More than 40% of cinemas in China can go bankrupt according to the grim report by the China Film Association.
After being permanently closed through a viral pandemic, the audience can struggle to return, affiliates said.
Millions of Chinese people enjoy watching movies online throughout theaters because of various streaming providers.
As a consequence, hundreds could be completely shut down in “massive bloodshed” which predicted a skilled Chinese company worker.
There are actually more than 12,000 cinemas in China according to the IBISWorld market analysis agency. This determination has more than doubled in the last decade because China has adopted films.
But 4 out of ten say they are “very likely to close” in the near future, according to the China Film Association survey. This could mean that nearly 5,000 theaters went bankrupt because of the pandemic.
The cinema has become one of the many final venues to be reopened in China, as locking measures continue to be improved. Chinese authorities say that the cinema, together with different indoor recreation areas, can be reopened with limited reservations.
In the first quarter of 2020, field takeovers on the ground in China have declined in accordance with film affiliation. Small cinemas with less than 500 seats may suffer the most, with revenues reaching only 10% of this taken during the same year-end interval.
If the reopening of the cinema is postponed until October, annual revenue will drop 91% across the board he predicted. Last year, China generated 64.2 billion yuan (7.2 billion pounds) from gross sales of movie tickets when tens of millions of people flocked to the cinema.
Shaun Rein, founder of the China Market Research Group, believes the serious problem is the energy growth of China’s highly aggressive online film sector with platforms such as Iqiyi, Youkou and Tencent Video.
He mentions low-cost subscriptions in the $ 2 a month round for basic subscriptions whereas movie tickets usually promote $ 20. “Chinese players are very cheap, often because they are subsidized because they are owned by internet players like Alibaba, Baidu or Tencent”.
“In addition to being afraid of capturing Covid-19, consumers will not return to the cinema in the near future because the digital offer is too good and cheap,” he said.
He also predicts extra pain for cinema if the film company starts launching options directly to digital and the costs increase for film releases on-line on a pay basis when you go on high subscription fees. “I hope that the cinema sector will face massive bloodshed and many will close down,” he added.
Lack of the latest releases
Another problem is getting people back into the cinema due to the lack of recent films, with making restricted as a consequence of travel and social restrictions.
“We hear about 20% of local production has started or continued physical work, with the balance postponed or in financial difficulties related to the Covid-19 outbreak,” said Rance Pow, head of government of Artisan Gateway, Asia’s film business guide.
“So it is difficult for the cinema time and recovery too; ‘Must see’ film will be needed like never before to support the recovery of the industry “.
Some have warned that China’s film business will lose as much as 30 billion yuan this year, along with the National Film Administration, the regulatory body.
Others are less pessimistic about the fate of Chinese cinemas. “The predictions are terrible, but I’m more optimistic,” said Chris Fenton, former president of the motion picture and creator of Feeding the Dragon. He factored in the Chinese authorities to have a world-class film business and the biggest market on the planet.
“Plus, Chinese people have embraced film into the cultural structure of society. That is their habit. The urge to visit the cinema regularly has not diminished “.
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