainment experience, and exhibitors are dedicated to making every visit to their theaters memorable.This investment reflects that commitment in a tangible way that every moviegoer will see and enjoy, OLeary added.

The new theatrical space investment is to come from eight cinema chains in the U.S. and Canada: AMC Entertainment Inc., Regal Cinemas, Cinemark, Cineplex, Marcus Theatres Corp., BB Theatres, Harkins Theatres and Santikos Entertainment. Together, the national and regional circuits have over 21,000 screens and bring in just over two-thirds of the North American box office.

Theater makeovers by installing luxury recliners and other amenities arent new for the exhibition industry. But taking advantage of the current industry rebound which included the summer success of Kingdom of the Planet of the Apes and Twisters calls for recognizing that the box office per patron metric is partly driven by moviegoers paying extra for Imax and other premium theater offerings.

The latest investment from North American theater owners is set to go towards upgrading locations with laser projection technology and immersive sound systems, better food and beverage options, adding arcades and bowling to locations, and enhancing theater air conditioning, lighting, signage and carpeting.