This is topic Sub-Runs/Dollar Houses in forum Ground Level at Film-Tech Forum ARCHIVE.


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Posted by Tom Ferreira (Member # 70) on 08-03-2000, 08:05 AM:
 

I know that some of you work in sub-runs. My question is, how profitable are they? Obviously, the film rentals are considerably lower, and you still have the profit margin on the concessions that a first run has, but do people want to see a film after the national break has passed the five or six week window? My experience shows that a good 20% of the people who walk through the front doors have no clue what they want to see-they're either there for a night out or for the experience. I also can't see outside food smuggling being much worse than at any other theatre.

Now, I have also noticed that sub-runs are virtually nonexistant here in New England, but proliferate in the South, especially in Florida. Why is that? I would think that if someone were to go into the more economically depressed areas of this region with a dollar house, they'd pack the place. The only problem I can see with sub-run is the condition of the prints once they get to this stage.

Thoughts and comments?
 


Posted by Evans A Criswell (Member # 381) on 08-03-2000, 10:00 AM:
 
Here in Huntsville, AL, Regal closed both of the subrun theatres it operated: the "Regal 8", originally built by Cobb in 1982, and the "Gateway Cinema 4", originally built as a single screen in 1967. Both were closed in May 2000 with very little warning. The manager of the Regal 8 found out Monday that his theatre would close after the following Thursday and the Gateway folks knew abot 2 weeks ahead of time. The closing of these theatres upset a lot of people.

I noticed that although ticket prices were $2.25 and $1.50 at the two theatres during their final days, their concession prices were identical to the first-run theatres run by Regal, so the concessions profit was the same. Whether the ticket profits were the same depends on how much those theatres had to pay to get their prints.

A Regal employee told me that the Regal 8 was one of the most profitable second-run theatres. I attended movies at both of these theatres and on weekends, there were some pretty good crowds when popular movies were shown.

Both theatres were closed due to needed maintenance that was going to be expensive. (A failed air conditioner compressor at Gateway and the roof at Regal 8, according to what I've heard). Based on Regal's decision to close these theatres due to these costs, I'd say that the expensive maintenance on old buildings is the primary cause of death for second-run theatres. Another reason for some second-run houses shutting down was due to the neighborhoods around the theatre becoming run down, causing higher crime (drug deals in the parking lot). Carmike shut down our University 6 several years back because of this, according to a former Carmike employee). This same employee told me that the Cinema I and II second run theatre in Florence, AL was shut down by the health department. Companies don't seem to want to put much money into maintaining second-run theatre, so they seem to run until they develop serious maintenance problems, or have crime problems due to deterioration of surrounding areas.

When popular movies (Star Wars, There's Something About Mary, Waterboy, Toy Story 2, etc.) first hit the second-run houses, people crowd in because here, many people used to wait for movies to hit the second run places. The other people that tend to go to the second run houses were just out looking for something to do, and tended to be repeat customers, like south Huntsville people who think "Let's go to the Regal 8 tonight and see something", since it was cheap entertainment.

Of course, now, we have no second-run theatre anywhere close to Huntsville that I know of. Nashville or Birmingham would be the closest places I know of that would have such places anymore.



 


Posted by Paul Goulet (Member # 297) on 08-03-2000, 11:30 AM:
 
I remember maybe 3 or 4 years ago when National Amusments (showcase)bought a Entertainment Cinema in Rhode Island which was just about to open and rather then opening it as a 1st Run Theatre, they Opened it was a 2nd Run $1.50 place. There was a General Cinema maybe 5 miles down road, and when General closed up their theatre, Showcase the next week went to 1st run! I believe it was the ONLY 2nd run theatre that NA ran, but I might be wrong.
 
Posted by Scott D. Neff (Member # 185) on 08-03-2000, 12:17 PM:
 
I worked for a brief period of time for UA at the Empire Cinema 4 in Rohnert Park, CA back when it was a discount house. It was the only theatre in town, with larger theatres 10 minutes in either direction to fill the 1st run needs.

We had $2.00 weeknights, $2.50 weekends and holidays. The place did okay for itself. It was surely run down, and they never wanted to put any money into the place.

The problem was, the snack bar prices were just as high as regular UA theatres, and customers would come in and complain that they paid $2.50 to get in, but they had to pay $4.00 for a popcorn?!!?!? So I think people tended to sneak in food instead of pay for it.

However - our company is cufrently running a $3.00 house in a nearby town, and nobody really complains about the prices, they're just happy that admission is so low. BUT - there's a large 8-plex right up the street.

I would think that when there is 1st run competition in the same town, people are just grateful NOT to pay 1st run prices. BUT if there really isn't a 1st run theatre in the market, then people just expect EVERYTHING to be cheap.

------------------
Scott D. Neff
----------------
www.cinema-west.com
 


Posted by Mike Blakesley (Member # 26) on 08-03-2000, 12:59 PM:
 
I guess we'd be considered a 2nd run theatre because we usually play movies 3 to 5 weeks after the break; but we're considered first run by the film companies because we're the only theatre in town.

Is it better to play "on the break?" Absolutely. We played Mission Impossible 2 on the break, while we played #1 about 4 weeks after. We grossed twice as much on MI2 as on the first movie. We played The Patriot in its third week, and did over twice as much as we did on Braveheart, which we played something like 6 weeks in.

Is running a small theatre profitable? Yes, at least in my case. Nobody's getting rich or anything, but our attendance here has actually gone up a couple of percentage points this year, mostly because of more agressive booking I think. And that's in spite of a 50c price increase across the board last October.

I think any small town or 2nd run theatre can survive if you give the patrons the best possible show you can. (And, go after those trailers!!!) I'm lucky to have a day job, so if the theatre needs a new "whatever," I can bite the financial bullet for a few months to pay for it if necessary. Such upgrades always result in great word of mouth.

About print condition: It's actually kind of amazing how many prints we get that are in pretty good shape. It's the reels and cans that are beat up!
 


Posted by Evans A Criswell (Member # 381) on 08-03-2000, 02:12 PM:
 
About print condition at second-run theatres: I was usually pleased with the quality of prints at both of the second run theatres we had. In fact, there have been cases where the print condition was better at the second-run theatres than at the first-runs.

It's all in the management. Good management at an old theatre often beats poor management at a new theatre with the most modern equipment. One of our second-run theatres, the Gateway 4, had excellent management, and beat the pants off a first-run theatre about a half mile away when it came to presentation quality.

Of course, our other second-run theatre had terrible management. The manager there didn't even know what masking was. When I mentioned to him that all of his screens but one were 2.00:1 and did not have adjustable masking, he asked "What masking?" He had no idea what I was talking about. A week later, this theatre in the old A&P grocery store building was closed. Lesson: Don't build a multiplex theatre in an old grocery store!

Even if equipment and print conditions are not always optimal at older theatres, a good manager can make the best of what he or she has to work with and often come out ahead of an average first-run theatre. When the Gateway theatre was closed (the excellent second-run theatre), the manager got a job at a new 16-plex elsewhere, and this manager told me that one thing that led to getting that job was the positive comments about the projection quality at the Gateway. I put in a number of those comment cards myself, and made very positive comments about the theatre on my web site where I do the theatre reviews. I definitely try to reward good management every chance I get, and it is nice to think that I helped that manager get that job! I won't say this manager's name, but it anagrams to "Kept Screen Boy".

Evans A Criswell http://home.hiwaay.net/~criswell/theatre/

------ If you are in love with a female projectionist, send her a valentine. If you don't like her, send her a Ballantyne.


 


Posted by Dave Williams (Member # 299) on 08-03-2000, 08:42 PM:
 
I am running a second run house that is very profitable, but will close down after thanksgiving this year. reason? the lease is up. It is twenty years old and needs a total rebuild. The mall will not do it without a huge increase in the rent. There would be no way to survive as a local car dealer built a new megaplex just one mile away, Century will be building a new 24 plex just three miles away, and the full price theater next door went to discount, and they have ten years left on thier lease.

Not to worry however, I am assuming control of another and very old theater in another part of town. Not much that can be built out there, and very little competition to worry about. It used to be a sub run but went discount. My intention is to turn it into a cinema pub by years end. It has five screens, four are 90 seat houses and the other is a 250 seat house.

Dave

------------------
"If it's not worth doing, I have allready been there and done it"
 


Posted by Richard C. Wolfe (Member # 431) on 08-03-2000, 11:22 PM:
 
You ask about subrun? Can it be profitable? Yes it can, but it's getting more difficult all the time. As you've seen, there is a difference between subrun and discount. Here in the mid Atlantic region most discount theatres have disappeared over the past several years, or have moved their run up to subrun. Some have even gone first run.

I have over the course of the past thirty two years owned and operated all three types, first, sub, and discount. Both indoor and drive-in. From the mid 70s through the mid 90s my most successful operations were always the discounts...most were single screen except for a few twins. One of my theatres, that I have had now since 1970, and is the only one I still have, was for over twenty five years one of the top grossing dollar houses in the country. It is now a subrun as the discount business has almost completely dried up. The change occurred toward the mid 90s as newer twins and tri-plexes changed to a discount policy. They did very well for a while, however they have all closed over the past year and once again the several singles that have been in this area since pre TV days are still carrying on as subruns.

What happened to the discount (and subrun)business? Those of us who operate them often discuss this question among ourselves. Firstrun prices have skyrocketed...you would think that that alone would send more patrons to us...it hasn't! OK, so they have built a whole slew of new megaplexes in the area, and some of them aren't that bad...stadium seating, digital sound, pictures on two or three (sometimes more) screens, so you can always get in. Even considering all of that it doesn't make sense. When we had 8 discount screens in the area in the mid 90s, they together averaged about 9,000 admissions per week (1,125 per screen). Today with only three subrun screens left, they together are only averaging around 2,000 patrons per week. Where have the other 7,000 gone? Since the three that are left have given up discount and gone from a buck to two fifty or three dollars...did that make their fomer patrons say: Since they went from a dollar to two or three dollars...I won't pay it, I'll pay $7.00 at a megaplex instead. Does that make any sense?

Going to subrun has moved our run up to where we now play with the first runs during their later weeks of an engagement...but it doesn't seem to matter. We can't seem to recoup that lost audience. For one thing the teenagers have completely disappeared (not that that is a bad thing), and the families aren't there as before. The only audience that has remained unchanged, and possibly even increased, is the over 40 audience. They want to stay away from the teens, kids and the megaplexes, and they want to save $.

My personal theory is the economy...it's too damn good. People have lots of money, and aren't looking for bargains just now. Plus our society presently wants immediate gratification in every thing they do..the new car, the new house and even the new movie...must be had right away...no waiting, no matter what the cost, credit is easy...just sign on the line!

What does that hold for the future of subrun? It means it's a waiting game (if we can hold on). The business will be back after the economy tanks out...and it WILL. Anyone who has ever studied economics knows that the economy works in cycles. Some longer then others, but what goes around comes around for sure when speaking of economics. A recession WILL come, maybe even a depression (let's hope not). When it does, overtime dries up, unemployment goes up, and the bills catch up...then people will be looking for bargains again! And they will be back to not only subruns, but discounts will return as well.

Plus considering the state of the big chains as they are now in this "best of all economies"...they will all be bankrupt when the downturn arrives, or shortly thereafter.

Although I wouldn't recommend anyone going into subrun at the present time...for those of us that presently are...hang in there, as better times are coming. (Maybe sooner then later!...just look at those stock prices).
 


Posted by Kevin Crawford (Member # 469) on 08-04-2000, 01:54 AM:
 
I currently work at a discount theatre in Sacto. The prices are $1.00 matinee and $1.75 for evening, $4.00 for midnights. Concession prices are lower than that of the first run theatres. I am not sure by how much, cause when I go to the competitors, I sneak food in.

This theatre, in the early 90's (recession time), had over 1,000,000 people through the door for the fiscal year. It was in the top ten both for profit and number of patrons to walk through the door for General Cinema. Not bad for a 6 plex with about 1,500 seats, built by Mann in '76 and added to in '83. There would be times when they would stop selling tickets by 5:00. Not because of a shift change, but because all the shows were sold out for the rest of the day.

Currently, business is not what it use to be, but I understand that we still make a profit. The mall wants us out, and since GC wants out of anything west of the Mississip, when the renewal time for the least comes up, we will probably be out.

I am sure that Richard is right. The economy is doing well and people don't care about how much the entertainment costs. I believe that the next recession will probably hit no later than fall of '01, although this fall it may happen. Ever notice that most recessions always come after summer?

So if you have a discount house and can keep your head above water a little longer, you might be rolling in money.


 


Posted by Kevin Crawford (Member # 469) on 08-04-2000, 11:30 PM:
 
I forgot to mention film condition.

Some excellent, some terrible, but mostly OK. I have noticed in the last 6 years, film condition has gotten better. I would say that this is due to the advent of the gigaplex. With more prints available at the beginning of a run, and most coming off screen in a few weeks. There is less time for the first prints off screen to be screwed up.
 


Posted by Jonathan M. Crist (Member # 413) on 08-05-2000, 11:37 PM:
 
While I agree with everything Richard Wolfe has said about the current state of discount business, his analysis leaves out the most significant obstacle facing discount exhibitors today: the perceived need on the part of the film distributors to insulate and protect the first run markets.

It wasn't always this way. Throughout the 70's and most of the 80's the distributors viewed discount theatres (most of which were older mom-and-pop type operations) as a seperate ancillary market. No one cared or paid much attention. Films were generally moved directly from the first runs to the discount theatres.

Starting about 1988-1989 everything changed. With the building boom in full swing, all of sudden there were many more discount venues as the majors shifted policy on their aging twins and triplexs so they wouldn't compete with their own new builds. But what really seems to have ignited the ire of the film distributors was the entrance into the discount market of chains like Super Saver Cinemas - building state of the art plexs comparable to the newer first runs but only charging $1.00 admission.

All of a sudden the discounts were no longer just an additional revenue source. The distributors began to perceive all such operations (regardless of size or market)as direct competion for the more lucrative first runs. A discounted ticket price came to be viewed as a 'loss leader' to entice the public to purchase non discounted concessions.

Thus evolved a series of distributor polices aimed at curbing the discount market. At first it confined to things like per capitas, increased rental percentages, non-split policies and the like. When these failed to have a significant impact, then came the delay in availibilities.

Given today's rapidly changing marketplace, these delays now result in discount exhibitors being unable to obtain a picture until it is either: (i) played out; (ii) disappeared from the public's consciouness; or (iii) two weeks before video release.

No matter what happens with economy in the future, the only serious chance or survival for the discount market is a reversal of the attitude on the part of the film distributors.
 


Posted by Evans A Criswell (Member # 381) on 08-08-2000, 08:08 AM:
 
Jonathan,

You are right about the "two weeks before video release" statement. During the end of the life of the Regal 8 second run in my area, they were showing several movies after their DVDs came out.

It was really neat to be able to pay $2.25 to see a movie I hadn't seen to decide if I wanted to buy the $20 or $25 DVD! That was a really useful (although unusual) service!

O'Neil put a sub-run theatre in Nashville in the old Hills shopping center at the intersection of TN 45 and US 31E and the last time I drove by it, I was amazed at how old some of the movies were. It seems that this location was once a grocery store or department store, back around 1991 or so.

I really hate to see sub-run theatres disappearing in my area, because I really enjoyed going to the sub-run places to catch "that movie I wanted to see again but didn't want to pay full price for". If sub-runs came back, maybe someone could reopen the University 6.

On the subject of sub-runs, how many theatres are there that show both first-run and sub-runs in the same complex, and charge different prices for each? I haven't encountered one of those, but it would seem to be a good idea for complexes that have a lot of screens where there aren't any sub-run screens at other locations.

 


Posted by Bruce McGee (Member # 131) on 08-08-2000, 05:46 PM:
 
Here in Asheville, NC, there are no dollar houses anymore. Up to last year, there were 4 twin dollar theaters. The West-Twin owned by Roth Theaters, the Biltmore Twin, the Mall Twin, and the Terrace, which was an Ultra-Vision theater that held around 800 people when built in 1967.

All of these buildings are gone now.

All others here are UA, Regal, and Carmike. I avoid the UA's because they are generally nasty, and they often have a bluish image. I hate that.

I went to all of the dollar theaters. The best was the Mall twin. Round auditorium, and 350 seats. Always spotless, and usually had a decent screen image and sound. The manager was a stickler for perfection, and it showed.

There is only one "single theater" left in town, and its balcony has been walled in and turned into a 2nd theater. It was a porn theater until 1985 and there are lots of people in this town that will not go there because of its history. Nobody rememebers that it sat there empty for 12 years. I was one of the first to go in after the sale to the current owner. I worked on the Century CC's for about 6 hours and got them running. The sound worked, then died after the moisture in all of the parts worked its way out.

The owner was going to refurbish the theater and keep the balcony until I was tossed aside and new assistants came in. Now, they're an "art" house. With my management, there would have been lots of older titles, and recent biggies.

I have not seen them sell out.
The owner may close it after all.
 


Posted by Kevin Crawford (Member # 469) on 08-08-2000, 10:17 PM:
 
I don't think that a twin could make it in the discount market. I think that 6 is the minimum for the economies of scale you need to keep your head above water.

I would love to see a 12 screen welfare theatre that could seat 3,000. Man, during a recession, you could print your own money. Hey, that isn't such a bad idea. I wonder if the government would mind if I did that.
 


Posted by Sean McKinnon (Member # 612) on 09-13-2000, 03:26 PM:
 
I used to work at a 3 screen 2nd run house on the northshore in Massachussetts. Our ticket Prices were $1.00 and Concession was
Small Popcorn 2.00
Medium Popcorn 3.00
Large Popcorn 4.00
XL Popcorn 5.00
Small Drink 1.50
Med Drink 2.00
Large Drink 2.50
Xl Drink 3.00
Small Candy 1.00
MEdium Candy 1.50
Large Candy 2.00
Ice Cream (moviebites) 2.50
NAchos 2.50

we had no registers all the adding was done in our heads we did a full physical inventory every night. and for box office we used an AUTOMATICKET the best ticket machine in the world!!!! anyways this theatre did extremely well selling out every friday night saturday night and some times saturday matinees. we would have about 8 prints at a time and it was great. even when loews shutdown thier old six screen a few miles away and opened up a 20 we did not lose business not until someone bought the old six and renovated it and opened up a 7 screen "Discount" movie theatre did we start to suffer. I know work for that "Discount" theatre making more $$$$$ but I miss my little 3 screen. oh bye the way the 7 uses christie equipment (Typical 80's Loews booth) but the 3 used Century Projectors Strong SuperLume-x Lamphouses and Potts Alpha Platters (The old kind with the switch for Payout, Make-up Rewind, and off/Breakdown) I loved this equipment it was so reliable and I never had a problem now with the christie AW3's on the other hand...
 


Posted by Wayne Cope (Member # 437) on 09-14-2000, 02:04 AM:
 
I always had the impression that subrun houses existed where a chain or an owner did not want a facility to stand empty, but did not want to put the effort out to keep the place first-run. Perhaps they were stuck in a lease, or they owned the real estate and were waiting for a better market to sell, or they were waiting to multiplex the space for first-run. So essentially, such a place would usually exist where cinemas had overbuilt, and where the casualties of the overbuilding kept showing movies rather than leveling the space and leasing to retailers, etc.

I am curious to hear stories of owners who bought into a facility with the intent to open a subrun.
 


Posted by Barry Floyd (Member # 385) on 09-14-2000, 08:56 AM:
 
(O'Neil put a sub-run theatre in Nashville in the old Hills shopping center at the intersection of TN 45 and US 31E and the last time I drove by it, I was amazed at how old some of the movies were. It seems that this location was once a grocery store or department store, back around 1991 or so.)

(It used to be a Kroger grocery store)

We drove by there this weekend and noticed no listings on the marquee, and two big U-Hauls backed up to the front doors. I pulled in the parking lot and went up to the doors...looked in and they were definetely closed.

There were guys in there removing the projection equipment (All Strong Pro 35's - with consoles and Strong Platters). Instead of moving the equipment down the stairs from the booth, they cut a 6' square hole in the wall and were removing it with a fork lift.

I went inside and asked what would be happening to the equipment and they said it would be used in another theatre.


 


Posted by Richard C. Wolfe (Member # 431) on 09-14-2000, 10:01 PM:
 
Wayne (and anyone interested!)

Subrun theatres have existed since the earliest days of our industry. During the period of the nickelodeons (1908-1920), and even during the twenties there existed numerous runs depending on the size of the release territory. Some large cities had a many as six runs. Most areas had at least three or four runs.

One of the things that seems to surprise a lot of younger (under 40) people in this business is the fact that prior to the multi-plex theatres, in the days of single screens and even during the early transition period when the first twins appeared, first run movies only played in any given town (except large cities) for only one week. They then moved on to the next run, either to the neighborhood houses, or to the surrounding small towns. Occasionally a picture was held over for a 2nd week...and maybe several times a year a blockbuster made it for three weeks!

The release pattern usually worked like this: On national release the picture opened in the larger towns for the one week run. The 2nd runs were on a 28 day release after the first run completed their week. The key neighborhood houses and the larger of the suburban towns then played the picture for two or three days. 14 days after they finished it, it was available to the 3rd runs who again played it for 1, 2 or 3 days, and then 7 days later it was available to the 4th run houses.

The life of a picture was actually longer back then, with all the various runs, then it is today. Of course there was no TV or video except during the later part of that time. It was not unusual for popular pictures to return to the first runs again several months later and go through the entire release pattern again.

There were far more subrun theatres then first run back in those days (prior to 1950). TV pretty much put the cabosh to all that. However, many subrun houses have continued to this very day. Many of the single screen subruns that still exist, have always been subrun...some as long as since the 1920s. They were in business long before any multi-plexes existed. They saw twins, tri-plexes, quads and even multi-plexes come AND go! They are still here with the mega-plexes as well. And considering what is happening in the industry at the present time...some of them will still be around after some of the mega-plexes bite the dust.

So yes, people have and still open and operate theatres strictly as subruns. They are a market of their own. They serve a much needed purpose within our industry. NOT EVERYONE CAN AFFORD TO GO TO FIRST RUN THEATRES! This may surprise some, but it's true. Do you think that those who can't justify paying first run prices don't deserve to enjoy movies in a theatre too? Would you like the kids of poorer Americans to grow up never going to theatres to see movies? If they get use to watching films on video or only on TV, they will remain loyal to that media as adults. But if they grow up viewing films in subrun theatres...when they go out on their own and prosper for themselves they will continue to patronize theatres. If they have elevated themselves to a higher economic level they very well might then patronize firstrun theatres instead of the video store.
 


Posted by Charles Everett (Member # 889) on 12-14-2001, 05:27 PM:
 
Thanks to the "Ghetto Tuesday" line in another thread I'm bumping this one back up.

Mike Spaeth might want to expand on the differences between running a first-run theater and running a dollar house.

In Northern New Jersey -- from Trenton and Toms River north -- there's only two "pure" subrun theaters, an old single-screen on the Jersey Shore and a twin in Warren County. Two other multiplexes have a hybrid of subrun and Bollywood fare.


 


Posted by Bill Enos (Member # 440) on 12-14-2001, 06:09 PM:
 
First run with a single screen is disaster if what seemed to be greatest picture ever made turns out to be a dud with 14 weeks remaining on the run, file the bankruptcy papers and nail the doors. At least with subrun you get to see how a film performed before booking it. Video promotion on tv frequently helps us. Shrek was released on video a couple days after we opened it. The first Sat. nite was good, but the second Saturday, after video ads. on tv. was a full house, the following week was very good too.
 
Posted by Mike Spaeth (Member # 524) on 12-14-2001, 08:00 PM:
 
Cinemark, especially in the early 90's built quite a few BRAND NEW buildings with the sole intent of running them as discount houses. I am now managing a 10-screen discount that was opened first run and went discount in late 98 when we opened a new stadium 17-screen down the road. I am expected to keep my building in the same shape as the manager at the other theatre. In other words, they don't skimp on expenses just cause i'm "only a dollar house." The customer gets the same quality Cinemark experience at either theater. The differences, from what I can tell, are, for one, house placements are MUCH more difficult to do in a discount house, since people are just coming for the dollar show (most of the time), not for a specific movie. Therefore, whatever I put in a small house stands a chance of selling out on a whim. But ... prints can always be moved to larger auditoriums. Also, there is a TON of print work, since the 2-week minimum doesn't apply to subrun contracts. On The Line ran here for one week (12/7-13). But the customers love the prices ... $1 every day ... $.50 Tuesdays.
 
Posted by Dave Bird (Member # 490) on 12-14-2001, 08:25 PM:
 
Has the huge expansion of megaplexes meant earlier and more prints available for sub-run (as a result of big movies opening very wide and soon cut back meaning extra prints)?
 
Posted by Mike Spaeth (Member # 524) on 12-15-2001, 03:47 PM:
 
Dave ... that all depends on the distributor.

New Line, MGM, Universal, and Fox all do their subrun allocations market-by-market. So, basically, when metro Atlanta first-run houses all drop a film, they open it subrun. Universal does it by a smaller area. I can count on getting a film shortly after the 17-screen down the street loses it.

Paramount, WB, BV, and most of the others set national sub-run dates for a picture ... usually after the picture is completely dead and not showing anywhere in the country anymore.
 


Posted by Bill Enos (Member # 440) on 12-16-2001, 10:38 AM:
 
There may be more prints, but with more and more poorly trained operators, the prints are in WORSE condition than ever before.
 
Posted by Paul Cassidy (Member # 951) on 12-17-2001, 01:46 AM:
 
We don't have any of those cinemas as the Complexs only hold the best films until they flog the pants off them , then the video release is close behind , although I have still made money on films even after the video release , J Park 1 was one that did really well until the distributor wanted it back some times I would look for some old film to use ,I used "Ewoks Adveture" and this was old and you would not beleave the crowds we got
 
Posted by Jeffry L. Johnson (Member # 453) on 12-17-2001, 01:46 PM:
 
I keep hearing that the distributors are trying to eliminate subrun by moving up the video release dates.

The 2001 December 21/28 issue of "Entertainment Weekly" (#631/632) states:
"MOST SHOCKING STATISTIC
Shrek, The Mummy Returns, Planet of the Apes, and Dr. Seuss' How the Grinch Stole Christmas earned more in their first week of video & DVD release than they did in their first week of theatrical release."
 


Posted by John Pytlak (Member # 331) on 12-17-2001, 01:58 PM:
 
Jeffry noted: "MOST SHOCKING STATISTIC -- Shrek, The Mummy Returns, Planet of the Apes, and Dr. Seuss' How the Grinch Stole Christmas earned more in their first week of video & DVD release than they did in their first week of theatrical release."

I bet if any of those movies had been released direct-to-video without a theatrical release, they would be lucky to get 1/10 the video sales they did. Shortening the theatrical "window" any further may "kill the goose that lays the golden eggs".

------------------
John P. Pytlak, Senior Technical Specialist
Worldwide Technical Services, Entertainment Imaging
Research Labs, Building 69, Room 7525A
Rochester, New York, 14650-1922 USA
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Posted by System Notices (Member # 2357) on 07-04-2007, 12:57 PM:
 

It has been 2024 days since the last post.


 
Posted by Mike Olpin (Member # 1115) on 07-04-2007, 12:57 PM:
 
How is the sub-run market doing these days? I'm cautiously eyeballing a local theatre that is almost up on it's lease.
 
Posted by Monte L Fullmer (Member # 2797) on 07-04-2007, 02:12 PM:
 
We have a few sub/discounts in our area (and which I have to include the two drive-ins in this area as well in this mix) and it really depends on how they are operated in as well as their locale.

Also in this area dwells the Big Lion named, "REG".

One sub is doing very well, whereas the other sub is surviving.

One discount is also surviving whereas the other is doing the bucks.

NOW, in another town in our state that I'm familiar with, ALL of the subs and discounts there and doing extremely well (course, these are owned by one fellow whom was one of my operators at my home town theatre that I trained and educated in the film industry and took that knowledge to his advantage...) and is thinking of doing his own expansion of sorts.

AND going to the drive-in end of the spectrum: Both drive-ins are just doing the Fri to Sun runs. One is doing pretty well, while the other is making bank twice to three times over.

Now Michael, why of the differences in operations mentioned above: It's called ATMOSPHERE - simply atmosphere.

The big disadvantage in the word "discount" is that the public usually expects a much lesser operation - a tired looking building, house or houses with tired to worn seats - no stadium, substandard screen and sound presentations, and to go along with this lesser form of operation is that of the mgmt/staff morale goes along with this attitude.

Also, discounts is where you find a lot of "mom and pop" type operations where the entire family works at the theate with a very small amount of outside employees-and ususally just paid out of the register. And with this kind of atmosphere, one don't know what to expect to see on the screen, let alone how the theatre is conditionwise.

Thus Mike, if you're gonna run a discount, please present the best atmosphere that you can imagine - pretend that you have a palace of magic and surprises for this will draw the crowds to your cinema.

EDIT: I want to add to this that is also very important to a potiental "indie" when one is beginning to look into this venture of film exhibition: KNOW your community! Feel out what your community is based like and then give them all you can of your business to that community, and I'll promise you that your operation will be the most successful as it can be. Granted, it's going to be a hard road ahead as you begin, but as you go on, eventually you'll develop an organization within your operation that you, your employees and that community will obviously recognize. Then after the organization gets established, then you will have an obvious system that can't be beat and once again all will recognize what you have and have to offer.

With this, respect will develop from you and your community and you've accomplished what other can only dreamed of due to their selfish ignorance and only wanting things to go their way and others must serve that one venue.

As I mentioned before with that one fellow who wants to go into his own service business: Be in control at all times. Don't let your guard down, for if you do and let others control you, you'll be lost forever and it will be a very hard struggle to regain what you lost.

Good luck ...

-Monte

[ 07-04-2007, 05:18 PM: Message edited by: Monte L Fullmer ]
 
Posted by Robert E. Allen (Member # 1351) on 07-04-2007, 02:44 PM:
 
quote:
but do people want to see a film after the national break has passed the five or six week window?
Hey Tom:

Do you really believe most people think the films lose quality of content after this time? A film is just as good five weeks or five years after its release. When I was back in Iowa I ran a .99 cent house and had many regular customers who could have seen the films at the break in another nearby town but chose to wait for that period to watch it for .99 cents. Obviously I made my money at concessions. For example, if I took in $400. at the box I made $1200. at concessions in one night.
 
Posted by Mike Blakesley (Member # 26) on 07-04-2007, 09:25 PM:
 
quote: Robert E. Allen
Do you really believe most people think the films lose quality of content after this time? A film is just as good five weeks or five years after its release.
The film is just as good, but it's a lot closer to video. In some cases, the availability has already been announced and the posters are up in the video stores after 6 weeks. (Sony is the fastest to go to video, on average.)

Plus with a lot of today's movies, the "bloom is off the rose" after a couple of weeks of bad word-of-mouth.
 
Posted by Kenneth Wuepper (Member # 1174) on 07-04-2007, 10:05 PM:
 
Playing a film just before the video release can have some advantage. Every TV set pictured in the catalogue inserts of the week end paper has a color photo of the movie title. That repetitive image does a lot to stir interest in seeing the film and you don't have to pay for it. Sometimes there is a rare gem that sells big in second run. I am thinking of "My Big Fat Greek Wedding". It even did well for us after the video came out.

KEN
 
Posted by Monte L Fullmer (Member # 2797) on 07-05-2007, 05:10 AM:
 
To show another advantage with discounts over first run movies is that if the movie is a stinker (like "White Chicks", for example) and a person feels that they've wasted 8 bucks for such a movie and then dies. THEN, that same movie will make big bank in the discounts since losing 2 bucks ain't gonna kill them and the danged movie can play, and play ....

(I'm just relating to this movie since it only played 3 wks in a first run, then our discount house picked it up two weeks after it left first run. Then we held on to the stupid thing for a record 14 weeks...and was still doing pretty good - two shows a day - when we HAD to get rid of it..and it was already released on DVD 3 wks prior..).

I do believe that people STILL want to see a movie on the big screen - to enjoy the "magic" of the cinema.
 
Posted by James Westbrook (Member # 3690) on 07-05-2007, 12:09 PM:
 
In Lubbock, we have the Showplace 6, operated by R.A."Skeet" Noret. He opened the theatre in 1972 as a first run 4 screen. He added 2 screens in 1978. He's been subrun since 1984, with an occasional first run now and then (as when Cinemark and Dreamworks were having their spats.)
Sub-run has been very lucrative for the operator, and DVD releases does not impact the business much if at all. Kid films do very well there.
He almost didn't get the lease renewed though. A local church bought out the shopping center Showplace is located in and planned to use the theatre as lecture halls or some such thing. Then the church ran into financial hardship and needed Skeet's lease money, so they renewed. [Smile]
Rudy, the manager of Showplace, mentioned that Buena Vista is the hardest company for them to deal with booking-wise. A movie has to be off the first run screens for a longer window before they allow Showplace to have a movie. (They recently just had Bridge To Terabithia.)
Skeet's grandson, Ryan Smith, owns the Stars and Stripes drive-In near the city limits on NW Highway 84.
 
Posted by Mike Blakesley (Member # 26) on 07-05-2007, 09:02 PM:
 
I sometimes forget that a lot of you guys are in big cities where there are lots of people wanting to patronize the dollar houses. Here, if we were to turn this place into a dollar house and play movies 6 weeks or more after the break, we'd probably have about 12 people a night. (At least until people got used to it, I guess!)
 
Posted by Monte L Fullmer (Member # 2797) on 07-06-2007, 03:20 AM:
 
quote: James Westbrook
...that Buena Vista is the hardest company for them to deal with booking-wise. A movie has to be off the first run screens for a longer window before they allow Showplace to have a movie.
Basically called, a "28 day window" from BV. But once in a while BV will release earlier than the 28 day to discounts if the product was really bad to allow an early release to discounts.

With Sub-runs, it's much sooner since the percentages are in the higher (min. 50 percent) bracket than the discount percentages being lower and more affordable for these "mom and pop" owners.

Easiest company is SONY - discounts love SONY since they are so easy to work with. LIONSGATE..good luck!

Gee Mike, that could be the golden ticket for you up there in Forsyth MONT. - and that is to find a empty hole downtown and convert it to a small discount house for two reasons: One, to have more variety for your town, and two keep the competition out by dominating that market area. And by having a discount house, your conc revenue would increase since tix prices would be nothing to pay for.

Yet, Mike I know exactly were you're coming from since I started in this field working for small "indies" like you that had no competition around. Thus, whatever you played, either on the break or weeks down the road of that same movie, you were "it" in the town and they fully depended on you for the community's entertainment - and you had to make it the best one can do.
 
Posted by Damien Taylor (Member # 4255) on 07-06-2007, 10:30 PM:
 
Sub-runs are almost a totally foreign concept here. We have maybe a couple in the inner city area.

My question is, after the roll out for digital is complete for most first run theaters, what is the fate of the sub-run? I can't see it being cost effective to make prints for dollar houses alone.
 
Posted by Monte L Fullmer (Member # 2797) on 07-07-2007, 02:50 PM:
 
quote: Damien Taylor
My question is, after the roll out for digital is complete for most first run theaters, what is the fate of the sub-run?
Probably the time every cinema has been converted to digial, we all probably won't be around to worry about it since we'll be pushing up dandelions by then.

Digital is still very, very spendy to do the conversion and the tradeoff to digital against film is still way out in space to make the conversion practical and affordable-let alone in getting the digital systems as reliable as a film projector.

Thus, film will probably be with us for at least a few more generations...
 
Posted by Louis Bornwasser (Member # 3063) on 07-07-2007, 06:21 PM:
 
Monte: my take exactly!

Meanwhile, many. many new customers of mine are equipping with film equipment. When "spendy" is not so pronounced, you will have people spending their own money on Digital. Louis
 
Posted by John Pytlak (Member # 331) on 07-07-2007, 07:33 PM:
 
35mm FILM prints are still a very cost effective way of distributing movies. Prorated over a few months of screenings, film prints usually cost only a few dollars per show. With digital systems still close to six figures, and unproven lifetime before needing replacement, the ultimate average cost per showing is still unknown. There is also some cost in mastering and delivering the digital data.
 
Posted by Damien Taylor (Member # 4255) on 07-07-2007, 09:43 PM:
 
Thats really good to know, I'm barely in the industry, I was hoping I wasn't setting myself up for a dying job, but it looks like film's still got a fight.
 
Posted by Bruce McGee (Member # 131) on 07-10-2007, 05:57 PM:
 
What a difference a few years makes!

Back on page one, I was blasting the quality of some of my local theatres. My, how things have changed!

I now work for one of the theatres that I griped about with their blue screen image. No blue screens now! And the only remaining single-screen with the 2nd theatre in the balcony? Seems to be doing good business. I'm happy for them.

The big 800 seat twinned former Ultra-Vision house is slowly deteriorating. Its sad.
 
Posted by Christopher Crouch (Member # 3784) on 07-13-2007, 03:01 AM:
 
Sub runs are still doing quite well. I work for a company that currently runs the majority of it's chain as sub run and was actually founded on a discount oriented business model. Most of the theatres in this particular chain regularly see higher attendance levels, as sub run, than they ever did in their first run "prime".

As for the future, baring any dramtaic shift in studio policy, there is no sign the discount house will be disapearing anytime soon. People like to go out, people like movies, and not everyone wants to/can pay full price (i.e. as long as these people are buying tickets, the studios aren't going to pass on a revenue source). Also, digital doesn't spell the end of discount; beyond film still having a long life ahead, there is nothing stopping discount from making the conversion down the road and I'm aware of some plans to do so.
 
Posted by Kevin Bradsher (Member # 4395) on 07-18-2007, 10:31 PM:
 
Hi Everyone,
This is my first post ever and while browsing the forums this subject caught my eye because I work at a so-called dollar house (just made head projectionist last week!)
The theater is located in Warner Robins, GA, which is predominantly middle-class with a lot of the economy dependent on Robins Air Force Base. My theater has six screens ranging from 100 to 300 seats. We charge .99 for matinees and $1.99 evening.
I've noticed that a high percentage of our customers are people who can't really afford the high prices of the mall cineplex. The lower-middle-class, the retired, teens who like to see movies more than their budget allows. As a result of this mix of customer's it's interesting to see what movies do the best business. "Spider-man 3" opened on July 13th in our largest house of around 300 seats. Not being a manager I don't know specifics but it looke like there were a little over 100 people in each of the evening showings.
Over the spring time our most attended movie was "Night at the Museum", family movies always do quite well. Think about it; a family of five can spend $100 at the mall, or wait a month and come see it here for under $40! We had constant crowds that grew large when the DVD ads started showing on TV and we kept 'museum' until 2 days after it's release on DVD!

My first .02!,
Kevin Bradsher
Parkway Cinemas
Georgia Theater Company
 
Posted by Mike Blakesley (Member # 26) on 07-19-2007, 11:14 AM:
 
I wasn't sure whether to post this here or in the "theatres opening/closing" thread, but a former Carmike location in Billings Montana is being reopened next week.

Article from the Billings Gazette follows, and I suspect there is a Film-Techer among the comments at the end of the article on the website. Link

Laurel couple to reopen theater with bargain films, new approach
By LANCE BENZEL
Of The Gazette Staff

Coming soon to a theater near you: independent films and second-run blockbusters, screened at family-friendly prices with concessions including pizza, beer and espresso.

That's the vision for Funhouse Theatre in Billings, a new production from Riley and Vickie Cooke, the people who brought you Amusement Park Drive-In near Laurel.

The venture is set to open Monday, albeit in a less ambitious form, at the old home of Cine-7 Theatres at 925 Broadwater Ave., which Carmike Cinemas shuttered without advance notice in May.

Funhouse Theatre will start out offering second-run films on all seven screens, with ticket prices at $2. In two weeks, plans call for setting aside two screens for small-budget and foreign films at $5 a ticket. The owners are seeking a cabaret license so draught beer can be served at select screenings. Other goals include showing classic films from time to time and reserving screens for special events, such as major sports events or ultimate fighting exhibitions.

"This is going to be evolution from the word go," said Riley Cooke, who got into the cinema business for the first time when the couple opened the drive-in in 2005. "We don't know anything about this industry. We're just going to do our thing and see what happens."

It would mark the first time in recent memory that small-budget films will be available to theatergoers in Billings on a consistent basis. The couple has been warned it's a risky prospect: Art-house films may be lauded by critics, but they don't always pack the house.

"Carmike's tried it off and on, and my booker swears that if it worked, theaters all over the country would be doing it," Riley Cooke said. "There's a lot of things I don't agree with my booker on."

In his view, the rules in the industry are made to be broken.

For example, Cooke said he will cut prices for standard concession fare such as soda, popcorn and candy. He stood in the lobby of the theater and gestured to the old Cine-7 concession sign, which advertised nachos for $5.70 and a small bucket of popcorn for $3.45.

"Let's get back to reality," he said. "It's about repeat customers. It's not about hitting them hard once. It's like at the drive-in: People are coming not because of nostalgia but because of our value. Nostalgia only gets you there once. Providing a value, that's what gets them coming back."

Renovation of the theater has been a family affair. The Cookes tapped professionals to clean the carpets and revamp air conditioning and heating units, but they did much of the other work themselves, with the help of their daughters Jenny, 14, and Annie, 9.

They want to provide a clean, family-friendly environment, even if they are successful in obtaining a cabaret license, which may prove difficult.

"We're not going to have this be a bar atmosphere," he said. "And it's not going to be dollar-store babysitter. There's not going to be any rowdy kids in here."

The building has been a movie theater since 1971, when Jerry Carisch of Bozeman converted it from a Safeway grocery store. Carisch, who still owns the property and is leasing it to the Cookes, believes the family has a good chance of building an audience in Billings.

"Riley has a challenge in front of him, but he's a showman, so it will be a well-run operation," he said.

Published on Thursday, July 19, 2007.
 
Posted by Darryl Spicer (Member # 711) on 07-19-2007, 11:29 AM:
 
I hope they plan on putting reel to reel projection in for when they want to run those classic films. Some of those titles come with the you must run it on 20 min. reels or you do not run it at all.
 
Posted by Monte L Fullmer (Member # 2797) on 07-20-2007, 04:06 AM:
 
Hey Mike -

What was the name of that 7plex in Billings long time ago when T.O.I, then Excellence Theatres had it before the soak-up of Excellence by Carmike in 1991? Has it always been the Cine-7 name?

I do believe that Verl Clark, the booker was the mgr of this theatre back then, but can't remember now...but, I did work for both TOI and EXCELLENCE when they were the 'partying company' [Big Grin]

Hope that family does exceptionally well with their venture and get an establishment as a true "indie"..
 
Posted by Mike Blakesley (Member # 26) on 07-20-2007, 12:54 PM:
 
It started as Cine 3, then they twinned the big auditorium and renamed it Cine 4, then they added onto the building and made it the Cine 7. I think all that took place before the Carmike takeover.

I think they'll do OK with the subruns because there's definitely an audience for that in Billings already. They won't do great with the arthouse product unless they spruce up that place, it's a dump now. Carmike totally let it go for the past 10 years at least.

I think Verl Clark is the booker mentioned in that article and he is our booker as well (well, a guy who works for him books for us).
 




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