Vue CEO discusses cinema’s survival in the age of streaming and industry challenges

Tim Richards, CEO of Vue International, argues that streaming services like Netflix and Disney Plus are not direct competitors to cinemas. Despite the rise of streaming during the pandemic, Richards insists that cinemas and home entertainment are part of a larger ecosystem that benefits from each other. Vue, one of the UK’s largest cinema chains, faced severe challenges, including two years of closure due to Covid-19 and the impact of the Hollywood strikes, which halted production. Despite these struggles, Richards is optimistic, with Vue returning to pre-pandemic trading levels and anticipating a strong summer next year. He maintains that people will always crave the cinematic experience, regardless of streaming’s popularity. Vue has worked hard to absorb rising costs and not pass them onto customers. Richards also believes that the entertainment industry is under significant financial pressure due to inflation, increased operational costs, and government policies. Still, he sees the industry as resilient and social media trends suggest that younger generations still enjoy going to the movies. Richards also notes that while streaming is not seen as competition, other forms of entertainment, such as theme parks or sporting events, do pose a threat to cinema attendance.