Cineworld considers bankruptcy
The world’s second largest cinema chain, Cineworld, has announced that it is considering filing for bankruptcy in the US.
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| Photo: dcm.com. |
The move comes after the company accumulated up to $4 billion in debts over the coronavirus pandemic. They have assured cinemagoers and staff that, for the meantime, cinemas will be operating as normal and staff will still be employed while attempts are made to balance the books. They employ 45,000 people globally, including 5,000 in the UK.
The chain has struggled with not experiencing a quick enough
recovery since lockdown easings, this being coupled with a failed takeover of
Canadian chain Cineplex leaves $1 billion owed to the company.
Their debts may also be attributed to the decline in the cinema
industry on the whole. People are being priced out of watching movies at the cinema,
with companies such as Odeon charging upwards of £12 for a single adult ticket.
In comparison, streaming services such as Netflix and Disney+ are £9.99 and
£7.99 a month respectively which is far better value for unlimited streaming.
Similarly, the time between a film exiting the cinema and
being available on a streaming platform is shortening, leaving some preferring to
wait until they can watch at home rather than spend on a ticket. This
especially rings true during a cost of living crisis where disposable income is
being depleted.
Blockbuster films being released in the cinema are becoming more
sparse every year. 2021 saw James Bond thriller, No Time to Die, and Marvel’s
Spiderman: No Way Home as box office hits, but beyond that no film hit £25
million in takings. Companies like Marvel, who are arguably Hollywood’s biggest
consistent draw, are bypassing cinemas to make more money on streaming services;
exclusive films and series only available on these platforms rather than a
waiting period to release after cinema.
The magic of going to the cinema with family and friends
cannot be understated, but the recent pandemic highlighted the range and value
that can be experienced in the home without having to splash out at venues.
This is what is driving people away, and while the film industry will still profit,
the cinema industry could slowly see extinction. Cineworld’s decline could just
be the start.