The Devastating Impact Of COVID-19 On Asian And American Box Office
The coronavirus disease 2019 (COVID-19) pandemic has barreled through film industries the world over. The chilling effects of cinema shutdowns due to the novel coronavirus were felt throughout Asia, and even the formidable US box office was not spared.
In the Philippines, there was already a decline in cinema attendance as early as late January with the announcement of the first COVID-19 case. As the cases were increasing and community quarantine status updates were declared, cinema closures ensued. This caused immense income loss in the Philippine box office, estimated to be at least P11.5 billion for the year.
The ban on mass gatherings, implementation of social distancing measures, and declaration of national emergencies were also done in other parts of Asia, such as in Singapore, Indonesia, Malaysia, Thailand, Myanmar, Vietnam, Brunei, Cambodia, Laos, Hong Kong, and India.
South Korea still has operational cinemas, only 35% of which were closed for two weeks. In Japan, about 1,500 cinemas were closed on April 8. In China, 70,000 cinemas were closed but on March 23, it decided to open 500 cinemas to test the public response by offering largely reruns. China decided to close the cinemas again after seven days because nationwide box office revenue amounted to just $2,000. The closure of US theaters was done on March 17 and the National Association of Theater Owners hopes for the reopening of cinemas in late July.
According to S&P Global Market Intelligence and OPUSData, Asia-Pacific box office revenues are down by 85% while the US has an estimated $7 billion loss in global box office, down by 50%, until May. The Asian box office revenue declines are as follows: the Philippines by more than 47% (from the expected $37.48 million to $19.7 million), Singapore by 38%, Japan by over 41%, India by 40%, and China being the worst hit country, down by more than 96% (from $2.148 billion to $238 million). South Korea only gave figures on cinema admissions, which decreased by 89% (from 640,000 expected admissions to 70,400).
The countries mentioned have varied national support measures. Most have crisis management funds or aid packages, while others have quicker fast-tracking of payouts. However, support schemes for the film industry have been quite limited so far. The common banner initiative is the economic stimulus package for small businesses and those who lost employment.
Singapore has the largest and most aggressive stimulus package in Asia pegged at $41.6 million, which is about 12% of its GDP. It recently announced its second stimulus plan worth $33 billion to assist hard-hit sectors like cinema and freelance workers. There are also one-off payments, wage subsidies, and self-employed relief schemes.
These figures and pieces of information were gathered from various national film commissions. Film Development Council of the Philippines (FDCP) Chairperson and CEO Liza Diño sought help from her counterparts who readily provided insights on their closure process, the situation when it comes to their cinemas, available national aid, and projections of income loss.