Pathé's Return to Belgium: Historic Cinema Giant Makes a Strategic Comeback

Passing through Belgium on my way to The Netherlands this weekend, an article in the local De Standaard weekend edition caught my eye. "Franse bioscoopreus Pathé keert na eeuw terug naar Vlaanderen" did not just mark a noteworthy strategic return of a major European cinema player to the local market, but also made me optimistic about the future about theatrical exhibition in Europe in general.

What the article notes is that the European cinema landscape is witnessing a significant transformation as French exhibition powerhouse Pathé Cinémas orchestrates a strategic return to Belgium after what was effectively a century-long (!) absence. This move, beginning with the transformation of the Euroscoop multiplex in Genk, represents more than just a business transaction – it's effectively a statement about the potential future of theatrical exhibition in Europe.

Historical Context and Current Strategy

Pathé's history in Belgium runs deep. The Ciné Pathé in Antwerp was once a crown jewel of early cinema, and the Pathé Palace in Brussels, dating back to 1913, stands as a testament to the company's historical significance. Today, operating 127 cinemas across several countries, Pathé remains a dominant force in European exhibition, particularly in France and Belgium's neighbour, The Netherlands. Their return to Belgium isn't just nostalgia – it's strategic expansion.

The Belgian Market Transformation

Pathé's plans for its current Belgian operation involves several key elements:

• The rebranding of multiple locations under the Pathé banner (it had 10 cinemas under six different names!);
• A €10+ million investment in modernisation;
• Strategic consolidation of smaller venues, including the closure of locations in Libramont and Marche-en-Famenne;
• A comprehensive renovation program focused on enhancing visitor experience.

Those that have visited Pathé's multiplexes in France or The Netherlands will know what to expect (see my Cinema of the Month: Pathé Beaugrenelle – Paris, France from February 2020, for example), which is an amazing experience, or witness the sums spent on renovating and upgrading Amsterdam's gorgeous Pathé Royal Theatre Tuschinski (which CinemaNext was closely involved in).

Market Challenges and Opportunities

The timing of this move is particularly intriguing. Belgian cinema attendance shows challenging trends, with per-capita visits lower than other European markets at just 1.1 visits per year [actually 1.4 I am now reliably told]. However, Pathé's leadership tellingly sees this as an opportunity rather than a deterrent. According to their Belgian management, pandemic recovery is underway, with attendance figures showing positive momentum.

Digital Integration and Future Vision

What sets this expansion apart is Pathé's holistic approach to entertainment:

• Recent success with major releases like "The Count of Monte-Cristo" and "Monsieur Aznavour";
• The launch of their streaming platform "Pathé Thuis" in Belgium;
• Plans for "Pathé Home" in France, demonstrating their multi-channel strategy;
• Using streaming platforms to give older films a second life, effectively bridging traditional cinema with digital distribution and the 'second life' of films previously for video stores;

Competitive Landscape

The move is not without risks as the Belgian market presents some unique challenges:

• Strong presence of market leader Kinepolis in prime locations;
• Need for careful positioning to avoid direct competition, with Kinepolis already in most city centres;
• Opportunity for differentiation through premium experiences comes at a cost;
• Focus on local market understanding and programming, with Flanders very different from French-speaking Waloonia and mixed/cosmopolitan Brussels.

Strategic Implications for European Exhibition

Taking a step back and looking at the bigger picture beyond the film fields of Flanders, this move by Pathé illustrates several key trends reshaping European cinema, which should give cause for optimism overall:

1. Major operators see value in territorial expansion despite streaming competition;
2. Investment in physical infrastructure remains crucial for long-term success;
3. Hybrid models combining theatrical and digital distribution are becoming standard;
4. Historical brand equity can be leveraged for modern market positioning.

Pathé would not be spending €10m on a market with an average of 1.1 [1.4 actually] annual cinema admissions if it did not seriously believe that there was potential for organic growth. As Bram van den Broek makes clear in the article, "There is still room for more cinema, but we are not going to be direct competitors in battle with Kinepolis." European cinema does not have to be a zero-sum fight over a shrinking pie; investing in cinema is investing in future growth of the market.

Looking Ahead

Pathé's return to Belgium may thus represent a broader trend of legacy operators reasserting their presence in key European markets. The success of this venture will likely depend on:

• Effective modernisation of acquired properties;
• Strategic programming balancing blockbusters with local films;
• Integration of digital and theatrical offerings;
• Building customer loyalty in a competitive market;
• Innovative use of new technology (AI) and premium offerings, combined with excellent service.

As one of Europe's oldest and most storied cinema operators, Pathé's bold move back into Belgium could set a precedent for similar expansions across the continent. Their strategy of combining traditional exhibition strengths with digital innovation might well become a blueprint for cinema operators worldwide.