Tuesday, July 6, 2021

CORONAVIRUS. Devastated Ster-Kinekor begs South Africa's government: Open cinemas says chain that warns 'impact of current lockdown will have a devastating impact on the business'.


by Thinus Ferreira

Sterk-Kinekor, currently in business rescue and forced shut with the latest Level 4 lockdown, is now begging South Africa's government to open up cinemas that it says is suffering "a devastating blow".

South Africa's beleaguered cinema industry and movie theatres have been severely battered by revenue and job losses because of the Covid-19 pandemic with some independents and some venues of cinema chains in various malls that will never reopen again due to financial losses. 

In 2020 South Africa's total box office revenue at cinemas plunged by a massive R1.2 billion to a measly R214 million compared to 2019 - the lowest in over a decade - according to a recent industry report.

Cinema chains like Cine Centre, Nu Metro and Ster-Kinekor are struggling immensely, with Ster-Kinekor that entered voluntary business rescue at the beginning of 2021.

After just a few months that they were open again, trying to lure back wary patrons with spaced-seating, packaged popcorn, rigorous cleaning and disinfecting protocols and even opting for cashless transactions, cinemas were once again forced to shut down the projectors and close their doors.

In another interesting turn of events, international film releases are - for the first time ever - going to be shown in cinemas elsewhere in Africa before South Africa since theatres are closed.

Cinema-goers in Kenya and Nigeria, Africa's largest markets besides South Africa, are set to see various Hollywood films during July, with their scheduled premiere dates that are not affected since cinemas elsewhere across the continent are remaining open despite the dramatic rise in Delta-variant cases and deaths. 

While over 1.3 million customers in South Africa have visited the cinema since reopening at the end of August 2020, "this new closure will have a devasting blow" on cinemas, says Ster-Kinekor.

"Ster-Kinekor is currently in business rescue and the impact of the current lockdown will have a devastating impact on the business. As an industry we employ thousands of people and create employment for thousands of others in related industries," the company says.

"Ster-Kinekor is compliant with all Covid-19 protocols, and the cinema remains one of the safest forms of entertainment due to access control, the ability to distance patrons accordingly, strict management of cleaning, and no-touch points for purchase."

"The health and safety of our staff and customers is our highest priority and we have been operating been under strict Covid-19 protocols and even exceeding governmental requirements.  Cinemas remain a safe indoor venue with no infections traced back to cinema globally."

Ster-Kinekor says that it is "massively excited for the upcoming slate of Hollywood blockbusters whilst cinemas continue to dole out much-needed doses of escapism."