A cost of living crisis, an endless stream of streaming services and the fallout from the US writers’ strike are shaping up to be a nightmare for Australian cinemas in 2024.
But the Australian Film Institute, which represents cinema operators, believes the appeal of the silver screen is even greater in today’s challenging times.
Cameron Mitchell says going to the movies remains affordable for many Australians. (Included)
“The average ticket price in Australia is $16 to $17,” executive director Cameron Mitchell said.
“(In) some bars, a beer or a glass of wine is now $12 or $15.
“If you look at historical trends during other types of recessions, movies have always done incredibly well.”
Sun Cinemas owner Michael Smith said venues in Victoria and Tasmania were becoming “increasingly busy”.
“We saw it in 2008,” he said.
“It seems like a little luxury is important even when you don’t have a lot of money.”
Australian box office revenue rose from $940.6 million in 2022 to $985.1 million in 2023, according to Screen Australia.
Mitchell attributes the success to the theater’s consistent showing of quality films and blockbusters, including Barbie Doll, Oppenheimer and Taylor Swift’s Ellas concert film.
Karen Oliver said MAC’s fate depends on the popularity of the films it can screen. (Included)
“Incredibly strong”
Mansfield Armchair Cinema (MAC) co-manager Karen Oliver says it takes “something extraordinary” for people to leave their homes and visit the two-screen cinema at the foot of the Victorian Alps. he said.
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“Right now we have ‘Deadpool and Wolverine’ and ‘It Ends with Us,’ and the seats are filled,” she said.
“But as soon as there are fewer good movies, we are going to struggle.”
Due to the 2023 Writers Guild of America strike, fewer films will be released this year than usual. The strike lasted 148 days and affected numerous film and television productions.
Despite this, Mitchell said box office sales in the second half of 2024 will be “incredibly strong.”
Highly anticipated upcoming releases include Wicked, the Broadway musical adaptation, and Joker: Folie à Deux, the sequel to 2019’s Oscar-winning Joker.
“Even though there are fewer movies this year, we’re still going to end up with the same numbers as last year,” Mitchell said.
Ballarat’s Regent Cinemas, built in the 1920s, closed in June. (Courtesy of Regent Cinemas Ballarat)
theater fees
While box office revenues are on the rise, the same cannot be said for the number of cinemas in Australia.
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The latest figures from Screen Australia show there are currently only 460 cinemas in the country, down 32 from 2022 and 41 from 2021.
In June, Regent Cinemas Ballarat closed its doors after almost a century.
Movie theaters that are still open today generally have more screens than they did decades ago. In 1980, there were 713 movie theaters with a total of 829 screens.
There are currently approximately 2,300 screens in Australian theaters.
Evolving to offer theater audiences an experience that complements the magic of movies on screen is critical to survival.
Mr Oliver said recent initiatives undertaken by MAC include themed nights and special premiere events for members.
Some of the exciting extras at cinemas across Victoria include leather lounges, cocktail bars, cafes and on-demand food from specialty menus.
The cinema in Melbourne’s inner suburbs has a jazz room and a rooftop cinema.
Australians still love going to the movies, but operators say the industry needs more support from the government to survive. (Unsplash: Felipe Bustillo, license)
ask for help
To ensure the good times continue into the future, Mr Mitchell encouraged governments at all levels to support theater operators with dedicated funding to help with potentially expensive upgrades.
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Mitchell explained that many movie theaters are converting their projectors from digital to laser at a cost of about $200,000 per unit without subsidies.
“The benefit for the consumer is that the image on the screen is much better. It’s much brighter and much clearer,” he said.
“If people don’t think they’re going to have great seats, great sound and a great screen image, they won’t come to the theater.”
Mr Smith said the federal government’s multi-million dollar support for Australian film production needed to be extended to cinema operators.
“We allocate huge amounts of government funding to making Australian films, but not necessarily to ensure they’re seen,” he said.
“It’s so embarrassing that it makes me cry.”
Oliver would like to expand MAC to include outdoor screens. (Included)
Mr Oliver said targeted funding could help realize plans to install additional screens within the MAC, along with outdoor screens that can be used during the warmer months.
“Everyone enjoys it, and you can have a picnic,” she said.
“That’s what we want.”
A Department of Communications and the Arts spokesperson said in a statement that the federal government recognizes the “vital role” that cinemas play in sharing Australia’s stories on screen.
“The Australian Government provides significant support for the production of content for theatrical release, through film tax offsets and direct funding through Screen Australia,” the spokesperson said.
