With U.S. Senate working through the weekend to finalize a $2 trillion-dollar coronavirus relief bill, the National Association of Theatre Owners says that without the relief most exhibitors will go out of business.
With the global pandemic crossing into the United States with a vengeance, all domestic screens are dark with no return to business as usual for the foreseeable future as state governors order residents to avoid congregating in groups larger than 10.
John Fithian, CEO of the exhibitors group, told Variety that without federal guarantees in the relief bill, theatres can’t get banks to forward loans to help carry them through the pandemic.
“Overnight, we went from an industry that makes $15 billion a year — $11 billion in ticket sales and $4 billion in concessions — to one that is not going to make a penny for three or four months,” Fithian said.
Indeed, last weekend’s box office (through March 15) was the lowest in 20 years at less than $55 million. Most studios have delayed releasing major titles, while expediting other titles into retail channels sooner.
While the focus on the spending bill revolves around unemployment benefits, cash subsidies to people economically affected by the situation and other issues, relief would be earmarked for some industries, including $150 billion for “severely distressed businesses.”
White House Economic Advisor Larry Kudlow, speaking to the media, said the stimulus package would likely equal 10% of U.S. economic output, or about $2 trillion. The bill would include $50 billion for airlines and $8 billion to cargo air carriers.
Media reports say the hotel industry wants $150 billion, the restaurant industry wants $145 billion. The National Association of Manufacturers wants $1.4 trillion. The International Council of Shopping Centers alone wants a guarantee upwards of $1 trillion.
It may depend whether the Senate (and the House) considers movie exhibitors essential to the economy in the short-term.
“The bailout requests are mind-boggling,” Dennis Kelleher, CEO of Better Markets, a non-partisan financial markets advocacy group, told CNN. “And it’s going to be a matter of who’s going to win and who’s going to lose.”