Cinemas still in the dark about what level 2 means for business

Friday, 8 May 2020

Some of the world's most prominent film festivals are banding together to stream a global celebration of cinema from YouTube.

Cinema chains remain uncertain about how they can feasibly operate under level 2 restrictions, the Motion Picture Industry Council says.

The government announcement on Thursday providing the first information to businesses about how they could operate when the country moves to alert level 2 did not provide enough information for cinemas about their position, the council says.

The council advocates on behalf of the three major cinema chains, Reading, Hoyts and Event, as well as key independent cinemas.

'The outline on alert level 2 from Government today did not provide the clarity our industry requires to determine if it is feasible to open under level 2.

'We are seeking consultation with Government, as we have a recommendation that we are wiling to present as soon as the opportunity arises. Until then, no decision can be made,' council chair Peter Garner said.

The Roxy, an independent cinema in Wellington was similarly unsure of its status under level 2. The cinema also operates a bar and restaurant.

Raymond Letoa says the Roxy Cinema in Miramar Wellington was looking at ways to revive the cinematic experience beyond new releases.

Co-owner Raymond Letoa said the building could hold 100 people but was unsure from the guidance if the cinema would have to limit people in its restaurant and bar, as well as having to limit the number of seats it sold in the theatre.

'It's quite a balancing act for us. We've got lots of questions obviously. If people go into our cinema, does it mean ten people less in our restaurant? Or can we treat them as separate entities,' he said.

Letoa said safety was his main concern and welcomed the progress made on what level 2 means for businesses, but wanted more detail.

Big cinema chains like Readings remain unsure of how they could operate under level 2 and are seeking clarity from the Government.

New Zealand has more than 100 independent cinemas, plus another 40 or so operated by the big chains.

Event Cinemas has claimed $2.8m from the Government wage subsidy for 499 workers, while Hoyts has claimed $1.6m for 316 staff.

Attendance began dropping off well before the country went into level 4 lockdown and unlike many businesses, cinemas can't operate at level 3,

That has meant a minimum of seven weeks with no income and what happened at level 2 was vital.

The Roxy in Miramar has questions about the total number of people it can admit in its cinema, bar and restaurant under level 2.

When cinemas were allowed to open — possibly at level 2 — owners faced the prospect of half-full theatres because of social distancing requirements.

Another issue cinemas were facing was that there was no fresh content because film productions had been put on hold and festivals shelved.

Children's titles such as Onward, which cinema owners had hoped would pack theatres during the school holidays, have been released straight to digital platforms.

Roxy might use the dearth of new films as an opportunity to run old favourites, perhaps Kiwi classics or short films, Letoa said.

'How do we give back the cinematic experience? New releases, if they come out and we can book them in [that would be] amazing,' he said.

But Letoa said the theatre couldn't rely on that happening quickly.

However, independents like the Roxy might weather the storm better than the large chains, he said.

Karen Focas and Shane Jarrett of Tivoli Cinemas in Papamoa and Cambridge have been forced to close because of the Covid-19 lockdown.

'If you're a multiplex, 100 people in [their complexes] is not sustainable.'

In a letter to Government last month the Motion Picture Exhibitors Association, which represents major film studios in New Zealand said the global supply chain for film was a snag for cinemas here.

They relied on cinemas in other markets opening up first and new release dates to be set. It could take up to six months before a pipeline of films was available again, the letter said.

New Zealand could be ready to reopen well ahead of other markets making the issue complex for the country's exhibitors.

Consequently, the association, which represents over 40 independent cinemas has asked the Government for a bespoke rescue package.

Some independents were calling on government to provide support in the form of cash grants to help them survive.

Last month Karen Focas and Shane Jarrett, owners of the boutique Tivoli Cinemas, which has two sites in Papamoa and Cambridge told Stuff that businesses like theirs were carrying an unfair share of the Covid-19 burden.

'It's a bit mean they're not compensating us for the fact that they're not allowing us to open,' Jarrett said.