China’s tens of thousands of cinemas closed Jan. 23, just ahead of the usually lucrative Lunar New Year moviegoing season, and uncertainty over when they will reopen has complicated planning on both sides of the Pacific
China’s tens of thousands of cinemas closed Jan. 23, months before the novel coronavirus forced similar closures around the world. They have, with limited exceptions, remained shut. The shutdown arrived just ahead of the usually lucrative Lunar New Year moviegoing season, and uncertainty over when they will reopen has complicated planning on both sides of the Pacific.
Conditions are so dire that the China Film Association, a state-backed industry guild, released a “Movie Theater Survival Status Survey Report” in late May that found 47% of cinemas would run short on cash, and 42% could face permanent closure. A fifth of cinemas surveyed laid off employees in the first two months of the shutdown to cut costs.
The government initially approved theaters’ reopening in mid-March, but only about 500 cinemas—or 5% of China’s total—did so. They collectively sold a paltry $5,800 worth of tickets on one weekend day, March 22, according to movie-ticketing platform Maoyan Entertainment. After a week of reopening, the government’s film bureau shut theaters again without explanation.
China’s government has taken more strides in trying to protect exhibitors than the U.S., where small theater operators have been able to apply for loans under the same stimulus measures as other businesses but haven’t seen any industry-specific legislation introduced. Before the pandemic, major Hollywood studios were negotiating with Chinese authorities about changing a system set in place in 2012 that limits the number of imported films to 34 a year, with only 25% of ticket sales flowing back to studio coffers, versus 50% or more in the U.S.
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