It’s no secret that the COVID-19 pandemic has seriously kneecapped many industries and one of those industries hurt the most have been movie theater exhibitors that had to shutter their doors back in March due to the global health crisis. A lot of movie theaters have since reopened but they’re running at limited capacity and some markets, like Los Angeles and New York, have yet to reopen. Studios have moved some of their bigger films to open at later dates in 2021 so the theaters that are open are struggling to find content to show on their screens and this is why major filmmakers in the industry believe that they may not survive and now they’re calling on Congress to help.
Dozens of established filmmakers joined with the Directors Guild of America, the National Association of Theatre Owners, and the Motion Picture Association to urge Congress to give a hand to movie theaters devastated by COVID-19. Signatories of the letter sent to House and Senate leaders include Christopher Nolan, James Cameron, Judd Apatow, Jon Chu, Sofia Coppola, Alfonso Cuarón, Lee Daniels, and Clint Eastwood. In the letter, Senate Majority Leader Mitch McConnell, House Speaker Nancy Pelosi, Senate Democratic Leader Chuck Schumer and House Republican Leader Kevin McCarthy are urged to redirect unallocated funds from the CARES Act. The House delayed a vote on a $2.2 trillion coronavirus stimulus bill Wednesday so that further negotiations could be held between, among others, Pelosi and Treasury Secretary Steven Mnuchin. You can read the full letter below:
“Dear Leader McConnell, Speaker Pelosi, Leader Schumer, and Leader McCarthy:
Thank you for your leadership at this challenging time for our country. As you consider forthcoming COVID-19 relief legislation, we ask you to prioritize assistance for the hardest-hit industries, like our country’s beloved movie theaters.
No doubt you are hearing from many, many businesses that need relief. Movie theaters are in dire straits, and we urge you to redirect unallocated funds from the CARES Act to proposals that help businesses that have suffered the steepest revenue drops due to the pandemic, or to enact new proposals such as the RESTART Act (S. 3814/H.R. 7481). Absent a solution designed for their circumstances, theaters may not survive the impact of the pandemic.
The pandemic has been a devastating financial blow to cinemas. 93% of movie theater companies had over 75% in losses in the second quarter of 2020. If the status quo continues, 69% of small and mid-sized movie theater companies will be forced to file for bankruptcy or to close permanently, and 66% of theater jobs will be lost. Our country cannot afford to lose the social, economic, and cultural value that theaters provide.
The moviegoing experience is central to American life. 268 million people in North America went to the movies last year to laugh, cry, dream, and be moved together. Theaters are great unifiers where our nation’s most talented storytellers showcase their cinematic accomplishments. Every aspiring filmmaker, actor, and producer dreams of bringing their art to the silver screen, an irreplaceable experience that represents the pinnacle of filmmaking achievement.
As well as their critical cultural impact, theaters are economic force multipliers. In addition to the 150,000 employees working in cinemas nationwide, the industry supports millions of jobs in movie production and distribution, and countless others in surrounding restaurants and retailers that rely on theaters for foot traffic. Movie theaters are also leaders in employing underrepresented groups, including people with disabilities, senior citizens, and first-time job holders. Cinemas are an essential industry that represent the best that American talent and creativity have to offer. But now we fear for their future.
Theaters need specific relief targeted to their circumstances. We urge you to come together on a
bipartisan solution that provides this relief, by reallocating unspent funds from the CARES Act toward programs designed for industries like movie theaters, or by enacting new proposals such as the RESTART Act. These solutions would fulfill Congress’s intent in helping severely distressed sectors of the economy and ensure that our resources are focused on the industries that need them the most.Please fight for our country’s beloved and essential cinemas by including relief for them in any
forthcoming COVID-19 legislation. Thank you for your leadership and for considering this request.”
According to the letter, 93% of movie theater companies had year-over-year losses of more than 75% in the second quarter of 2020. If the status quo continues, it goes on to say, 69% of small and mid-sized movie theater companies will be forced to file for bankruptcy or to close permanently, and 66% of theater jobs will be lost. Theaters have reopened in many states, but not yet in New York City or L.A. County, two critical markets. Even venues that have reopened are operating with strict capacity limits, and studios have shifted most of their releases out of 2020. Rather than face lower ceilings for major releases, as Warner Bros has experienced with Tenet, they have opted to throw in the towel on a movie year where box office receipts are expected to plummet by at least 70% from 2019 levels.
