SINGAPORE: Mark Shaw misses a packed cinema hall after more than a year of the COVID-19 pandemic. There’s something special about seeing a movie with a full house, according to the third-generation CEO of Shaw Theatres, a film distribution and cinema chain.
He stated, “I miss the crowd.” “Because cinema to me is people cheering when Rocky gets up from the ground or hearing gasps as Jaws approaches and the music starts.” “It’s a very personal experience, but it’s amplified by all the people around you, and I believe that’s what makes cinemas unique.” However, the coronavirus pandemic has made it difficult for people to enjoy that experience. While crowd-drawing celebrity tours and gala premieres seem like a distant memory, cinema halls now have seats marked out to leave gaps between moviegoers. Last year, the screens here went dark for nearly four months at one point.
Mr Shaw recalled that this had never happened before, not even during the 2003 severe acute respiratory syndrome (SARS) outbreak.
“We’ve never taken the screens down… We live and breathe cinema, so it’s a terrible feeling not to be able to show movies, but we know it’s the right thing to do,” he explained. As the pandemic fight continues, movie theaters must remain sparsely populated, with the most recent rule stating that no more than 50 people can attend without pre-event testing. Food and drinks, which are an important part of many people’s movie experiences, were previously prohibited, but masks are now required at all times.
The financials of an industry that thrives on ticket sales and even more so on food and beverage (F&B) revenue are being weighed down by ever-changing safety protocols.
There are also other obstacles to overcome: Due to a dearth of significant releases, customers are turning to streaming platforms to satisfy their entertainment needs while at home. The latter, in particular, has heightened concerns about cinema’s future: Will the masses reappear once the plague has passed?
Shaw Lido is a movie theater in Los Angeles. (Shaw photo)
THE LOVE FOR THE MOVIE IN SINGAPORE
Singaporeans enjoy watching movies.
From 1998 to 2011, official data showed a continuous increase in movie attendance, which peaked at 22.1 million in 2011. While the population dropped to roughly 19 million by the end of the decade, the country nevertheless had one of the highest per capita attendance rates in the world. According to PwC Singapore’s entertainment and media leader Oliver Wilkinson, affordable ticket costs and a plentiful supply of accessible theatres are among the contributing causes. Last year, data showed that a combination of big and small exhibitors ran 274 cinema screens, just a notch behind the all-time high of 281 screens in 2019. “A huge portion of the population in Asia just does not have such rapid and simple access to movies, but practically everyone in Singapore would have access to a good-quality, reasonably priced theatre within half an hour,” Mr Wilkinson said. Given the country’s history as a cultural melting pot, the availability of a diverse range of film content across languages and genres is also a draw for consumers, he added. COVID-19, on the other hand, changed all of that. According to data compiled by the Singapore Department of Statistics, last year’s disruptions to cinema operations and releases resulted in audience numbers falling to 4.7 million, the lowest ever. The total box office receipts dropped from S$175.4 million in 2019 to S$49.6 million in 2018.
Under the threat of the COVID-19 pandemic, Singapore’s cinema operators, like many other industries, had a difficult year in 2020.
Eternality Tan, 33, said he waited “a fortnight or so” after cinemas reopened last year before going back to his favorite movie theaters, The Projector and the Oldham Theatre. “To be honest, even for a huge film enthusiast like myself, it took me a while to get back to the cinemas,” said the Singapore Film Society’s vice-chairman and programming director. “Just to see what happens in the first few weeks, to see if it’s safe, and that sort of thing.” Despite this, he has reduced the frequency. The 33-year-old used to go to the movies at least once or twice a week, but now only sees two or three per month. “There’s also the content that’s available… However, based on my observations, consumers have been slow to return.” BREAKEVEN “WAY BELOW” Karen Tan, who operates The Projector, says dealing with the pandemic’s persistent attacks over the last year has been “quite a journey.” She recalled that when the first traces of COVID-19 appeared in January of last year, the independent arthouse theater along Beach Road was having its best month since it opened in 2014. The cinema’s pictures, which were known to be more odd and esoteric than the mainstream releases available elsewhere, were gaining traction and drawing in larger crowds. Its rooms were also utilized for film festivals, stand-up comedies, and other live performances, according to Ms Tan, and its schedule was quickly filling up. “We were really taking off, so we felt 2020 would be a terrific year – famous last words – and then we kind of went over the cliff.” It was a troubling turn of events for me and others in the sector to have to take a break at the end of March when the government shut down all entertainment venues. READ: How Singapore’s cinemas, bars, and theater organizations are dealing with the COVID-19 shutdown “I recall the day we had to close. The majority of the team was present, and everyone got a little emotional because “you know when the lights go out, especially in cinema, it’s pretty visual,” Ms Tan explained. Cinemas in Singapore reopened in July of last year, but mandatory capacity cuts have been painful since then – at varying levels as Singapore moved through the various stages of reopening – despite operators launching online merchandise sales or offering their spaces for other uses such as marriage proposals. The Projector went on vacation again in May when safety procedures were strengthened, this time willingly to deal with “the worst set of constraints without equivalent assistance,” according to general manager Prashant Somosundram. Phase 2’s “heightened alert” allowed no food or beverage intake in theaters, and up to 50 persons were allowed in each hall without pre-event testing. This means that a typical cinema theater, which seats between 100 and 200 people, will only be able to function at a quarter to half of its normal capacity. “This is a return to Phase 1 but with less F&B and much less support,” Mr Somosundram explained, noting that food sales are important not only because they account for around half of a cinema’s revenue but also because they enhance the movie-going experience. The Projector has since reopened, although visitor numbers have dropped by approximately 80% as of mid-June.
During its closing last year, independent cinema The Projector launched an online retail campaign, as well as an adopt-a-seat program, encouraging fans to purchase memberships, bags, and movie vouchers. (Photo courtesy of The Projector)
The smaller players aren’t the only ones who are suffering.
Golden Village, Singapore’s largest theater chain with 14 locations, called the previous year a “stop-start year” and said it is “an understatement” to say COVID-19 has harmed worldwide cinemas.
“It is anticipated that movie theaters throughout the world will lose US$32 billion in 2020, representing a 71.5 percent drop in income. “The situation is pretty much the same in Singapore,” said chief executive Clara Cheo. With nine theaters, Shaw Theatres is the second-largest player in town. It claims to be running “far below” its breakeven capacity. Mr Shaw believes that one of the main reasons is a lack of significant releases, since studios have chosen to postpone their most expensive action films due to lockdowns in large countries such as the United States and Europe. Major Hollywood tentpole films such as the upcoming James Bond thriller No Time To Die and Marvel’s Black Widow are among them. Industry insiders say that those that did stick to last year’s release timetable, such as superhero flick Wonder Woman 1984, historical fantasy drama Mulan, and thriller Tenet, were few and few between. “Right now, we don’t have the capacity to make cinemas commercially viable, and I believe that is partly due to a shortage of movies,” Mr Shaw added.
Gal Gadot appears in a scene from “Wonder Woman 1984” in this photograph released by Warner Bros. Entertainment.
(Warner Bros./Clay Enos via AP)
THREADS OF STREAMINGAt the same time, audiences have developed new viewing habits as on-demand streaming services gain traction.
Mr Wilkinson stated, “We were always anticipated this kind of increase, but COVID-19 has made it a little faster and earlier by about a year or so.”
PwC expects that income from over-the-top (OTT) video will grow at a compound annual growth rate of 15.3 percent between 2019 and 2024. The majority of this growth comes from subscription video-on-demand platforms like Netflix and Disney+. Last year, Shaw Organization’s Kinolounge and The Projector’s Projector Plus became the first theater chains to enter the streaming arena. Both companies claim that their new pay-per-view streaming systems supplement their physical theaters by offering specialty material like older titles, festival films, and even local short films. READ: Cinemas are on life support — and could look drastically different in the near future Ms. Angelia Lim stated that the most recent movie she saw in a theater was Avengers: Endgame in 2019. She now gets the majority of her enjoyment from Netflix. One reason, according to the mother of one, is her family’s inclination to avoid crowded indoor locations during the continuing pandemic, noting that streaming platforms provide a “good enough reason” to stay at home. She’s also considering signing up for Disney+ because of the kid-friendly programming. Convenience is also a factor. “To tell you the truth, we haven’t ran out of ideas.”/n
