Theatre Owners of Mid-America

PROJECT PURPOSE

The COVID-19 public health crisis still looms large over the cinema industry. That?s why cinema exhibitors operating across Oklahoma urge our lawmakers to establish a grant program through the American Rescue Plan Act of 2021. Oklahoma can use this federal funding to provide assistance to businesses that were disproportionately hit by the pandemic. And almost no other industry has experienced more economic disruption than Oklahoma?s movie theaters. Although national box office receipts have steadily improved throughout the year, they still lag nearly 70 percent behind 2019?s $11.4 billion in ticket sales, according to recent CNBC article. It is no different for Oklahoma cinemas. There are around 50 cinema companies operating more than 530 screens at over 85 locations across the state. Given our continued challenges, a small grant program of $15,000 per screen would throw a critical lifeline to help these movie theaters bridge the pandemic and contribute to the state?s broader economic recovery. These grants would provide the financial support necessary to keep cinemas afloat by providing exhibitors with funds to cover fixed costs (ex: rent, property taxes, utilities), pay employees, and preserve a critical economic sector for communities across the state.

EVIDENCE

States throughout the country have recognized the cinema industry?s economic and cultural importance by establishing grant programs to help cinema owners. Iowa allocated $5.5 million to provide up to $10,000 per screen to assist the state?s cinemas. Kansas provided $10,000 per screen to movie theaters operating in Kansas. Louisiana provided $10,000 per screen to movie theaters operating in the state. Minnesota provided grants of up to $150,000 for eligible Minnesota cinemas. Nebraska awarded $10,000 per screen for cinemas operating in Nebraska. Wisconsin designated $10 million last year and provided movie theater awards averaging $14,600 per screen. In 2021, Wisconsin awarded an additional $11.25 million for movie theaters.

POPULATION DESCRIPTION

A recent Ernst & Young study found that moviegoers drive billions of dollars in national spending to nearby businesses in non-pandemic years. From Main Street to the state?s urban centers, cinemas are business anchors and economic multipliers in the communities they serve. Cinemas (1) invigorate and revitalize neighborhoods, (2) drive foot traffic to local businesses, (3) foster cultural vibrancy, and (4) create employment opportunities in communities across the state where jobs can be few and far between. It is clear that helping cinemas recover will help many other businesses rebound, as well.

PERFORMANCE MEASURING

Grants must be used for reimbursement of eligible expenditures or lost revenues due to the COVID-19 pandemic. Organizations must keep records of eligible costs for 5 years. Theatre Owners of Mid-America would provide list of eligible cinemas. Administering agency would: Measure total number of grant applications. Measure total grants awarded. Measure total grants disbursed.

ONGOING INVESTMENT AMOUNT

$

ONGOING INVESTMENT DESCRIPTION

None

ONGOING INVESTMENT REQUIRED

One-time project will not need continued funding