RusBankrot
We know everything about bankruptcy
24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
THERE WILL BE NO MOVIES: CINEMAS ARE AT RISK OF BANKRUPTCY DUE TO termination of releases
Russian film distributors have begun to calculate the expected losses associated with the refusal of American leading companies to show films in Russia. Walt Disney, Paramount, Sony and Warner Bros. have already announced the suspension of their films’ releases. Considering that Hollywood films brought in about 73% of the profit in 2021, the damage to the industry may be irreparable.
According to experts, the start of March will be unprofitable for the majority of distributors. Unless a miracle happens by May and Hollywood distribution is still not restored, many theaters will face bankruptcy and closure.
Industry representatives note that the determining factor in the future decision of the Western film studios to cooperate with Russian distribution will be the development of events on the territory of Ukraine. Russian films, for which the state allocates funds from the country's budget, may be deprived of the platforms and apps where they can be shown. This conclusion follows from the comments of Alexander Nechaev, editor-in-chief of the ‘Film Distributor Bulletin’, which he gave to Kommersant.
According to Sergey Kuznetsov, who heads the marketing department of the Formula Kino chain, the boycott of American film companies poses much more serious threats to Russian distribution than a pandemic.
Possible support from the state, aimed at saving the industry from ruin, should be many times greater than the financial income that the Russian government annually allocates to support domestic film production. According to experts, in 2022 it was expected that distributors would receive more than 55 billion rubles in revenue. Whether the authorities will support cinema in the current economic conditions is a big question.
According to experts, the start of March will be unprofitable for the majority of distributors. Unless a miracle happens by May and Hollywood distribution is still not restored, many theaters will face bankruptcy and closure.
Industry representatives note that the determining factor in the future decision of the Western film studios to cooperate with Russian distribution will be the development of events on the territory of Ukraine. Russian films, for which the state allocates funds from the country's budget, may be deprived of the platforms and apps where they can be shown. This conclusion follows from the comments of Alexander Nechaev, editor-in-chief of the ‘Film Distributor Bulletin’, which he gave to Kommersant.
According to Sergey Kuznetsov, who heads the marketing department of the Formula Kino chain, the boycott of American film companies poses much more serious threats to Russian distribution than a pandemic.
The lack of state support in this case will simply break the industry to pieces.
Films produced by the American film studios have traditionally occupied a high share of screenings in Russia, bringing cinema owners the maximum revenue. In recent years, Russian film premieres have brought distributors about a quarter of all revenue: in 2019 it reached 23.1%, in 2021 - 27.2%. The only exception was the first year of the pandemic, when Russian films brought in 47.9% of revenue.Possible support from the state, aimed at saving the industry from ruin, should be many times greater than the financial income that the Russian government annually allocates to support domestic film production. According to experts, in 2022 it was expected that distributors would receive more than 55 billion rubles in revenue. Whether the authorities will support cinema in the current economic conditions is a big question.
02.03.2022
