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SINGAPORE – News of the proposed merger between Golden Village and Cathay, Singapore’s largest and third-largest cinema chain, is a sign of stiff competition from streaming services, experts told The Straits Times.
The move comes after the revenue losses suffered by both networks due to the Covid-19 pandemic, which closed cinemas since March 27 and hampered their reopening on July 13 with seat restrictions due to social distance.
Golden Village Multiplex has 14 cinemas here. Media company mm2 Asia runs Cathay Cineplexes, which operates eight cinemas.
With current numbers, this would turn the combined business into a titan with 22 cinemas, dwarfing Shaw Theaters, the next biggest actor with nine cinemas.
The chains stated in the presentation that they hope a merger will attract more investors and create economies of scale.
Thomas Chia, director of independent distributor Lighthouse Film Distribution, believes that Singaporean moviegoers will benefit from the merger.
It indicates that traditional theaters are still nimble and willing to take bold steps to maintain consumer loyalty, he says.
“I just hope they continue to support a variety of films, large and small. A wider variety will appeal to a wider group of viewers.
Movie theater operators are also hurt by a lack of major premieres, which have been postponed to next year due to closures in the United States and elsewhere.
Another blow to the movie industry came last week when Warner Bros, the studio behind Wonder Woman 1984, announced that the superhero movie, along with its entire roster of 2021 movies, will be released on the HBO Max streaming service at Same time. like theaters in the United States.
Upcoming Warner titles include the sci-fi blockbusters Matrix 4 and Dune.
Movie distributor Warner Bros Singapore declined to comment when approached by ST.
The move follows Disney’s decision to launch the period fantasy Mulan on its Disney + streaming platform in the US in September, an experiment that could pave the way for more releases of its major movies.
Mulan opened in theaters here in September. Wonder Woman 1984 will open in theaters here on December 17.
When HBO Max will be available in Singapore has yet to be announced. The Disney + service is expected to roll out around the world over the next two years, according to reports.
Industry professionals told ST that theater chains are bracing for fallout when these services become available here, which could see Disney’s Star Wars franchise and films from the Marvel Cinematic Universe hit the service. Disney + shortly after it opened in theaters.
Marvel’s Avengers: Endgame (2019) broke several box office records, including the opening weekend ($ 7.52 million) and the cumulative total ($ 19.5 million).
Film buff Wayne Heng, 29, a finance executive, says that if the merger happens, he expects “cinemas to pass the savings from economies of scale to people like us.”
For him, watching movies is a social activity that he must share with his wife and friends. “I enjoy the cinema experience, which I can’t get from streaming.”
The proposed merger must be approved by the shareholders of both companies, as well as by government agencies, among others.
Golden Village CEO Clara Cheo says in a statement: “Cinema operators are facing tough times today amid the advent of online streaming applications, the growth of video content on social media and the Covid-19 pandemic.
“We need to adapt to be successful and GV, as a leading film exhibitor with several firsts in the local film industry, is confident that the proposed merger will allow us to provide continued access to a wider range of offerings for our consumers.”
Chang Long Jong, CEO of mm2 Asia Group, said in a statement: “In a world where consumer demands are constantly evolving, entertainment in terms of content and distribution must also evolve to better serve the market.”
Despite the Covid-19 situation, he notes that the company’s films have done well in terms of box office and award grossing.
“Cinemas must evolve beyond being content distributors to provide the best entertainment experience for our consumers,” he says. “This merger will better help us to do that.”
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