As stimulus talks stall, the movie theater industry circles the drain.

It is hard to find one industry that has not suffered from the recent COVID-19 pandemic. One of the sectors feeling the pandemic’s side effects more than others is the movie theatre industry. Over the past six months, the movie theatre industry has had to face forced shutdowns to Hollywood studios pushing back major releases. This month, both AMC and Cinemark announced that they would be out of money by January if help does not come. The movie theatre chain Reagle has also announced they will be temporarily closing all their movie theaters. Are we witnessing the death of the movie theatre, or is there hope on the horizon? This article will look at the movie theatre industry’s current state and what the future may hold.

Where the Movie Industry Stands

The current state of the movie theatre industry is not looking good. Attendance is at an unprecedented level of low. Movie theatre chains AMC and Cinemark have both posted losses of 75% or more for 2020. What are the factors that are causing people to stay home and not go to the movies? 

First, the COVID-19 pandemic continues to cause unprecedented damage to the movie theatre industry. When the COVID-19 pandemic first started to take hold in the United States, many government officials restricted access to mass-gathering events. Within these stay-at-home orders, movie theaters were explicitly targeted as being a dangerous place to congregate. While these stay-at-home orders were in effect, most movie theaters had to shut their doors to comply with the order. During this time, movie theater chains furloughed workers and started to siphon away at their savings. Even as the stay-at-home orders expired, more rules were put into place that restricted the number of people in a theatre. Now, movie theatre companies state that opening theaters is not worth the cost due to the low number of people allowed to attend a movie. 

Furthermore, Hollywood’s current reaction to the COVID-19 pandemic plays a considerable role in the movie theatre industry’s current state. Fearing low box office numbers and loss of profit, Hollywood studios started to push back the release dates on major movies. The latest Hollywood blockbuster to get delayed is the new James Bond movie No Time To Die. On October 3rd, a spokesperson for the film announced the new release date of April 2nd, 2021. The spokesperson states, “We moved No Time To Die in order to be seen by a worldwide theatrical audience. We understand the delay will be disappointing to our fans, but we now look forward to sharing No Time To Die next year.” This latest move caused the Regal theater chain to temporarily shut down all theaters operating in the United States. 

Finally, One of the most significant factors causing movie theaters to suffer is the new landscape people find themselves in. For the last six months, many Americans have had to alter the way they live completely. People are finding that they can do many things at home that they used to go out to do. According to a recent Snapshot survey, many Americans have no interest in going back to movie theaters after the pandemic is over. In fact, 35% of those polled are unlikely to attend a movie after the pandemic. Another 20% of people claim that they do not miss going to the movie theater. 

What the Future Holds for Movie Theaters

The future of the movie theater industry remains uncertain at best. With the pandemic on the rise in most of the country, it is unlikely theaters will return to their pre-pandemic numbers anytime soon. Movie studios see the writing on the wall. They are looking for more alternatives to get customers to watch their movies. Disney announced earlier this month that they had reorganized their entire strategy around streaming movies. 

The biggest litmus test for the movie theatre industry is going to come on December 25. As of the writing of this article, Wonder Woman 1984 is slated to release Christmas Day. Wonder Woman 1984 will show the remaining strength of movie theaters and if people are willing to venture out once again.

Many in the movie theater industry are not waiting around to see if Wonder Woman 1984 will be a big success. Right now, a coalition of movie theatre industry leaders is urging Congress to pass more stimulus. The coalition explains, “Without a solution designed for their circumstances, theaters may not survive the impact of the pandemic.” According to the coalition, which includes famed director Martin Scorsese, if theaters do not receive an immediate stimulus, the industry will lose 66% of their working force by the end of the year. With Democrats, Republicans, and the White House all playing tug of war for stimulus funding, it is unlikely the movie theater industry will see any cash relief before the year is over.

What You Can Do to Help 

If you still love the magic of seeing a movie on the big screen, there are ways you can help (Click the link on 'ways' to learn more). The Will Rogers Motion Picture Pioneers Foundation has set up an assistance fund. The fund donates money to local smaller theaters and movie theatre employees who find themselves without a job. If you would like to support their cause during this time, please consider a donation. 

Bibliography

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