'The show will go on': mm2 Asia CEO optimistic on cinema business despite Covid-19 challenges

The cinema business has been hit hard by Covid-19, but mm2 Asia chief executive officer Chang Long Jong has expressed his optimism that the industry is on a road to recovery.

In an interview with The Business Times published on Wednesday (Oct 6), Chang said that the cinema business is "in a stronger position" after experiencing rounds of business recovery cycles due to the shifting Covid-19 regulations.

Chang said: "It is still the case that the cinemas are required to operate at less than 50 per cent capacity while carrying the burden of full rental costs… Each phase [of government restrictions] has had its challenges and we feel that our cinemas have risen well to meet these challenges."

He added: "The road to full recovery is expected to take more twists and turns, and we are taking all necessary precautions to ensure that the show will go on."

Chang also said that compared to the height of the pandemic last year, the release plans for major Hollywood titles are clearer.

"Because of Covid, many major Hollywood titles [due for release in 2020] were postponed to this year, and we now have an exciting pipeline of blockbuster titles to be released in the coming months," he shared.

Some of the big films that will be out later this year in Singapore are Venom: Let There Be Carnage, Marvel Studios' Eternals, and Spider-Man: No Way Home.

Despite the troubles plaguing the industry, there still seems to be a demand for cinema-related assets.

In August, mm2 Asia entered into a sale and purchase agreement with local investment firm Kingsmead Properties to sell 80 per cent of its cinema business (mm Connect) for $84.8 million. Held by mm2 Asia, mm Connect operates eight Cathay-branded cinemas in Singapore and another 13 cinemas in Malaysia.

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Apart from mm2 Asia, Malaysia's Golden Screen Cinemas announced in March that it was buying some cinema assets from MCAT Box Office and Reel Entertainment Holdings.

Then in September, Spackman Entertainment Group's announced that it was selling its entire Zip Cinema business to Kakao Entertainment for $19.8 million.

Chang told The Business Times: "We are thankful that mm2's primary business as a regional content company is still very promising, with Hong Kong, Taiwan and China operating at near pre-Covid levels. In addition, the emergence of more streaming platforms has created more demand for content."

ALSO READ: Covid-19 pandemic fallout: Singapore's movie business has slowed, but film production continues

chingshijie@asiaone.com