Bad news for people who go to the movies theater in South Africa: The Impact of Streaming and Inflation

Over the past decade, movie ticket prices in South Africa have skyrocketed by a staggering 92% to 275%, according to an analysis by MyBroadband. This sharp increase has left many movie lovers questioning the affordability of a night out at the cinema, especially as streaming platforms gain immense popularity.

In particular, two major cinema chains in South Africa, Ster-Kinekor and Nu-Metro, are facing mounting challenges. These companies, once dominant players in the movie exhibition market, are now competing with the growing demand for video streaming services. The increasing availability of high-quality movies and series on streaming platforms has led to more consumers opting for larger home screen setups rather than going to cinemas.

The Covid-19 pandemic further accelerated the shift to streaming, as lockdowns forced people to spend more time at home, making streaming services even more convenient. Additionally, the rand’s depreciation against the US dollar has added to the pressure on cinema ticket prices.

Bad news for people who go to the movies theater in South Africa: The Impact of Streaming and Inflation

How the Weakened Rand Affects Movie Ticket Prices

Many South African movie distributors purchase Hollywood titles in US dollars. Since the US film industry commands approximately 40% to 45% of the global box office, and Hollywood films are more popular among South African audiences than films from Bollywood or Nollywood, the impact of the rand’s depreciation is significant. Between March 2015 and March 2025, the value of the US dollar increased from R12.07 to R18.24, making it more expensive to import films and thus driving up ticket prices.

The Struggle for South African Cinemas

In an attempt to offset rising costs, cinemas like Ster-Kinekor and Nu-Metro have increased their ticket prices. Despite adding extra advertising revenue during screenings, movie theaters have been forced to hike prices substantially to stay afloat. The cost of FWA (Fixed Wireless Access) is also rising, but these networks often fail to meet the expectations of fiber-optic broadband or 5G services.

Ster-Kinekor’s cheapest tickets have gone from R24 in 2015 to R89.90 in 2025, representing a 100% to 275% increase, depending on the cinema. In contrast, the price for premium services like Imax and Cinema Prestige has seen even more substantial hikes, with some tickets reaching R230 compared to R120 a decade ago.

For example, Herotel, one of South Africa’s top providers, offers a 4/2Mbps connection for R499, but this is significantly slower than services like fiber-to-the-home (FTTH) and 5G, which offer much higher speeds at a similar price.

The Rise of Streaming Services

Streaming platforms, including Showmax, Netflix, Amazon Prime Video, and Disney+, have made it easier for consumers to access movies and shows from the comfort of their homes. These services have become more popular in South Africa due to their convenience and affordability compared to the rising costs of movie theater tickets.

Some streaming services, like Netflix Basic, offer plans that cost R99 per month, which is cheaper than a single movie ticket at some cinemas. Even Disney+, which is the priciest option at R159 per month, is still cheaper than the average cost of attending a movie screening at local theaters, especially when factoring in transport, parking, and snacks.

Ster-Kinekor and Nu-Metro’s Struggle to Adapt

Both cinema chains have attempted to adapt by introducing new strategies, such as screenings of sporting events, music concerts, and classic movies. However, their attempts to diversify have not been enough to offset the drop in cinema attendance. Ster-Kinekor has managed to avoid a full closure by adjusting its offerings, but it had to shutter two locations and cut nearly 60 jobs in 2025.

The Challenge of Keeping Prices Competitive

For movie-goers, the increasing cost of tickets is making it harder to justify a trip to the cinema when alternatives like streaming are more affordable. Nu-Metro has also raised prices significantly, with 2D and 3D tickets now priced at R135, up from R55 to R70 a decade ago. Even the premium Xtreme screenings have seen price increases of more than 100%, going from R99 to R200.

What’s Next for the South African Cinema Industry?

Despite these challenges, there have been a few bright spots for the South African movie industry. High-profile blockbusters like Barbie, Oppenheimer, and Dune 2 have drawn crowds back to theaters. However, to compete with the growing dominance of streaming services, cinemas will need to find a way to offer more value and convenience to movie-goers.

As long as ticket prices continue to rise and the streaming industry keeps evolving, South African cinemas will need to adjust quickly or risk further losses. With more people choosing to watch movies at home, cinema chains must rethink their strategies to keep their audience engaged and draw people back into theaters.

FAQs

Q1: Why have movie ticket prices increased so much in South Africa?

A1: Movie ticket prices in South Africa have increased significantly due to several factors, including rising inflation, the weakening of the rand against the dollar, and the increasing cost of acquiring foreign films, particularly from Hollywood. Additionally, cinema chains have faced higher operating costs and have had to raise prices to maintain profitability.

Q2: How does the rise of streaming services affect movie theaters in South Africa?

A2: The rise of streaming services like Netflix, Showmax, and Disney+ has led to a shift in consumer preferences. With vast libraries of movies and series available at home, many people prefer watching on larger screen TVs rather than going to the cinema. The COVID-19 pandemic also accelerated this trend, as people became more accustomed to staying home and streaming content.

Q3: What role does the weak rand play in increasing ticket prices?

A3: The rand’s weakness against the dollar has made it more expensive for movie distributors in South Africa to purchase films, as many popular movies are bought in US dollars. This has directly impacted the cost of acquiring films, which in turn has caused theaters to increase ticket prices to compensate for the added expenses.

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