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This topic comprises 7 pages: 1 2 3 4 5 6 7
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Author
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Topic: Small theaters struggle as Hollywood goes digital
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Edward Havens
Jedi Master Film Handler
Posts: 614
From: Los Angeles, CA
Registered: Mar 2008
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posted 09-09-2012 03:59 PM
Sorry Robert, I have zero contempt for the small town theatre owner. I have contempt for any theatre owner who is still crying in public about not being able to afford to convert to digital after all these years. Several smaller chains (200-400 screens) starting becoming all-digital six and seven years ago. If that wasn't portentous enough for any theatre owner that this was the direction of our industry back then, what would have been? When AMC and Regal starting talking about going all-digital three or four years ago?
Some independent theatre owners got smart and starting saving up for digital projections years ago, since it's much easier to come up with the money for conversion over several years when you plan long-term for it. Some independent theatre owners have gone to sites like KickStarter and successfully gotten public funding for some or all of the cost of conversion. Some have been able to go to their bank and say "I've saved up x for this job, and I need to borrow y to finish it, so I can stay open and competitive" and gotten those loans. Why? Because those owners aren't sitting on their asses, dragging their knuckles and crying to reporters about their woes. They are active in finding solutions in order to stay relevant.
In a few hours, the Parma Theatre in Parma OH is closing its doors for good. In articles about the impending closing, the owner says he's been looking to sell for the past seven years but he never once says it had anything to do with not being able to afford to convert to digital. Maybe it does, maybe it doesn't.
I remember the Parma in my youth, when I would spend summers with my grampa in Parma, and its closing leaves this community without a theatre within its borders.
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Tony Bandiera Jr
Film God
Posts: 3067
From: Moreland Idaho
Registered: Apr 2004
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posted 09-09-2012 06:02 PM
quote: Mike Blakesley
Some of them are probably just waiting and hoping for a lower cost solution to come along, or looking for used equipment to become available. I probably would have been in that group too, if we hadn't been in the position to be able to get a bank loan when we needed it.
Mike, I want to preface this post by saying I am not accusing you of anything. Your post, and in particular what I bolded above, is the point I am going to make to someone in particular.
Edward, your posts read as contemptuous...even if that is not your intent.
Having provided service calls to MANY independent cinemas here in California, I can state emphatically that the majority of those who haven't made the conversion yet aren't dragging thier feet on anything..there is simply not enough positive cash flow to allow for putting aside upgrade money.
Let me repeat that again:
There is simply not enough positive cash flow to allow for putting aside upgrade money.
As you yourself know there are a lot of factors that apply to any given location, including lease costs, mortgage costs (for those who are buying/have bought the land the theatre is on), utilities (which vary widely depending on location), insurance costs, demographics, other maintenance issues, etc.
And with the economy being so crappy for so many years far too many banks are not willing to provide loans even for a capital equipment upgrade.
In Mike's case, he was able to obtain the loan he needed to do his upgrade. I would say he ranks as being the 10% or less of independents who are able to get a bank loan. Easily 90% or more of the independents have unfavorable cash flow and would not qualify for a loan.
So everyone here needs to chill out with the "dragging their feet" attacks.
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Edward Havens
Jedi Master Film Handler
Posts: 614
From: Los Angeles, CA
Registered: Mar 2008
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posted 09-09-2012 07:01 PM
I'm not hiding my contempt, Tony. It's just not strictly for small town theatre owners.
But the question is, why was Mike able to get a bank loan in the middle of a strong recession in order to upgrade his equipment? He too is a small town theatre owner. One would venture that he is a smart enough entrepreneur to understand how his chosen field of business is evolving, and maintain a good rapport with his customers. I'm looking at his theatre's blog from Summer 2009, and this is what he wrote when he needed to raise his ticket prices by fifty cents...
quote:
We're currently in major saving mode for Digital Cinema, which will revolutionize the types of entertainment we'll be able to present. It isn't cheap though; Digital will cost us in the neighborhood of $90,000.00. Being in the movie business isn't for sissies!
Mike, when did you finally go digital, and if you don't mind answering, how much of the cost of conversion were you able to raise yourself before you went to the bank?
I'm curious because, believe it or not, my wife and I are planning on opening our own independent art-house movie theatre, wherever we settle after she graduates from law school.
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Carsten Kurz
Film God
Posts: 4340
From: Cologne, NRW, Germany
Registered: Aug 2009
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posted 09-09-2012 07:52 PM
quote: Scott Norwood
I assume that it uses metal-halide or mercury lamps instead. Won't this a) increase the cost of operation and b) reduce color fidelity by using a non-full-spectrum light source?
NEC and Sony use UHP lamps with full-spectrum. It's different from xenon spectra, but it can be corrected to DCI colour space, with some light loss.
quote: Scott Norwood
Also of concern would be the inability to upgrade the server separately from the projector in the future.
They still have HD-SDI input boards, some even Enigma or standard series II IMB options, so you can even hook up a 'traditional' server later. Technically, aside from the more expensive Sony SRX-R515, these are still series 2 projectors. Of course, some limits still apply, but at half the price of typical existing series 2 systems, there is little to complain, as they also offer interesting options not so common with existing projector/server combinations, e.g. support for 3D BluRay/Live event over HDMI, as well as HDMI audio passthrough to the cinema audio system, and HFR.
quote: Scott Norwood
Also, if the lens is part of the projector, does this mean that the machine will only be available with lenses for popular screen size and throw distance combinations?
While lenses seem to be more integrated, the choice of lenses is still the same as for existing projectors. Lenses are motorized as well, although for the christie Solaria One there will also be a cheaper non-motorized version for screens without movable masking.
These machines may also be interesting for dual-projection 3D systems on small to medium sized screens.
quote: Steve Guttag
My guess is the IMBs will remain interchangeable. I see that Barco has boasted about partnering with both GDC and Doremi for their machine. I think DCI compliance would preclude making it brand specific though I have no doubt that Christie's will use a Christie IMB since they are trying to get into the IMB market anyway.
Why should DCI demand brand independence? Christies IMB works only in Christie projectors, yet has achieved CTP compliance in June.
The Solaria One contains a dedicated version of this IMB, without expansion slots, 'single panel'.
- Carsten
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Edward Havens
Jedi Master Film Handler
Posts: 614
From: Los Angeles, CA
Registered: Mar 2008
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posted 09-10-2012 12:36 AM
Tim, the theatres from my youth have been gone for years. Turned in to racquetball clubs (The Belmont Theatre, Long Beach CA, closed 1977) and medical offices (Loyola Theatre, Los Angeles CA, closed late 1970s) and live music venues (The Rio Theatre, Santa Cruz CA, closed late 1990s) and indoor swap meets (Fox Venice Theatre, Venice CA, closed 1987) and parking lots (The Capitola Theatre, Capitola CA, closed 2006).
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