And in fact, the nadir of box office sales looks to have hit back in 2014. The industry has shown a measurable upturn over the past two years.

As noted, thanks to blockbusters such as Black Panther and the Last Jedi, 2018 is already off to a record start, with the domestic tally 36% higher than where the industry stood five years ago through the same date.

A Better, More Profitable Experience

Granted, some of the gains are strictly a function of higher ticket prices, but this is consistent with theater owners’ plans. Consumers are willing to pay more to get a distinctly better or different experience than they can enjoy at home.

To that end, AMC, which owns and operates over 365 theaters with 8,225 screens in the U.S. and another 262 theaters with 3,400 screens throughout Europe, has been adding large screen formats such as IMAX , upgrading theaters to include reclining chairs, offering reserved seating, and introducing more and better food choice.

This has allowed them to charge more and realize higher profit margins, especially on the food items.  Last quarter, AMC reported food and beverage revenue was up 47% to $415.3 million, and average ticket prices went from $9.50 to $9.72.

AMC, which recently acquired the Carmike theater chain last year, expects these numbers to increase going forward as it works to re-brand its acquisition, which had been positioned as a “value” chain, to fall in line with AMC’s more upscale persona.

AMC expects more than 200 fully reclined theaters by the end of 2018. In addition, as Saudi Arabia looks to expand in entertainment, AMC could benefit. Partnering with the country provides an untapped market of more than 30 million people to serve.

Subscription Model

Another interesting way to combat streaming services is through subscription models, such as MoviePass (HMNY), which offers unlimited access to theaters for a fee of around $100 per year.   For now, companies such as MoviePass seem willing to absorb the cost to grow their base, as AMC reported that that several hundred thousand of their subscribers showed up at AMC theaters at an average of 2.7 times per month.  Movie pass paid AMC approximately $11.90 per ticket, which means that MoviePass paid over $32 per subscriber.

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