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Cinema operator Palace Amusement Company blamed poor quality films for its losses and a one-third fall in ticket sales.
Palace, however, expects a better 2025, with strong films set for release.
“Film distributors and exhibitors like us at Palace Amusement have worked tirelessly to find and acquire quality films … we pressed through our first quarter ended September 30, 2024, with less than ideal product and disappointing attendance numbers,” Palace said, adding that over the past 18 months, it has faced challenges in securing high-quality films, grappling with a lack of compelling content to draw audiences.
Attendance during the quarter fell by 33 per cent, or 60,000 fewer patrons, compared to the prior year, leading to a 20 per cent revenue drop to $345.4 million, the company said. This contributed to Palace recording losses of $36.5 million for the its first quarter ending September.
Joker 2, a big-budget film which ran during the quarter, was omitted from Palace’s discussion because of its poor global performance. The quarter’s top-earning films were Despicable Me 4 and Deadpool & Wolverine, but they were insufficient to offset the absence of blockbuster hits comparable to last year’s Barbie, Mission: Impossible 7, and Equalizer 3.
Globally, the cinema industry faces a paradigm shift as viewers opt increasingly for streaming services. Platforms like Netflix and Amazon Prime are now producing high-quality films starring top-tier Hollywood actors, a space traditionally dominated by theatres. This trend, combined with the lingering effects of Hollywood’s Screen Actors Guild and Writers Guild of America strikes, further strained Palace Amusement’s content pipeline.
“Although the strikes were extensively covered in the media, the real impact … was not made clear to the end users,” Palace explained regarding the six-month strike. “Delayed production pushed blockbuster pictures all the way into calendar year 2025” the cinema company said.
Despite these hurdles, Palace sees bright spots, particularly with the introduction of 4DX technology at its flagship cinema, Carib 5. The technology enhances 3D viewing by incorporating seat movements and light water splashes, thereby adding a fourth dimension to movie watching. The company has launched seven releases in this multi-sensory format.
“As a result, the occupancy level is trending well,” Palace said about 4DX patrons.
Looking ahead, Palace expects a stronger content pipeline and improved industry conditions in 2025.
“The outlook of the National Association of Theatre Owners underscores a positive 2025 year for the industry,” Palace said of the United States-based group, which lobbies for the industry.
Additionally, the company continues to implement debt reduction strategies to stabilise its finances amid rising post-COVID-19 operational costs.
English (US) ·