Crisis or Opportunity? Public Funding and Business Strategies of Italian Cinemas in the Face of COVID-19

The COVID-19 health emergency had a severe impact on Italian cinema exhibition compared to other industrial sectors. During the first lockdown between March and May 2020, over 4,000 screens stopped operating, and more than 6,000 direct employees were suspended from work. In the first quarter of 2020 alone, about EUR 120 million in box office revenue was lost. This situation worsened in the following months, despite a brief reopening in the summer of 2020, which required adherence to heavy and costly medical protocols. Throughout the year, debates and initiatives involving policymakers, professionals, experts, and film enthusiasts aimed to support cinemas and raise public awareness of the economic, cultural, and social losses caused by the closure of these spaces. The Direzione Generale Cinema e Audiovisivo of the Ministry of Culture established a Cinemas Emergency Fund to support companies through a series of Ministerial Decrees. Additionally, the growth of streaming platforms prompted exhibitors to explore online initiatives and virtual cinemas. Two years after the initial closure of Italian cinemas, the paper aims to assess the sector's current state and the specific attention it received from the Italian government in the last two legislative periods. Using industry data and interviews, the paper seeks to answer questions about the impact of COVID-19 on cinemas, the effectiveness of state intervention in ensuring their survival, the entrepreneurial strategies implemented by exhibitors, and potential social and cultural changes in the future.