Nearly a year after closing due to COVID-19, New York cinemas were reopened at 25% capacity.
The long-awaited, albeit partial, return of Big Apple cinemas – one of the largest film markets in the world – comes as restrictions on coronavirus are easing in the United States. IMAX (IMAX) is a chain of cinemas that is eager to reap the benefits of the economic recovery. The company exceeded earnings expectations in the fourth quarter – driven by strong box office performances in Asia.
As the restrictions on COVID-19 gradually decrease and more people are vaccinated, some still do not feel completely at ease to return to theaters. However, IMAX CEO Richard Gelfond took a different view.
“What we are seeing is that it is safe to go to the cinemas and people feel that way. They are not only coming back, but they are coming back in record numbers,” Gelfond told Yahoo Finance – citing how IMAX was 45% against 2019 during his opening weekend on the Chinese New Year.
In addition, Gelfond added that the Japanese film “Demon Slayer” earned $ 27 million for the company – the largest IMAX release in Japan of all time.
It is an encouraging sign when it comes to pent-up demand in the United States. Gelfond pointed to expected hits such as “Black Widow”, “Dune”, “No Time to Die” and “Top Gun: Maverick” – all films that have been pushed to 2021 since last year – as big box office hits to help with the return of movie theaters.
“It looks like one of the strongest slates we’ve ever seen,” he said – adding that he is confident that US consumers will see a “traditional blockbuster season this summer.”
Still, the US recovery still has some time to go, with movie delays and reopening limitations still affecting the industry. However, “in other parts of the world, when all the real films were opened and the cinemas were opened, the traffic was phenomenal,” added Gelfond.
Streaming vs. Movie theaters
Amid the coronavirus, studios had to be creative with the release of films – often opting to skip theaters and opt for streamers.
So, will the threat posed by the streaming boom hinder theatrical comeback? Gelfond does not seem to think so.
The premium options for video on demand and movies sent for streaming were “great responses to a global pandemic, but when the pandemic is over, and we’ve seen it in other parts of the world, people are screaming to go back to the movies and the studios are realizing it” , he said.
In December, Warner Bros. (T) shocked the media scene by announcing plans to show all of his 2021 films on HBO Max – the same day the films hit theaters.
But Gelfond pointed out that even Warner Bros. “will have a different strategy” post-pandemic, comparing the streaming performance of “Wonder Woman: 1984” with the huge global box office of the original $ 800 million film.
“The theater window really creates a great demand for [movies] and helps to advertise the property. Ignoring these windows and just going to the streaming window does not provide a fraction of the savings from the original model, “he continued.
“I don’t think what worked for a pandemic will be the right outcome when the world opens up,” he concluded.
Alexandra is an Entertainment Producer and Correspondent at Yahoo Finance. Follow her on twitter @ alliecanal8193
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