Summary of Key Points
The government has recently encouraged cinemas to diversify their operations by offering food and drinks, setting up gaming areas, and using unused screening rooms for exhibitions. However, this is merely a temporary measure to alleviate the current pressures facing the industry. The core argument is that the very essence of a cinema lies in the “great movies on the screen.” If cinemas rely solely on coffee and games to attract customers, they risk becoming something akin to “cafes with screens,” failing to cater to their primary purpose. After all, people go to cinemas not to drink bubble tea but to experience films that are unique to the cinematic experience. Cinemas around the world are facing challenges from streaming services and changing consumer habits, but they must not lose sight of their core mission: showing movies.
Detailed Analysis
1. Don’t get it wrong: The foundation of a cinema is movies, not coffee and hamburgers
The policy encourages cinemas to offer additional services because their main business—showing movies—is struggling. Many cinemas have daily attendance rates of less than 10%, and the costs of rent, equipment depreciation, and labor are overwhelming. Revenue from ticket sales alone is insufficient. While these side businesses can help customers spend more money once they’re there, they don’t address the fundamental question of why people should go to a cinema in the first place. For example, you might not go to a cinema just for a cup of coffee, but you would travel specifically for a movie like “The Wandering Earth.” Without quality films, even if a cinema becomes a food and drink venue, it won’t be able to retain its audience.
2. The lesson from physical bookstores: Don’t become “cafes with screens”
When physical bookstores were impacted by e-commerce, they started selling coffee and engaging in creative products, but most of them turned into “cafes with books.” They lost their advantage as specialized book stores and couldn’t compete with the quality and price of regular cafes. The same risk applies to cinemas today. The core experience of a cinema is watching movies in a quiet, dark environment. If the smell from food stalls or the noise from gaming areas distracts viewers, what’s the difference between a cinema and a mall food court? Moreover, cinemas lack the advantages of established food supply chains; their hamburgers won’t be considered better than those at McDonald’s.
3. Why don’t people go to cinemas? Because there aren’t enough good movies
The main reason people avoid cinemas is the lack of compelling films. China produces many movies each year, but fewer and fewer of them are truly worth watching in a cinema. This is due to several factors: a shortage of high-quality blockbuster films (such as science fiction or action movies), a repetition of IP adaptations and light comedies, and a lack of investment in original stories. The short production cycles and quick returns from streaming platforms have drawn talent away from traditional film-making. As a result, even a hit like “Man Jiang Hong” isn’t enough to sustain the entire industry.
4. This is a global issue: Cinemas everywhere are struggling
The problem is not unique to China; cinemas in Hollywood and South Korea are also closing at a rapid pace. Streaming services (like Netflix and Disney+) make it convenient to watch new movies from home, and post-pandemic consumer habits have shifted, with younger people preferring places that offer dining, entertainment, and social activities, as well as movies. Additionally, cinemas’ profit models rely less on ticket sales—only about half of the revenue comes from tickets, and they still have to pay rent. Selling popcorn and drinks is a necessary source of income. With so many screens (China has the most in the world), many theaters are idle during off-peak hours, prompting them to diversify their operations.
5. Diversification is okay, but don’t lose your core
There are significant differences among cinemas across the country. Some focus on art films in urban areas, while others serve families in smaller towns. If all cinemas blindly follow the trend of adding coffee and games, they will end up homogenizing and losing their unique appeal. A healthy film industry should follow this cycle: quality content attracts audiences, which generates revenue for the cinemas, allowing them to produce more excellent films. Currently, the lack of high-quality content and the competition from streaming services force cinemas to explore alternative businesses, but they must not forget that the screen is their essential tool. If screens become mere backdrops and cinemas turn into “cafes with movies,” they will lose their distinctiveness.
In Conclusion
Cinemas can use diversification to survive temporarily, but their long-term success depends on great stories on the screen. After all, what attracts customers is the emotional impact of the films, not the food and drinks offered at the entrance.