Sonoma County movie theaters struggling to survive hope for Hollywood ending in 2021
The holiday season typically would be a bonanza for local movie theaters with Oscar-worthy films and family tales that would draw many Sonoma County residents.
This year, however, has been a real-life horror flick for local theaters. The coronavirus pandemic has essentially shut down the whole industry, perhaps clamping down operations more than any other economic sector since last spring.
The predicament for theaters became more perilous when Warner Bros. announced Thursday that it would release its films next year on HBO Max and in theaters at the same time, a selection that includes such potential blockbusters as “Matrix 4.”
“That is a heartbreaking development for those of us who are in the exhibition industry and believe movies are meant to be seen on the big screen,” said Ky Boyd, owner of Sebastopol’s Rialto Cinemas.
The dismal year’s financial toll on local theaters can be seen through the lens of Rialto Cinemas, a popular independent theater. To be able to eventually reopen, the owner has increased an original $75,000 GoFundMe fundraising campaign goal to $140,000. As of Friday, more than $118,000 has been pledged online.
“I’m grateful that GoFundMe and crowdfunding exists and that people are willing to support us when we are in our hour of need,” said Boyd, who runs a west county institution that also hosts various film festivals.
The Rialto remains in dire straits, even after receiving a U.S. Small Business Administration Paycheck Protection Program forgivable loan of $97,400 and a federal emergency loan of $150,000.
The theater didn’t qualify for a small business loan program through the state since the eligibility was capped at movie houses with $2.5 million in annual revenue and the Rialto generated $2.7 million in 2019.
To stay close to his loyal customers, Boyd still sells the theater’s popcorn and movie posters, but those sales represent a trickle compared to packing the seats for a summer blockbuster film.
“Those initiatives are more about customer engagement, just trying to have ways we can interact with our customers on a regular basis,” he said.
It also allows Boyd to pay a handful of employees for a few hours of weekly work. He had more than 30 employees on his pre-pandemic payroll.
Boyd has joined a U.S. effort to save cinemas that’s sponsored by the National Association of Theatre Owners to make sure movie theaters are included in any fresh stimulus package passed by Congress. The trade group has argued that without more federal help up to 70% of the country’s theaters could file for bankruptcy or close by the end of 2020, putting more than 70,000 people out of work.
“The stark reality is that many movie theaters will not be able to open again if they don’t receive government help,” Esther Baruh, director of government relations for the trade group, said in a recent statement. The sector is working with the National Independent Venue Association to help coordinate their lobbying effort for specific aid for their sectors.
U.S. Rep. Jared Huffman, D-San Rafael, said he has heard from many small business owners in his district like Boyd about their pandemic plight and that’s why he supported a House-passed bill for an additional $3 trillion stimulus package that was rejected by Senate Majority Leader Mitch McConnell.
House Speaker Nancy Pelosi said Friday there was “momentum” to reach an agreement with Senate Republicans on a compromise financial aid proposal for consumers and small businesses after a group of moderate lawmakers introduced their own $908 billion plan.
“I want to get any relief out the door as quickly as possible,” Huffman said later Friday.
Dan Tocchini, chief executive officer of Santa Rosa Entertainment Group, said he was a little more optimistic than Rialto’s Boyd despite the stiff challenges. His theater business owns Summerfield Cinemas, the Third Street Cinema, the Roxy Stadium 14 and the Airport Stadium 12 just south of Windsor. Tocchini did opt to close Raven Film Center in Healdsburg this summer as its lease was about to expire.
“We are all waiting to when we get open,” Tocchini said, citing hope from recent news that an emergency coronavirus vaccine soon could be approved by federal regulators. “The public won’t be afraid to go back and we’re really hoping by April of next year.”
His company also owns other movie theaters in Central and Southern California, which were open at reduced capacity for about a month this summer before more stringent public health restrictions went into effect. Based on that experience, Tocchini said he think Sonoma County moviegoers will come back once they are permitted.
“It’s not like a bar where they are drinking and talking and patting each other on the back,” he said, of the movie theater experience he thinks people will perceive as less risky after cinemas reopen.
Meanwhile, Boyd has about $20,000 in monthly expenses, most significantly a $14,500 monthly rent payment on Rialto that his landlord won’t temporarily reduce. While property owners have modified lease terms for certain commercial tenants around the county, Boyd has to keep paying his regular rent while closed and hope he can ultimately reopen.
“That’s the rude reality of it and that’s why we had to make a significant increase in our GoFundMe campaign,” he said.
Yet, Boyd still pines for a Hollywood ending next year when vaccines become readily accessible and his customers come back to catch a movie.
“I'm someone who lives in hope and optimism,” the Sebastopol theater owner said. “We just take it a day or a week at a time. Every day brings new challenges and new opportunities.”
By: Bill Swindell
Source: Press Democrat
Next Article Previous Article