KUALA LUMPUR, Oct 4 — Gone are the days of traditional cinema where it was just about watching movies as audiences today crave more exciting shared experiences.

This change, which can be considered a result of an eventful past six years that included the rise of over-the-top (OTT) platforms coupled with the Covid-19 Pandemic that almost crippled the cinema sector, has also reshaped how audiences view cinemas today.

According to GSC Chief Executive Officer Koh Mei Lee, while audience footfall has shown encouraging signs of recovery, attendance still lags behind pre-pandemic levels by roughly 20 per cent.

“Consumer behaviour has since evolved, with audiences becoming more discerning about entertainment experiences, showing greater demand for premium, immersive and event-driven experiences in cinemas,” Koh said.

GSC is currently Malaysia’s biggest cinema chain operator with a total of 505 screens across 53 locations nationwide, including four ultra-premium ‘Luxe’ locations under its flagship Aurum Theatre and Velvet Cinemas sub-brands.

In an interview with Malay Mail, Koh dived deeper into how they had to revisit the drawing board for their offerings to satisfy this new and growing demand along with other factors leading to it.

Expanding beyond traditional means

In response to the changing landscape of cinema, GSC has expanded its offerings beyond the screen, now shifting to more fan-centric events such as special screenings, concert films, and live viewing parties that come with interactive activities, and of course, freebies.

This can be seen through some of their recent events such as ScareFest 2026, which united horror film enthusiasts with special screenings past midnight, as well as the Football Final Live Viewing Party in conjunction with the recent Fifa World Cup Finals.

They have also introduced out-of-the-box events such as the 24-hour Spider-Man: Brand New Day Marathon, where they offered special showtime slots until 6am.

Their recent Winefest 2026, which focused on food, beverage and lifestyle enthusiasts also demonstrated the versatility of their cinema and dining spaces.

On top of that, GSC has also invested more in premium large-format screens such as IMAX, 4DX and ScreenX to meet current demand. The latest examples can be seen through the introduction of IMAX with Laser halls at GSC Paradigm in Johor as well as in IOI Mall Damansara.

“Audience preferences are constantly evolving, and we see that as an opportunity to redefine what the cinema experience can be.

“Audiences still love watching great movies on the big screen, but they’re also seeking additional social and memorable experiences.

“GSC connects storytelling, technology, lifestyle, community — uniting film, F&B, events and digital experiences all under one brand, and as such we have expanded beyond just traditional movie screenings,” Koh said.

She also said that these experiences actually complement movies even more instead of replacing them, adding that their goal is to keep pushing the boundaries of cinema by creating total entertainment experiences while preserving the magic of the big screens.

Veiled challenges

Koh pointed out that running a cinema chain is not an easy feat and more often than not, its challenges are often overlooked especially when it comes to operating costs.

She shared that operating cinemas involves high fixed overheads — such as technology maintenance, utilities, and staffing — making operational efficiency essential even as attendance lags behind pre-pandemic levels.

This is why policy relief has proven vital, as demonstrated by the government’s decision to reduce the Entertainment Duty in the Federal Territory from 25 per cent to 10 per cent in 2024, which will be in effect until December 2028.

“Box office revenue and cinema screens grew by three per cent and 30 per cent, respectively, contrasting with the broader national trend, which noted declines of 18 per cent in box office revenues and 32 per cent in the number of cinema screens,” she said.

Koh, who is also part of the local coalition Industry Unite, which is calling for the abolishment of the Entertainments Duty Act 1953, reiterated the importance of its abolishment for the future of the local cinema industry.

“The relief would enable cinema operators like GSC to continue investing in cinema infrastructure, particularly in modernising older locations and upgrading digital technologies across locations to meet the growing demand for premium large-format experiences.

“And also to strengthen the operational resilience of cinemas in an increasingly competitive entertainment landscape,” she said.

Koh also revealed that the growth of OTT or streaming platforms has changed audience behaviour when it comes to opting for cinemas as an entertainment option.

She said that audiences would reserve cinema visits only for major blockbuster and premium large-formats releases such as Obsession, Michael, Toy Story 5, The Odyssey and Spider-Man: Brand New Day.

“This makes it increasingly important for GSC to create experiences that cannot be replicated through home entertainment,” she said.

Moving forward

Despite the shifting landscape and veiled challenges, there are still some positive takeaways according to Koh, which include the growing appetite for cinema experiences that extend beyond the ‘movie-verse’.

“We have seen stronger interest in complementary experiences such as themed food and beverage offerings, limited-edition merchandise, fan-centric events, and community gatherings.

“These allow audiences to celebrate their favourite movies together with like-minded fans — creating shared moments and immersive experiences that can only truly come to life within the cinema,” she said.

Further supplementing this trend, GSC also offers movie-goers several incentives via their GSC Rewards membership programme and promotions that encourage repeat visits while rewarding movie-goers’ loyalty.

Koh also shared that admissions during the first half of 2025 benefited from a strong line-up of local and Hollywood releases, such as Ne Zha 2, Blood Brothers, Ejen Ali 2 and Captain America: Brave New World.

While the release calendar this year has been more varied, they are expecting a better second half for 2026 with a strong lineup of upcoming blockbusters such as Dune: Part 3 and Avengers: Doomsday.