Prime Central district cinema may shut down as box office revenues plunge to 13-year lows
Another Landmark Theatre on the Brink
Hong Kong’s struggling cinema industry faces yet another devastating blow as Sun Hung Kai Properties explores alternatives for the Palace IFC space in Central’s premier shopping mall. The upscale cinema, operated by Edko Films under the Broadway Circuit brand, occupies approximately 20,000 square feet with five screens and 544 seats. According to sources familiar with the matter, the property management has begun informal discussions with potential tenants as the cinema’s lease approaches expiration at year-end. Overall box office revenue in Hong Kong fell 16 percent year-on-year in 2025, reaching the lowest level in 13 years. The decline extends a multi-year downturn that has devastated the local film exhibition sector. Industry observers note the challenge of finding replacement tenants for such large retail spaces, particularly in premium locations where international brands are preferred.
Systematic Collapse of Theatre Infrastructure
The potential closure of Palace IFC represents only the latest casualty in Hong Kong’s cinema extinction event. From a peak of 112 cinemas with over 125,000 seats in 1994, the city now maintains just 56 theatres with under 40,000 seats, according to the Hong Kong Theatres Association. Nine cinemas shuttered in 2025 alone, including the exit of legendary operator Golden Harvest after nearly five decades. The pandemic delivered catastrophic damage to the sector, forcing venues to close approximately 200 days annually while continuing to pay rent and salaries. Emperor Cinemas closed its Ma On Shan branch in January 2026, leaving that district without any cinema access. The Ma On Shan outlet, originally opened in 1995, represented the sole theatre serving a significant residential population.
Streaming Platforms Accelerate Theatre Obsolescence
The rise of Netflix, Disney+, and other streaming services has fundamentally altered consumer behavior, mirroring global trends where audiences prefer home viewing convenience over theatrical experiences. Hong Kong audiences are simply not attending cinemas compared to historical patterns. Even successful local productions like “Rob N Roll” and “Back to the Past,” which broke the HK$100 million box office threshold, have failed to reverse the industry’s terminal decline. The economics have become untenable for operators. High rent costs in Hong Kong’s notoriously expensive retail market, combined with plummeting attendance, have made cinema operations financially unviable. Mainland Chinese theatre chain Bestarfilm Cinemas has acquired some closed venues, but this represents consolidation rather than growth.
Cultural Implications for Democratic Expression
The cinema industry’s collapse carries profound implications beyond entertainment economics. Historically, Hong Kong cinema served as a vital medium for cultural expression and social commentary, often providing subtle platforms for discussing political themes that couldn’t be addressed directly. As Beijing tightens control over Hong Kong’s cultural landscape, the disappearance of independent exhibition spaces eliminates another avenue for diverse storytelling and artistic freedom. The industry that once produced internationally acclaimed directors like Wong Kar-wai and John Woo now struggles to maintain basic theatrical infrastructure. Young filmmakers face diminished opportunities to showcase work, while audiences lose access to films that might not conform to mainland censorship standards. The Palace IFC closure, if it proceeds, will symbolize not just commercial failure but the erosion of Hong Kong’s once-vibrant cultural autonomy.
Senior Journalist & Editor, Apple Daily UK
Contact: athena.lai@appledaily.uk
Athena Lai is a senior journalist and editor with extensive experience in Chinese-language investigative reporting and editorial leadership. Educated at a leading journalism school in the United Kingdom, Athena received formal training in fact-checking methodology, editorial governance, and international media standards, grounding her work in globally recognized best practices.
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