Image Source: Cinemark
If you're a movie fan like me, you know that sequels rarely live up to the original. That is unless it is The Empire Strikes Back, Star Trek 2: The Wrath of Khan or The Godfather II, in which case it's arguable it was better the second time around.
Cinema chains across North America have been hit hard by the COVID-19 pandemic and lately have been working on sequels of their own. The big three U.S. chains — AMC, Regal, and Cinemark — say they have a plan for a safe return to the movies with social distancing and sanitization protocols, but is it enough? Will theatres ever return to normal? What does normal mean now? Can cinemas be safe and profitable again, or is it just a Hollywood fantasy?
A "brutal year"
Cinemark Holdings, Inc. (CNK 0.26%) CEO Mark Zoradi appears in a website video with a statement equal parts assertive and aspirant. "There's nothing quite as powerful as great cinematic storytelling on the big screen," he says. That is the one thing cinema chains across America are banking on as they announced plans to reemerge in the age of Netflix.
Cinemark USA is the third-largest chain in the U.S. based on the number of theatres, with 4,630, after industry leader AMC Entertainment Holdings, Inc. (AMC 0.25%) with 8,043 theatres, and UK-based Regal Entertainment Group (a private company with 7,178 theatres).
Based on Q2 earnings reports, the pandemic was devastating to the industry. Movie houses were shuttered for the entirety of the second quarter, which ended June 30. Cinemark reported a net revenue loss of $230 million.
AMC CEO Adam Aron called the COVID-19 pandemic a "once in a century event" and 2020 a "brutal year." He said Q2 was "the most challenging quarter in the 100-year history" of the company, reporting a net revenue loss of $561 million — a staggering drop of 98.7% from the previous year.
Boutique cinema chain Angelika Film Center, owned by Culver City, Calif. corporation Reading International (RDI 0.71%) was also hit hard, with reported net revenue losses of 96% in Q2, at $22.7 million.
Take two
Cinemark plans a phased reopening of its theatres on Friday, Aug. 14 through Friday, Aug. 28, with "enhanced cleaning and sanitizing protocols" and social distancing measures. It opened 59 theatres Aug. 14, with 42 scheduled for Aug. 25 and another 44 on Aug. 28.
Image Source: Cinemark
On the social distancing front, Cinemark rolled out a new algorithm in its online ticketing app that automatically blocks seats on either side of a movie goer's party, designed to ensure people keep their distance. It is also requiring guests to wear a face mask at all times except when munching discounted and limited movie snacks when seated. Each Cinemark theatre will have a "chief clean and safety monitor" to ensure cleaning protocols and pre-shift staff wellness checks are conducted.
AMC partnered with The Clorox Company (CLX 1.34%) to establish cleaning and sanitization protocols and said it plans to open "two-thirds or more" of its 661 U.S. theatres over the course of August 2020.
As of August 12 Angelika hadn't announced a reopening date for its theatres but said it was encouraged by the implementation of safety protocols and customer demand in Australia and New Zealand theatres owned by its parent company Reading International. Reading executives hinted a U.S. reopening set to capitalize on the release of the Christopher Nolan-directed Warner Bros. (NYSE: TWX) film Tenet September 3.
Once upon a time in Hollywood
Labor Day weekend (Sept. 5-7) looms ahead and no doubt cinema chains are hoping for a payday. According to the Hollywood Reporter, the top 10 movies brought in $82.3 million in revenue over Labor Day weekend 2019, which it called "sluggish."
AMC said it plans to resume operations in 100 theatres Aug. 20, and "approximately 300 additional AMC locations around the country are expected to open during the following two weeks" — just in time for the latest Disney blockbuster The New Mutants on August 28.
To mark its founding in 1920 and lure more patrons Aug. 20, AMC will charge the period price of 15 cents per ticket. Cinemark is offering $5 adult and $3 child tickets for once blockbuster films like Jurassic Park and Raiders of the Lost Ark in its "Comeback Classics" collection — designed to put seats in seats before the 2020 releases open. If you want to ramp up on the social distancing Cinemark offers a "private event" screening for 25 people including a large popcorn and a large drink for $350. Considering the pre-pandemic cost of 25 sets of movie snacks alone is at least that, it's kind of a deal.
Image Source: Cinemark
The last picture show?
All these plans by the cinema companies are all well and good but so what? What if people stay at home? Have we collectively reached a critical mass of cabin fever and so much that we are desperate for the dark? Does the silver screen glitter that brightly? Returning to the movies is going to be a leap of faith, just like participating in other activities that were redesigned to reassemble us from restaurants to theme parks to college campuses. And that's what gives me pause. It's not me. It's you. And you and you and all y'all.
My family and I have been uber careful during the pandemic but we have encountered enough people who are not. Don't get me wrong. I love going to the movies. But I don't like the idea of mingling with people that aren't taking things as seriously as we are. Collectively as a community we haven't shown we are mature enough to handle this new freedom. That's my take, and that's the reason I'm staying home. See you at the movies NEXT Labor Day. Maybe.