Around 45% of the UK’s independent cinemas will be operating at a loss by the end of the 2023/24 financial year according to a survey by the Independent Cinema Office (ICO).
The survey - which received 157 responses from independent cinemas, small chains, and mixed arts venues – found 61% of venues were not meeting their income targets.
Meanwhile, 42% estimated they could only continue operating for anywhere between three months to a year in the current climate.
Three-quarters of respondents (76%) projected a loss in admissions this financial year when compared to ‘normal’ pre-pandemic years while 11% projected a growth.
Half of the cinemas said they needed further public and governmental financial support in order to remain operational with organisational grants and sales VAT reduction listed as the top two most useful interventions.
Using the results
The ICO will use the findings to shape its suggestions in its submission of evidence to the UK Parliament Culture, Media and Sport Committee’s Inquiry on UK Film and High-End Television this month (October 2023).
The survey was analysing the financial health of the theatrical film exhibition sector and was completed throughout September 2023.
Catharine Des Forges, ICO director, said: “These findings paint a concerning picture and suggests the urgent need for some type of intervention in order to safeguard these cultural and economic assets for local communities across the UK.
“Cinemas have had to cope with changes to operating models, shifts in audience behaviour and the rise of online streaming, with all these factors liable to future fluctuations. There are also obvious economic challenges, with reduced availability of public funding, a cost of living crisis, and a rise in energy prices, all of which have impacted the sector and seen the recent closures of key independent cinemas.
“Once closed, cinemas are unlikely to return given the significant amount of capital needed to restart operations.”
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