Independent theaters reeling from virus, restrictions
COVID-19 has devastated movie theaters of all sizes, but small, independent owners are feeling it more profoundly. Nationwide, a handful already have gone dark permanently, and 70% of small to midsize movie theaters are at risk of shutting down without federal aid, according to the National Association of Theater Owners.
Many are scrambling to survive with private screenings and popcorn specials, among other strategies. Their loss would be a big blow to America’s cultural life. They represent a major source of independently produced, more serious art films. And in an age dominated by sleek multiplexes, their theaters often provide the only entertainment in America’s small and rural towns.
Fortunately, salvation appears on the horizon. A little-noticed provision of the $900 billion COVID-19 relief bill passed by Congress would provide $15 billion to struggling small movie theaters, live entertainment and performing arts venues, and museums. A last-minute lobbying campaign added movie theaters and $5 billion to theoretically cover their financial needs.
“It means they get a lifeline to get them into the spring,” when a coronavirus vaccine is projected to be widely available, says theater owners association Vice President Patrick Corcoran. “They get a chance for business to get back to normal.”
Under the legislation, movie theaters can receive up to 45% of their lost revenue since April, capped at $10 million per entity. Priority goes to those with the sharpest revenue losses. The legislation excludes publicly traded companies, among other criteria, to ensure the money goes to smaller operators.
Lynn Kinsella, who owns the 646seat Aurora Theater in East Aurora, New York, already has been contending with an 18-screen Regal multiplex just 10 miles away that boasts recliners and stadium seating.
The pandemic shut down her 95year-old theater until late October. Then she had to stop serving popcorn because it was considered “indoor dining.”
“It kills,” she says. She notes that movie revenue has dwindled to nothing – she has been showing free Christmas movies – but she’s eking out a small profit because of an adjacent gourmet popcorn shop and room rentals for corporate events.
Kinsella says federal aid “would be a big help to us. “It would allow us to rebuild.”