Drive-in theaters fueled Hollywood's box office last year. They could be here to stay - CNN

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(CNN Business)During a pandemic that upended lives, broke routines, and mothballed most forms of in-person activities, a funny thing happened in the entertainment business: The drive-in theater saved the cinema. But while it might have been dismissed as another anomaly in a year full of unusual economic blips, the renewed interest in drive-in theaters looks like it's here to stay.

Last year, from late-March through mid-August, drive-ins generated 85% of North American box office revenue (and some weeks contributed north of 95%), according to Comscore data provided to CNN Business. During that same period in 2019, drive-ins accounted for just 2.9% of box office revenue.

And although films and people have started to return to brick-and-mortar cinemas (albeit at far lower levels than before), drive-ins are showing that they have staying power. Through the first 30 weeks of 2021, they're still gobbling up a greater share of box office revenue than they did pre-pandemic: averaging 6.2% of weekend box office dollars this year versus nearly 1.9% for the first 30 weeks of 2019, Comscore data show.

A view of the Miami Screening of the HBO Documentary Film 'Revolution Rent' at Nite Owl Drive-In Theater on June 10, 2021 in Miami, Florida.

"Naturally, the attributes of the multiplex did not work well within the confines of the pandemic, but consumers hungry to get out of the house found the drive-in to be the perfect solution to a question that no one had even thought to ask just a year before," said Paul Dergarabedian, senior media analyst for Comscore, which tracks global box office data.

"The old-fashioned and often marginalized drive-in theater must now be recognized as one of the saviors of the [cinema] industry," he said.

There are indications that the added exposure has jumpstarted an outdoor cinema rally: Long-forsaken drive-ins are being dusted off and spruced up; pop-ups have proliferated in cities, the concept is gaining momentum overseas; and new takes on the classic are being launched.

In the limelight

In 1958, drive-ins topped out at more than 4,000 locations nationwide, according to Kerry Segrave's chronicle of the industry, "Drive-in Theaters: A History from Their Inception in 1933."

Those ranks were culled following the emergence of television and, later, the arrival of cable, VHS, the cinema multiplex, digital innovation and rising land values.

Now, fewer than 350 fixed-screen drive-in locations are sprinkled across America, mostly in rural communities where land is in greater abundance and light pollution is minimal.

Prior to last year, those highly seasonal outdoor outfits contributed a mere sliver of the movie exhibition business.

In 2019, during peak summer months, drive-ins accounted for fewer than 6% of all theaters in North America and about 4% of overall box office returns, Comscore data show.

An aerial drone view shows a temporary drive-in movie theater at the Rose Bowl stadium on July 4, 2020 in Pasadena, California. July fireworks were canceled that year due to COVID-19 concerns.

The pandemic flipped the script. For June through August 2020, about 21% of North American movie theaters in operation were drive-ins, and those fixed-screen outdoor cinemas had 70% of the box office revenue.

Indoor spaces and public gatherings became ill-suited for the preservation of health and safety against the deadly coronavirus. However, the open-air drive-ins with built-in physical distancing from vehicles had more favorable attributes.

"The world has become attuned to drive-ins in a way it hasn't in decades," said Ross Melnick, an associate professor in the University of California -- Santa Barbara's Department of Film and Media Studies.

Bob Lallky, 24, of Scottsdale, Arizona, saw his first-ever drive-in movie last year when he watched "The Greatest Showman" at a shopping center pop-up screening.

Being able to maintain physical distance from others while enjoying a favorite movie in the comfort of a car was an experience Lallky would like to repeat.

"I hope that they would put a permanent drive-in option close to me," he said. "It's something different."

New arrivals

Entering 2020, the drive-in industry had reached a point of equilibrium, said Nick Hensgen, owner of driveinmovie.com, which tracks and maps drive-ins of the present and past.

The drive-ins that remained were popular, well-maintained and successfully adapted to the digital transition, he said. He added that one or two drive-ins were expected to open in 2020, which would make for a very good year in a business that's seen its numbers shrink to about 305 in 2019 from 499 in 1999, according to the United Drive-In Theatre Owners Association.

Ten ultimately did open last year, at least nine more have opened so far this year, and several more are in the works, he said.

In Loudon County, Tennessee, a new arrival features a modern twist that its operator hopes could serve as the future of the concept.

The centerpiece of the LoCo Drive-In is a 35-by-63-foot Samsung video board, a jumbotron with the capabilities of allowing for both daytime and nighttime showings of movies, live sports and other events.