Dan Herrle would love to sell every movie-themed collectible his cinemas order. Just not too quickly.

“I’d like it to be sold out by Sunday night, but not by Friday night,” the Epic Theatres executive explained during Celluloid Junkie’s CJ Cinema Summit, held October 14. Sell out too early and disappointed fans may take their business elsewhere. Order too much, however, and movie theatre operators can find themselves stuck with expensive inventory once opening-weekend enthusiasm fades.

That balancing act is becoming increasingly important as movie merchandise evolves from a concessions novelty into a significant retail opportunity. Joining Herrle were Tim Sparrow, Director of Retail at Cineworld, and representatives of three major merchandise suppliers: Julia Howard of Snap Creative, Rod Mason of Zinc Group, and Jeff Waaland of Golden Link. Their discussion revealed a business in which growing consumer demand is matched by increasingly complicated decisions about product development, manufacturing, inventory and marketing.

From Cup Toppers to $100 Collectibles
The transformation has been years in the making. “We invented the cup topper back in the early 2000s,” recalled Golden Link’s Jeff Waaland, who remembers exhibitors doubting whether consumers would buy a novelty item costing cinemas just over $1.

A turning point came in 2019, when AMC offered an R2-D2 collectible developed by Zinc for nearly $50. More recently, Golden Link introduced an $80 Galactus item and a Godzilla collectible retailing for $100. “Fans are willing to pay if it’s right,” Waaland said. For Zinc’s Rod Mason, the appeal goes beyond novelty. His team tries to create “something that’s a tangible memory” for moviegoers by drawing on iconic characters or objects from a film.

Higher prices have also changed how audiences use the products. Many collectors have little interest in putting popcorn inside their elaborate purchases.

“We’d offer them a bag of popcorn on the side, so they can take it home clean,” Herrle said. Sparrow agreed that premium merchandise increasingly attracts collectors rather than casual concession customers.

The merchandise can even outperform its associated film. Zinc’s Rod Mason cited strong collectible sales for titles with disappointing box office results. The decisive factor, he argued, is often an established fan base: “It’s got to be beloved IP.”

For exhibitors, coveted merchandise can also influence which cinema a fan chooses, drawing visits that might otherwise go to competitors.

The Problem With Predicting the Next Viral Hit
Predicting those purchases, however, is considerably easier in hindsight.

Snap Creative’s Julia Howard said development typically begins “about nine to 12 months out,” with products arriving at cinemas three to six weeks before a film opens. Designing, securing studio approvals, manufacturing and shipping all take time.

Consequently, by the time a collectible goes viral on social media, opening-weekend production quantities may already be locked in.

“It’s a crapshoot from the beginning,” Herrle acknowledged. Had Epic known how popular the merchandise for “The Devil Wears Prada” would become, he said, the circuit would have ordered twenty times more.

Other bets leave exhibitors discounting unsold inventory. Cineworld’s Sparrow faces the added challenge of predicting tastes across different cinemas and countries. “It’s incredibly unpredictable,” he said. Scalpers seeking items for resale can further disrupt availability.

Neither exhibitor wants to manufacture scarcity. Sparrow said, “I don’t think we are trying to drive scarcity, but you have to get the balance right.”

Nor can suppliers simply turn out more stock overnight. “The only way to do it is a pre-order that you deliver to the consumer,” Waaland explained. “You’re taking orders that you’re promising to deliver four months later.” Fans who missed the initial sale may still get their item, but there’s no immediate fix for opening-weekend shortages.

Epic generally waits until a film’s second or third weekend to offer merchandise through its Shopify store, prioritizing opening-weekend cinema visits. Cineworld has recently moved away from online sales to emphasize the in-cinema experience.

Independents Have a Place in the Business
Smaller exhibitors, meanwhile, need not sit on the sidelines. Waaland said independents, considered collectively, are Golden Link’s fourth-largest customer category. Some high-end products, including Godzilla, ship in cartons containing just two units, allowing small operators to test demand without a major investment.

Howard said Snap Creative accepts orders as small as one carton and encouraged operators to start with films they believe will resonate with their audiences.

Crucially, all three suppliers urged exhibitors to maintain relationships with each of them, rather than relying on just one manufacturer. “They should really have a relationship with all three of us,” Howard said, so cinemas do not miss opportunities tied to different licensing arrangements. Waaland likewise advised “talking to all three vendors, making sure you know what’s coming up well in advance,” while Mason recommended joining suppliers’ mailing lists, identifying account managers and planning months ahead.

That access can help independents raise per-capita spending and give fans another reason to choose their local cinema.

A New Kind of Cinema Retail Business
Successful merchandising, the panel agreed, requires much more than selecting an appealing popcorn bucket.

Operators must know their audiences, forecast demand, coordinate with suppliers and prominently display their products. As Herrle reminded cinema managers, “People cannot shop from your back room.”

Waaland said analytics are increasingly replacing what “used to be a gut feel” when exhibitors and suppliers decide which merchandise to order and in what quantities. He also emphasized closer cooperation among studios, suppliers, film-booking departments and food-and-beverage teams.

What began as a way to sell more popcorn is becoming a business combining retail, movie marketing and fan engagement. Well-chosen collectibles can generate revenue while giving audiences another reason to visit a theatre.

The unanswered question is still which products fans will want, long before anyone knows whether the associated movie will be a hit.

Watch the complete CJ Cinema Summit #119, “From Popcorn Buckets to Premium Collectibles: How Movie Merchandise Became Big Business for Cinemas,” on demand for the full discussion, additional product examples and practical advice from the panelists.