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» Film-Tech Forum ARCHIVE   » Operations   » Ground Level   » LOOK vs AMC (Page 6)

 
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Author Topic: LOOK vs AMC
Mike Blakesley
Film God

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


 - posted 11-20-2014 05:28 PM      Profile for Mike Blakesley   Author's Homepage   Email Mike Blakesley   Send New Private Message       Edit/Delete Post 
quote: Terry Lynn-Stevens
AMC simply said they will not license films day and date with Look.
Which essentially means, "If you give movies to those guys ("Look") then we won't play your movies." I assume it means in their other theaters in that area. So if they've got several complexes in the vicinity and Look only has the one complex, it's easy to see who'll win that fight.

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Jason Burroughs
Jedi Master Film Handler

Posts: 654
From: Allen, TX
Registered: Jun 99


 - posted 11-20-2014 08:30 PM      Profile for Jason Burroughs   Email Jason Burroughs   Send New Private Message       Edit/Delete Post 
If AMC was open to competition they would play day & date and let the consumer choose.

By refusing, they take the choice away from the consumer.

I don't mean to sound like I am singling out one particular exhibitor or another. Since there is no longer a finite number of prints, any exhibitor should have equal opportunity to play any feature that they want.

This arrangement makes room for unethical business practices.

What is there to prevent any large chain from undercutting and underbidding a smaller circuit or independent? The smaller players would not have the critical mass and deeper pockets to support a loss leader.

These practices have been evident in this area before. 20 years ago there were 4 theaters in this area. 2 were General Cinemas, 1 AMC and 1 United Artists. Guess who got ALL (and I mean all) Universal pictures? Hint: Only 1 chain ever got Universal films.

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Mark Lensenmayer
Phenomenal Film Handler

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From: Upper Arlington, OH
Registered: Sep 1999


 - posted 11-21-2014 07:15 AM      Profile for Mark Lensenmayer   Email Mark Lensenmayer   Send New Private Message       Edit/Delete Post 
In Central Ohio, there doesn't seem to be much product splitting...every movie plays at every theatre.

On the far east side, Cinemark has a location about 2 miles from the huge AMC 30-plex at Easton Mall. No product splitting there.

Even on some independent movies, a local independent will frequently run the same picture as the AMC 24-plex about 1 mile away.

There was some splitting before mass booking became prevalent, but not any more.

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Martin McCaffery
Film God

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From: Montgomery, AL
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 - posted 11-21-2014 08:11 AM      Profile for Martin McCaffery   Author's Homepage   Email Martin McCaffery   Send New Private Message       Edit/Delete Post 
quote: Jason Burroughs
If AMC was open to competition they would play day & date and let the consumer choose.

Why be open to competition when you can operate as a monopoly? Capitalism 101: make all the money you can, any way you can. It's not, and never has been, about the customers.

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Bobby Henderson
"Ask me about Trajan."

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


 - posted 11-21-2014 08:47 AM      Profile for Bobby Henderson   Email Bobby Henderson   Send New Private Message       Edit/Delete Post 
quote: Jason Burroughs
Terry, who do you work for?
Terry is trolling, same as usual.

Since nearly everyone else participating in this thread is sympathetic to LOOK, Terry automatically takes the opposing viewpoint just to stir up some shit. His little "L [Roll Eyes] [Roll Eyes] K" comment earlier just shows what he's trying to do. It also ruins any credibility for anything he says, provided he had any credibility in the first place.

quote: Jason Burroughs
What is there to prevent any large chain from undercutting and underbidding a smaller circuit or independent? The smaller players would not have the critical mass and deeper pockets to support a loss leader.
AMC could do that, but I actually suspect the opposite. Big chains like AMC, Regal, etc. want the entire exhibition business to themselves. They don't want "little guy" independents letting customers realize the biggest chains still have a carbon copy, cookie cutter, fast food approach to the movie-going experience. Small chains like Warren Theaters can kick their ass all over the place in a given market when given a fair chance.

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Terry Lynn-Stevens
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From: Toronto, Ontario, Canada
Registered: Dec 2012


 - posted 11-21-2014 12:57 PM      Profile for Terry Lynn-Stevens   Email Terry Lynn-Stevens   Send New Private Message       Edit/Delete Post 
quote: Martin McCaffery
Why be open to competition when you can operate as a monopoly? Capitalism 101: make all the money you can, any way you can. It's not, and never has been, about the customers.


That is spot on. AMC has no concern about their competition, their goal is to be #1 in the marketplace and if it puts the competition out of business then so be it, as sad as it is that is the goal. The studios do not care either, they will go with the theater that will make them the most money.

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Buck Wilson
Jedi Master Film Handler

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From: St. Joseph MO, USA
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 - posted 11-21-2014 04:24 PM      Profile for Buck Wilson   Email Buck Wilson   Send New Private Message       Edit/Delete Post 
Terry, the point is that the studios are shooting themselves in the foot by doing that. It's a poor long term business decision.(Oh how good they are at that!) By continuing these shady business deals and not supporting competition, the product(presentation) suffers. What does that mean? Less butts in seats and a continuing decline in the overall reputation of the industry in the consumer's mind. The last thing we all need.

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Frank B. McLaughlin
Film Handler

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From: Denver, CO
Registered: Dec 2011


 - posted 11-22-2014 06:47 AM      Profile for Frank B. McLaughlin   Author's Homepage   Email Frank B. McLaughlin   Send New Private Message       Edit/Delete Post 
It would seem to me that 1) if the studios are left to pick and chose the venue they would be open to a suite; 2) let AMC refuse to play with LOOK - after a few ten-poles this too will pass.

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Bobby Henderson
"Ask me about Trajan."

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


 - posted 11-22-2014 09:49 AM      Profile for Bobby Henderson   Email Bobby Henderson   Send New Private Message       Edit/Delete Post 
I still think AMC has to be kicking points off their box office take back to the movie distributor, at least in the case of the latest installment of The Hunger Games. Allocation models make no logical sense otherwise now that movies are distributed on cheap, reusable hard discs rather than film prints.

With digital entertainment it's in the distributor's best interest to get its content playing in as many places as possible. I think I mentioned the analogy of sports bars and pay per view fight events earlier. Zuffa Entertainment sure isn't making any exclusive deals with national chains like Buffalo Wild Wings to commercially show its Ultimate Fighting Championship PPV events. Here in Lawton there's at least half a dozen or more sports bars and restaurants showing those UFC events whenever they're available.

The only valid argument I can see in favor of an allocation setup between 2 theaters in close proximity is improving variety of titles. A big tent pole movie release is going to hog multiple screens at any location. If that tent pole movie release is playing only at one of two theaters in close proximity more screens will be available at the other location to play a greater variety of movies.

But the allocation setup only works when the studios are alternating their releases between the 2 theaters in a consistent and fair manner -rather than allowing one of the theaters (AMC in this case) to cherry pick the better titles and leave the other (LOOK) with the lesser titles. The two competing theaters need to be similar in quality to each other so consumers feel like they're getting good value for their money regardless of where the movie plays. For years here in Lawton I had to put up with the crappy UA Cache 8 theater getting a lot of good titles that would have been much better to see down the street at the Carmike 8.

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Steve Dailey
Film Handler

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From: Overland Park, KS
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 - posted 11-22-2014 10:50 AM      Profile for Steve Dailey   Email Steve Dailey   Send New Private Message       Edit/Delete Post 
Hey there folks - I've never posted here before but wanted to weigh in on this topic. I'm not in the industry but am an avid movie fan. I live near the Overland Park, Kansas AMC theater mentioned earlier (in the similar "fight" between it and the new Cinetopia). The AMC theater isn't playing the "Hunger Games" sequel, but the Cinetopia is, as well as a former Dickinson 16-screen complex barely a mile distant. I guess Cinetopia and Dickinson (now B&B) have no dispute over allocation.

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Terry Lynn-Stevens
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From: Toronto, Ontario, Canada
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 - posted 11-22-2014 01:05 PM      Profile for Terry Lynn-Stevens   Email Terry Lynn-Stevens   Send New Private Message       Edit/Delete Post 
quote: Steve Dailey
The AMC theater isn't playing the "Hunger Games" sequel, but the Cinetopia is, as well as a former Dickinson 16-screen complex barely a mile distant.
So are these three theaters all within one-mile apart?

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Steve Dailey
Film Handler

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From: Overland Park, KS
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 - posted 11-22-2014 01:28 PM      Profile for Steve Dailey   Email Steve Dailey   Send New Private Message       Edit/Delete Post 
The Dickinson/B&B is about a mile from Cinetopia, I would guess. The AMC is about 3 miles from the Cinetopia. Interestingly enough, AMC said several years ago that they were interested in the general area where the Cinetopia is (to locate a new theater).

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Chris Slycord
Film God

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From: 청주시, 경북도, South Korea
Registered: Mar 2007


 - posted 11-25-2014 09:27 PM      Profile for Chris Slycord   Email Chris Slycord   Send New Private Message       Edit/Delete Post 
quote: Terry Lynn-Stevens
So are these three theaters all within one-mile apart?
Their Ontario, CA 30-plex referred to earlier is 0.24 miles from the Edwards/Regal and not even a distance down the road. That's the distance walking through the parking lot.

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Jason Whyte
Expert Film Handler

Posts: 132
From: Victoria, BC, Canada
Registered: Sep 2002


 - posted 11-26-2014 03:02 AM      Profile for Jason Whyte   Author's Homepage   Email Jason Whyte   Send New Private Message       Edit/Delete Post 
The only thing that matters and thing that we can all take from this news is that a Blackberry Bourbon Lemonade at the AMC sounds delicious.

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Jason Burroughs
Jedi Master Film Handler

Posts: 654
From: Allen, TX
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 - posted 04-23-2015 04:23 PM      Profile for Jason Burroughs   Email Jason Burroughs   Send New Private Message       Edit/Delete Post 
Apparently the DOJ has begun an investigation to the Clearance practice in the exhibition industry.

Dallas Morning News

Dallas Morning News:

The U.S. Department of Justice is looking into whether the country’s biggest movie-theater chains are keeping smaller competitors from getting first-run films — and at the very center of that investigation is the owner of a single North Dallas movie theater.

Back in October Tom Stephenson, chief executive of the luxurious 11-screen LOOK Cinemas multiplex on Belt Line Road, complained that the Chinese-owned AMC Theatres megachain was blocking LOOK’s attempt to book The Hunger Games: Mockingjay Part 1. At the time, AMC’s Village on the Parkway 9 was under construction at Belt Line and the Dallas North Tollway — less than a mile from the 2-year-old LOOK — and circulating a flier that said “we will not be licensing films day-and-date with this theatre.”

Stephenson said AMC had received “clearance” from Lionsgate to show the Hunger Games sequel — that is, the studio said only AMC could show the movie within a certain radius, cutting LOOK out of the frame. Clearance is an old practice in the movie business, but indie theater owners have long maintained it’s little more than “a tactical anti-competitive weapon” used by the big chains to run their smaller competitors out of business.

Stephenson’s attorney, Brett Johnson, told The Dallas Morning News at the time that “AMC is trying to strong-arm the film distribution companies into giving them exclusivity with films.”

The LOOK owner maintains the practice continues: “We couldn’t show Hunger Games, we couldn’t play American Sniper, 50 Shades of Grey. And we’re not scheduled to get the new Avengers,” he tells The Dallas Morning News today. “These are big-time movies we would have loved to have play, and AMC has not let us have them. AMC is forcing the studios to honor this clearance, and it remains an ongoing problem.”

And according to Stephenson, it’s now an ongoing Justice Department probe. The Los Angeles Times initially reported on Justice’s investigation into AMC, Regal and Plano-based Cinemark — the so-called Big Three exhibitors — last week. The feds will not confirm its existence. Stephenson says today that he was interviewed by federal investigators on April 14.

“They were interested in how the process works, in terms of who declares these clearances and how do we find out about them,” he says. “They asked, ‘Has a studio ever been involved a clearance not asked for by an exhibitor.’ The answer is no. AMC is the one asking for clearance, saying they won’t play day and date with us.”

In an interview with the Los Angeles Times yesterday, AMC Entertainment Chief Executive Gerry Lopez said “clearance” has been around since the dawn of celluloid, and insisted it’s little more than a “quirk that is very specific to this industry.”

He also said LOOK is just one of a handful of theaters complaining about it.

“There are 600-plus exhibitors in this country,” he told the paper. “There are three or four exhibitors who are irritated by it. My guess is they have made some bad business calls and they’re trying to figure out a way out of a bad situation by alleging stuff and in some cases going to court.”

Stephenson called Lopez’s comments “ludicrous” and said he’s “trying to whistle through the graveyard.”

LOOK has launched an online petition that says “you should choose where you see a movie, not AMC.” And a few weeks ago, Stephenson took his fight with AMC to the movie-makers, sending studio chiefs a missive in which he says Paramount has decided to “end clearances in the Dallas, Texas area between Look Cinema and AMC’s Village on the Parkway 9.” He also writes that “AMC is using clearances as a competitive weapon to prevent new market entrants from building near AMC theaters.”

Other theaters have long maintained AMC, Regal and Cinemark have kept the goods out of their theaters. Owners of Boca Raton, Fla.-based iPic Entertainment have also been interviewed by the feds, according to the Times/ And last year Georgia-based Cobb Theaters filed a federal antitrust lawsuit alleging AMC “has used its worldwide and national circuit power and its market power in a substantial number of geographic markets to coerce film distributors to deprive Cobb, its only competitor in one of the relevant geographic and product markets, of fair competitive access to films to exhibit to the public at its competing theater.”

In the end, says Stephenson, studios need to let customers decide where to see their movies, no matter how close multiplexes sit to one another in the market. And, of course, he welcomes the Justice investigation.

“This is serious big-league stuff,” he says, “and people are understanding that.”

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