In 2025, Hollywood’s box office is at its lowest in 27 years. In October, US ticket sales hit about $425 million, a drop not seen since the pandemic. Many big-budget movies flopped, causing heavy losses for studios like Disney. Analysts say the drop reflects a shift toward streaming, which is replacing traditional theaters.
The main cause is the end of exclusive theatrical windows, once about 90 days. Now, movies often release sooner on streaming platforms. Many 2025 blockbusters relied too much on sequels, lacked fresh ideas, and were costly to make, increasing financial risk. Even well-reviewed films struggled to succeed.
Theater screens dropped from 41,000 pre-pandemic to about 35,000 now. Chains like AMC and Regal face closures and layoffs. Hollywood risks a “negative feedback loop” as fewer movies go wide, pushing more viewers to streaming and cutting box office revenue further. Demand for theater experiences has fallen 20% since the pandemic.
Holiday releases may help revive the box office, but studios must find new ways to attract audiences and balance theaters with streaming in this changing entertainment landscape.
