A new Telefilm Canada study outlines the dire situation facing Canadian independent cinemas during the pandemic, with many saying they fear they will not survive in the future without reclassification and further government support.
The Canadian Content and Independent Cinema study released Monday (Nov. 29) cites a host of challenges for indie theatres in COVID-19 times, the biggest of which is a lack of cash flow. Many say there’s little to no revenue and mounting bills, while government subsidies are only covering an estimated 30% to 50% of expenses.
Theatre owners say assistance came too late and is insufficient to cover closures of between 200 to 300 days during the pandemic. They worry government subsidies will lapse before moviegoers are ready to fully return.
While indie exhibitors’ “virtual cinema” offerings have helped them stay connected with consumers, many say they don’t want to encourage at-home viewing. They also note the costs of such platforms have nearly outweighed the benefits, due to limited content availability, pricey video-hosting platforms and hefty payments to distributors.
The unpredictable landscape of moviegoing is another major obstacle, with openings and closures happening with little warning.
Exhibitors surveyed say they feel the government classification of their venues as “event spaces,” which have thus far imposed longer closures than on restaurants and other businesses in a different category, creates impressions that cinemas aren’t as safe.
They’re hoping the federal government will reclassify their venues and encourage citizens to safely return to the movies, and that Telefilm will push a campaign to highlight theatre safety and cultural relevancy. Those outside of Québec also feel “that Telefilm needs to act as their liaison to the government to reclassify their businesses,” says the report.
Theatre owners also say they feel overlooked by provincial and federal governments, and resent being forced to close without receiving sufficient financial support. They want Telefilm to take on a larger role as their advocate.
The study saw ERM Research conduct a series of eight discussion groups over three nights via video conference in May, with 32 independent theatre owners or upper management in seven provinces.
The goal was to examine the independent theatre landscape, both pre- and post-pandemic, and how Telefilm can help exhibitors as they move towards reopening.
The study also explored the challenges cinema owners and distributors face in featuring Canadian content, and what can be done to encourage theatres to play more.
Among the other findings: Exhibitors worry about a possible glut of stockpiled content now, and a drought later, due to production. They also worry at-home streaming will prevent customers from returning.
Staffing post-pandemic is also concerning, as employees have either moved on or are earning more on benefits.
The study says the pandemic blow hasn’t been as hard on larger theatres in Québec that have more screens and access to local films, and on theatres with adjacent cafés or restaurants. Not-for-profit entities with memberships and other funding sources were the least affected financially, according to respondents.
When it comes to homegrown programming, the study says Québec’s domestic product does well and has a built-in audience, but Canadian content in the rest of the country is overshadowed by Hollywood offerings. Exhibitors feel there are benefits to screening Canadian content but note English-Canadian fare is high-risk, offering low returns and low playability and awareness — issues that are amplified by the pandemic.
With an urgent need to make up for lost revenue, most distributors expect Canadian content — which was hard to bring to market pre-COVID-19 — to be low priority for theatres during the pandemic, says the study.