Remember checking the newspaper for the movie times? Remember calling the theater for the movie times? Just as those practices don’t exist anymore, actual movie theaters may not exist anymore in the near future.
Cineworld Group, Regal Cinemas parent company, has officially filed for Chapter 11 bankruptcy protection due to its debts nearing a takeover of its profits. After securing a $1.94 billion loan to ensure its theaters would continue operating after the pandemic, the parent company now needs protection from its creditors due to a vast drop in ticket sales. Once the country was hit by the COVID pandemic, movie-goers had to adapt to watching movies at home. Now that America has opened back up, movie-goers still enjoy watching movies at home, which, in turn, has led to an all-time low in ticket sales. To make matters worse, there aren’t many movies coming from movie studios anymore – everything is becoming a ‘streaming service original’.
Due to post-pandemic entertainment life, Cineworld Group’s revenue has fallen more than 40% between 2019 and 2022. On the bright side, although revenue has fallen and bankruptcy has been filed, Cineworld Group still plans to operate as normal with the high hopes of movie-goers returning to in-person entertainment. For those that still enjoy going to the movies, they’ll have to hope that Cineworld Group can make a comeback from this and that movie theaters won’t become a thing of the past.