Image Source: Los Angeles Times
Paramount is bringing a major movie theater back to Pacific Palisades. The Skydance-owned studio has taken over the lease for the Bay Theater at Caruso’s Palisades Village and plans to reopen the cinema later this year.
The Bay Theater has been closed since the January 2025 Palisades fire. Its planned return is being viewed as an important step in the wider recovery of the Pacific Palisades community, which continues to rebuild businesses, public spaces and neighborhood gathering places after the disaster.
Paramount Plans a Powerful Bay Theater Revival
According to the Los Angeles Times, the renovated theater will feature state-of-the-art projection systems along with in-seat food and drink service. The venue will operate as a luxury dine-in cinema, giving audiences a more comfortable and hospitality-focused way to watch movies.
The theater is expected to show first-run films from all studios, rather than limiting its schedule to movies produced or distributed by Paramount. That approach could make the Bay Theater a valuable destination for residents seeking major releases, independent films and special theatrical events.
The Lot, a La Jolla-based luxury dine-in theater chain, will operate the venue. The company currently has four locations in California and is known for combining restaurant-style service with a premium moviegoing experience.
A Symbolic Return for Pacific Palisades
Rick Caruso, founder and executive chairman of the real estate firm Caruso, said the theater’s comeback sends a strong message about Los Angeles’ resilience. Caruso’s company owns Palisades Village, the upscale outdoor shopping center where the Bay Theater is located.
“The comeback of this movie theater is a great signal for all of L.A.,” Caruso said. “Los Angeles is resilient, and we’re going to show the country that Los Angeles can bounce back from a terrible, terrible disaster.”
Palisades Village reopened in August after more than $100 million in renovations. The project included extensive infrastructure work and refurbishment designed to address potential contaminants connected to the fire. The return of the Bay Theater adds another highly visible milestone to the shopping center’s recovery.
From Netflix to Paramount: A New Chapter
Netflix previously leased the Bay Theater after taking it over in 2021. During its tenure, the streaming company used the cinema for special events, classic-film screenings and presentations of its original theatrical movies.
Caruso described Netflix and Chief Executive Ted Sarandos as “incredible stewards” of the theater. He also said Sarandos handled the discussions about Paramount stepping into the lease in a professional manner.
The transition reflects the changing relationship between major studios and movie theaters. For decades, studios were restricted from owning theaters under the Paramount consent decrees. A federal judge terminated those restrictions in 2020, allowing entertainment companies to take a more direct role in exhibition.
Netflix has since operated the Egyptian Theatre in Hollywood and the Paris Theater in New York. Paramount’s move into the Bay Theater marks another example of a major studio investing in the physical moviegoing experience at a time when streaming remains central to the entertainment business.
Why the Theater Matters to Hollywood
The reopening arrives shortly after Paramount completed its acquisition of Warner Bros. Discovery. The newly combined company, which took the name Skydance after the deal closed, is facing pressure to maintain a strong theatrical pipeline.
As part of a settlement agreement with 12 state attorneys general over antitrust claims, the company must release at least 30 films annually. Paramount Chief Executive David Ellison has also repeatedly emphasized his commitment to theatrical releases, including an appearance at the CinemaCon movie theater owners convention earlier this year.
Adolfo Fastlicht, founder and chief executive of the Lot, said the company looks forward to welcoming the Pacific Palisades community back to the movies through a combination of curated programming and dedicated hospitality.
The Bay Theater’s expected reopening later this year could therefore carry significance beyond one neighborhood. It represents a renewed investment in cinemas, a fresh chapter for Paramount and a hopeful sign for a community rebuilding after devastating losses.
Frequently Asked Questions About Paramount’s Bay Theater
When will Paramount reopen the Bay Theater?
The theater is expected to reopen later in 2026, although an exact opening date has not been announced.
Where is the Bay Theater located?
The Bay Theater is located at Caruso’s Palisades Village shopping center in Pacific Palisades, California.
What features will the renovated theater offer?
The venue is expected to include advanced projection systems, in-seat food and drink service and a luxury dine-in cinema format.
What movies will the Bay Theater show?
The theater plans to show first-run movies from all studios, not only films associated with Paramount.
Who will operate the theater?
The Lot, a La Jolla-based luxury dine-in theater chain with four California locations, will operate the Bay Theater.
