According to industry reports, the movie industry in South Africa experienced a significant setback during the Covid-19 pandemic and subsequent lockdowns. However, the industry has made a remarkable recovery with the release of popular films such as Barbie and Oppenheimer. Despite the increasing popularity of streaming services, the country’s two largest cinema chains, Ster-Kinekor and Nu Metro, have reported that they are still doing well.
Ster-Kinekor, in particular, was hit hard by the pandemic and entered into voluntary business rescue proceedings in January 2021. Before the pandemic, the cinema chain was profitable, but the lockdowns resulted in the closure of cinemas and significant financial losses for the company. With the help of funding raised from Blantyre Capital and Greenpoint Capital, Ster-Kinekor successfully exited business rescue in November 2022.
One of the significant challenges that South African cinemas face now is competition from streaming services. Despite this, Ster-Kinekor and Nu Metro have assured customers that they still have plenty to offer and will not give up without a fight. Ster-Kinekor believes cinema is central to popular culture and is here to stay. Nu Metro’s operational executive, Andries Basson, believes that streaming services offer an alternative to cinemas but cannot replace them.
Following the release of Barbie and Oppenheimer, Ster-Kinekor and Nu Metro reported that both films had performed well. Barbie had substantially boosted cinema attendance, while Oppenheimer exceeded the company’s expectations. Both companies believe the cinema experience remains a viable out-of-home entertainment option that cannot be replicated elsewhere.
To remain competitive with streaming services, Ster-Kinekor and Nu Metro have had to adjust their strategies. Nu Metro has expanded its content offerings to include live concerts, comedy shows, and theatre performances. Ster-Kinekor has also adopted a similar approach, focusing on non-traditional cinema content, such as music events, to generate additional revenue. Both companies’ strategies have been successful, with sold-out concerts and repeat screenings of events at IMAX cinemas across South Africa.
