The theater industry has been drastically impacted by the coronavirus pandemic. Not only has the increased emphasis on social distancing led to limited attendance, the lockdowns have prevented any sort of business for some time. While studios adapted by pursuing new release formats and delaying big releases, theaters were left with little opportunity to do the same. When the launch of Tenet failed to revitalize the theater industry as expected, many were left wondering what comes next as studios inch closer to alternative releases.
Cinemark CEO Mark Zoradi recently sppoke at the MKM Partners Virtual Investor Conference, and said he expects “some contraction” to the business that may not recover after the virus passes. He also insisted that his company is not going to try snapping up other businesses or theaters that are struggling.
For Cinemark, the first point of business coming out of the pandemic is keeping its own affairs in order, Zoradi said. “Our number one priority is to rebuild our balance sheet.” That should be good news for those worried about big companies buying out struggling businesses, at least for Cinemark in particular.
Zoradi went on to explain the rational for why they wouldn’t be bothering with acquisitions: “We are going to be very careful in taking cash that we have on hand, of which we have plenty, and risking it with acquisitions where we’re not certain what that particular outlet is going to do in a post-pandemic environment. Until a landlord actually owns a property, it obviously is not appropriate for us to be negotiating with that landlord prior to that moment.” Basically, there’s too much uncertainty in the market right now to start making investments and purchases, so Cinemark will be tending to its own business for the time being.
Despite the talk of contraction, Zoradi seems convinced that the theater industry will return in full force eventually. While discussing Warner Bros. decisions to release their 2021 films on HBO Max, he said he was not concerned about the long term implications. “In a post-pandemic era, all the studios, including Warner Bros, will get a renewed sense of how important the theatrical business is.”
“I am a thousand percent convinced that when the Coronavirus is more contained and there is a vaccine that people are going to be anxious to get out of their houses,” Zoradi said. “So, I think we’re going to see a return to the business. I don’t know if it’s going to be a return to 100 percent or 90 percent of the business, but I do know that people are very anxious to get out.”
Source: Deadline
![\"IT電腦補習](\"http://itteacheritfreelance.hk/test/wordpress/wp-content/uploads/2016/05/logo2-2.png\"){kind=logo}
www.itsec.hk
www.itsec.vip
www.itseceu.uk
Leave a Reply