Cinemas could cease to exist should they not be bailed out by Congress’ trillion-dollar coronavirus rescue bill according to John Fithian, president and CEO of the National Association of Theatre Owners (NATO) which serves as the main lobbying arm of film exhibition.
Variety spoke with Fithian who says “the situation is that dire” and that overnight what was a $15 billion a year industry is suddenly not going to make a penny for three or four months.
Even with workers having been let go, cinemas still have to pay rent and utilities and could face bankruptcy without government aid or federal loan guarantees as banks won’t extend lines of credit to cinemas due to the uncertain length of the current public health crisis.
The theater owners are also asking lawmakers to make small business loans more readily available to smaller theater chains and independently owned cinemas. Fithian says he’s optimistic that the legislation will pass and praised the spirit of bipartisanship that he was witnessing.
The talk comes with the sudden arrival of premium VOD into the market this week due to the cinema closures.
