17 June 2021 03:38 am Views - 267
The cinema industry, impacted by the pandemic-induced restrictions, says the recovery would be a long drawn out affair, even after the returning of normalcy, as it now contends with a fresh challenge from online platforms, as stay-at-home patrons tend to spend more time on streaming services and other digital platforms for video content.
Many small and medium-scale cinema operators have already gone bankrupt, as they were forced to remain shut more than two years, first in the aftermath of the Easter attacks in 2019 and then from the pandemic- induced lockdowns.
Similar to tourism, cinemas and other theatres were the last to reopen for business from the pandemic and that also became a partial reopening since this January, with only 25 percent of the patron capacity being allowed, not even close to covering the overhead cost of maintaining a theatre.
Live stage dramas and musical shows have never returned for over two years now, plunging the entire entertainment industry and its multiple dependents into severe financial difficulty, a fact which appears to be oblivious bureaucrats and policymakers.
“ ……there is stiff competition from online platforms and prediction of slow recovery, we expect volumes to pick up to sustainable levels in the medium term,” said Louise Page, Chairman of C T Holdings PLC, the owners and operators of a chain of digital theatres in the country.
“…. even during the operational periods, the sector was unable to operate all its screens per regular schedules, due to poor patron attendance, restriction imposed by the authorities on the number of patrons per show and unavailability of good quality content for exhibition,” he added.
As a result, the entertainment sector of C T Holdings, the owners of the Cargills group of businesses, suffered losses amounting to Rs.155.4 million for the year ended on March 31, 2021.
“Further, lockdowns imposed subsequent to the end of the reporting year also have dampened hopes for a quick turnaround in this sector,” Page said.
The industry recently called on the authorities to devise safety guidelines for quick reopening of the cinemas no-sooner the current restrictions are lifted to ensure its survival. The industry has also reportedly asked to increase the patron capacity to 50 percent from the current 25 percent to at least stay afloat.