In a world where streaming platforms and home theatres are gaining popularity, one entrepreneur is making waves in the cinema industry with his innovative approach and unwavering passion. Thushan Rangana Meemanage, the Co-Founder of Scope Cinemas, has been redefining the movie-going experience in Sri Lanka, captivating audiences with state-of-the-art technology and an all-encompassing entertainment atmosphere.
With a vision to provide more than just a movie screening, Scope Cinemas has transformed traditional cinemas into immersive entertainment destinations. From introducing cutting-edge sound systems like Dolby Atmos to offering premium experiences like IMAX, Meemanage and his team have successfully positioned Scope Cinemas as a leader in the industry, attracting a growing number of cinephiles seeking an unparalleled cinematic experience.
The Daily Morning Business recently had the opportunity to sit down with Thushan Rangana Meemanage to delve deeper into his entrepreneurial journey, the challenges faced by the cinema industry, and his ambitious plans for expansion. In this exclusive interview, Meemanage shares insights into the strategies that have propelled Scope Cinemas forward and discusses his vision for the future of the Sri Lankan cinema industry.
May I know what made it so interesting for you to get into this field? Where did you start, and how did you begin this whole journey into the entertainment industry?
Speaking about myself, I used to work as a management consultant, involved with several companies. My first client was EAP Films and Theatres (Pvt.) Ltd., where I started developing a love for this industry through my research. EAP invited me to join their board, and I became the first Director/CEO at EAP Films and Theatres. After leaving the company, my business partner Naveed Cader, who is now the Chairman of Scope Cinemas, invited me to start a new company together; that’s when we launched Scope Cinemas. As for Naveed, his family has had significant experience in this industry for about 65 years, so they were eager to start their own company.
How has the ongoing economic crisis, high cost of living, and people cutting down budgets impacted your business, and how is it right now?
Interestingly, despite the economic recession, people still love watching movies. For example, during the peak of the recession in December, we released Avatar: The Way of Water, which broke all-time records in the country. Following that success, Gajaman was released and generated over Rs. 300 million in box office collections. Avatar: The Way of Water collected over Rs. 400 million. It seems that people are looking for an escape from reality and they turn to cinemas for entertainment.
Do you feel intimidated by services like Netflix and other entertainment applications? Do you think they will take over your industry? What is your opinion about it?
Many studios and industry professionals worldwide believed that the future would be dominated by streaming services. During the Covid-19 pandemic, streaming services experienced a surge in popularity. However, it has been recognised that people are now moving away from streaming and returning to cinemas, as discussed at a CinemaCon seminar in the US. The cinema industry is thriving globally. Even Netflix, which used to have large film production budgets, is now facing challenges as many people shift away from streaming. Some streaming services are merging to survive. For instance, Apple is producing movies and releasing them through Sony and Paramount. So, streaming services are not considered a threat to the cinema industry.
Tell me about your local and international partnerships. Are you considering any mergers, both locally and abroad?
No, I have two companies. Scope Cinemas is an exhibitor, primarily focused on the exhibition business. We showcase a variety of movies based on demand. Currently, we have Multiplex at Colombo City Centre, Liberty, and Kiribathgoda. Our biggest project is the upcoming IMAX theatre at Havelock City, which will have over 1,200 seats. It’s a significant investment of over Rs. 1.5 billion.
My other company is called Skyline Entertainment. At Skyline, we represent Warner Brothers, Disney, and Sony in Sri Lanka, and we have close affiliations with Hollywood Studios. We distribute movies to cinemas across the country, not just to Scope Cinemas but also to PVR and other cinemas.
What sets you apart from your competitors?
We prioritise doing things right and providing the best experience for our customers. We believe in maintaining honesty and not deceiving our customers. Our goal is to differentiate ourselves from competitors through various aspects of our product, such as pricing, place, promotions, and customer service. We strive to exceed customer expectations by organising advanced screenings, paid fans screenings, premieres, and even hosting concerts like with BTS. We continuously seek to introduce new concepts and set industry standards, rather than simply following others. For example, we are opening the first IMAX theatre in the country
Our aim has always been to do things differently and provide a unique experience for our customers.
PVR is closing some of its offices worldwide. Does this concern you and your business in any way?
No, not at all. When attending conferences, you realise that the cinema industry is thriving. While some companies may close their operations or face bankruptcy due to inefficiency, the industry as a whole is performing well. We are not worried about it.
In Sri Lanka, do stand-alone theatres or the mall experience intrigue more people?
The mall experience is what intrigues people in Sri Lanka. A similar trend was seen in India when Ajay Bijli introduced the concept of multiplexes in malls around 1995. This revitalised the entire industry, and credit goes to PVR Cinemas for that. Initially, India also had stand-alone cinemas. In Sri Lanka, it’s the same situation. Cinemas located in malls attract larger crowds compared to stand-alone cinemas because people are looking for a comprehensive experience. With cinemas in malls, they can watch a movie, visit the food court, do some shopping, and engage in other activities like bowling. It’s an all-encompassing experience that people seek.
What are some of the trends that you expect to gain traction in the coming years in your industry? What do you see as the future?
The key trend is the focus on providing an exceptional experience. Nowadays, people can watch movies on big screens at home, so we must offer something more than what they have at home to entice them into cinemas. This is why we have introduced new systems like the Dolby Atmos sound system, featuring a 64.1 sound system with speakers placed strategically for an immersive experience. We also have IMAX, which offers a premium large-scale screen with superior quality. We constantly add more features to enhance the customer experience and encourage their attendance. As part of our expansion plans, we aim to establish cinemas in other parts of the country, such as Galle and Anuradhapura, and potentially even venture abroad. We have numerous plans in the pipeline.
Do you face any regulatory difficulties in Sri Lanka?
Yes, we have faced significant challenges with previous governments. However, we are optimistic that things will change with the new Government. We hope that barriers will be lifted because the cinema industry is yet to be fully liberalised in Sri Lanka. In the past, the National Film Corporation attempted to take over film distribution, which would have resulted in a ban on Hollywood content in Sri Lanka. We had to fight this in court for about 20 years. The current Government’s policy aims to liberalise the industry.
How have the new tax reforms affected your industry?
Like any other industry, we have been impacted by the new tax reforms. As BOI companies, we have received certain concessions, but it’s important to contribute to the country during difficult periods. We don’t blame the Government for these reforms because, as Sri Lankans, it is our responsibility to help our nation cope with the crisis. Since no one else will help us, we must help ourselves.
What are your thoughts on the local cinema industry?
In the local industry, the fundamental mistake often made is assuming that producing any movie will automatically attract viewers. It doesn’t work that way. People are exposed to a wide range of movies, so delivering the right content and maintaining high quality are crucial. When you provide the right quality, people will come to watch your movie. If you produce a movie solely for profit without considering quality, it will likely result in losses. The movie industry requires passion. With the right passion, it can be a lucrative industry. Many people wrongly believe that the cinema industry is dying, but as two young entrepreneurs, Naveed and I, we started our company and have been profitable from day one. Doing the basics right is essential.
What advice do you have for young individuals contemplating starting a business in Sri Lanka but feeling uncertain about the timing?
Follow your passion. Don’t start a business just for the sake of it; you must have a genuine passion for the industry you choose. When you do something aligned with your passion, you won’t feel exhausted, and you’ll love what you do. In my case, I have a deep passion for this industry. My partner and I can work until 10 p.m. at night without feeling tired. Choose your dream job and industry.
Additionally, determination and perseverance are crucial. The initial period of any startup is challenging and filled with issues, setbacks, and disappointments. People may not support you, and some may even laugh at your ideas. However, with perseverance, you can achieve anything you want. Don’t wait for someone else to help you; if you have the passion, start your journey and believe in yourself.