As the COVID-19 pandemic stretches into yet another month and as cases begin to rise in some areas of the U.S., several key pro AV markets are suffering – especially entertainment.
Integrators who work in those markets and provide the audiovisual technology for cinemas were dealt another blow Monday as Regal Cinemas announced it would be closing all of its 536 theatres in the U.S. by Thursday.
In a statement, Mooky Greidinger, CEO of parent company Cineworld, said the company did everything in its power to reopen cinemas over the summer after being forced to shut down. Those measures included “robust health and safety” initiatives and joining the cinema industry’s CinemaSafe protocols.
“We are especially grateful for and proud of the hard work our employees put in to adapt our theatres to the new protocols and cannot underscore enough how difficult this decision was,” said Greidinger said.
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According to the company’s announcement, several major key U.S. markets – mainly New York – remain closed. Because of that, film studios have ben hesitant to release new films. Without those releases, moviegoers aren’t going to go to cinemas.
The company said it is monitoring the situation and will look to reopen cinemas when key markets have “more concrete guidance” on reopening and when studios send their new releases back to the theaters.
With cinemas closed, now might be a good time to offer new equipment or upgrades, but Regal and other cinema groups may not have the cashflow to support any updates given these closures and the poor attendance at reopened theaters after a long shutdown.
According to a report in Variety, AMC Entertainment, another major operator of U.S. cinemas, is also struggling due to the pandemic. Credit rating agency Standard and Poors (S&P) warns that the chain is at risk of defaulting on its debt and could run out of cash within the next six months.
