Spark Deep Dive: Hong Kong cinemas struggle in the world of streaming
Although the city had two massive box office successes last year, the industry has yet to recover after the Covid-19 pandemic
Hong Kong cinema chain Golden Harvest closed its Nam Cheong branch in December 2024. At least nine cinemas closed last year, including two each from the Golden Scene and MCL chains. Three more announced their closure in the first three months of 2025. Photo: May TseDeep Dive delves into hot issues in Hong Kong and mainland China. Our easy-to-read articles provide context to grasp what’s happening, while our questions help you craft informed responses. Check sample answers at the end of the page.
News: Why are Hong Kong cinemas closing despite recent box office success?
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Although two Hong Kong films broke box office records last year, cinema attendance is still declining
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Covid-19 restrictions, streaming platforms have taken their toll on the industry
Two Hong Kong films broke records by surpassing HK$100 million (US$12.9 million) in box office takings last year. Although the hits The Last Dance and Twilight of the Warriors: Walled In brought in crowds, they did little to ease the woes of cinemas in the city.
From a peak of more than 125,000 seats in 112 cinemas in 1994, there are now under 40,000 seats in 56 cinemas, according to the Hong Kong Theatres Association.
The city’s cinemas took a beating during the Covid-19 pandemic. They had to close for about 200 days each year while still paying rent and salaries. This resulted in massive losses across the industry.
At the same time, streaming platforms such as Netflix and Disney+ have caught on. These services allow users to watch what they like, when they want, at home.
Cinema chain UA closed down during the pandemic in 2021 after 36 years in Hong Kong. It had six cinemas.
At least nine cinemas closed last year, including two each from the Golden Scene and MCL chains. Three more announced their closure in the first three months of 2025.
“Cinemas have to look at average revenue across the entire year, not just one or two films that do very well,” said Crucindo Hung Cho-sing, chairman of the Federation of Motion Film Producers of Hong Kong.
The total box office takings of about HK$1.3 billion (US$167.5 million) was spread across nearly 300 screens. “Every cinema made a loss if we divide the revenue among them,” Hung said.
For the industry to break even, annual takings had to be at least HK$2 billion (US$257.6 million), Hung explained. “There is still a massive gap,” he added.
Hong Kong films are not the only source of revenue for cinemas in the city. They also screen films from mainland China and abroad.
US-made productions had the largest share of the market. However, according to Hung, receipts from American films dropped from about 75 per cent of the box office takings to around 40 per cent last year.
So, while Hong Kong films brought in slightly more money last year, that increase was more than offset by the decline in takings from US films. This means that last year was the worst for box office performance in years, he said.
Staff writers
Question prompts
1. Which of the following is true, according to the news?
(1) Two Hong Kong films broke box office records last year.
(2) Cinema attendance increased during the Covid-19 pandemic.
(3) Streaming platforms are not popular in Hong Kong.
(4) American films have the largest market share in Hong Kong.
A. (1), (2) only
B. (2), (3) only
C. (1), (4) only
D. (2), (4) only
2. How many cinemas were there in Hong Kong in 1994 compared to now? What does this say about the industry?
3. According to Crucindo Hung, why was last year’s box office performance poor even though Hong Kong had two hit films?
Graphic
1. What is being shown in the graphic? How does it reflect the information presented in the news?
2. Using the news, glossary and your own knowledge, list TWO reasons why Hong Kong cinemas are struggling.
Glossary
box office: in a cinema, this is the spot where you can purchase movie tickets. It can also refer to the commercial success of a film, play, or actor in terms of audience size or money they earn.
The Last Dance: a 2024 drama set around Hong Kong’s funeral trade. It is the highest-grossing domestic film ever in Hong Kong, earning more than HK$122 million at the box office.
Twilight of the Warriors: Walled In: a Hong Kong martial arts action film set in the notorious Kowloon Walled City. It is the second highest-grossing domestic film of all time in Hong Kong and has received critical acclaim worldwide.
revenue: money an organisation receives from its normal business activities. It is not the same thing as profit, which represents what is left over after all expenses have been paid. A company can have high levels of revenue without earning any profit at all.
Sample answers
News
1. C
2. There were 112 cinemas in 1994 compared to 56 cinemas now.
3. According to Hung, although two local films performed well, box office revenue was still the lowest in 13 years at HK$1.34 billion, far short of the HK$2 billion needed to break even. Although these local films made more money, US films – which constitute a majority of those in cinemas – made less money, so overall revenue dropped.
Graphic
1. The graphic shows a cinema with empty seats, reflecting the problem of decreased cinema attendance outlined in the news.
2. People are choosing to watch movies on streaming platforms like Netflix and Disney+ instead of going to the cinema. They also took a beating during the Covid-19 pandemic, when they had to close for about 200 days each year while still paying rent and salaries, resulting in massive losses across the industry.