'Reel' tough times? Cathay Cineplex at Parkway Parade to cease operations Aug 27

SINGAPORE — Entertainment company mm2 Asia, which operates the Cathay brand of cinemas in Singapore, will be shutting yet another cinema complex — its third closure in just over a year.

Its cineplex in the Parkway Parade shopping centre in Marine Parade will cease operations on Aug 27, the company said on social media on Monday (Aug 21).

The cineplex began operations in 2017, and is located on the seventh floor of the mall. Its seven halls can accommodate over 800 moviegoers in total.

All other Cathay Cineplexes will remain open, according to posts on the Cathay Cineplexes Facebook and Instagram accounts.

This latest closure comes barely a year after the mainboard-listed company ceased operations at two major locations — The Cathay on Handy Road as well as in Orchard Cineleisure. This will leave just 5 Cathay cinema outlets in operation here.

The company had announced the closure of its outlet at The Cathay on June 19, 2022, and at Orchard Cineleisure on June 13 this year. Both closed shortly after the announcements.

On the other hand, it will open two new locations, one at Century Square later this year, and another at *Scape in 2024.

The announcement of the latest cinema closure comes after mm2 Asia reported a loss before income taxes of $22.7m in the financial year which ended March 31.

"We remain committed to serving our patrons at our existing and new Cathay Cineplexes outlets opening soon as part of our rightsizing plans," said Mr Chang Long Jong, mm2 Asia's group chief executive officer in a media statement on the closure.

Mr Melvin Ang, mm2 Asia's executive chairman, had said in a media release in May on the company's full-year results that it will focus on its content and live entertainment businesses moving ahead, as these have already shown almost full recovery globally after Covid-19.

Retail experts said changing consumer habits have impacted ticket sales, as more streaming options become readily available.

Ms Karen Chia, assistant director (academic) at Nanyang Polytechnic's School of Business Management, said: "The cinema landscape in Singapore is facing a triple threat: the meteoric rise of streaming giants like Disney+ and Netflix, high operating costs, and dwindling ticket sales post-Covid-19 restrictions. It's a "reel" tough time, causing major cinema operators to throw in the towel."

She added: "With Singapore riding the 5G wave at full throttle, that turbocharged connection is making it easier than ever for movie buffs to catch their favourite flicks."

[embed]https://www.instagram.com/p/CwMXqfZBEt6/?utm_source=ig_web_copy_link&igshid=MzRlODBiNWFlZA==[/embed]

Citing a report on cinema tickets in Singapore published in July by data firm Statista, Ms Chia pointed out that when it comes to ticket sales, Singapore's user penetration is a mere 13.9 per cent in 2023, and is expected to inch up to 14.3 per cent by 2027.

"Unless theatres ramp up their game with a heightened, multi-sensory cinematic experience, the silver screen's shine is at risk," she said.

Associate Professor of Marketing Hannah Chang from Singapore Management University's Lee Kong Chian School of Business similarly said that the convenience and ease of accessing movies, games and shows through digital streaming platforms has been underscored by the pandemic.

"The younger generation of consumers also have myriad options for entertainment, more so compared with prior generations," she said.

Looking to the future, however, experts stressed that it is not yet time to roll the credits on the movie-going experience.

Ms Chia said that while going to the cinema may become less common, "there's still magic in the collective gasp of a packed cinema, especially in a post-Covid-19 world".

Prof Chang said: "Cinemas offer a unique, collective experience - coupled with the appeal of high-quality audio-visual equipment and the excitement of watching a movie on a big screen - that is difficult to replicate at home.

The summer box office success of Barbie and Oppenheimer, for example, showcases the appeal of going to the cinema, she added.

But both experts noted that in order to remain relevant, cinema operators must continue to keep the movie-going experience fresh for consumers.

Operators can enhance the movie-watching experience through multi-sensory or immersive techniques, said Ms Chia.

Prof Chang added that the nature of the cinema experience may evolve to be about not just going to see the movies but also collectively experiencing cinematic events, such as unique thematic settings for specific films, film festivals, premieres, or special movie marathons.

"The cinema industry is undoubtedly faced with a need for transformation. While there will always be a place for the unique experience cinemas offer, the industry will need to adapt to changing consumer habits and be attuned to the desires and needs of modern audiences," she said.

As at 1pm on Monday, just after the announcement, mm2 Asia shares were trading at 3.9 cents.

ALSO READ: That's a wrap: Iconic Cathay Cineplex at Handy Road to close on June 26

This article was first published in The Straits Times. Permission required for reproduction.