Cinemas are adapting to the “experience economy” – expert
The closure of the cinema in the capital’s Magelan SEC is part of the transformation of the retail market, the adaptation of formats to the “experience economy”, believes Evgenia Loktionova, director of UTG company. “The official reason announced by the chain is the expiration of the lease term. After closing the location in Magelan (Wednesday is the last day of work – IF-U), the Liniya Kino chain is focusing on its only remaining establishment – in the Cherry Mall SEC (Vyshneve, Kyiv region). This closure is part of a broader transformation of the retail market, where older cinemas are giving way to new formats or are undergoing a complete reconception,” Loktionova commented to the Interfax-Ukraine agency.
According to her, all cinemas are currently undergoing a stage of adaptation to the “experience economy”. On the one hand, the market is showing recovery: in 2024-2025, the volume of film screenings in Ukraine exceeded UAH 5.3 billion. However, the classic rental model is experiencing a crisis: 2025 became one of the weakest in terms of box office receipts in the world (excluding the pandemic), as viewers have become more demanding of content.
Loktionova highlighted the areas that cinema chains may focus on in the coming years. Among them are premiumization, namely the creation of VIP halls, improved service (restaurant menu in the hall) to compete with streaming; alternative content (showing not only films, but also broadcasts of sporting events, concerts, esports tournaments), documentaries and genre films that correspond to the current mood of society.
UTG company was founded in 2001. It has developed over 1,300 real estate concepts. Over the years of operation, the company has leased 4.7 million sq. m of commercial space in Ukraine.