The GU Filmhouse Cronulla will permanently close in February, 2020.
Event Cinemas confirmed the closure today.
"We have made the difficult decision to permanently close GU Filmhouse Cronulla in February 2020," an Event Cinema spokesperson said.
"The primary reason for the closure is to allow us to continue investing in our other sites in the area."
The spokesperson would not comment on whether the venue was losing money or if visitor number were down.
"We are not in a position to discuss financials unfortunately," he said.
"This decision is based on our strong commitment to keep reinvesting in our other venues in the region - Event Cinemas Miranda featuring two luxury Gold Class cinemas, and Event Cinemas Hurstville featuring Vmax with Dolby Atmos.
"These venues will continue to bring customers the latest blockbusters and arthouse movies from around the globe, along with festivals and special events from the worlds of music, theatre, arts, sport and e-sport.
"We've been showing movies at GU Filmhouse Cronulla since 2009 - that's 10 years of magical movie moments, first dates, family outings, birthday celebrations, romantic anniversaries, huge belly-laughs, exciting adventures and nightmarish scary scenes we've shared with the community - and we've loved every minute.
"Our promise to provide exceptional movie experiences in south Sydney is stronger than ever and we truly appreciate the community's ongoing support."
Cronulla Chamber of Commerce treasurer Annette Tasker said the news was sad but a sign of the changing times.
"The Chamber feels that it is indicative of the changing consumer behaviour that the global economy is experiencing, for example, digital disruption and Netflix," she said.
"Cronulla people would rather sit on beach than in a picture theatre."
Cronulla Cinema was re-branded a GU Film House in 2016 with a focus on screening arthouse and niche films while still showing mainstream movies.
The name is derived from Greater Union, which became part of Event Hospitality & Entertainment, which also operates the Westfield Miranda cinema complex.
As part of the re-branding, the Cronulla Cinema foyer was revamped, with a new licensed cafe, but with no upgrade of the cinemas.
The historic building was opened in 1928.
A previous development application said historic and heritage listed cinema buildings were important for their social and civic prominence in a community like Cronulla, illustrated by past community efforts to save the building.