The Avalon Group, the owner of the CineCentre cinema chain, expressed confidence in the future of the cinema industry in South Africa despite challenging trading conditions.
CEO AB Moosa highlighted CineCentre’s competitive pricing and various deals, setting it apart from other industry players. Unlike major players like Ster-Kinekor, CineCentre has managed to stay resilient without the need for significant restructuring and job cuts.
Moosa emphasised that CineCentre provides competitive pricing along with an extensive reward offering, including discounts on various products through partner companies. Additionally, the cinema chain offers Budget Tuesdays, where ticket prices range from US$2,66 to US$3,19, and these come with a variety of awards and no membership requirements.
Addressing challenges such as load-shedding and Hollywood strikes, Moosa assured that all CineCentre sites are equipped with generators, and the scarcity of content has had a limited short-term impact on the cinema chain.
CineCentre also aims to diversify its offerings by considering initiatives such as screening sports events, hosting conferences and private events, and even venturing into e-sports events.
In contrast, Ster-Kinekor recently underwent retrenchments and cinema closures as part of a restructuring effort, reflecting an out-of-sync approach with global industry trends.
Despite challenges such as the rise of streaming, the global cinema market continues to grow. Projections indicate that the global cinema market revenue is set to reach US$85.16 billion in 2024 and is expected to continue growing at a rate of 5% annually, reaching a projected market revenue of US$109.4 billion by 2029. The number of cinema viewers is also expected to reach 1.9 billion by 2029, demonstrating the thriving nature of the cinema industry on a global scale.
