Cineworld CEO Mooky Greidinger CNBC said on Monday the theater chain had made the decision to close its locations in the US and UK because they exist not enough blockbuster movies be released to attract participants during the pandemic.
“We are now like a kind of grocery store that has no groceries to sell,” Greidinger said “Squawk Alley.”
Become the parents of Regal Cinemas temporary closure The more than 500 US theaters on Thursday and the 127 Cineworld and Picturehouse locations in the UK. Greidinger didn’t say when the locations will reopen, but at the moment he said, “It’s better if we wait.”
“It could be a month, maybe two months, until the … Covid-19 situation clears up. Maybe there will already be a vaccination,” he said. “It could be another month, but at the end of the day we need to have a clear list of films before we reopen.”
Cineworld’s decision comes days after the release of the latest James Bond movie pushed back againThis time until April 2021. The debut was originally scheduled for April of this year before the coronavirus pandemic upset the entertainment industry and led to theater closings. Production standstills and a variety of Delays in approval.
Cineworld shares, which trade on the London Stock Exchange, fell more than 30% on Monday. The decision of the second largest theater chain in the world Put pressure on the stock its main competitor, AMC Entertainment, whose stocks fell about 10% over the course of the day.
The delay in the James Bond film wasn’t the only reason Cineworld decided to reverse the reopening in the US and the UK, Greidinger said. One factor weighing on the entire film industry – from studios to theater operators – is the operating restrictions in New York state and California, he said.
In California, whether theaters can be open for indoor shows depends on the severity of the coronavirus transmission on a circle basis. Indoor films are from Monday Not allowed in Los Angeles County, Home of Hollywood.
In New York on September 16, Democratic Governor Andrew Cuomo said the state would continue to keep theaters and concert halls closed, citing concerns about an increase in Covid-19 cases. according to the Albany Business Review.
New York and California are the two largest film markets in the United States, Greidinger said. He added that he doesn’t really blame the studios for waiting to release blockbuster films that have all or part of these markets closed.
According to Greidinger, the challenge currently facing cinema operators in the USA is a “classic” chicken-or-egg scenario. “But the chicken and egg have a trigger here, and we need to get back the big states that haven’t opened yet,” he said, wondering why New York allowed partial indoor dining but not movie theaters.
Greidinger claimed that some European markets where big movies were released, such as Poland and Hungary, had strong attendance. In August, he told CNBC that it did initially strong demand – relatively due to capacity constraints – when the US theaters reopened.
“People really missed the cinemas and wanted to go back to the screen,” said the managing director on August 27th.
On Monday, however, Greidinger emphasized the difficulty of attracting people to the theater without a blockbuster film in the marquee. “The oldies are nice,” he said. But “we have to have the big films and the new films back.”