A historic cinema will have its empty bar area turned into a new 67-seat auditorium.
The new cinema room at The Dome on Worthing seafront will allow the venue to meet public demand and attract wider audiences.
Unick Consulting Ltd, on behalf of the cinema operator, said the new auditorium was once part of a ballroom which was later turned into a bingo hall during the 1960s.
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This closed in 1990 and remained unused until the first floor was re-opened in February 2000 along with the introduction of the adjacent auditorium.
The space then remained unused until a 2003 refurbishment saw it and another function room opened for companies to hire.
The entire building was closed from 2005 to July 2007 for essential work before reopening, with the room then used until 2020 by an outside firm renting the space for private parties.
It was then handed back to the cinema and despite some functions being held, the operator said demand for this room - which is one of several in the venue - for hire has been low.
Unick Consulting Ltd said converting this room for cinema use would not affect the existing building features or harm the historical asset of the building.
It said the building has a number of other function rooms.
A spokesman for Unick said: "My client, who is already taking on the streaming service competition, is being held back from a meeting public demand to view new releases and not being able to show some award winning releases which will see customers travel to surrounding areas who will cater for these."
In the plans, which were approved by Adur and Worthing Councils on June 20, proposals for one of the existing auditoriums to be refurbished with new seating was also approved.
The venue will also have minor alterations made to the toilets to add extra cubicles.
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