SPEARFISH, S.D. (AP) - The Northern Black Hills will be without a movie theater following the Sept. 6 closing of the Northern Hills Cinema in Spearfish.
“It is with a heavy heart that we are closing the Northern Hills Cinema after 44 years,” Cindy Steele, spokesman for the theater, told the Black Hills Pioneer.
Her husband, John Steele’s dad, Leonard Steele, built the theater opening it in 1976. Movies have been in John’s DNA since he was 2 years old having owned theaters in Spearfish, Gillette, Wyoming, and Gunnison, Colorado The Colorado theater closed several years ago, and the Gillette venue is for sale as well.
Cindy said the entire Spearfish property will be put up for sale.
“It will be curious to see what comes out. We do have an interested party in Gillette because he has other properties in Wyoming,” she said. “But like he said, ‘Cindy, banks just aren’t loaning a dollar to theaters.’”
The Steeles keep in touch with other independent theater owners in the state and all are struggling.
“In Wyoming, we just applied for a second grant. The governor has been quite generous,” she said. “We’re just not seeing any help here in the state of South Dakota. There’s just no money out there.”
In 2018, the business used $20,000 Spearfish Economic Revolving Fund (SERF) Business Façade Rehabilitation program loan to renovate the theater adding stadium seating. But then COVID-19 hit. The city forced the theater to close in an attempt to stem the spread of the pandemic. And when the cinema could open its doors once again, production companies were not releasing new movies.
“It’s just time I guess. It’s heart wrenching. Just heart wrenching,” she said.
Combined with the economic downfall, John’s health is failing forcing the closure.
Independent movie theaters make very little from ticket sales. The main source of revenue comes from concessions, she said.
“What started the downfall really for us, was when Hollywood started to take movies and put them on DVD so quickly. … The movies just didn’t have any legs anymore,” she said. “People knew that and they would say ’oh, I’ll just wait till its on DVD.’
“Hollywood is definitely not our friend. They care more about the international market – China.”
Recently, The Walt Disney Co. announced that it would release its highly-anticipated “Mulan” on Disney Plus instead of a wide theatrical release. People wanting to watch it will have to subscribe as well as pay an additional $29.99.
“It was horrible. We were really looking forward to having that revenue,” she said.
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