Is Singapore's cinema scene fading to black, with fewer movie halls?

THE exit of indie player The Projector from Cineleisure, coming on top of Cathay Cineplexes' recent rental woes, has heightened fears that the local cinema industry is at a crossroads.

Industry watchers say cinema players must up their game through an improved experience and partnerships; they should also look overseas for inspiration.

Last Friday (Aug 1), The Projector announced its departure from its Golden Village (GV) collaboration at Cineleisure, a larger venue than its original location in Golden Mile Tower, where it has now resumed screenings after a pause in May.

GV, Singapore's largest cinema operator, now fully manages operations at Cineleisure.

Even as Cathay Cineplexes and parent company mm2 Asia have shuttered multiple outlets, demands by creditors are mounting. Earlier this week, mm2 Asia disclosed that it has received eight letters of demand for a total of S$17.6 million.

Cathay itself took over operations of Eng Wah's WE Cinemas at the 321 Clementi mall in November 2024, after the latter exited the industry.

The backdrop is bleak. Data from the Singapore Department of Statistics points to a sharp decline in cinema attendance, from more than 20 million to less than 10 million over the decade. This is against an increase in screens, from about 220 to more than 260, and only a slight decrease in seating capacity, from about 39,000 to about 35,000.

Together with the rising popularity of streaming services, structural disadvantages of high rents and operating costs, Singapore cinema could be in for an even rougher ride.

But industry players say all is not over yet. Looking at the market, The Projector may still have a niche appeal. Its return to Golden Mile is "not necessarily a retreat, but perhaps a recalibration", said Samer Elhajjar, senior lecturer of marketing at the National University of Singapore (NUS) Business School.

The move could be a strategic choice for the cinema operator to double down on what it does best, he said. Prior to this, The Projector had scaled back daily screenings at its original Golden Mile venue in May to focus on the Cineleisure outlet.

Raine Chin, senior lecturer in business administration at Singapore Polytechnic's School of Business, noted that the tie-up is in a commercial setting, leading to substantial overheads.

Concurring, Christoph Hahnheiser, film producer and associate professor at the Nanyang Technological University's (NTU) School of Art, Design and Media, said: "Overheads at Cineleisure, compared with Golden Mile Tower, were likely much more costly."

While The Projector has touted the move as a return to its roots, observers argued that its niche focus may also be an obstacle to its success. Prof Hahnheiser noted that arthouse cinema may pull large audiences in markets such as Paris, but this is not true in Singapore, especially when ticket prices are high.

This means that The Projector sees lower customer volumes and has a higher fixed cost per offering, said Shantanu Bhattacharya, professor of operations management at the Lee Kong Chian School of Business at the Singapore Management University (SMU).

Prof Hahnheiser said The Projector may have stretched itself thin by having too many screens across both venues.

Beyond its own business model, The Projector's future at Golden Mile also remains uncertain.

"There could well be another en bloc sale attempt," said Lewis Lim, associate professor of marketing practice at NTU's Nanyang Business School (NBS). "And, despite plans to conserve the cinema block, the building is getting very old and The Projector is, after all, only a tenant with little influence on the building's future."

The Projector's move reflects broader systemic challenges plaguing the cinema industry.

Industry consolidation

RHB real estate and Reits analyst Vijay Natarajan said this trend is likely to continue, and consolidation within the industry is likely to accelerate in the coming years.

This will be driven by the operators themselves, who are likely to continue to rationalise by giving up leases in malls where foot traffic is weaker, and instead focusing on those where it is stronger, he added.

Among the local players, GV stands out as the exception in successfully staying afloat.

In the case of the Cineleisure tie-up, NUS' Dr Samer said GV was able to take over the space due to its "stronger infrastructure, scale, and operational agility". This means it can distribute risk, manage occupancy rates more efficiently, and experiment with different content formats, compared with smaller operators.

Said NBS' Prof Lim: "GV will become a near-monopoly soon, with mm2 having financial problems and Shaw struggling with a small market share (and independent players such as EagleWings and Carnival even smaller)."

While not yet operational, Shaw Theatres is slated to take over Cathay's vacated cinema space at Jem shopping centre, marking its eighth operational outlet in Singapore.

Its last launch was in March 2023, when Shaw Theatres Balestier reopened with 11 halls, adding five premium halls to its portfolio of six regular halls. It features the highest number of premium halls at a single venue in Singapore.

But Shaw also closed its outlets in Seletar Mall in December 2024 -- due to its lease expiry and the mall management's alternative plans -- and JCube in August 2023 -- due to the mall's closure.

And while GV currently looks to be in a strong financial position, better than Cathay for instance, to ride out challenges, it is not immune to the industry's decline.

"A near-monopoly can also be a dying monopoly if it doesn't work hard to rejuvenate the market and refresh the demand," said Prof Lim.

He noted that the share value of GV's parent company, Hong Kong-listed Orange Sky Golden Harvest Entertainment (Holdings), has declined over the last eight years.

In its 2024 financial report, the Singapore GV business unit continued to be the group's main revenue contributor. But its net box office receipts slid 9 per cent year on year; admissions fell 8 per cent, and segmental profit declined 27 per cent.

While cinemas may be down, they are not out, said observers. For instance, the recent sell-out performance of the Omniscient Reader: The Prophet premiere, featuring meet-and-greet appearances by lead actors Lee Min-ho and Ahn Hyo-seop, "shows that people are still willing to pay for special in-person experiences", noted Prof Lim.

The Projector has recognised this as well, and has diversified to hosting music events and drag shows to attract more customers.

Watchers expect increasing explorations into "experiential cinema", which Singapore Polytechnic's Chin believes could mean "more thematic screenings, boutique cinema concepts, cross-collaborations with lifestyle brands, and enhanced food and beverage offerings".

GV, the market leader, is in the best position to drive change in industry practices and business models, said Prof Lim.

Inspiring ideas from abroad

Operators can also turn to cinemas abroad for inspiration.

Fork n Film in the US and London offers specially curated meals inspired by the food on screen, with restaurant-format seating.

"It's not a bad mindset to adopt given how much more frequently people eat at restaurants versus watch movies at theaters," Prof Lim mused.

South Korea's Busan Cinema Center -- the official venue for the Busan International Film Festival -- resembles a large concert hall-cum-stadium.

A movie screening there is "electrifying", "with energy injected by the sheer size of the crowd", Prof Lim said, suggesting that GV could collaborate with concert venues to hold special screenings, even if it may not have the resources to build a similarly huge complex.

Prof Lim also flagged 4DX screenings in Thailand, likening it to a theme park ride, with technology to provide motion, wind, scent and other sensory effects.

Dr Samer suggested that a venue can become a more flexible one that "functions as a co-working venue by day, transforms into a screening space at night, and hosts live performances or community debates on weekends".

Prof Hahnheiser cited the popularity of Metrograph in New York, which houses a cinema, bookshop and food offerings. Singapore's cinemas could attempt something similar, he suggested, though he acknowledged that bookshops in Singapore are also struggling.

Industry watchers also floated the idea of the increased digitalisation of cinemas.

SMU's Prof Bhattacharya and Dr Samer believe the future of cinema operators is tied with technological advancements, with interactive cinema, 3D cinema, augmented reality and virtual reality cinematic experiences. This will require a rethink and revamp of infrastructure, said Prof Bhattacharya.

"Cinemas will need to prove why they deserve people's time in a world where attention is fragmented and convenience is king," said Dr Samer. They must shift their philosophy, becoming active cultural actors, he added, for a "renaissance in public storytelling, one built not on nostalgia but on reimagined relevance". 

Source: The Business Times