|
|
This topic comprises 2 pages: 1 2
|
|
Author
|
Topic: Should Studio's Pull Product From Bad Theaters
|
Jim Ziegler
Jedi Master Film Handler
Posts: 753
From: West Hollywood, CA
Registered: Jul 99
|
posted 03-27-2005 04:28 PM
quote: Steve Guttag
Legally, if you did not provide the service that the license of the ticked provided (Show the movie) you are required to refund the price of the license (ticket).
Actually, by providing a readmit, you are still providing the service, just at a different time.. Legally you should be covered.
quote: Steve Guttag
As to the readmit due to the power outage? That is not the studio's problem, that is the theatre's. It isn't that their print didn't work, it was your theatre.
How is that the theatre's fault? Seems to me, the fault would be with the electric utility..
quote: Steve Guttag
As to the theatre losing money on the readmit...Give me a break...what a silly answer. If the theatre's cut is 10-45% (depending on market and week of run...etc)...the readmit affects the theatre's income rather minimal since the bulk of their profits are from the concession stand.
10% of a $10 ticket is $1.00. Most megas I have been in run about a $2.65 percap, so, even in a 90/10 situation, that is still more than a 25% drop in revenue. If it is a 45% cut for the theatre, that is $4.50 vs the $2.65 per cap... I would not call those numbers minimal, especially considering the narrow margins run by many theatres. Steve, look at some P&Ls sometime..
quote: Steve Guttag
Thus, the theatre shifts the profits so that, while neither they nor the studio make a profit at the box, the theatre makes to per-capita profits at the stand
The profit does not come from the box, but the theatre's take of the box office does pay many of the bills. Reduce income anywhere and you reduce overall profitability.
quote: Steve Guttag
the studio's take on this? Just their original cut from the first show. No matter how you cut it, that is theft from the studio.
Bullshit... If you refund the ticket, the studio loses the cut it got, but makes it up when the customer comes back to see the movie again. If you give a readmit, the studio keeps its orignal cut and gets nothign when the customer actually sees the movie. Net result - the customer sees the movie once and the studio gets paid once. But, if the customer comes back next week, the studio is getting thier cut during a week when thier percentage of the box office take is higher.
quote: Steve Guttag
If every ticket or pass issued to see a performance resulted in the studios getting their regular fee from a full priced ticked, this readmit business would slow down dramatically.
So the studio should get paid twice when the customer saw the movie once? Well that makes a lot of sense... Lets punish all those greedy theatre owners for power outages. After all, we know that the power really isn't out, but the greedy theatre owner is just playing with the fuse box...
Steve, try looking at some theatre P&Ls before making all these claims about their profitability and where the money comes from. In most cases, there are legitimate business reasons why chains do things the way they do. Another fact to keep in mind, which would be more profitable, a $20 million megaplex or 20 $1 million fast food restaurants. Quite clearly, its the fast food restaurants. Anyone who owns theatres does so because they want to be in the business - if they are out to make as much cash as possible, they choose another avenue.
| IP: Logged
|
|
|
|
|
|
Steve Guttag
We forgot the crackers Gromit!!!
Posts: 12814
From: Annapolis, MD
Registered: Dec 1999
|
posted 03-28-2005 05:52 PM
quote: Jim Ziegler
Actually, by providing a readmit, you are still providing the service, just at a different time.. Legally you should be covered.
Think again. The license was for a specific product at a specific time. It is not up to the theatre/busniess to change that product or time once the license is issued (ticket). If the business is unable to deliver on the product at the specified time, the customer is legally entitled to a refund. To think of it in reverse, someone could not buy a ticket for Feature ABC on Tuesday at 7:00pm and expect to be admitted to the same feature on Wednesday at 7:00pm if the feature ran just fine on Tuesday. You have both entered into a contract specifying the product and time.
quote: Jim Ziegler
How is that the theatre's fault? Seems to me, the fault would be with the electric utility.
It is not the theatre's fault persay but the distributor has zero liability here. If you are an auto mechanic and you loose power, and consequently lose business since you can't repair cars without power, it is between you and the power company. Don't like it, sue your power company. You won't get far since your business is consequential damages (they won't bill you for the power you don't use)...if the problem is so poorly dealt with that you constantly have problems, you could indeed bring legal actions and attain government support since power is an utility. Consult your lawyer if you are in this situation
quote: Jim Ziegler
Steve, look at some P&Ls sometime..
I actually have...and even been one of those that helped run a chain of theatres.
quote: Jim Ziegler
Bullshit... If you refund the ticket, the studio loses the cut it got, but makes it up when the customer comes back to see the movie again. If you give a readmit, the studio keeps its orignal cut and gets nothign when the customer actually sees the movie. Net result - the customer sees the movie once and the studio gets paid once. But, if the customer comes back next week, the studio is getting thier cut during a week when thier percentage of the box office take is higher.
Nice wording but wrong. If a customer is denied their show for any reason, the studio always takes the hit. The studio gets their cut on the first sale...on the readmit, they get zero...why not? If the customer has the time to see two movies in a time period, where did that second sale go for them? It was denied by the readmit. The studio should get its cut for every patron that goes through the door. You, the theatre, get your chance at selling your popcorn and sugar-water for every patron.
The subject of this thread was should theatres get their prints pulled from bad theatres. Readmits are a prime indication of a theatre that has problems, for whatever the reason. It not only reflects poorly on the the theatre but on the studio and the movie going experience, in general. If a theatre knew that if they had to pay for each of those readmits out of their profits, they would really try a bit harder to not to be in a situation havnig to refund/readmit a patron. If you talk to some managers on this forum you will find they will refund AND readmit too.
quote: Jim Ziegler
So the studio should get paid twice when the customer saw the movie once?
Absolutely, the studio did their end by providing the product...it is the theatre that got into a botched show situation. The customer is coming to see the studio's product, not the theatre's "value priced" food.
quote: Jim Ziegler
Steve, try looking at some theatre P&Ls before making all these claims about their profitability and where the money comes from. In most cases, there are legitimate business reasons why chains do things the way they do.
Again, I have. Most theatre chains have good reasons for going bankrupt rather than doing what they do. The best way I've ever seen to stave off poor P&Ls is high-end presentations. If the shows are flawless, the theatres are of high-quality, the location suits the available patronage and the bookings are proper, the theatre will do well. If the chains decide to overscreen and put in the same-o, same-o theatre, they cut the pie too small. Believe it or not, I've seen theatre owners do quite well running theatres.
| IP: Logged
|
|
|
|
All times are Central (GMT -6:00)
|
This topic comprises 2 pages: 1 2
|
Powered by Infopop Corporation
UBB.classicTM
6.3.1.2
The Film-Tech Forums are designed for various members related to the cinema industry to express their opinions, viewpoints and testimonials on various products, services and events based upon speculation, personal knowledge and factual information through use, therefore all views represented here allow no liability upon the publishers of this web site and the owners of said views assume no liability for any ill will resulting from these postings. The posts made here are for educational as well as entertainment purposes and as such anyone viewing this portion of the website must accept these views as statements of the author of that opinion
and agrees to release the authors from any and all liability.
|
Home
Printer-friendly view of this topic