Cathay Cineplexes owner: Interview with mm2 Asia founder Melvin Ang

Captured Dialogue for the Interview with Cathay Cineplexes owner mm2 Asia founder Melvin Ang with CNA

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To really understand audience preferences is definitely more challenging than many decades ago when people only watched television and went to cinemas. I still remain positive that cinema will come back, and the question I always ask myself and others is: Is cinema a typewriter? If cinema is a typewriter – which no one uses anymore – then that would be the so-called real end of cinema in this world. But the answer is always no. However, you need to right-size it and produce content that audiences want, content that motivates them to spend money and return to the cinema.

I’m not passive. In fact, looking at Cathay cinema, we’ve done a lot in the last two to three years. We used to have eight cinema locations on this island. We shut down four because the leases expired, and we decided not to continue – a very painful decision, as every cinema shutdown costs money. You must spend money to retrofit back to the original condition to return to the landlord.

We took painful steps to close four locations – two in Orchard, one in the east (Tampines), and one in Ang Mo Kio. Moving forward, we believe cinemas won’t be that big-sized with many locations, but rather in strategic spots, right-sized, with very good relationships with mall owners. With fewer cinemas globally, when a mall has a cinema, it has an advantage because the crowd is there, and there are fewer locations.

Since COVID started, cinema is about the only business that hasn’t returned to normal. Whether it’s concerts, F&B, karaoke, arcade business, or even outdoor entertainment like zoos – everything else is back to almost normal. But cinema attendance has changed due to lifestyle changes during the COVID lockdown and more options for consumers.

We’ve been managing for the last few years and will continue to do so. Pre-COVID, all our suppliers and partners received payments on time – this is fact, no one got dragged. Unfortunately, this year has been tough. We feel sorry for those we owe money to, but we’re working harder to solve this problem and settle payments.

We’ve been very active and want to do more to cover the cinema shortfall, which hasn’t recovered yet. We’re still discussing how to settle payments sooner to continue relationships. We remain positive that we can solve these problems. It’s not a terminal disease – if money can solve the problem, it will be solved. We must manage funds and business operations while hoping for recovery.

Before COVID, no one owed landlords or partners money. Since COVID started, unless they’re very big players with substantial funds, many cinema businesses like us have creditors in the value chain. We’re managing it and trying to pay progressively.

We’re one of the few Chinese entertainment companies covering all markets, rooted deeply and growing into other markets. mm2 really flies the flag, and we want to capitalize on our presence. Unfortunately, many question why we bought the cinema – that’s history. In hindsight, we wouldn’t have done that.

Regarding pricing, it’s relative. You spend maybe S$14-S$15 at peak, or below S$10 for students, for two hours in a comfortable environment watching a nice story with friends. Whether it’s expensive or not is relative – staying home on social media costs nothing, but cinema offers a different experience.

The future isn’t just about cinema – it’s becoming a multi-purpose space. You can have social gatherings, broadcasts, sound studios for recording, singing, and live broadcasting. It’s evolving into a live house where young people can showcase talent and get spotted.

If you remain very optimistic about cinema’s comeback, you shouldn’t cut your halls. However, we think that’s risky after waiting so long. It’s better to right-size to a manageable financial scale. If demand exceeds capacity, so be it – better than maintaining excess capacity with high rental costs.

Like any business facing financial challenges but seeing ongoing prospects, we’re trying to salvage and grow it. You can’t do it alone – you need partners. We’re willing to dispose of the cinema and just manage it instead.

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