South African cinemas face dire challenges despite global demand surge. While cinemas worldwide experience a resurgence, many South African theatres battle to stay solvent, resorting to creative measures to attract audiences and remain operational.
The fallout from COVID-19 lockdowns in 2020 and 2021 dealt a severe blow to South African cinemas, drastically reducing foot traffic. Adding to their woes, frequent power outages have deterred patrons, with not all venues equipped with backup generators.
Ster-Kinekor, a leading cinema chain, even entered business rescue following the pandemic disruptions. CEO Mark Sardi highlighted the impact of load-shedding on consumer behaviour, noting how reliance on home streaming during blackouts dissuades moviegoers from braving unreliable cinema outings.
The 2023 Writer’s Guild of America strike further crippled the industry, delaying film releases and compounding the sector’s woes.
Despite these setbacks, Ster-Kinekor continues to draw significant crowds. Market Research Foundation data from 2021 to 2023 indicates that approximately 619,000 South Africans visit cinemas once or twice every few months, illustrating a moderate yet consistent audience base.
However, cinema penetration remains low at just 2%, reflecting broader economic challenges. Issues like pricing, with average costs per visit totalling R433.69, further deter frequent attendance.
In response to financial strains, Ster-Kinekor recently completed restructuring, reducing costs and staff numbers by 20-25%. Conversely, the Avalon Group, owner of Cinecentre, expresses confidence in the industry’s future in South Africa, citing competitive pricing strategies that include bundled discounts on essentials with each ticket purchase.
While Ster-Kinekor appeals to nostalgia with its “Throwback Cinema” series featuring classics like Back to the Future and Braveheart at R50 per ticket, Cinecentre focuses on value-added incentives without requiring membership subscriptions, thereby maintaining resilience in challenging economic conditions.
Despite these efforts, the road to recovery for South African cinemas remains to be determined. Navigating ongoing challenges will require innovative strategies and continued resilience.
