The 130-year-old South African company that remains a household name in entertainment

Despite recent challenges, Ster-Kinekor has defied the odds and remains South Africa’s leading movie exhibitor, being part of the country’s entertainment history for over a century.

Ster-Kinekor’s roots can be traced back to 1896, when the first motion pictures were screened at the Empire Palace of Varieties, Johannesburg’s first custom-built 510-seater theatre.

Over time, the company evolved into the country’s cornerstone of cinema culture, adapting to new technologies and consumer behaviours.

The first dedicated cinema opened in 1910, marking the start of a new era for film in South Africa. 

However, progress soon met with adversity as the Great Depression took hold. In the aftermath, with optimism beginning to return, American entrepreneur I.W. Schlesinger established the African Theatres Trust. 

Around the same time, Kinemas (S.A.) Ltd emerged as a rival, sparking a competitive period in local cinema. 

The two companies merged to form African Consolidated Theatres Ltd, coinciding with the entry of international studios like Metro-Goldwyn-Mayer and 20th Century Fox into the local market.

A major shift occurred in 1955 when African Consolidated Theatres was sold to 20th Century Fox. 

Fourteen years later, in 1969, the studio sold the business to South African financial services group Sanlam, which already owned Ster Films and Ster Theatres. 

At that time, government regulations required the entities to operate separately as Ster and Kinekor. 

But in 1970, the two were allowed to merge, officially forming Ster-Kinekor just as television was being introduced to South Africa.

Over the next few decades, Ster-Kinekor expanded steadily and adapted to the fast-changing entertainment landscape. 

In 2008, the company began digitising its operations, launching 3D cinema offerings and, in 2011, introducing Ster-Kinekor Mobi, followed by apps and the premium Cine Prestige experience in 2012. 

The company continued to innovate with initiatives such as IMAX ticket validation stations, self-service catering, and including beer, wine, and coffee at Cine Prestige sites.

These upgrades reflected its ambition to enhance the cinema-going experience and keep pace with global trends in entertainment.

Overcoming the odds

However, despite its innovations and brand loyalty, Ster-Kinekor faced significant challenges in the 2020s. 

The COVID-19 pandemic triggered lockdowns that halted moviegoing. At the same time, the rise of streaming services transformed consumer habits.

This was compounded by Eskom’s persistent load shedding and the Hollywood writers’ strike, further complicating the company’s recovery.

The crisis prompted a Section 189 process in 2023, raising fears of mass retrenchments. However, the outcome was less severe than expected, with under 60 employees affected, and only two cinema locations closed. 

One year later, the business had regained financial stability, with CEO Mark Sardi reporting a healthier balance sheet and stronger year-on-year performance.

Cinema attendance steadily improved between 2021 and 2023, although revenue growth in 2024 remained modest. 

This was largely attributed to delayed release dates for major blockbusters, some of which were pushed out by 12 to 18 months. 

Sardi pointed out that new habits formed during lockdown also contributed to a slow rebound.

“If you got onto the drug of watching a streaming service at home, and you’re worried about travelling through traffic lights that don’t work to a cinema that may or may not be on, it does become a bit of a disincentive to go,” he said.

Still, there’s reason for optimism. PwC forecasts that box office revenues will return to pre-Covid levels by the end of 2027 and exceed 2019 levels by 2028. 

A new strategy 

Ster-Kinekor has been actively reshaping its strategy to accelerate that recovery. Cost-cutting, content optimisation, and creative customer incentives have all played a part.

Throwback Thursdays, offering R50 movie tickets, bundle deals between Monday and Wednesday, revised theatre rental prices, and upgraded tech systems have all helped reinvigorate consumer interest. 

Sardi noted that there are now, on average, 20% more “bums in seats” than there were a year ago.

Although the company is closing its Cavendish and Gateway sites, expansion is still part of its strategy. Four new locations are expected to open in 2025. 

Ster-Kinekor is also exploring alternative uses for some cinema spaces, including non-traditional entertainment like axe-throwing arenas and rage rooms.

Today, Ster-Kinekor remains South Africa’s leading film exhibitor. It boasts 57 commercial cinema complexes in South Africa and six additional sites in Namibia, Zambia, and Zimbabwe. 

With 40 years of on-screen advertising experience, it also provides conferencing venues and live-streaming services. 

Its infrastructure includes 19 Cine Prestige theatres, seven IMAX screens, 303 digital screens, and 121 3D-enabled screens, offering more than 87,000 seats countrywide.

With a loyalty base nearing two million, its iconic blue branding and cinema doors remain open. 

Ster-Kinekor cinemas