The Malaysian Insight

CINEMA closures under the conditional movement control order (CMCO) amid the ongoing Covid-19 pandemic have left Klang Valley movie buffs and cinema operators with a sinking feeling.

They told The Malaysian Insight that, just as they were starting to reacquaint themselves with the new norms of watching movies under the recovery MCO since July, the authorities implemented the two-week CMCO earlier this week.

Apart from enjoying the latest flicks on the big screen, they will also be missing out on the social experience of going to the movies, and expressed fears the gloomy economic situation may bring an end to this completely.

A major cinema operator, meanwhile, said it is anticipating the closure of at least 50 of its cinemas by year end, resulting in about 4,000 job losses, while Malaysia’s third-largest cinema chain operator, MBO Cinemas, is reportedly looking at a permanent shut down.

“The cinema industry’s suffering hurts me deeply. Where musicals and plays started in the theatre, movies started in the cinema.

“The atmosphere, the friendship, the popcorn – it is just something that has always defined movie culture,” said Joshua Anand Ramamoorthy.

The 26-year-old, who use to buy at least five tickets a month, said that streaming movies from computers or smartphones could never replace the movie-going experience.

Another movie buff, Ian Lee Zheng Xian, 19, agreed and said: “There is simply no better place to fully immerse oneself in a film, in its artistic form of storytelling and communication of ideas, than in the cinema with phones on silent, no ‘pause’ function and popcorn.”

However, some moviegoers have lost interest in the experience since the MCO was imposed on March 18.

Ng Sze Jiun, 33, who use to visit the cinema at least once a month before the MCO, has lost all motivation to go back for safety’s sake.

“I usually do not turn down an invitation to the cinema, but I did during the RMCO, but I felt I was not missing out on anything,” Ng said.

Cinemas in Malaysia were allowed to resume operations on July 1.

However, with the CMCO imposed in Sabah, Selangor, Kuala Lumpur, Putrajaya and Labuan since early this week, cinema halls have been forced to close again.

SOP keeping customers away

Cinema operators said they are anticipating a tough period ahead.

A spokesman for mmCineplexes told The Malaysian Insight the cinema industry contributes significantly to the national coffers in terms of entertainment taxes.

“Since the reopening (after MCO), we have welcomed back cinema fans but at much reduced numbers. Admission numbers are stationary and it is difficult for us to expect massive growth,” the spokesman said.

TGV Cinemas’ sales and marketing general manager Mohit Bhargava said the local cinema industry employs more than 30,000 people.

He added that, while the industry showed some signs of recovery since July, it has endured deep revenue losses.

“Closing and reopening businesses like cinemas are extremely cumbersome, costly and disruptive to our industry, suppliers and customers,” Mohit said.

With the new SOPs, the entire cinema experience has changed as well, operators said.

The spokesman for mmCineplexes said that the one-seat gap arrangement is one factor keeping customers away as it greatly affects the social nature of the experience.

Movie fan Marc Chow Zhen Yi, 33, said the experience is different now.

“I went to watch Tenet during the RMCO – it was like a ghost town, despite being a big and popular cinema chain. There was no queue and almost no other people in sight.

“In the end, only 20% of the hall was filled for the film.”

4,000 job losses to come

Last week, The Edge Market reported that Malaysia’s third-largest cinema chain operator, MBO Cinemas, may shut permanently after suffering a 55% drop in sales early on during the outbreak, and zero sales during the MCO.

According to TGV’s data, the industry has seen a mix of temporary or permanent closure of 19 cinemas, involving 105 halls nationwide.

By year-end, TGV estimates another 50 cinemas and 300 screens to shut, with about 4,000 job losses expected in the industry as a whole.

Mohit said that it was enduring up to 90% decrease in revenue year-on-year.

On top of that, it is also costly to implement the stringent SOPs to ensure safety of guests.

mmCineplexes chief operating officer Angelin Ong, meanwhile, hopes the government will extend a helping hand to cinema operators to tide them through the crisis.

“We are also a key component in the cultural development of a nation where local talents produce movies. We sincerely hope the authorities will extend a helping hand to the cinema exhibitors to brave through this crisis so the nation may produce Oscar-worthy filmmakers, actors and actresses.” 

Going forward, mmCineplexes said it is using the slow period to plan for a massive digital upgrade of its front and backend systems, including developing its own website and mobile app.

“It was delayed due to the MCO in the earlier part of the year but we are back on track and aim to complete the exercise by the first quarter of 2021.

“We thank our customers for being patient and understanding, and who will be in for a treat with so many awesome films waiting to be released once the situation improves.” – October 18, 2020.