I find it interesting that some people think Cineworld and cinemas in general are at risk of being obsolete. The home experience is nothing like the big screen and is unlikely to be replicated anytime soon. Itās completely different to the dvd era which was killed by streaming platforms.
I have a small stake in Cineworld because itās a bit of a punt. There are a couple of issues, the termination of the Cineplex deal and legality surrounding it and their mounting debt. If there is no second wave with national restrictions, I see them recovering to over Ā£1 per share with potential to get back to their ATH and further. If there are further lockdowns, they will struggle.
Went to cineworld last night and watched Tenet, not many people, a couple losers with masks and myself/partner. Bear in mind this is a āblockbusterā. Got a feeling losses are going to be huuuuge.
Confident of a short here on earnings.
Felt sorry for cineworld. But I did spend Ā£20 quid on a hot dog and popcorn, so I did my part.
Itās not a real blockbuster though. If it was Pirates of the Caribbean part 53 or Star Wars revenge of Luke Skywalkers great grandson, it would be full
Tenet had 7 other people in my showing but my local is remote so always quiet. Plus itās Tenet. No one knows what Tenet is. The masses are waiting for Fast and Furious 18 or Saw 45.
Blockbusters will be back.
And @Gfclappah on Duneā¦ sacrilege. Go watch Prisoners and you will believe what Denis Villeneuve can do.
I get notifications from proactive investors and there has been a lot of movement recently in notifiable holdings for Cineworld. Not all have been increased but most. I have to admit, some I donāt really understand but appear to be leveraged stock options. Lots going on behind the scenes to shore up the finances I think.
I think long term no to be honest. I think cinemas are going to be dead in the next ten years there just too expensive. Once you go and buy food your looking at 20 30 quid when you get you popcorn etc. The business model Is changing with the likes of Netflix etc you can just sit and enjoy at home. Check out what Disney are doing with the moulan movie. You basically get it 1 month before it goes into the cinemas if you have a Disney sub, it still costs 20 quid, but I think in time this is going to be the norm and costs are going to come down. I wonāt be surprised if sky get in on it in the future which will closes cinemas over night. Itās my opinion and I arenāt surprised it hasnāt happened already.
What cinemas should do is go digital and move into this kind of model get a Chanel on sky or something where people can pay to view.
I get that people like to go out and they like the atmosphere with a big screen I get it but itās a very small percentage. I have a cinema/man cave at home. 86 inch 4K tv, Fridge full of beer cupboard full of snacks etc and personally I think itās better than a cinema.
Maybe not. They are still seeking to raise further financial support so hopefully someone backs them.
What is disappointing is the studios are doing absolutely nothing to support cinemas by pushing all these films back. Could easily release now and re-release again next year.
