While some industries see the third quarter as the beginning of a financial catastrophe from the Coronavirus pandemic, the outlook for U.S. cinema operators remains bleak. All major U.S. movie theater lines reported quarterly results in recent days, showing rising losses. Almost 100% of revenue has been wiped out as cinemas have been vacant for months.
In the United States, the number of new crown confirmed cases is still on the rise, according to the latest statistics of the new crown outbreak released by Johns Hopkins University in the United States on the 9th, the cumulative number of confirmed cases in the United States has exceeded 5 million.
As a result, U.S. states are less likely to encourage citizens to venture out to the movies. Meanwhile, after repeated delays in release dates, studios are making tough decisions to distribute films directly to video-on-demand companies in the United States.
“If the U.S. government takes this issue seriously during the shutdown and develops a comprehensive plan of action, we’ll now be sitting in our favorite theaters, watching Hollywood blockbusters,” said Jeff Bock, senior analyst at Exhibitor Relations. “
“Now, without leadership, american cinemas are on the brink of bankruptcy, with no real movie saviors,” he added.
Analysis of data compiled by Johns Hopkins University shows that the Average New American has added more than 50,000 cases a day over the past week. As a result, instead of pushing for economic reopening, the states have tightened restrictions.
When the U.S. first entered a blockade in March, people had hoped that everything would be back on track in a few months, and now it seems to be a falsehood. But in France, Britain, South Korea and Germany, they have all become a reality.
Nearly half of the world’s cinemas have reopened, according to Gower Street Analytics, a British company. Nearly 12,400 theaters open, more than 90 percent of which are outside the United States.
The good news for the academy line is that there are a large number of people eager to see new movies.
Adam Aron, chief executive officer of AMC Cinemas, said on thursday’s earnings conference call that attendance at open cinemas was low because of the current screenings of older films, but that audience enthusiasm and box office surges when new films are released.
AMC operates about 8,200 screens in the United States and more than 2,900 screens worldwide.
Mr Aron said more than a third of cinemas were open in Europe and the Middle East, with the rest due to resume within two weeks.
Traditionally, Hollywood blockbusters have generated huge revenues for theaters and studios, but because there is no guarantee that Americans will be able to watch them safely, they can easily be pushed to pay-as-you-go or international distribution.
Before the new crown, Hollywood had targeted big-budget films in international markets such as China in the hope of bigger box office sales. U.S. blockbusters typically account for more than 60 percent of overseas box office receipts.
For now, analysts remain unoptimistic about whether U.S. theaters will be able to make a successful release by the end of the year.
“Given the government’s inability to contain the new crown epidemic and the ignorance of the majority of the public, it seems to me that by 2021 people’s interest and ability to return to cinema will be extinguished unless there is an effective vaccine.” Box office analyst Doug Stone said.