Marios Herodotou: Cinema entrepreneurs are not treated fairly in spite of their large investments

The July and August screenings of ‘Barbie’ and ‘Oppenheimer’ made 2023 a better year for cinemas in Cyprus following the difficult 2020-2022 period which included the pandemic, Cyprus Association of Cinema Halls Owners president Marios Herodotou has stated.

Among other things, Herodotou told InBusinessNews that he anticipates 2024 to be at the same levels as last year, and likely even a little better.

Also the Managing Director of Rio Cinemas, he, however, went on to note that while not loss-making, takings at Cyprus cinemas last year were still only close to 70% of a ‘normal year’ with 2012 and 2019 recorded as benchmarks since the years following the deposit haircut and pandemic had shown a downward trend.

The new movies

According to Herodotou, this year will be similar to last year and probably a little better, despite the disappointment arising from the movie ‘Joker’, which, while anticipated to be a big success, ended up being a resounding failure.

"Our success depends on the films that are shown each time and the big hits are what sustain the cinemas commercially," he explained.

He indicated that some of the films that are expected to attract a lot of interest from the public when they are screened by the end of the year are: ‘Gladiator II,’ ‘Mufasa: The Lion King’ and the Greek movie ‘Yparho.'

State assistance is needed

Herodotou complained about the state’s long-term treatment of the cinema industry, especially during times of crisis, such as the pandemic, and its management of significant problems for the sector, such as film piracy.

As argued by the president of the Cyprus Association of Cinema Halls Owners, entrepreneurs in the sector, due to their small volume, are not treated equally compared to entrepreneurs in other sectors.

And all this, as he adds, at a time when technological developments have greatly diversified - upwards - the cost of maintaining or upgrading cinema cameras.

Herodotou gave as an example the movie ‘Avatar,’ which was released last year with new digital technology, required cinemas to buy a new generation of projectors to be able to show it.

As he indicated, the total cost of such an upgrade for the cinemas amounts to €130,000, since with the new projecto implies that additional changes will also be made, such as to lenses and screens.

And he continued by underlining, at the same time, that it is impossible for cinemas to change projectors every five years and that subsidies should be provided by the government for this purpose.

Lockout risk

Asked about the phenomenon of the suspension of operation of cinemas that has been observed in the last year and whether there is a question of the cinemas surviving, he replied that it is to be expected that, after ten years of reduced returns and losses, the survival of businesses should be in questions.

"A cinema is an expensive investment for entrepreneurs and it is important that they record significant returns to be able to meet their obligations," added Herodotou.

Similar problems exist abroad, he said, citing as examples US giants such as Regal Cinemas and AMC, which during the pandemic came close to bankruptcy, but were saved by government subsidies.

At this point he expressed his complaint about the way cinemas are treated in Cyprus and questioned whether the authorities treated them as part of the culture of soceity.

At the same time, Herodotou spoke against entertainment tax, explaining that it is an anachronistic tax.

Movie piracy is the biggest problem

The biggest problem faced by the members of the Cyprus Association of Cinema Halls Owners, according to Herodotou, is the piracy of films, which seems to find fertile ground in our country, since Cyprus is one of the first countries on global lists.

In fact, as he pointed out, our country is in the "red" category in relevant studies, together with underdeveloped countries, and the total damage to Cypriot cinemas amounts to a third of their operations.

"The state needs to weigh in on this problem, but neither the state nor the parties are interested," he further noted.

According to Herodotou, before the pandemic and the 2012 haircut, the per capita output of cinemas in Cyprus was higher than Greece, with the number of tickets sold each year reaching close to 1.2 million, compared to 800,000-850,000 where it is today.

The habits of the public

Asked if the habits of the public have changed today, with an impact on cinema as well, Herodotou answered in the affirmative, noting, however, that cinema has a timelessness and a flexibility that allows it to survive through the years, something that will continue now.

He gave the example of the discovery of the radio in the US in the 1920s which caused a crisis in the cinema, which nevertheless "struck back" by adding sound and regaining its place as the king of entertainment.

Later - in the 1940s - when television was discovered in the USA, the cinema experienced a new crisis and it had to go into colour, change the quality of its sound and create some big productions that required a lot of actors but ultimately survived once again, as he noted.

"Cinema has gone through many crises, such as the piracy crisis, which in other countries was dealt with immediately. For example, in countries such as Germany and France, those who download movies to their computer illegally, automatically receive a letter, within a few days, from their electronic communications provider and a large fine. In fact, after three violations, the person can also receive a prison sentence," he pointed out.

(Source: InBusinessNews)