The curtain is set to fall on another Hong Kong cinema as Golden Harvest's MegaBox location prepares to close its doors on June 9 following unsuccessful rental negotiations, marking the second closure for the chain after its Ocean Terminal cinema shuttered earlier.

However, the industry has found a glimmer of hope as CineArt House steps in to take over the venue, signaling that despite challenges, operators remain willing to invest in Hong Kong's cinema landscape.

Renowned filmmaker Tin Kai-man of the Federation of Hong Kong Filmmakers acknowledged the ongoing wave of cinema closures but maintained an optimistic outlook.

Speaking on a radio program Thursday morning, Tin noted that while more closures are likely in the coming months due to persistently high rents, the situation isn't without hope.

He emphasized that experienced operators continue to see value in the market, with new investors often able to negotiate more favorable rental terms.

Tin, who accurately predicted the wave of closures, described the current situation as a natural market adjustment rather than an industry collapse.

He explained that while some operators are being forced out by unsustainable rents, others are waiting in the wings to take their place.

The veteran stressed that understanding the commercial realities behind each closure helps put the situation in perspective, noting that the sector remains viable for those who can adapt to changing market conditions.

The survival of cinemas is inextricably linked to film production volumes, Tin explained, describing a symbiotic relationship where fewer films lead to reduced audience choices and declining attendance.

This dynamic has been further complicated by shifting consumer habits, with moviegoers becoming increasingly selective about which films they watch in theaters, said Tin.

“Where audiences might previously have seen ten films annually in cinemas, many now reserve theater visits for only two or three blockbuster experiences each year, opting for streaming platforms for most other content,” he added.

Tin proposed that cinemas could coexist with streaming services by offering unique theatrical experiences that can't be replicated at home. However, he acknowledged this would require significant upgrades to theater technology and facilities, as well as industry-wide cooperation.

He also urged the industry to embrace change rather than clinging to outdated models, warning that innovation is essential for long-term survival.

The number of operating cinemas has plummeted from 62 in mid-2023 to just 51 today, with some venues being repurposed for alternative uses like theatrical performances or Cantonese opera.

(Marco Lam)

Cinema closures continue amid struggles, but industry veteran sees silver lining