Closure fears for Nelson Bay Cinema unless JobKeeper funding is extended

Owner Neil Merrin says that unless the JobKeeper funding is extended beyond its scheduled end date on March 28, the cinema could be forced to shut its doors.

"If that happens the cinema would be lost to the people of Nelson Bay forever because the cost of starting over again would be out of reach."

Mr Merrin, who has 48 years in the cinema industry, took over the Stockton Street cinema from previous owners Steve and Carol Laws nine years ago.

He says that COVID-19 has almost crippled the independent cinema industry.

"JobKeeper has been a lifesaver for us... I have seven of my 12 staff on JobKeeper payments and I'm not sure how we will cope once those payments stop."

Mr Merrin painted a very bleak picture for the business over the past two months - a period where the cinema would normally be earning a large percentage of its annual revenue.

"December was down 60 per cent and January was down 63 per cent compared to last year. And to put that into context the month of January represents 40 per cent of our yearly revenue."

One reason for the poor attendances, he said, was product release.

"We are not getting the blockbuster movies because the US distribution industry has shut down due to the pandemic. They are either going straight onto streaming devices or being held back and there is no indications from the US when the major releases will open up again. Added to the drop in attendance are the ongoing costs for electricity and rent."

Mr Merrin thanked Port Stephens cinema-goers for supporting new releases such as The Dry and Penguin Bloom, but added that audiences were not turning up in droves.

"There have times when we have played a movie to an audience of one or two people."

Mr Merrin has joined the group of independent cinema owners, headed by Scott Seddon of the Raymond Terrace Scotty's Cinema, in lobbying their federal MPs to help save the industry through an extension of JobKeeper beyond March 28.

In a letter to Paterson MP Meryl Swanson, Mr Seddon, on behalf of Independent Cinemas Australia, said that it was vitally important for the Port Stephens economy to grow that cinemas continue to exist.

"A trip to the cinema provides stimulus to other businesses, such as restaurants and cafes, travel and most of all, employment for Australian workers who mostly live in their local community," he said.

He believed there was light at the end of tunnel.

"Recent announcements by movie studios postponing the release of major movie titles, although disappointing to us, are also reassuring that the producers can see the financial benefit of holding off to release these titles in cinemas over sending them now to a saturated streaming market," he said.

"Independent cinemas are not experiencing the same recovery as other businesses due to circumstances outside their control. We urge the Labor Party help insure that independent cinemas are included in any steps taken by the government to ensure the ongoing success of these industries."

Ms Swanson said that she would be supporting calls for the government to provide aid to the industry.

"Independent cinemas and a range of small businesses are going to take longer to recover that's why this government must meet industry expectation and extend JobKeeper or offer a support package," she said.