Independent cinemas are seeking targeted federal government support with the JobKeeper wage subsidy coming to an end.
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The delay in blockbuster movie releases due to COVID-19 has taken its toll on the industry. Revenue has experienced a major hit.
Majestic Cinemas CEO and Independent Cinemas Australia vice-president Kieren Dell said unlike many businesses, which had recovered well from the COVID-19 impact, cinemas didn't have a lot of their product supply.
"We are getting some great Australian product at the moment - The Dry and Penguin Bloom have done fantastically - but that is not enough to sustain us unfortunately," he said.
"It is akin to having a restaurant that can serve an entree but can't serve the rest of the meal."
Independent Cinemas Australia is calling for targeted support for the industry from the federal government.
A wage subsidy or grants would sustain the industry until international blockbusters returned to the screens.
"We are very confident once we get past this [COVID-related impacts], business will bounce back, people will be looking for entertainment and these big movies will start to release," Mr Dell said.
He said JobKeeper had been a lifesaver.
"The issue we are facing is unlike many industries, we haven't got back to that normal trading pattern yet - we expect to within the next six months - however JobKeeper is going to finish in six weeks," Mr Dell said.
Independent Cinemas Australia believes up to 50 per cent of independent cinemas are in danger of closing without additional support.
"If they were to close, it's unlikely they would be able to reopen," Mr Dell said.
Mr Dell has raised the need for targeted support for independent cinemas with Cowper MP Pat Conaghan.
Mr Conaghan said people took for granted the ability to watch a movie, but due to the pandemic, independent cinemas had been severely affected.
He said a financial package would be comparable to that provided to the travel agent industry.
"Due to the pandemic, independent cinemas have been impacted quite seriously," he said. "ICA is not unlike travel agents and they should also receive a support package.
"The Prime Minister, Scott Morrison, has not shut the door on industry-specific support in the form of a continuation of JobKeeper support packages and I will certainly be calling for party room support."
Mr Conaghan said the ICA is asking for $89 million in assistance to help cover the next six months. The Cowper MP said he would also be speaking with his colleague across the floor of parliament for support.
"I will speak to my colleagues, I will go back to the party room and I will go back to the joint party room to see what we can do to assist the independent cinemas," Mr Conaghan said.
Independent cinemas make up just over one third of the cinema market and provide up to 90 per cent of the box office for Australian movies.