Ster-Kinekor shuts down more cinemas amid industry decline

Once home to some of South Africa’s biggest movie premieres, Ster-Kinekor quietly shutters more cinemas — and more closures may be on the way.

South Africa’s largest cinema chain, Ster-Kinekor, has confirmed it will close its movie theatres at Cavendish Square in Cape Town on June 2, 2025 — its third major shutdown this year and the fifth in just over 12 months, signaling deeper trouble for traditional cinemas.

The Cavendish exit follows the closure of Gateway Theatre of Shopping in Umhlanga and Bedford Square in Johannesburg, where rival Nu-Metro has since taken over operations.

“While this chapter closes, we’re firmly focused on the future and are actively investing in our current cinema complexes,” Ster-Kinekor said in a statement. “This will ensure that every visit to watch a movie at one of our Ster-Kinekor theatres delivers a truly exceptional movie-going experience, every time.”

Though the Cavendish shutdown was attributed to a non-renewed lease, the frequency of recent closures — some unannounced until the final days — raises concern. The company’s previously shelved plan to close nine cinemas may still be quietly unfolding.

Ster-Kinekor’s exit from Gateway was handled amicably. “We part ways with Gateway on good terms and with mutual respect,” a spokesperson said. “We are proud to have been part of the centre’s entertainment offering and are grateful for the positive relationship we’ve enjoyed over the years.”

Streaming and the pandemic reshape cinema

Globally, cinema chains are under pressure. The rise of streaming platforms such as Netflix, Amazon Prime Video, and Disney+ has fundamentally changed how audiences consume film. According to this in-depth analysis on the evolution of film consumption, the shift from theatre seats to living room couches is accelerating — and hitting theatres hard.

In South Africa, the trend intensified during the COVID-19 pandemic, when nationwide lockdowns drove viewers indoors and sparked a wave of video-on-demand entertainment service here in South Africa that redefined audience habits.

Post-pandemic cinema attendance initially rebounded, but then dropped 8.8% in 2024. The European Audiovisual Observatory reported 500 million fewer tickets sold globally compared to 2023.

Ster-Kinekor’s struggle is reflective of a global trend — worsened by South Africa’s weakened rand, which increases the cost of importing blockbuster films.

After entering business rescue in 2021, the cinema chain was bought by Blantyre Capital and Greenpoint Specialised Lending in 2022. In 2024, the company announced a potential closure of nine cinemas and the retrenchment of up to 226 employees. However, that was later scaled back to just 52 retrenchments and two closures.

But with three additional closures now confirmed in 2025 — and five locations lost overall — concerns persist that the original downsizing plan is being rolled out incrementally.

More closures to come?

CEO Mark Sardi insists the company is “investing in current complexes” and says Ster-Kinekor is in the advanced stages of opening four new cinemas in “commercially attractive” sites. He added that new Kids’ Cinemas and luxury Cine Prestige upgrades will be launched in the coming months.

Still, the future of legacy cinema is uncertain. The broader context includes the fact that Ster-Kinekor has long played host to some of the biggest local and international premieres — including “The Woman King,” shot in South Africa and 2024’s “Mufasa: The Lion King”, which featured red carpet appearances by Beyoncé, Jay-Z, and Blue Ivy.

Whether premium upgrades and fewer but more “commercially viable” locations can rescue the brand remains to be seen.

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