The largest movie theater chain still open in the U.S., Cinemark, has finally closed all its 345 theaters effective today. It joins the nation’s largest movie theater chain AMC Theatres along with Regal, Cineplex, Landmark, and Alamo Drafthouse in temporarily closing their doors due to the COVID-19 pandemic.
Cinemark is extending the expiration of Cinemark Movie Rewards points to June 30th and is also pausing all Movie Club memberships. Members will be able to maintain unused movie credits and billing will be on hold. With the closure of all the major theater chains, distribution executives estimate around 20% of the nation’s movie theaters remain intact and open for business.
If the closures remain in place until the end of May as is expected, studios could lose as much as $2 billion at the domestic box-office. Assuming things are over by mid-year, can the second-half of 2020 rebound and make up for the lost ground? It’s not clear and no one knows for sure how long the pandemic will keep theaters closed.
Then there are the exhibitors themselves who are in a pickle. The Wrap reports that the debt-laden AMC Theatres, whose stock dropped 83% last year, has seen its market cap shrunk to just $271 million.
Eric Schiffer, CEO of private equity firm The Patriarch Organization, tells the outlet that he can’t see how AMC will survive this: “We’re witnessing the single greatest disruption of the film industry in American history. It’s a horrifying example of how vulnerable the ecosystem has become.”
Some exhibitors remain optimistic about the second half of 2020, especially with so many big titles that will be jostling for space. Theaters and studios are already said to be exploring options as to how cinemagoing will look when restrictions are loosened with the 50% occupancy rate likely to be the initial go back. Even then, marketing campaigns need to be restarted and so the bigger films in particular will still be some time off.
Source: Deadline
