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Author Topic: Your opinion on the future of exhibition
Jeremy Fuentes
Mmmm, Dr. Pepper!

Posts: 1168
From: Corpus Christi, TX United States
Registered: Jan 2004


 - posted 11-16-2005 09:04 AM      Profile for Jeremy Fuentes   Email Jeremy Fuentes   Send New Private Message       Edit/Delete Post 
Digital shouldnt have too big of an effect on properly run theaters, regardless of size. If a theater is well managed, employees are treated fairly, the booth is run as close to perfect as possible, and the customers are respected, then I dont see the big deal. Like someone stated above, the customers dont care how the movie is presented, just as long as its somewhat better than what they can get at home. Bad movies are still gonna be bad, regardless of how much money was spent on the projector. Digital wont be the reason for alot of theaters closing...greedy distributors, and greedy corporations will. I'm almost certain the reason theaters like Mike's have been open so long, is because of how they treat their employees. They actually care about them, and dont see them as just another idiot working concession. Their employees are happier, the customer sees this, and they choose to go to Mikes theater instead of the multiplex down the street. Unfortunately, their are a few other independent theater owners that dont care about their employees either, and those are the ones that deserve to fail.

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Matt Fields
Jedi Master Film Handler

Posts: 545
From: Ohio, United States
Registered: Jun 2005


 - posted 11-16-2005 10:39 AM      Profile for Matt Fields   Email Matt Fields   Send New Private Message       Edit/Delete Post 
I don't see the doom and gloom for small town theatres that some people on the forum do. This is for one reason:

Digital Cinema will make it super easy to get copies of the movie.

Right now really small theatres can't get whatever movie they want when they want it, because of the cost of the prints. Once it costs just a little to make a "vertial" print, the studios will give it to whomever is willing to pay the terms.

Also, I'm not worried about being able to get projectors. Once the big boys upgrade, the market will be flooded with projectors at a low cost. Sure, we won't have the latest and greatest, but we don't have that now.

-Matt

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Jeremy Fuentes
Mmmm, Dr. Pepper!

Posts: 1168
From: Corpus Christi, TX United States
Registered: Jan 2004


 - posted 11-16-2005 11:42 AM      Profile for Jeremy Fuentes   Email Jeremy Fuentes   Send New Private Message       Edit/Delete Post 
quote: Matt Fields
Sure, we won't have the latest and greatest
Dont you think that sometime down the road, you're gonna have to buy the "latest and greatest" in order to obtain certain movies? I can picture it now, emails from distributors..."In order to ensure that you will be able to show Star Wars Episode 10, be sure your projectors have been upgraded to the version 9.0, if they are not, you will have no sound to the movie." Its gonna happen, and theaters will be able to afford the upgrades, but they will have to sacrifice in other places, like paid employee training for these new systems.

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Matt Fields
Jedi Master Film Handler

Posts: 545
From: Ohio, United States
Registered: Jun 2005


 - posted 11-16-2005 12:14 PM      Profile for Matt Fields   Email Matt Fields   Send New Private Message       Edit/Delete Post 
Why would it be in the best interest of the studios to get rid of customers? - Matt

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Jeremy Fuentes
Mmmm, Dr. Pepper!

Posts: 1168
From: Corpus Christi, TX United States
Registered: Jan 2004


 - posted 11-16-2005 12:37 PM      Profile for Jeremy Fuentes   Email Jeremy Fuentes   Send New Private Message       Edit/Delete Post 
I dont think I implied that it was...

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Mike Blakesley
Film God

Posts: 12767
From: Forsyth, Montana
Registered: Jun 99


 - posted 11-16-2005 01:15 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
quote: Jeremy Jorgenson
Bah, film remakes have been around since before any of us were born. Nothing new with that.
Yes, but they weren't 75% or more of the tent-pole, essential films. I'm not just talking remakes, but sequels and TV adaptations too. They're easier to sell than original ideas, so that's why they're so prevalent.

quote: Matt Fields
I don't see the doom and gloom for small town theatres that some people on the forum do. This is for one reason:
Digital Cinema will make it super easy to get copies of the movie.

I was thinking about this: Supposedly the studios are going to pay for the DC by paying "virtual print fees" for each digital "print" delivered. Well, we play a new movie every week, sometimes two in a week. Whereas a multiplex in a city will sometimes play the same print for 8 weeks or more. So taken on the basis of "print fees" generated per auditorium, a small place like ours might be able to generate more in those "print fees" than we might initially think.

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Louis Bornwasser
Film God

Posts: 4441
From: prospect ky usa
Registered: Mar 2005


 - posted 11-16-2005 01:32 PM      Profile for Louis Bornwasser   Author's Homepage   Email Louis Bornwasser   Send New Private Message       Edit/Delete Post 
It is not difficult to get any print now. Whenever you hear that, you are hearing the "interaction" between certain bookers and distribution. I personally know of many small one screen theatres that can get any print they want, BUT not with certain bookers. (non-competitive situations) Louis

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Rick Raskin
Phenomenal Film Handler

Posts: 1100
From: Manassas Virginia
Registered: Jan 2003


 - posted 11-16-2005 03:06 PM      Profile for Rick Raskin   Email Rick Raskin   Send New Private Message       Edit/Delete Post 
And speaking of interaction, don't overlook that the media in the future will provide an interactive experience for the viewer/participant. They will have the ability to become part of the very entertainment they are watching. Don't think so? Well, just look at the popularity of video games. Now to the subject of fat Internet pipes at the home. OC3 (155 Mbps) will be commonplace when fibre get deployed in the local loop. The backbone will be running at terabit speeds, offering no contention for resources at the local end. Bandwidth will be a commodity, and a cheap one at that. So what do I see for the exhibitor down the road? Change with the times, offer special venue and great customer service or be left behind. Sorry, but that's just the way I see it.

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 11-16-2005 04:01 PM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
quote: Jeremy Fuentes
Unfortunately, their are a few other independent theater owners that dont care about their employees either, and those are the ones that deserve to fail.

Boy! If that ain't the blessed truth - mainly that they don't know what the frik they are doing or know how to run a THEATRE BUSINESS! They may know HOW to run a business, but do they know HOW to run a THEATRE BUSINESS..big difference there, I would say.

Once again, and I don't mean to put Mike on a pedestal above all of the other "indies",(even though he deserves it since he earned it), but with his example of running the ROXY is a good example of how an "indie" can run a THEATRE BUSINESS and others should take lessons.

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001


 - posted 11-16-2005 04:21 PM      Profile for Bobby Henderson   Email Bobby Henderson   Send New Private Message       Edit/Delete Post 
Lots of things will be easily possible when you have a 100Mb or faster Internet pipe running into your house or office. It could certainly kill off the current way we rent or buy movies. HD-DVD and Blu-Ray could very well be the last disc-based formats. We may get future video formats off whatever newfangled pipe can stream it.

Stuff like real-time HD video teleconferencing will hit first. Then people will be using HD quality web cams to talk to each other. They may even do that wirelessly. This has the potential of rapidly growing the number of "telecommuter" type office workers in our nation's workforce (or worse, outsourcing even more jobs offshore). On the bright side, not nearly as many cars will be on the roads. More gas price spikes will help encourage growth in the telecommuter workforce.

Cellular phone companies may have to merge their services and businesses into the Internet realm. VOIP-type home and mobile video capable phone use will be pretty common in 2015. Some cellular phones are fixing to hit the marketplace with switchable VOIP or cell service capability (if they're not already available).

quote: Scott Norwood
I don't see broadcast television going away in ten years.
The major broadcast networks and cable outlets will still be around. But the IP-based thing will allow viewers to have access to lots more programming. IP-only based networks are certain to appear and I think there will be a lot of them, particularly international ones. The major networks will survive on the basis of their higher production budgets and more professional production values. That's a factor that will always be there regardless of whether the moving image is film, analog video or digital streaming video over IP. IP will be best at providing lots of different video on demand services. I would expect a network like ABC to have its main broadcast channel, but then have a bunch of Internet outlets for you to repeat view other stuff. Shows that simply get cancelled from a programming slate today may simply be shifted to play out the rest of their run via an Internet site.

Here's the area where TV stations have to be worried. If the station is not in a top 10 or top 20 market, it very likely must survive by ad dollars it generates for itself through local advertising. Major broadcast TV networks have only half the ratings they had back in the 1980s. The audience numbers are gong to get divided up even further as technology improves and provides an more immense number of entertainment choices. Top that off with the probability Americans are going to be increasing their work weeks further just to stay competitive in the global marketplace. Not as much time for being a couch potato. All that stuff equals lower ratings. Businesses won't be willing to pay as much for a TV commercial. Narrow the margins too much and the station won't survive. At least not in a full-fledged sense. When you see small market stations give their news crews the axe and turn into a kind of soul-less automated radio station then you'll know the end is near for that market.

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Dave Williams
Wet nipple scene

Posts: 1836
From: Salt Lake City, UT, USA
Registered: Jan 2000


 - posted 11-16-2005 06:47 PM      Profile for Dave Williams   Author's Homepage   Email Dave Williams   Send New Private Message       Edit/Delete Post 
quote: Scott Jentsch
Contrary to many opinions, I don't think going to the movies costs enough. Raising the price would filter out the elements that aren't there to enjoy the movie. They'll go to the theater down the road and annoy their customers and staff. I would be more than happy to pay 50% - 100% more for a movie ticket, if I knew that the experience was going to be top-notch from the time I walk in the door to the time I get back in my car. Heck, I'd probably pay more than that if the experience was consistently the best it could possibly be. I have yet to attend a theater which would qualify as anything more than "acceptable."

I pay 360 dollars four times a year to take my wife and daughter to the ballet. Thats 120 a ticket. For two hours of entertainment.

People would pay a premium price for a premium experience.

quote: Monte L Fullmer
Yes, it's fun to dream, but reality wakes us up and we have to live within that world of reality ... so what do you do in the meantime and that is "live with it"

Here is a list of people who were warned against thier dreamer mentality, that what they were doint would never work.

Bill Gates
Steve Jobs
The guy who started Jet Blue
The guy who started Southwest Airlines
Thomas Monahan (dominos founder)
The guy who started chick fil a (that is NEVER open on sunday)

and so on..

Nothing ventured, nothing gained. Forget what the industry tells us, make a new industry!

Good business is where you find it. (robocop)

Ciao

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Matt Fields
Jedi Master Film Handler

Posts: 545
From: Ohio, United States
Registered: Jun 2005


 - posted 11-16-2005 10:25 PM      Profile for Matt Fields   Email Matt Fields   Send New Private Message       Edit/Delete Post 
quote: Louis Bornwasser
It is not difficult to get any print now. Whenever you hear that, you are hearing the "interaction" between certain bookers and distribution.
It's true that anyone can get a print of the blockbusters these days, and currently I get about everything I want on the break. But not everything is a superwide release.

"Dreamer" was a good recent example. It opened in 2004 theatres. This did not include small town two screens in the middle of nowhere, or my four screen in Ohio. I don't care if Jesus is your booker, your not getting it if you don't put up the grosses to get you in the top 2004 theatres. It did okay and Dreamworks did expand the second week, to 2700 or so theatres. I did get it that second week.

The release pattern would have been different if everyone was digital and the digital transition was over. It would cost a couple of bucks to make a digital copy of Dreamer and everyone (the whole 2700 or more theatres) would have gotten a copy on the break.

[ 11-17-2005, 05:32 AM: Message edited by: Matt Fields ]

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Sam Graham
AKA: "The Evil Sam Graham". Wackiness ensues.

Posts: 1431
From: Waukee, IA
Registered: Dec 2004


 - posted 11-17-2005 07:36 AM      Profile for Sam Graham   Author's Homepage   Email Sam Graham   Send New Private Message       Edit/Delete Post 
I see the future this way...

First, a wave of multiplexes will close when digital cinema gets going full steam as exhibitors look at their current bottom line and decide if they're worth the investment of upgrading. Slope seating cinemas will become all but extinct in all but small markets.

As digital cinema gets rolling and product is easily distributed, multiplexes featuring independent/small flicks will crop up in the form of modern five-to-ten plexes in more upscale versions of these new "lifestyle centers" where shops and residential development are combined. Some of these will restrict attendance to adults. Adults will LOVE these.

Somebody will finally invent something new that people will buy at snack bars. It will be hailed as the first major revolution in movie food in fifty years and be credited with providing the industry with its best profit increases since popcorn.

Finally, I will still be there, as I always have, watching matinees and poking fun at y'all in the "Film Handlers Movie Reviews" forum, and smiling as people take it too seriously. [Smile]

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Scott Jentsch
Phenomenal Film Handler

Posts: 1061
From: New Berlin, WI, USA
Registered: Apr 2003


 - posted 11-17-2005 11:55 AM      Profile for Scott Jentsch   Author's Homepage   Email Scott Jentsch   Send New Private Message       Edit/Delete Post 
My prediction for the inevitability of digital cinema is based solely on the continuous drive the technology has been on, and the fact that in any industry, when something costs less to produce, distribute, and sell, it will be implemented once the initial costs of doing so have reached a satisfactory level.

From everything I have read, this applies to digital cinema. It should take less time to prepare a movie, less time and resources to distribute it, and (hopefully) less effort to present it. I think they have reached the quality level as well, so now it's just up to the last factor of the initial cost.

I'm definitely not saying that theaters that screw up film projection won't figure out a way to screw up digital projection, since things still need to be monitored, maintained, and updated from time to time. However, I think a fully digital operation will be easier and cheaper to maintain, especially after the growing pains of figuring out the idiosyncrasies of digital projection.

My desire to see digital projection succeed isn't so much because I'm all for everything digital, but I am all for anything that will assist theaters to provide at least a consistently reliable and decent presentation. Customers don't care how it's being projected so long as it's done well.

The marketing surrounding the latest advances (digital sound, stadium seating, digital cinema, THX) has given the customer the impression (correctly or not) that their experience will be better because of these things.

It's amazing to me how many theaters don't get the fact that pleasing the customer and delivering a high quality movie-going experience is their primary mission. I can watch a movie at home on my 100+" wide screen and surround sound, and I can pop my own popcorn and even buy candy in the same type of boxes that theaters serve. But that requires me to do a lot of the work, and sometimes I want someone else to take care of things for me instead. It should be a no-brainer for a professional operation to deliver that.

quote: Monte L Fullmer
I agree, but the bottom line is called money - just not feasable to have a well trained operator for every screen that can garnish a decent career wage to keep then there, or not every circuit can garnish positive attitude towards their employees so that they feel as in doing a good service to ensure this high standard of exhibition when the money isn't along with the positive attitude.

Some circuits are close to this dream and have achieved it very well with tremendous success in their operations. Others..well...you know the rest of the story.

Yes, it's fun to dream, but reality wakes us up and we have to live within that world of reality ... so what do you do in the meantime and that is "live with it"

It's a chicken and egg problem. Theaters who can't serve their customers well will die because customers will not continue to pay high prices and waste their valuable time for substandard service. This is happening now, and it's only the tip of the iceberg in terms of the pain the industry will suffer if it can't figure out the basic truths about being in a service-oriented business.

If it's not feasible to have a trained operator for every screen, then something needs to be done to the operation so that it doesn't need as much babysitting. Wouldn't an automated system take care of some of that load? That's my understanding, but I could be wrong.

How much time would it take for a manager or other staff member to float into each screen at least once during each showing to make sure that the presentation was going well, and that there wasn't a bunch of people causing a disturbance?

In one of the first business classes I took, the most salient point the teacher made was that if you are operating on a shoestring budget, you'll never succeed. You'll be so intent on saving and managing money that you won't have time to concentrate on the operations and direction of the business. While this was being applied to entrepreneurships, I think it applies to established businesses as well.

I've seen businesses so worried about every penny, that they forgot to service the customer well, and brought about their own demise as a result. Could this be the case with many theaters?

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001


 - posted 11-17-2005 01:28 PM      Profile for Bobby Henderson   Email Bobby Henderson   Send New Private Message       Edit/Delete Post 
The case with a lot of theaters, mainly the large chains, is they're mainly driven to just cut costs more and more to improve the appearances of the next quarterly report. In that mindset, investing in items that actually can improve the bottom line get lost. You have to spend money to improve standards of presentation quality. It takes money to maintain those higher presentation standards. You have to pay more to attract and retain qualified booth personnel. Finally, I think it takes more than a minimum wage paycheck to build a lobby staff that can actually deliver good customer service. You get the good old revolving door of high turnover employees otherwise.

The sad thing is cost cutting game is getting forced onto just about every movie theater circuit all thanks to movie distributors running the same game. The primary motive behind digital projection is about cutting costs, not improving presentation quailty. They'll sell you a lot of lip service about how video is better than film. But they really want to stop spending millions of 35mm film prints.

Movie theater companies are chasing profitability like it is a moving target. With every new stunt distributors pull against them, they have to "adjust" for those changes. That typically means even more cost cutting, which translates into lower paychecks, fewer employees working as few hours as possible and then declining levels of customer service and presentation quality.

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