A view of the Regal Loews Cinemas in Times Square in New York City.
Noam Galai | Getty Images
As the blockades are eased, Regal cinemas will reopen in the United States six months after they closed.
The Cineworld-owned film chain will reopen around 500 locations on April 2 at limited capacity according to local guidelines. In most cases, attendance is limited to 25% to 50%.
Regal Cinemas will show Warner Bros. ‘Godzilla vs. Kong’ movie during its first open weekend. The studio’s “Mortal Kombat” will hit their theaters starting April 16th.
Warner Bros. made the decision to release all of his 2021 films simultaneously in theaters and on his HBO Max broadcast service. This meant he had to renegotiate agreements with each film company to ensure that his films were shown on the big screen.
Cineworld is the latest theater chain to accept these conditions and maintain a long-term agreement with the studio to ensure that from 2021 there will be a longer period of time between the release of a film in the cinemas and their availability in the national market.
Warner Bros. and Cineworld signed a multi-year agreement beginning in 2022 and stipulating that Warner Bros. ‘functions will have to be played in cinemas for 45 days before moving to on-demand streaming or video platforms.
In the UK, the offer lasts 31 days and can be extended to 45 for films that open with sufficient box office.
Regal Cinemas is the second largest theater chain in the United States, just behind AMC Theaters. The company had chosen to close its rooms six months ago.
At the time, Mooky Greidinger, CEO of Cineworld, told CNBC that closing locations in the U.S. and the UK was a way to curb “bleeding.” He said his business lost less money by not operating.
With the reduction of local restrictions in places like California and New York, it seems that Regal has more confidence that its theaters can thrive and be profitable once again.
The two states together account for 21.5% of total U.S. box office tickets each year, according to Comscore data.
The first week of March allowed New York City cinemas to reopen to a limited capacity, and Los Angeles cinemas authorized its reopening two weeks ago.
New York City accounts for nearly 24% of New York State’s box office total and Los Angeles accounts for approximately 30% of California’s box office. These cities have above-average entry prices and population density, as well as being centers of the entertainment industry, so they are vital to the financial well-being of the industry.
The reopening of these two cities for business gives studios the confidence to release great blockbusters and movie operators the confidence to reopen locations. As of last weekend, about 51% of American theater was open to the public, according to Comscore data.