Cinema is dead. Long live cinema!

Operating conditions are the main villain, not Covid

Looking at data from Danmarks Statistik, cinema ticket sales in Denmark between 2015 and 2019 remained relatively stable, with nearly 15 million tickets sold—reflecting a healthy industry with broad appeal. However, there is an obvious dive in the years 2020-2021 caused by the covid pandemic forcing cinemas globally to shut down temporarily.

Awards/Box Office Editor at Screen International, Charles Gant, on the effect the pandemic has had on cinemas and the recovery process hereafter:

“The pandemic has had a big effect on cinema going. Cinemas haven’t yet recovered to 2019 levels of admissions numbers and box office, and the release calendar has not been as consistent as it was before the pandemic. I would say it’s the same case for multiplex cinemas. But I’m not seeing a particular crisis facing independent cinemas.”

He points to economic operating conditions as the cinema industry’s main challenge. The raise of energy cost and difficulties with retaining staff.

BOX OFFICE ARE THE TOTAL MONEY EARNED FROM TICKET SALES. 

ADMISSION NUMBERS ARE THE TOTAL COUNT OF TICKETS SOLD.

Streamers against the arthouses 

Director at Tallinn Digital Summit, strategic advisor at Cannes Next and founder of Storytek, Sten-Kristian Saluveer, also doesn’t see covid as the main reason cinemas haven’t recovered to 2019 levels. He points to three other central factors. The technological-, social- and economic component.

About the technological component, he explains that while many attributes declining admissions to streaming platforms,

“It’s not the only distribution platform that exists. Cinema dominated until the 2010s, but now technology plays a significant role in how content is produced and consumed. With so much content available, the ratio of production and the ratio of consumption is completely off, raising questions like: Are we producing too much? Are we producing more than we consume?”.

2500 FEATURE-LENGTH FILMS AND DOCUMENTARIES WAS PRODUCED IN 2023. ONLY 40 OF THEM GOT MORE THAN 1 MILLION ADMISSIONS INTERNATIONALLY.

SOURCE: THE EUROPEAN AUDIOVISUAL OBSERVATORY, EAO

Regarding the social component, he points to covid playing a central role:” Covid turned the home into the entertainment centre, weakening social bonds. Also, global platforms now distribute an infinite amount of content to billions of people, but our attention is limited to 24 hours per day. This imbalance between infinite content distribution but very finite attention has shaped the new state of cinema.”

With the economic component, he explains: “A combination of socioeconomic factors, including the war in Ukraine, has driven ticket prices up, making cinema attendance an economic concern for many households. As a result, audiences turn to streaming or YouTube, though it’s not as simple as streamers against the arthouses.”

A new era of moviegoing

The new state of cinema is characterized by an audience that makes more concentrated choices wanting as much value for their money as possible. Charles Gant highlights a growing tendency observed in the industry in which multiplex cinemas are increasingly adopting qualities of independent venues—embracing stylish design, elevating their food and beverage offerings, and cultivating a boutique-like atmosphere trying to meet what more and more people want.

To explain the state of independent cinema he paints a scenic picture of a paddling duck - calm on the surface but constantly doing the hard work underneath to keep moving,

“They’ll have a lot more special events, such as playing archive titles and linking up with local groups that will present a particular film, Q&A with directors, talks and live music. All those special one-night-only offers that are going to bring in extra audience to your cinema.”

AN INDEPENDENT CINEMA IS OFTEN A SINGLE-SCREEN THEATER. 

A MULTIPLEX CINEMA IS A LARGER COMPLEX WITH MANY SCREENS SHOWING BLOCKBUSETERS MOVIES.

Many cinemas in Denmark have observed a shift in audience’ preferences, with greater emphasis on offering unique, event-driven experiences.

On December 16th, Bio Møn will celebrate the 250th birthday of Jane Austen, beloved author of the iconic movie Pride and Prejudice, later adapted into film. Followed by a screening, guests will enjoy a traditional English tea with cucumber sandwiches and scones.

For chairperson at the board of Møn Bio, Ulla Holmberg Olesen, creating more than a simple cinema experience is important,

“For the premiere of the Danish movie Det nye år (The New Year), we surprised the audience by decorating the venue for New Year’s serving champagne with kransekage—the traditional cake served for new year’s in Denmark. Our guests thought it was cozy and were eager to share the experience with friends, saying things like, ‘You won’t believe what happened last time we were there.’ It’s a small gesture that doesn’t cost us much compared to how happy our guests are.”

Classical cinema never had to care

In the new era of movie-going, Sten-Kristian Saluveer thinks cinemas should acknowledge more that consumer preferences have changed and adapt accordingly. 

He elaborates, 

“Every generation has it's own preferred media. But one of the key questions we should be asking is: ‘Are we screening stories that matter to them?’ and ‘Are we speaking their language?’. In this very complex situation where we are fighting with all these different social factors, everyone needs to look beyond the standard and start understanding what lies in front of the matter.”

At Malling Bio, cinema director Morten Østergaard struggles to capture the attention of younger audiences (ages 10–20), but he is not giving up:

“I wonder how do I reach them? Maybe paid advertisement on SoMe. I’ve tried screening horror movies to be more appealing to that demographic, but they are not coming. I must think about opportunity cost. It’s expensive for us to keep taking those risks not knowing if there will be 2 or 200 tickets sold. But I have not given up yet.”

The community feel

For Morten Østergaard, managing Malling Bio, it’s about more than just films—it’s about preserving a sense of community, 

“For me personally it makes sense to manage Malling Bio because it moves something in the city. It’s a cultural gathering place,” he explains.

The cinema has hosted concerts that residents still talk about weeks later, and it provides a social lifeline for elderly citizens who might otherwise feel isolated. It also caters to younger audiences, with events like children’s birthdays— “It’s nice we can be something for all three generations: children, parents, and grandparents.”

In Klovborg, the local Schmidt family bought the cinema “Klovborg Kino”, which had been on sale for six years, to keep the community alive. Today, the place emphasis on creating a personal atmosphere, with full staffing each day and personally serving the guests soda and popcorn. Their purchase in late 2024 was driven solely by a desire to save an iconic local institution from permanent closure, ensuring it remains a cultural gathering place for people in the area.

Long Live Cinema

Cinema was built in the early 20th century before television, thriving in the 1930s as cheap entertainment. Over time it faced challenges from home video, DVD, multichannel TV, and streaming. But Charles Gant does not believe that cinema is competing with in-home-entertainment:

“In the UK from the middle of the 1980’s until about 2005 cinema admissions tripled. That was during a time where both home video and DVD format came along. Cinema has responded to all these changes for the home and has co-existed with them very successfully for almost a century now.”

Though the longevity of cinema seems consistent, Sten-Kristian Saluveer notes that not all forms of cinema are:

“Where I am seeing it heading is very paradoxically that the multiplex cinemas are the ones of the cinema chain that will suffer the most.”

Why?

“Because most of basic entertainment needs will be online anyway. Much of the same things will be covered by YouTube and streaming. And the multiplex cinemas are the most impersonal.”

Opening in 1922, introducing tone film in 1930, colour film in 1956 and becoming a volunteer driven cinema in 1985, the single screen cinema, Biohuset Lemvig has been through all phases. Chairperson of the board at Biohuset Lemvig and self-appointed 'local patriot', Annette Nørregaard, is optimistic of the future, but grants the industry to be exhausting:

“We can’t sleep, we all the time must think ‘what can we do differently?’ and ‘what can we do better?’ Sometimes I do get a little tired thinking ‘why can’t people just come and enjoy a good movie?’”. 

Morten Østergaard, Malling Bio, is ready to adapt to a new reality:

“I hope I will succeed in having a more enterprising approach thinking ‘okay, there aren’t any good movies coming out next month then let’s focus on hosting concerts and talks instead’. We have to make money every week; else we won’t be here in 5 years.”

Final act

Cinema admissions across Europe have largely stabilized after the pandemic, but recovery has plateaued. Admissions suggest that current levels may represent the “new normal” rather than a full return to pre-pandemic highs.

Audiences are shifting towards more fragmented, digital-first viewing habits, with younger demographics favouring streaming platforms, while traditional cinema attendance is becoming more event-driven competing with time and attention.

The old proclamation “The king is dead, long live the king!” is a way of saying that while one form ends, another immediately begins. The proven longevity of the cinema industry, together with the dedication of its people, suggests that cinema will live happily ever after.