T. A. Wilson built the Bay Theater in 1927 after first renting the back of a store on Back Street and then building near the location of today's Community Spirit Bank. Because Red Bay had no electricity at first, he used a Delco System, then switched to Alabama Power when electricity became available. After the school burned in 1926, some classes were held there, and the Red Bay Church of Christ congregation also met there before building a church in 1927. In its early years, movies were silent, but talk movies arrived shortly after the new theater was built. The theater provided about the only entertainment many people could access. It had a divided balcony to accommodate blacks and whites, and the balcony was a favorite seating area for couples. Movies ran all day, and some people stayed all day. Wilson rang a cowbell from a projection-room window upstairs to announce that a movie was about to start, and he threw out balloons containing tickets that people scrambled to catch even though the tickets cost only ten cents. Popcorn cost five cents. Over the years, many famous entertainers appeared there in person, including Tim McCoy, Ken Maynard, Hopalong Cassidy, Tex Ritter, Roy Rogers, Gene Autry, and the Three Stooges. Jesse James drew the biggest crowd of all, and at times the line to get into the theater stretched two blocks. Gone With the Wind also drew a big crowd. Guynes and Frances Walden owned and operated the theater for several years, as did Clyde A. Jackson. The building burned in 2004.