SINGAPORE: Singapore’s cinema industry may see further consolidation amid a “perfect storm” of stiff competition from online streaming services and profitability challenges due to the COVID-19 pandemic, experts said., as part of a business transformation plan to cope with “changing trends” in the industry.
The number of cinema-goers fell to around 19 million in 2019 despite the number of screens and seats operated by a mix of big and small exhibitors here growing to all-time highs of 281 and 42,000. “It fundamentally altered consumers' viewing habits and behaviour,” she said. “Many people are now able to get access to cinema-quality films, on demand and at times, even earlier than the theatrical release date, without even stepping into the cinema.”
The pandemic, which kept people at home for an extended period of time, only served to quicken the change in people’s viewing habits. “The studios are pushing out content aggressively through their streaming sites for revenue because of the pandemic, and this in turn becomes a vicious cycle for the cinema operators.”
With just three cinemas, Filmgarde is one of the smaller operators in the local market which is largely dominated by bigger cinema chains such as Golden Village, Shaw Theatres and Cathay Cineplexes. Cathay’s Singapore owner, media company mm2 Asia, also had plans to sell at least 80 per cent of the cinema business to local investment firm Kingsmead Properties.Given the “perfect storm” surrounding the cinema industry, Mr Lim from Drew & Napier said: “I think it would be hard to find new investors wanting to enter this market given the current situation.”
That said, experts believe cinemas will likely survive the rise of at-home streaming, as many people are not ready to forsake the big screen and the unique communal experience it offers. He pointed to how over-the-top services such as Netflix have been investing in making their own original content, including “exclusively made” movies.
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