The Cinematic Ecosystem and the Future of Moviegoing
Tim Richards, the founder and chief executive of Vue International, one of the UK's largest cinema chains, has a clear perspective on the evolving landscape of film entertainment. He firmly believes that streaming services and home entertainment are not direct competitors to cinemas. Instead, he sees them as part of a broader ecosystem that supports the film industry.
During the pandemic, Richards noted that film studios attempted to bypass traditional cinema models, but this strategy led to significant financial losses. "I think the studios certainly learned that we are in one small ecosystem, we all need each other," he said during an interview with the Big Boss Interview podcast. This realization has fostered a more collaborative approach among cinema chains, which Richards describes as having a constructive relationship. "We are fairly open in terms of trading best practices. We want to have a message that cinemas are a great place to have a good time."
The past five years have been turbulent for the film industry. Vue experienced its most successful year in 2019, only to face near-total closure during the height of the pandemic. The company then struggled with the impact of actors' and writers' strikes, which halted production for nearly another year. Despite these challenges, Richards remained focused on preserving the company and its workforce. "I had a singular focus: save the company and save all of our 10,000 employees," he explained. "When you have a mission like that, failure is not really an option, because the consequences are too high."
As cinemas began to reopen, questions arose about whether the traditional model of film releases had changed permanently. Some films, such as Marvel's Black Widow, saw minimal theatrical runs as streaming platforms pushed their original content. More recently, movies like K-Pop Demon Hunters and The Thursday Murder Club have had short theatrical runs despite their popularity. However, Richards remains confident in the enduring appeal of the big screen. "During the pandemic, there was an increase with subscription services because people had no choice...But that has not continued."
Richards emphasizes that his company does not view home entertainment as competition. "Our biggest, most frequent customers are Netflix subscribers or Disney Plus subscribers. People who love movies love movies in all formats." He also points out that the Hollywood strikes were a supply issue rather than a demand problem. "We've never had a demand issue."
Before founding Vue in 1999, Richards worked as a senior executive at Warner Brothers, where he operated the studio's own cinema chain, Warner Village. In 2003, Spean Bridge Cinemas acquired Warner Village's 36 cinemas, giving rise to the Vue brand. "The headline in the business section of the Times was: 'Unknown Bit Player Buys Warner Brothers,'" he recalls with a laugh.
Industry Challenges and Calls for Support
Despite the resilience of the cinema sector, the entertainment industry is currently facing significant challenges. Persistent cost-of-living pressures have led many consumers to cut back on discretionary spending, affecting revenue across the board. Rising operational costs, including increases in the minimum wage and employer national insurance contributions, have further strained the industry.
Richards has made it a priority to avoid passing these costs onto customers. "We have done our very, very best to not pass on those costs to our customers," he said. "And we haven't. And we've taken a small hit as a consequence, but we're hoping that the volume which we've seen as a consequence will follow it."
He believes the industry has been "squeezed...and kind of attacked in some instances." From his perspective, government decisions have "hurt the people they're trying to help." As the upcoming budget approaches, the industry's message is clear: "Please don't touch [us] again."
While Richards does not believe that streaming services are directly taking away his customers, he is concerned about the potential shift in consumer behavior. "I do worry about 'somebody turning right and going to a theme park or a football game or something else.'" However, he notes that younger generations are more social than previous ones, which is reflected in cinema attendance.
When asked about his favorite movie, Richards responds thoughtfully. "I see a lot - a lot - of movies every week. But I look at a movie like One Battle After Another. And when I see a movie like that, I have hope for the future because it's such an incredible movie. Original IP, original story, incredibly well done."
The Future of Cinemas
With the industry navigating through economic and technological shifts, the future of cinemas remains uncertain yet hopeful. Vue International has returned to pre-pandemic levels of operation and is optimistic about the coming summer. Richards remains confident in the enduring value of the cinematic experience, emphasizing that the big screen will always have a place in the hearts of movie lovers.
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