For whatdo we still go to the cinema?

Introduction: Decline in Quebec’s Movie Theaters Amid Guzzo’s Financial Struggles

As the number of movie theaters continues to decline in Quebec, the financial difficulties of Guzzo cinemas are worrying distributors. At the same time, the giant Cinéplex is preparing to inaugurate five new screens in the new Royalmount, swearing that good weather is back. What does the future hold for movie theaters in Quebec? Portrait of an industry where sun and clouds alternate.In early October, Cineplex’s vice-president of national operations, Daniel Séguin, donned his hard hat and safety vest to show a small group of journalists, including Le Devoir , around a construction site .

In front of him, workers were busy setting up a 2,800-square-metre (30,000-square-foot) entertainment area with more than 80 games—electronic games, bowling alleys and even augmented reality darts. The “Rec Room,” a concept that has proven successful in other provinces, is scheduled to open in late November. “We have very sophisticated games, some in virtual reality,” Mr. Séguin says enthusiastically. The manager points to a space called “Le coin des champions.” “Customers will be able to exchange points for products. It’s a bit like La Ronde. By winning games, they have the chance to win prizes,” he explains.

After wandering through a future 200-seat restaurant, a terrace, a stage for shows, large kitchens, private rooms and a canteen, the group finally goes up to the second floor.

This is where five cinemas are also being created, covering an area of ​​1900 m² (20,000 ft²).

The opening of new theatres goes against the trend of recent years in Quebec, which lost three theatres and 35 screens between 2019 and 2023. According to Mr. Séguin, these are the first theatres that Cineplex, which holds a little more than half of the Quebec market, has built in the province in at least fifteen years.

But these rooms will be out of the ordinary. The screen will extend across the entire width and height of the wall. Between 131 and 143 people will be able to sit there, less than the Quebec average of 184, in large, reclining and adjustable armchairs that take up twice as much space as ordinary seats. “We’re focusing on comfort,” Mr. Séguin emphasizes. “There may be people sleeping,” he adds with a wry smile.

Is this the future of cinema: wrapping a few films in games, meals and luxury? Mr. Séguin says he is banking on the experience lived by the spectators and adds that we will no longer see complexes with more than 14 cinema screens. Cineplex is not ruling out the possibility of converting some of its existing theatres into something else — kitchens or game rooms.

An industry that has weathered the storm

Movie theaters have had a very difficult time in recent years. Pandemic health restrictions forced them to close their doors for extended periods and take on debt. Many households have upgraded their home theater setups, and streaming platforms are more popular than ever. Some distributors have even decided to bypass theaters and release their films directly to these platforms.

“There are people who thought that because of Netflix, the public would no longer go to the movies,” says Éric Bouchard, co-president of the Association des propriétaire de cinémas du Québec, also co-owner of the Saint-Eustache and Carrefour du Nord cinemas.

The Hollywood writers’ strike, which lasted nearly five months in 2023, also restricted their supply of blockbuster films.

But the industry stood firm, and audiences returned. According to data from the Institut de la statistique du Québec , there were 14.5 million moviegoers in 2023, compared to 18.7 million in 2019. The decline has been palpable since the early 2000s; the number of moviegoers peaked at nearly 30 million in 2002. Revenues, meanwhile, fell from $157 million in 2019 to $147 million in 2023 — a drop of about 20% if we take inflation into account . So it’s neither the disaster that was predicted nor an unparalleled success.

Theatre owners are optimistic about the results for 2024 and the years to come. “We are in financial recovery mode. The worst is behind us,” comments Raffaele Papalia, president of the Canadian Theatre Association and Ciné Entreprise cinemas. The summer was very busy in his six establishments.

Their industry has been disrupted, however, and “the status quo is not an option,” according to Bouchard. Many independent owners are currently investing, renovating and making acquisitions, he notes. “If you have an unrenovated complex, people are not going to come.” Like Cineplex, they are banking on more comfortable theatres and on the food and alcohol offerings.

As for the number of screens and seats, Papalia says it’s harder to make a profit in theaters with lots of them. “The cost per square foot — with rent, taxes, salaries, insurance, energy — is more expensive than it used to be,” he says. “If you look at the total number of movies on the market today, there are more, but there are fewer that deserve a big-screen release.”

Several film distributors, for their part, deplore the lack of movie theaters. “It’s been declining for years. In Montreal, all the neighborhood movie theaters practically no longer exist,” laments Armand Lafond, president of Axia Films and representative of the Regroupement des Distributeurs Indépendants de Films du Québec. He cites in particular the Excentris cinema, which closed in 2015 and has not been replaced.

“We’re all crammed into the Beaubien cinema, it doesn’t make any sense,” comments Louis Dussault, president of K-Films Amérique.

Result: arthouse films and foreign films stay on the bill for a very short time. “We have difficulty making them known to their full potential. After two or three weeks, they are replaced by new ones,” says Mr. Lafond.

Guzzo, a fragile giant

Among the screens where you can regularly watch Quebec films, there are the 10 Guzzo cinemas, located mainly in the greater Montreal area and its outskirts. These are mainly cinemas with between 12 and 18 screens.