Remember the times when you’d get excited about going to the movies where you’d buy overpriced popcorn with your friends and make memories of a lifetime? However, ever since the COVID-19 pandemic hit, it took away a lot from us. This included the thrill of going to the cinema to watch our favorite Hollywood film. The pandemic also opened doors for new opportunities and ways to enjoy your time like streaming your favorite show or movie nonstop, pausing, and playing whenever you like. This resulted in a lot of films being released directly to streaming service providers like Netflix, Disney +, and/or HBO.
Now, that is all in the past since COVID-19 Vaccines have been rolling out, and the number of cases is dropping across the globe. Cinemas happen to be some of the most crowded places, even post-pandemic. However, despite all this popularity and the fact that cinemas are a booming business, why don’t they show up in the market? If you are eager to know more, this article will spill the tea about why cinemas rarely make it to the markets.
No Cinema Markets?
Screen Australia recently revealed that as of now, there are around 500 cinemas in Australia only, and of those 500, almost half are owned by Village Cinemas or Hoyts or Event Cinemas, while the rest 30 percent are privately owned or independent.
This disparity comes in mainly because when a Cinema owner does decide to put their property on sale, it is often traded within the cinema industry. Rodney King, a real estate agent at Aston Commercial, said that there is an apparent trade-off that takes place between different operators, which is why it is quite rare when you see a Cinema go on the market for sale.
Reinventing, Renovating, And Modernizing
Even during the pandemic, the cinema owners didn’t let the lack of clients stop them from remodeling their cinemas to attract crowds. Some cinemas started using airspace to create open-air cinemas. Some owners installed screens in their parking lots so that people could enjoy their movies while staying socially distanced. However, this is not the case with all cinemas. The following are two cinemas that are on the market for sale.
1. Croydon Cinema
Located on Jewish road, Croydon, this cinema was initially launched in 1977. Because of its historical rich background, it is already attracting several people who either lived there or would visit the cinema when they were young. There are no leads on the estimated costs, but the real estate agents call it a once-in-a-lifetime opportunity to run a cinema.
2. The Forum
Put on sale in Charlestown, the Forum is a landmark commercial asset, which consists of two different buildings that are joined by the Hoyts cinemas. It recently had a redevelopment worth $3.5 million and has been handed over to the Stonebridge Property Group to be sold off.
There’s a particular reason why cinemas go for sale on the public market. Can you think of the reason behind it?