Challenges Mount for Cinema City

Runaway inflation, rising energy prices and changing audience habits are posing extreme challenges for cinemas, including Cinema City. However, the country's biggest cinema chain has no plans to cut the number of screenings, but expects overheads to rise further after January, the business news site napi.hu reports.

There are currently no plans to raise prices for tickets and buffets, but changes may be necessary in the future. The streaming giants, on the other hand, are less of a threat to cinemas, as the business model is increasingly moving towards studios driving audiences to cinemas during the premiere season.

Hungarian cinemas have not even recovered from the difficult years of the epidemic, and this year they are facing another crisis. The brutal rise in energy prices has multiplied maintenance costs several times over, and with inflation becoming more and more acute, it is questionable what potential cinema-goers will spend their entertainment money on.

However, there is another threat to cinemas, with online streaming services taking over the world. Hundreds of millions of people are willing to pay to watch their favorite films and series anywhere, anytime, for an amount equaling HUF few thousand a month. So, the crisis and changing viewing habits are posing serious challenges for industry players, including Cinema City, which operates 18 cinemas nationwide.