Almost all cinemas in Russia may close their doors by the end of the year after major Hollywood studios suspended licensing in the country, a Russian cinema owner told Sputnik
ST. PETERSBURG (Pakistan Point News / Sputnik - 26th May, 2022) Almost all cinemas in Russia may close their doors by the end of the year after major Hollywood studios suspended licensing in the country, a Russian cinema owner told Sputnik.
"We are already operating below the break-even point. Our costs are unbearable. Ticket sales fell ten times from the pre-pandemic levels and two times compared to the 2021 quarantine. Many cinemas will be closed this summer, and the majority will be shut down by the end of the year," Eduard Pichugin, board member of the Russian Union of Cinematographers and owner of the iconic Velikan Park cinema in St. Petersburg, said.
Only some cinemas that are on the balance of the government, including St. Petersburg's culture committee, may survive, he noted.
Over 80% of the revenue of Russian cinemas came from Hollywood blockbusters, Pichugin pointed out. Russian cinemas started to show Soviet and old foreign films instead of the newly released ones in an attempt to save the business, which was already significantly hit by the COVID-19 pandemic.
Unfortunately, the quantity and quality of Russian productions do not fully satisfy the demand for content, Pichugin said, adding that if new foreign films do not return, the industry will be "on the verge of extinction" with only smaller and mostly state-owned cinemas surviving.
In the wake of unprecedented sanctions, Russia's Association of Cinema Owners called on the Russian Ministry of Culture to provide financial support for the industry, but the plea was rejected.
On February 24, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Luhansk appealed for help in defending themselves against Ukrainian forces. In response, Western countries have rolled out a comprehensive sanctions campaign against Moscow, which includes airspace closures and restrictive measures targeting numerous Russian officials and entities, media, financial institutions and industries. Some foreign companies have decided to leave Russia altogether.
