RE: Let's concentrate on the facts.21 Aug 2022 20:21
I also found a BBC's World Business Report podcast interviewing him on Friday:
I've transcribed it (link to it below):
BBC Interviewer: But first let's start by talking about the movies. It's been a blockbuster summer already not least because of this movie (film audio plays). Top Gun Maverick starring Tom Cruise it's made nearly $1.5 billion since it opened at the end of May but it's not been enough to save the world's second largest cinema chain, Cineworld.
The Wall Street Journal is reporting that it is preparing to file for bankruptcy, it's got $4 billion worth of debt. Alexander Gladstone broke the story for the Wall Street Journal, he joins us now.
BBC Interviewer: Alex, thanks for joining us on World Business Report. What's gone wrong, I thought people were flocking back to cinemas after the pandemic?
AG: Well thank you for having me. I think the issue is it's been a little bit too little too late even though cinema attendances are recovering, Cineworld was just so badly damaged by the, I guess, two and a half years of the pandemic and there's a lot of debt and people aren't coming back enough for it to avoid insolvency. And also, you know, while Top Gun was a big hit, looking forward to the back half of this year I think there's a limited slate of blockbuster films coming out. There's going to be Black Panther, which people are anticipating is going to be a big one but there's not that much. So for Cineworld I think they just have to restructure at this point.
BBC Interviewer: We've mentioned Top Gun: Maverick has made $1.5 billion, Jurassic World has made $1.6 billion, Minions $1.1 billion, Thor: Love and Thunder, that's made $0.5 billion. Are those figures just not as high as they were before the pandemic or is there something wrong with Cineworld? You mention that $4 billion worth of debt that it's got.
AG: You know it's not just of course the big blockbusters making the huge difference but the issue is that they had for so long they had their theatres shut and even if there are big blockbusters coming out, it's just not enough for them, and also keep in mind they're still not where they were pre-pandemic. They've recovered from their lows but they still haven't come back to where they were before. And so I just think with the movie slate, even if there's a blockbuster here or there it's not enough content to keep them solvent at this point.
BBC Interviewer: Lots of cinema-goers have been responding to your story on social media saying that ticket prices are too high, do you think that has put people off going especially at the moment with this cost of living crisis that we've got across the world?
AG: Well I mean you can fold it into a lot of other things. Of course with inflation people might be more cautious about splurging on a night out at the movies so I think that's part of it but that's not the full picture here, you know.
Cont.
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