In this week's blog post, I want to discuss the cinema experience and how we can not only keep it alive but ensure its prosperity.
Over the years, the trend of going to local cinemas to watch the latest and greatest films has been on the decline. This can be attributed to various factors, with the primary one being the rise of video streaming services like Netflix and Disney Plus. Additionally, the cost of living and the impact of the COVID-19 pandemic have accelerated the demand for more convenient and affordable entertainment options. However, despite these challenges, there are ways we can preserve and enhance the cinema experience.
Firstly, let's address the issue of high cinema prices. The simple reason behind the expense lies with the big movie studios. When cinemas acquire the rights to upcoming films, the studios claim a portion of each ticket sold. The larger the studio and the more significant the movie, the larger the cut they demand. Consequently, many major cinemas have been compelled to increase the prices of food and drinks to offset the high margins imposed by the film studios. Unfortunately, this situation has not only priced out numerous independent cinemas, but it has also caused the extinction of many of them. These cinemas can now only afford to screen more independent and local films, which is not feasible in today's market.
With the rise of video streaming, cinemas have been forced to explore alternative methods of generating revenue. They have started showcasing live sports events, theatre productions, and re-releasing Hollywood classics. Some cinemas have even partnered with restaurants to offer food and drinks to moviegoers, aiming to entice more people to attend. However, the dominance of big studios in the cinema industry not only impacts the revenue streams of cinemas but also affects the films themselves. Many major movie studios demand that their films be shown for a certain number of weeks on multiple screens, leaving other films with limited opportunities for exposure. As a significant portion of cinema revenue is derived from Hollywood blockbusters, this situation poses a challenge. In 2019, a report revealed that the top 10 highest-grossing movies in the United States accounted for over $5 billion in box office revenue, representing approximately 44% of the total box office revenue for the year. Consequently, cinemas risk losing the license to show these films and suffering a major loss of revenue if they do not comply with the demands of big studios.
At first glance, this might appear to be a bleak scenario for the cinema industry. Despite the efforts of influential figures in the film industry, including renowned directors and actors advocating for the cinematic experience and the benefits of watching certain films in IMAX, there is still a steady decline in cinema attendance. So, how can we address this issue?
One solution I propose is the implementation of an affordable subscription model. Personally, I love watching films on the big screen, but I often find myself having to choose which ones I can afford to see due to the high ticket prices. Offering an affordable monthly subscription, let's say £5 a month, would not only entice me and many others to visit the cinema more frequently, but it would also provide cinema chains with recurring income, reducing their reliance solely on blockbusters.
Another idea to revitalize the cinema experience is to offer more classic film viewings. By "classic," I don't just mean the timeless hits like "The Shining," "Jaws," and "Back to the Future." It should also include films released in the past 10 or 20 years. Personally, I would be very interested in watching movies such as "Interstellar" and "The Dark Knight" on the big screen, as I never had the chance to do so when they were initially released. This approach could attract more people to the cinema, provided the tickets are cheaper compared to the current prices for new theatrical releases
In conclusion
Despite the recent struggles of Cinnemas either going into administration or struggling to create a steady income, it's still an amazing experience that everybody should have the privilege of enjoying so let's hope in 10 years' time we can look back at today as a bump in the road for cinnemas and not the start of steep decline to the bottom of the ocean.
Thank you!
Sources:
Independent Cinema Office. (2023). The economics of the operation. How to start a cinema. Retrieved May 12, 2023, from The economics of the operation - Independent Cinema Office
Yang, J. (2023, May 11). Finance expert explains movie theaters. Yahoo Movies UK. Retrieved May 12, 2023, from Finance expert explains how movie theaters actually make money: "I was shocked to find out" (yahoo.com)
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