Around half of independent cinemas in the UK are projected to make a loss for the financial year 2024-25, according to a survey from the Independent Cinema Office (ICO).
Conducted in November 2024, 48% of the 121 respondents said they were operating at a loss - a 3% increase from September 2023.
Over half of those surveyed (60%) also said they were not meeting their income targets for the financial year and 46% of the venues would need further financial support to remain operational.
The top three most requested types of support were a reduction in sales VAT, grants for capital funding and grants for operating expenses. The need for capital funding, of which there is currently no provision for cinemas, has increased by 8% from September 2023.
The ICO has submitted the data to the UK Parliament Culture, Media and Sport Committee’s Inquiry on British Film and High-End Television and to the Department for Business & Trade’s consultation on the green paper for the UK’s modern industrial strategy.
ICO director Catharine Des Forges said: “Independent cinemas are vital cultural assets in communities right across the UK, often in areas of low cultural provision and have so much potential to be instigators of economic growth for their communities, but a lack of available financial support, rising costs and a range of pressures mean that almost half are operating at a loss.
“It’s particularly concerning that there is still no capital funding available to independent cinemas which could unlock some of this potential and equip them for the future.”
Among the key barriers to growth, the cinemas cited rising costs, reduced audience numbers, a lack of regular high-performing titles and a lack of funding overall as the biggest concerns.
The survey was carried out by the ICO with the support of the British Film Institute (BFI).
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