CineCentre says its approach to engaging audiences and differentiating itself from competitors is evidenced by the success of its rewards programme, launched in May 2023.

South Africa’s CineCentre Cinemas, which is part of the Avalon Group and celebrates its 85th anniversary this year, has underlined the necessity of innovation and adaptability in order to remain relevant to the cinema-going audience.

This follows an announcement, last week, by rival Ster-Kinekor that it is eliminating around 230 jobs, due to operational issues.

ITWeb Africa spoke with Avalon Group's CEO, AB Moosa, about the different industry challenges faced.

South African cinemas have had to deal with power outages caused by loadshedding since 2007, the effects of the COVID-19 pandemic and lockdowns, and the temporary setback caused by Hollywood writers' and performers' guilds strikes.

Moosa said CineCentre had, over the years, managed to sidestep many of the industry challenges, pointing out that CineCentre's strategies in business continuity played a pivotal role in promptly tackling such issues.

He added that recent employment layoffs were company specific.

When asked about the influence of streaming services, while conceding the impact on the sector, Moosa said cinemas provide a shared communal experience that cannot be recreated by home viewing.

He said cinemas offer a “sense of event and occasion that personal viewing cannot match.”

“The large screens, immersive sound systems, and collective atmosphere of cinemas significantly enhance narrative immersion, retaining their appeal amidst the proliferation of digital alternatives.”

The online video streaming market has seen exponential growth in recent years, with platforms such as Netflix, Amazon Prime Video, Disney+ and Apple TV+ expanding their services to emerging markets like South Africa.

Moosa said CineCentre’s flexibility to innovation and to customer engagement helped the company keep its head above water during the turbulence, including the recent influence of streaming services.

He said CineCentre's approach to engaging audiences and differentiating itself from competitors is evidenced by the success of its rewards programme, launched in May 2023.

Moosa said there has been a 70% redemption rate with the programme, which helped attract a broader customer base and offered consumers “more than just a movie viewing”.

Among the benefits, he said, are discounts on food, groceries, clothing and leisure activities.