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» Film-Tech Forum ARCHIVE   » Community   » Film-Yak   » AMC shares plunge 25% after pre-announcing ‘shocking’ quarterly loss (Page 4)

 
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Author Topic: AMC shares plunge 25% after pre-announcing ‘shocking’ quarterly loss
Jack Ondracek
Film God

Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002


 - posted 08-07-2017 11:41 AM      Profile for Jack Ondracek   Author's Homepage   Email Jack Ondracek   Send New Private Message       Edit/Delete Post 
quote: Dave Bird
I understand why they can't afford to go as often as they'd like, but just look at these big, beautiful, new buildings, empty most of the day, heat, a/c, and Hollywood taking 60%. We have no roof, our customers provide the seating and no HVAC. I completely get why they have to charge it.
That's a common observation, Dave, but keep in mind that drive-ins have a very short business day. If you have a larger one, you likely have more payroll per-capita than a comparable indoor house. In my theatre, with a capacity of around 900 cars, I commonly have 17 - 20 people in the snackbar, boxoffices and fields. They're not here the whole night, but it takes that kind of manpower to herd everyone in, keep an eye on blankets, matresses, speeders, hatchbacks, lights, pot smokers, kids in the playgrounds, and getting the lines through the snack bar.

I'd say you're doing a lot more mowing and outside maintenance than the average indoor. If you're not paying someone else, there's a value you should be attaching to your own time.

Finally, there's the matter of that equipment we all had to purchase recently. We watched the process for 10 years and planned accordingly. When the time came for us to buy, we were ready. I know of only a handful of drive-ins that planned it out that way. Many of the rest turned to crowd funding, used equipment leasing, hand-wringing or simply closed. In other words, they were run like hobbies, with little-to-no planning for a new roof, maybe a replacement screen and.... a new projector.

There's also the fact that a lot of these places are closed for 4 - 6 months out of the year. You have to cover a years worth of expenses with the time you have, running only one show per night. Around here, our foot is always to the floor.

The obvious cost of a building may be high, but running a seasonal drive-in isn't necessarily as inexpensive as some might assume.

If taken seriously, drive-ins can still be be attractive mom-n-pop operations, but they don't fit the corporate "cookie-cutter" model and, I think, are no longer well-understood by the larger companies. Too bad, really... Given how our community supports us, I think they still have a place in the bigger picture.

Oh... Hollywood takes the same percentages from me. If you run the movie when the indoor houses do, you're aggregate outgo isn't that much different, if at all... at least around here in the Northwest. The only difference would be what you need to do to to squeeze a co-feature in there. That's what makes it hard to understand why so many of us discount the product we offer. Taken in its totality, it's a different experience, not necessarily one of substantially lower quality.

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Steve Guttag
We forgot the crackers Gromit!!!

Posts: 12814
From: Annapolis, MD
Registered: Dec 1999


 - posted 08-07-2017 12:53 PM      Profile for Steve Guttag   Email Steve Guttag   Send New Private Message       Edit/Delete Post 
Riddle me this, Jack. If a new screen system were developed for the Drive-In such that it would be a direct-view image (think billboard signs) such that you could run any hour of the day/night you wanted, how would that affect your business model?

Do you think patrons would start to seek out Drive-Ins during the day if that were available or would it be too strange because nobody has done it?

Naturally, the cost of such screens would need to come down in price to the point where it would be economically viable as well. I just see the direct-view screen for both drive-in and hardtop as the "end-game" in movie presentation.

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Mitchell Dvoskin
Phenomenal Film Handler

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From: West Milford, NJ, USA
Registered: Jan 2001


 - posted 08-07-2017 01:15 PM      Profile for Mitchell Dvoskin   Email Mitchell Dvoskin   Send New Private Message       Edit/Delete Post 
> Do you think patrons would start to seek out Drive-Ins during the day if that were available

I would tend to think that this would not be successful. From a customer perspective, there would be too many surrounding distractions, making the presentation not enjoyable.

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Dave Bird
Jedi Master Film Handler

Posts: 777
From: Perth, Ontario, Canada
Registered: Jun 2000


 - posted 08-07-2017 01:40 PM      Profile for Dave Bird   Author's Homepage   Email Dave Bird   Send New Private Message       Edit/Delete Post 
All fair points for sure Jack. There are certainly services and "non-general operating" labor my wife and I provide that won't show up. And if not for the short season, we'd be laughing. It's almost a thing that really can't be done by a large corporation anymore. Our capacity is only about 350, and hoping to bump that to about 500. I tend to put myself here on the busiest nights as a "floater" to deal with any and all things that occur or an extra hand. My usual work is daytime stuff (love those "double 8 hour + shifts) on our continual upgrades. I do staff fully and pay our young managers very well as a kind of fail-safe to ensure that this place really could run and still be profitable without us if need be. We'll save a few hours here and there by sending kids home and closing up ourselves here and there. We can operate a busy to sell-out evening with 6 staff, though we surely pass up some sales with a limited menu (we do cook to order and speed of service is never a problem, but we're limited on hot food offering). I'm hoping we'll be able to expand that a bit once our kitchen is expanded this fall and we add some new equipment. Minimum wage is being proposed to jump as much as 40% within 2 years, we'll be adding things like a commercial dishwasher and an attached-to-the-snack-bar box office (the layout of the land once 2 screens are here lends itself anyway) so that we can save a few hours here and there and apply them hopefully to expanded offering. But you're right, there are just so many factors and line items in there.

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Justin Hamaker
Film God

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From: Lakeport, CA USA
Registered: Jan 2004


 - posted 08-07-2017 04:37 PM      Profile for Justin Hamaker   Author's Homepage   Email Justin Hamaker   Send New Private Message       Edit/Delete Post 
quote: Steve Guttag
Riddle me this, Jack. If a new screen system were developed for the Drive-In such that it would be a direct-view image (think billboard signs) such that you could run any hour of the day/night you wanted, how would that affect your business model?
One of the most obvious problems with this is sitting out in your metal box for 4-5 yours in the hot sun is not exactly what most people would be interested in doing. I could see where it might make sense to run an A-B-A program where the first movie starts an hour or two before sun set once it's started to cool down, but I don't see it being an all day operation. Maybe it would be viable in Washington and other areas further north, but I don't see it working in California.

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Martin McCaffery
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From: Montgomery, AL
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 - posted 08-07-2017 04:43 PM      Profile for Martin McCaffery   Author's Homepage   Email Martin McCaffery   Send New Private Message       Edit/Delete Post 
quote: Justin Hamaker
One of the most obvious problems with this is sitting out in your metal box for 4-5 yours
Maybe we can revert to the old days of Airdomes. Have an outdoor set up with fans and tents for the daytime, and revert to Drive-in for the evening show.
Of course, here in Alabama it is too miserable to go outside between May and October, so it still wouldn't work.

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Jack Ondracek
Film God

Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002


 - posted 08-07-2017 06:05 PM      Profile for Jack Ondracek   Author's Homepage   Email Jack Ondracek   Send New Private Message       Edit/Delete Post 
Cindy and I talked about this, just after I returned from the NAB convention in Vegas. I'd never seen "HD" billboards that are all over the place there, but could see someone talking about the notion they could be used at a drive-in.

All other issues aside, it wouldn't surprise me that it's technically possible. We see it whenever we watch a local baseball game from Safeco Field in Seattle. According to Google, their video board is 1080p x 3840 and 201.5 feet wide. In broad daylight, it still looks very good.

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For us however, I don't think the idea would work... for a multitude of reasons. The climate issue, brought up by Justin, is certainly valid, and only serves to lower what would already be a small base of installed screens.

Many of us are still smarting from the cost of digital conversion. You'd need a very compelling reason to travel that road again. I don't think this is it.

Yes, you could start your show 3 hours (or more) before dark. That's something you might think would be welcomed by an industry that's not positively impacted by daylight savings time. Still, I just don't see it as a happening thing.

I put a lot of effort into avoiding "traditional thinking", as applies to drive-ins, but it seems that attempting to move our customers away from the image of us being a night-time event would be a challenge for me, if not for the customers as well. I don't see a positive offset to what would likely be a years-long retraining effort. It took about 5 years to get past the backlash we caused when we dropped carload pricing and went 1st run.

There's the way many of us look. Intended or not, few of us look like Safeco Field during the day. Even if our places are manicured, some were built with paint schemes that look great at night, but are a bit on the garish side in the light of day. Years ago, one of the owners in our state seemed more intent on making it look like there was a circus on his properties than an outdoor theatre.

Then, there's the likelihood, at least at my place, that we might be considering the damage caused by the occasional lobbed rock or swatted golf ball. My corrugated roof metal holds up pretty well against that onslaught, while the big money equipment sits in secure, well-filtered, air conditioned comfort. I'm not sure I could budget for the cost of physical repairs to 3 electronic screens, not to mention the emotional effect on my normally docile personality! [Mad] [evil] [Mad]

So... aside from maybe getting your trailers on the screen a little early... there's not much I can see here.

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Justin Hamaker
Film God

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From: Lakeport, CA USA
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 - posted 08-07-2017 06:23 PM      Profile for Justin Hamaker   Author's Homepage   Email Justin Hamaker   Send New Private Message       Edit/Delete Post 
quote: Jack Ondracek
I put a lot of effort into avoiding "traditional thinking", as applies to drive-ins, but it seems that attempting to move our customers away from the image of us being a night-time event would be a challenge for me, if not for the customers as well.
I don't know how much the changing sunset hours impacts you during the summer, but it always seems to be an issue for us as it starts getting dark earlier. From about mid June through late July (about 6 weeks) we start at 9:15 as the sunset time hardly moves during that period. Then we get into August and it's getting earlier every week. The first few weeks it seems like people are stuck on the 9:15 time and don't really bother to notice what time it's getting dark.

Although we are closed before it becomes an issue, I wonder what would be the earliest we could actually get away with starting before it was too early for people. By the time we get to the end of the season we're usually starting about 7:15, but I have a hunch anything earlier than 7:00 would probably start impacting attendance, especially Friday nights.

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Jack Ondracek
Film God

Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002


 - posted 08-07-2017 06:29 PM      Profile for Jack Ondracek   Author's Homepage   Email Jack Ondracek   Send New Private Message       Edit/Delete Post 
It's a valid point that comes up now and then, Justin.

Lucky you... Your 9:15 is our 10pm up here. If we were so inclined (not), triple features in July are be nearly impossible to consider, as daylight approaches and the seagulls are flying through the picture, well before it's done.

I've always been amazed that our busiest months are when we start the latest. I hear very little complaining about it... certainly not enough that I'd ever think a video board would make sense.

All else aside, it seems to boil down to weather and content at our place.

I agree on the early start time. We open early enough in the year that we could start somewhere between 6 and 6:30. That seems to mess too much with people getting themselves reset after school, work and dinner. Perhaps it's a nod toward the 7pm reasoning that a lot of our indoor neighbors go by, but it's turned out to be the best time for us as well.

Still, it is odd to open up after dark and wait until a specific clock time to start a drive-in show...

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