Thousand of cinemas in China under threat of closure - BBC News

More than 40% of cinemas in China could go bust, according to a bleak report by the China Film Association.

There are now more than 12,000 cinemas in China, according to market research firm IBISWorld.

But four out of 10 said they "are very likely to close" in the near future, according to the China Film Association survey.

In the first quarter of 2020, China's box office takings have fallen significantly, according to the film association.

Shaun Rein, founder of the China Market Research Group, believes a major challenge will be the growing strength of China's online movie sector, which is hugely competitive with platforms such as Iqiyi, Youkou and Tencent Video.

He also predicted more pain for cinemas if film companies start to launch direct-to-digital offerings and charge higher prices for online movie releases on a pay-as-you-go basic on top of subscription rates.

"We hear about 20% of local productions have begun or resumed physical work, with the balance postponed or in financial difficulty related to the Covid-19 outbreak," said Rance Pow, chief executive of Artisan Gateway, an Asian film industry consultant

Some have warned that China's film industry will lose up to 30bn yuan this year, including the National Film Administration, a government body