Independent exhibitors—movie theatres that typically have only one or two screens and/or are located in small towns or underserved neighborhoods—were a mainstay of U.S. cinema culture throughout the 20th century. Even as multiplex theatre chains swept the nation during the 1980s and 1990s, these small businesses continued to serve their communities by providing jobs, anchoring other retail establishments, and providing the public with a shared cultural space. In the 21st century, however, independent theatres began to hemorrhage. Intensified competition from debt-financed chains, supply problems, and a consumer shift to streaming forced many to shutter. In 2019, after two decades of struggle, only 3,000 remained in operation.
Grounded in exhibition studies, this paper uses case studies of failing independent theatres. Eschewing an analysis of big media companies (which dominate the literature in both media studies and business history), the focus here is on small businesses outside of media hubs in L.A. and New York. I examine a handful of theatres that fought hard to stay alive by embracing an entrepreneurial spirit hawked by trade groups like NATO, promoted at conventions like Cinema Con, and detailed by the trade magazine Boxoffice. These exhibitors designed dynamic pricing strategies through new technology and innovated new theatrical-dining experiences for new kinds of moviegoers. They also turned to their communities for support, adopting nonprofit models, seeking donations and grants, or marketing community ownership. Unfortunately, their efforts largely failed. I consider what factors prevented entrepreneurial success in this sector by examining the broader social and economic context, and by analyzing the everyday actions of these firms in response to heavily capitalized competitors and conglomerated suppliers. I argue that even though local communities responded positively, the duress of monopoly capitalism put independents in an untenable position.