With fewer coming attractions, more cinemas are closing
Share Now on:
Over the weekend, Cineworld — which Americans know as Regal Cinemas — announced closures of its U.K. and U.S. theaters.
Cineworld has said it’s a temporary move. But many in the film industry wonder: Without new blockbuster films to show, and with once again rising COVID-19 infection rates, how much longer can movie theaters possibly survive?
You could call it a chronicle of a death foretold. For months now there have been warning signs that many theaters will have to shut down. The anti-hero in this story? Bond, James Bond. And we won’t be getting to it until next year. On Friday, MGM announced the release of Bond’s new movie is being postponed until 2021.
That was pretty much the last-standing big blockbuster for this year.
Shortly after, Cineworld announced temporary closures in the U.K. and the U.S. That’s 40,000 jobs at risk in the U.S.
Michelle Greenwald, a professor with the Columbia Business School, said the theater closures will also hit nearby coffee shops, restaurants, ice cream parlors — all of which are likely to suffer if screens stay dark.
“It’s clearly gonna have a domino effect. So it’s bringing people to malls where people are spending money, bringing people to main street where people are spending money,” Greenwald said. “I don’t even think that’s being counted into the economic impact.”
And with Cineworld closing its Regal theaters here in the U.S., other theater chains may soon close too, said USC professor Gene Del Vecchio.
“Without content, and being so dependent on content, it was simply a matter of time before theaters were going to run into trouble, and there’s no light at the end of the tunnel,” Del Vecchio said.
But while things are looking bleak for cinemas, he said, Hollywood could be just fine without them. Premiering on streaming services, like Disney did with “Mulan,” is paying off so far during the pandemic.
Straight to video used to be almost an insult. These days, it might just be the only way to do business.
COVID-19 Economy FAQs
What’s the outlook for vaccine supply?
Chief executives of America’s COVID-19 vaccine makers promised in congressional testimony to deliver the doses promised to the U.S. government by summer. The projections of confidence come after months of supply chain challenges and companies falling short of year-end projections for 2020. What changed? In part, drugmakers that normally compete are now actually helping one another. This has helped solve several supply chain issues, but not all of them.
How has the pandemic changed scientific research?
Over the past year, while some scientists turned their attention to COVID-19 and creating vaccines to fight it, most others had to pause their research — and re-imagine how to do it. Social distancing, limited lab capacity — “It’s less fun, I have to say. Like, for me the big part of the science is discussing the science with other people, getting excited about projects,” said Isabella Rauch, an immunologist at Oregon Health & Science University in Portland. Funding is also a big question for many.
What happened to all of the hazard pay essential workers were getting at the beginning of the pandemic?
Almost a year ago, when the pandemic began, essential workers were hailed as heroes. Back then, many companies gave hazard pay, an extra $2 or so per hour, for coming in to work. That quietly went away for most of them last summer. Without federal action, it’s mostly been up to local governments to create programs and mandates. They’ve helped compensate front-line workers, but they haven’t been perfect. “The solutions are small. They’re piecemeal,” said Molly Kinder at the Brookings Institution’s Metropolitan Policy Program. “You’re seeing these innovative pop-ups because we have failed overall to do something systematically.”
Marketplace is on a mission.
We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.
Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?