Much has been said in recent weeks and months about the varying degrees of effect COVID-19 has had on different industries and segments in Malta, but few of them are as badly affected as cinema exhibitors. Fortunately, the overall resilience of Maltese businesses coupled with the wage support given to those worst-hit sectors have prevented the levels of mass redundancies and bankruptcies seen in other countries. One hopes that all businesses can start to see some semblance of normality, or at least stability, in the coming months despite the massively reduced tourism. That is a stark reality.

Little has been mentioned about the state of the local cinema exhibitor industry. Possibly because it is a small segment of the entertainment industry with only some five complexes in Malta and Gozo, which hires just a few hundred individuals, or maybe because it doesn’t have a well-oiled lobbying body to represent it.

The rebound of the cinema industry worldwide has been hit by two crucial factors. First is the consumer confidence related to safety, and second is the lack of film product available to screen.

Unfortunately, most cinema businesses are indoor by nature and cannot get around this, added to that the two hours plus one spends in a cinema can be considered risky, should no measures be put in place. Eden Cinemas has reduced its overall capacity to less than 25 per cent by leaving two seats between each booking and a row in front and behind left empty. Having said that, people appear to be more confident to return to the cinema once they are comfortable with an establishment’s efforts to safeguard their customers’ safety and we have seen some increases from when we first reopened.

The biggest difficulty, however, is the lack of film product available to exhibit in theatres. Once COVID-19 struck, new film productions were halted and cinemas were shut. Distributors quickly amended their theatrical release dates to the end of 2020 or well into 2021 to be able to open at a time when theatres around the world would reopen and when they thought people would feel comfortable to venture back to the cinema.

The reopening reality however has been in a constant state of flux. The US started reopening cinemas, state by state, as early as May. However, the evolution of the pandemic has forced delays in states reopening as well as the closing again of theatres in states such as California.

The three largest exhibitors ‒ AMC, Cinemark and Regal ‒ are desperately trying to reopen, however the likelihood is that this will not be before mid to late August. All three are discussing the possibility of filing for bankruptcy.

The Eden Cinemas’ newly-refurbished foyer and a 1930s Philips classic projector on display.

Cinema in Malta must and will persevere but there may also be some casualties

The UK, which is where most Maltese cinema releases emanate from, is in an equally challenging position. While they were allowed to reopen in early July, most large chains decided to utilise the furlough scheme and remain shut until the end of July, which was the expected release period of two anticipated blockbusters: Tenet and Mulan. Since these two release dates have been moved again, some large chains, such as VUE have delayed their reopening into August.

In Malta, cinemas were allowed to reopen on June 5. However, given the lack of film product, most theatres didn’t open until June 22 in anticipation of Tenet and Mulan at the end of July. Sadly, the international release dates have been moved and moved again in order to distribute to as many cinemas as possible around the world.

The local industry has innovated through the return of old classics in order to fight the lack of film product. Scarface was a clear favourite and the Harry Potter series has been the best performing product of this period with many people purchasing an eight-film ticket to watch all films in the series. Batman and Lord of the Rings are also on the cards to provide customers with something to watch. 

However, the sad reality is that the local cinema industry is operating at seven to 10 per cent of levels of attendance compared to last year. This is only sustainable in the short-term due to the support of the government’s wage supplement and the unique situation where most theatre owners own the land and are not burdened by expensive leases. Many local cinemas are working on reduced cinema screens and reduced operating hours due to the lack of demand.

The current situation is that Tenet is expected to be released locally on August 26, fingers crossed, and will be the only blockbuster available for some time. Local cinemas will work around the social distancing mechanisms by showing the film on multiple screens so as to maximise supply of seats to match expected demand.

Meanwhile, Mulan, Disney’s highly-anticipated live-action film, has taken the opportunity to release the film on their new streaming platform Disney+ and bypass wide theatrical release. It is likely that the predicament that exhibitors are facing will flare up the constant battle between exhibitors and distributors to reduce the exclusive time frames between films screening in cinemas and moving online. This reduction in time before films are available online may spell yet another death knell for the cinema industry.

Cinema has been written off many times before (TV, VHS, DVD, online, piracy and big screen TVs) but has always managed to stay afloat and rebound. This time it might be different. Fewer theatres, shorter time windows and a product made more for TV screens than the big screen  will all challenge the industry well past COVID-19. Cinema in Malta must and will persevere but there may also be some casualties.  

Simon De Cesare, CEO of Eden Leisure Group