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This topic comprises 7 pages: 1 2 3 4 5 6 7
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Topic: Small theaters struggle as Hollywood goes digital
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Mike Frese
Master Film Handler
Posts: 465
From: Holts Summit, MO
Registered: Jun 2007
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posted 11-02-2012 08:28 AM
Mike, know this theater at all? Sounds like they made a poor decision to purchase in 2009 if they did not include the cost to convert to digital at that time.
http://www.therepublic.com/view/story/e0bd4bccca7c4dddb60855d9127f0241/MT--Rural-Theaters
KALISPELL, Mont. — Part movie theater, part cafe and part home, Lincoln Theatre owner Tina Moore admits her Troy business is "small town." Now her theater and other rural movie houses are facing an uncertain future as Hollywood studios change formats from film to digital.
According to Patrick Corcoran of the National Association of Theatre Owners, major studios will stop printing movies on film sometime in the next year. After that, the newest films will only be available digitally. The conversion is expected to save the studios $1 billion annually.
The problem for small movie houses, like the Lincoln Theatre, is the digital projection equipment can cost an average of $70,000.
"We're definitely going to try and change (to digital), but it's going to depend on money," Moore said.
Built in 1924, the Lincoln Theatre was the first playhouse in the area to show a moving picture, according to Moore. In its 88-year existence, the theater has gone through many hands and in 2009 Josh and Tina Moore purchased it. Moore says the theater covers itself, but changing over to digital will be an expensive project, especially when movie tickets are sold for $4 to $6. She said she doesn't plan on going into debt to buy the new equipment.
Instead, Moore has been applying for various grants and is fundraising for the new equipment. So far, she has gathered about $500, far short of the $65,000 to $100,000 she believes she'll need for the full conversion. But even if it's expensive going digital, she is embracing the change. She thinks in the long run it will be better for movie theaters and the film industry.
Tina Moore, owner of the Preview Cafe and the Lincoln Theatre, laughs while chatting with customers May 1, 2012, in Troy, Mont. in 2009 Josh and Tina Moore purchased the theater in 2009. Moore says the theater covers itself, but changing over to digital will be an expensive project, especially when movie tickets are sold for $4 to $6. She said she doesnÃt plan on going into debt to buy the new equipment. Instead, Moore has been applying for various grants and is fundraising for the new equipment. So far, she has gathered about $500, far short of the $65,000 to $100,000 she believes sheÃll need for the full conversion. (AP Photo/Flathead Beacon, Lido Vizzutti)
"I can (complain) about it all day long, but that's not going to change anything," she said. "It'll happen or it won't."
Corcoran said if a theater doesn't change, it could close. Of the 5,732 movie theaters across the country, 3,649 have gone to digital. Corcoran estimates that 120 to 150 screens are being converted every week, but admits it might be tougher in smaller markets.
"(Smaller theaters) may be able to get older films, they may be able to sell to someone who can make the conversion, or they may just close down," he said. "It's hard to know for certain. Some small-town theaters will do well, if they have the capital, but others may not."
Moore hopes her theater is in the former group. But even if the conversion doesn't happen right away, she's not too worried. She plans on diversifying the shows her theater hosts, and is hoping to have plays and standup comedy.
"When the technology gets too expensive, you go back to what worked," she said.
Another temporary option she is considering is showing DVDs on her smaller projector. Although the quality may not be as good, she thinks people will still come to her 160-seat theater for the experience. She also has no doubts that the people of Troy will come out and help her raise the necessary funds.
"We just started fundraising and planning and plotting and praying — a whole lot of praying," she said.
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Randy Riddle
Film Handler
Posts: 7
From: Mebane, NC, USA
Registered: Sep 2006
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posted 02-01-2013 08:38 PM
Martin asked about institutional licenses, such as those offered by Swank and how those work.
I work for a university and it's a bit complicated. Swank is considered by the studios as a distributor for the secondary "non theatrical" market. They define that as educational institutions, churches, prisons, and even places like oil rigs.
As an educational institution, we have the right to show films in classroom settings without paying anyone - it has to be part of class, unadvertised, and limited only to members of the course.
For advertised showings that are for the campus community or open to the public, that's where Swank comes in. You can purchase a license for an individual showing. Or, if you obtain a title on vhs, dvd or blu-ray, the library can purchase an institutional license that allows you to have these types of showings as long as the media for the print lasts. And, if you really want to spend some money, they offer a deal where they offer streaming of large catalogue of films to anyone on your campus, whether it's used in a classroom setting or just for research or pleasure viewing by students.
Swank represents the major studios in this market. Our library has to deal with other distributors for many foreign, indie or art house films.
One of my projects at work a couple of years ago was to do an analysis of the films used by faculty in their courses to see if Swank's streaming made sense for us. While faculty show material in class, students like to watch the titles outside the class when preparing their papers and finals - there's a constant rush to check out the same title by twenty people at the library. The thinking was that Swank's streaming deal might be a better deal than the library buying multiple copies of different titles.
I found that only about 25% or 30% of the films used by faculty in our courses were represented in Swank's catalogue. Most of our faculty were using foreign or small indie films and docs that originated from a wide range of distributors.
This whole system of distribution with three different markets - theatrical, non-theatrical, and home - first came about in the 1930s when 16mm first started being used in schools and churches and the market for "Show at Home" rental and personal purchased prints developed. It's been that way ever since.
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Michael Marini
Film Handler
Posts: 27
From: issue maryland/ USA
Registered: Dec 2005
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posted 04-13-2013 03:09 PM
By John Liberty | jlibert1@mlive.com
Follow on Twitter
on April 01, 2013 at 12:00 PM, updated April 01, 2013 at 5:53 PM
Email
MOVIE THEATERS GOING DIGITAL
'Convert or die': Digital movie projection a financial strain but a necessity for independent theaters, drive-ins
Drive-in theaters could pay biggest price for movie industry's digital projection conversion
When did you last visit a drive-in theater? Will digital projectors make you more likely to go? (poll)
Allegan's historic Regent Theatre closing in on $75,000 goal for digital projection conversion
Paw Paw couple 'nervous' about $60,000 investment to take The Strand into digital age
Will small-town historic theaters be able to compete with larger chain movie theaters? (poll)
With digital conversion underway, food and alcohol are next in the movie-going experience
Independent theaters, drive-ins can thrive on nostalgia, indie movies and customer relationships
KALAMAZOO, MI -- Glenda and Neal Edwards wish they had their $40,000 back.
The Paw Paw couple invested that sum two years ago to upgrade the 35-millimeter projector at the Five Mile Drive-In in Dowagiac, one of two Southwest
Michigan drive-in theaters they own, along with Sunset Drive-in in Hartford. The 35-millimeter projector is soon to be obsolete, as the movie industry
pushes the digital projection conversion by year's end. The couple face a ticking clock and a price tag of up to $230,000 to go digital.
Most of the major movie studios have said they will stop distributing 35-millimeter film by the end of this year, leaving theaters and drive-ins two
options: Find a way to upgrade to digital projectors or, in all likelihood, close. The digital conversion is estimated to save the studios about $1 billion a
year in the cost of making and distributing films, according to the National Association of Theatre Owners. For family-owned theaters, converting is a
"huge expense."
"It's a tough decision. With two of them, it's double the expense for us and we're having trouble breathing with it at the moment," Glenda Edwards said
of the deadline.
She recently contacted digital projection companies to find out her options. A digital projector for a drive-in theater -- a piece of equipment that wasn't
available when Edwards and he husband invested their $40,000 in 2011 -- will cost $60,000 to $80,000 each. Beyond that, the buildings that house
the projectors will need to be renovated to make them temperature controlled. Most projectors must be stored at between 52 and 83 degrees.
If you go
Southwest Michigan Drive-In Theaters
Capri Drive-In
Where: 119 W. Chicago Road, Coldwater
Hours: Expected to open in April
Contact: 517-278-5628, www.capridrive-in.com
5 Mile Drive-In
Where: 28190 M-152, Dowagiac
Hours: Unknown
Contact: 269-782-7879; Find it on Facebook
Sunset Drive-In
Where: 69071 Red Arrow Highway, Hartford
Hours: Unknown
Contact: 269-621-4194; Find it on Facebook
Edwards said it's possible at least one of the couple's two theaters may close. She hopes the drive-ins -- the family has owned Sunset since 2003 and
Five Mile since 2006 -- will be able to get 35-millimeter film through the summer.
"We'll do it for as long as we can hold on, as long as we can get prints," she said.
Will drive-ins survive?
There are about 5,700 for-profit movie theaters with 39,888 screens in the United States. A little more than 3,900 theaters, accounting for 33,618
screens, already made the move to digital, according to the Patrick Corcoran, the director of media and research for the National Association of Theatre
Owners. Most of remaining theaters are independently owned and in small towns, he said.
The digital deadline is particularly intense for the drive-in theaters, the numbers of which have steadily declined for the last 25 years.
There were almost 2,100 drive-in screens in 1987. There were 357 drive-ins and 604 screens in the country in 2011, according to NATO. The number
is expected to decline, in part due to the digital projection deadline, John Vincent Jr., president of the United Drive-In Theatre Owners Association told
the Los Angeles Times for a January story.
NATO said there are eight drive-ins and 18 screens in Michigan, including three drive-ins in Southwest Michigan. The local drive-in owners said they
expect the numbers to drop this year. The question is how much.
"I cannot imagine that the drive-ins will not survive. It doesn't make sense to me," Glenda Edwards said.
'It's what we do'
Susan and Tom Magocs are the co-owners of Coldwater's Capri Drive-In. It was built by Tom's father, John, and opened in 1964.
John Magocs grew up during the Great Depression, and his family said he made it a point to pay for everything with cash. His son, Tom, who spent much
of his childhood serving popcorn and loading film, followed his father's financial philosophy.
When it became clear the digital conversion threatened the survival of the family's drive-in, they decided to put their lake home up for sale two years
ago.
"I thought I'd have it my whole life," Susan said of the home. "I thought it would be in the family forever."
It sold last spring and paid for most of the $144,000 it cost to upgrade to Barco digital projectors, which were installed March 20. They named them
"Rose" and "Treasure Cove." The couple's lake house was located off Treasure Cove on Rose Lake in Coldwater.
It's hard not to second guess themselves about the move, Susan said.
“The other day I woke up after the guy was here and installed the projectors. I said to Tom, 'Are we the people who live in the trailer and just bought two
Cadillacs? Is this what we should’ve done?'" she said.
Weather permitting, on April 12 the Capri Drive-In will open for its 49th year. It will celebrate its 50th anniversary next August. The Capri was John
Magocs' "passion," something his grandchildren shared in for much of their lives.
"It's what we do," Susan said.
She said the family's theater outlasted some traditional movie theaters and video stores, that this is just the next hurdle.
"Somehow, every time something like this has happened, we've made it," she said.
Worth the investment?
The digital upgrade means a substantial improvement in image and sound quality at the Capri, Susan Magocs said. She had already watched a few
trailers on the new equipment and gushed about the results on its biggest, 120-foot-by-75-foot screen -- "our own little IMAX outside."
"The picture is amazing. The sound is amazing. It's a big step up for the drive-in. No more dark prints. That's been the case the last few years," she
said.
The equipment also provides some new revenue options. Susan Magocs said the projector can display "anything that can be downloaded." The family is
still trying to understand the projector's full capabilities, but they're considering showing free Blu-Ray films, hosting video game tournaments and
showing sporting events and concerts. She said these types of events would be held in the spring and fall, not the peak summer movie months.
The projectors could allow them to extend their season and earn more money from concessions.
"We opened ourselves up to a lot more things and we'll have to do that to make it," she said.
But upkeep and maintenance costs also caught their attention. Susan Magocs said she expects those costs to at least double with the new equipment.
For example, the 6,500-watt bulb used to "throw" the image to the screen cost $1,800 apiece. The old bulbs cost $500 and typically ran all season. The
new bulbs run for around 500 hours, she said. Capri shows back-to-back films on its two screens, or around five hours per night on each bulb. This
gives them about 100 nights of life on one bulb, or around three-quarters of a season, she said.
They also signed up for a service contract that includes a set number of visits, as opposed to risk paying around $3,000 per visit from a technician.
But Magocs said they try not to dwell on the numbers. "We're in it," she said of the commitment.
If other drive-in theaters opt not to convert to digital and close, the Capri becomes one of the last options in Michigan and could potentially grow their
base of customers who are seeking the drive-in experience, she said.
While the Capri made the leap, the picture isn't as clear for Paw Paw's Edwards family.
"We're going to do whatever we can to get this done. I just don't know how it's going to happen. But I haven't given up yet," Glenda Edwards said.
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Jack Ondracek
Film God
Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
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posted 04-15-2013 12:36 PM
Any way you look at it, drive-ins are probably the most-challenged single group, as relates to conversion.
The worst of us have been running antique projectors in barely-heated, likely un-air conditioned cinderblock rooms. Add to the necessary remodeling the likely rebuilding of the sound system. Then, the most expensive projectors out there, because most of us need all the light we can get. It's a real challenge for the small community drive-in.
Right now, the most obvious choices are the Barco 32B and 23B, and their Christie equivalents (don't know much about NEC). A very few may get by with smaller machines and possibly used gear, like a DP100. When they (and the necessary lenses) became available doesn't matter. The choices are few and the need is really a black-and-white issue.
From our experience, I can say that we almost could have bought our drive-in twice on what we spent in booth and screen upgrades over the past year. Other than the undeniable improvement in our presentation, the obvious result is... we survive.
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