The commission also slashed the fee for license to operate a cinema to show one or more films on a permanent or temporary basis.
Saudi Film Commission has announced significant reductions in licensing fees for operating cinemas, paving the way for a considerable decrease in cinema ticket prices across the nation, in a move set to revolutionise the cinematic landscape of Saudi Arabia, according to a report by Saudi Gazette.
Under the leadership of Minister of Culture Prince Badr bin Abdullah, the Film Commission’s Board of Directors approved the decision to slash financial fees associated with various cinema licenses. These reductions encompass licenses for permanent and temporary cinemas, as well as specialised needs cinemas.
The Film Commission has disclosed the revised cinema license costs following a significant reduction. For licenses to operate permanent or temporary cinemas, or those with specialised needs, the updated costs are as follows: In “A” category cities, the fee for permanent cinemas has been reduced to SAR 25,000 ($6664.90) from SAR 210,000 ($55985.20), in “B” category cities to SAR 15,000 ($3998.94) from SAR 126,000 ($33591.12), and in “C” category cities to SAR 5,000 ($1332.98) from SAR 84,000 ($22394.08). Similarly, for temporary cinemas, the reduced costs are SAR 15,000 ($3998.94) in “A” category cities (down from SAR 105,000 {$27992.60}), SAR 10,000 ($2665.96) in “B” category cities (down from SAR 63,000), and SAR 5,000 ($1332.98) in “C” category cities (down from SAR 42,000).
Additionally, the commission has lowered the fee for licenses to operate cinemas showcasing one or more films on a permanent or temporary basis. In “A” category cities, the fee is now SAR 3,000 ($799.79) per branch instead of SAR 21,000 ($5598.52) per screen, in “B” category cities it’s SAR 2,000 ($533.19) instead of SAR 12,600 ($3359.11), and in “C” category cities it’s SAR 1,000 ($266.60) instead of SAR 8,400 ($2239.41). For temporary cinemas, the fee is now SAR 500 ($133.30) per branch in “A” category cities (down from SAR 5,000 per screen), SAR 500 ($133.30) in “B” category cities (down from SAR 5,000), and SAR 500 ($133.30) in “C” category cities (down from SAR 5,000).
The Board’s meeting also resulted in the transfer of licensing jurisdiction for production studios, visual and audio content production, and distribution of cinematographic films to the Film Commission.
Moreover, the Board approved the activation of financial compensation discounts for cinema ticket revenues and fees, aimed at encouraging the private sector to lower ticket prices and offer attractive promotions to the public. These initiatives are expected to fuel the expansion of cinema screens and promote wider screenings of Saudi films at the local box office.
The decisions underscore the Film Commission’s commitment to achieving strategic goals for the film industry, including increasing the box office in Saudi Arabia, enhancing economic contributions from sector companies, and fostering cultural and creative diversity in cinema.
Eng. Abdullah Al-Qahtani, CEO of Saudi Film Commission, emphasised the Commission’s efforts to stimulate the film industry by incentivising cinema companies to offer discounts and promotions, as well as increasing the presence of Saudi films in cinemas.
Al-Qahtani further noted that the fee reductions align with international averages and aim to support cinema companies in ensuring the sustainability and growth of the sector.
The Film Commission, since its inception, has spearheaded the development of the film sector in Saudi Arabia, focusing on infrastructure development, regulatory frameworks, financing, talent stimulation, local production, and attracting international production, all geared towards enhancing the cinematic landscape of the Kingdom.
