This is topic Splitting Product in forum Ground Level at Film-Tech Forum ARCHIVE.
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Posted by Steven Pickles (Member # 785) on 10-18-2001, 12:05 AM:
How many of you out there are forced to split product with another theatre due to being in a "competitive zone?" With two main theatres here in Gainesville, FL, it seems a bit stupid for the two theatres not to get the same films. There are some 40,000 college students when school is in session and with only one theatre playing a particular film--the film sells out repeatedly because there just isn't enough room to put everyone in the movie. Furthermore, isn't that why there are two competing theatres? So patrons can spend money at whichever theatre is the one they like (best presentation, shortest lines, cleanest, etc..)?Can someone shed a little light onto the reasons for the split product? I believe it hurts more than it helps.. case in point: A customer wants 150 tickets for the first show of Harry Potter (on 11/16) so that his 7th grade class can attend the showing. Due to the split product, we are not getting that film... upon responding to his letter, he calls me and informs me that because we cannot show that film that he has lost faith in the company and will never return. Is that the kind of image we want portrayed to an already suffering industry? Suddenly we are the bad guy and we haven't done anything wrong. I hate to disappoint people, but in this case I have no say whatsoever. Meanwhile I am losing customers and there is nothing I can do about it.
Posted by Brad Miller (Member # 2) on 10-18-2001, 03:37 AM:
Oh how I really do wish that was the case, for there would be an awful lot of dump theaters that would go out of business if true competition was allowed. It would actually benefit the industry as a whole to rid ourselves of "places like that" and bring back concern for quality presentations and "film done right."As to the actual reason, I'm betting it has something to do with the fact that if this was to be the case, both of your theaters would be playing Harry Potter and none of the other studios would be able to get their product shown. I'm sure someone else can shed some light on this, as it's never been something that I've inquired about or given much thought.
Posted by Ken Lackner (Member # 1002) on 10-18-2001, 08:34 AM:
When I attended my company's management training class, the head film booker spoke to us. I don't remember a lot of the details, but basically there is a lot of negotiating to be done in competitive zones. And if you don't get one major print, you most likely will have first pick next time.Details are starting to come back to me. Let's say there are 3 theatres in the area. The studio may give him first pick out of three titles, and then the other two theatres would get to pick from what's left. But next time, he'll get second pick. It rotates. there are other methods, too. That's the only one I can remember.
Was that Harry Potter case just hypothetical?
Posted by Steven Pickles (Member # 785) on 10-18-2001, 06:34 PM:
quote:
Was that Harry Potter case just hypothetical?
No, it is real. On your other note, the way the bargaining goes... I think its a bit biased. Regal (mine) is seemingly getting the short hand of the stick... for example, the three big summer movies "Shrek," "Pearl Harbor," and "JP3" all went to the competitor. We got "America's Sweethearts," and "Final Fantasy." Looking at grosses from last year they got 7/10 big pictures--and are scheduled to get Harry Potter and Fellowship (understandable). We get Monster's INC, and some Jim Carrey film I haven't even heard of in their places. Monster's Inc. will be a good film, I hope.. but won't bring the kind of business that either of their films (especially combined) will in the long run. Perhaps the films companies can post an explanation?
Posted by Mike Blakesley (Member # 26) on 10-18-2001, 10:33 PM:
How far apart are the two theatres physically? At least here in Montana (possibly because of the smaller population) film co's will not license a print to two theatres that are less than "x" miles apart. (I don't know what distance "x" is, because all the large cities in Montana are Carmiked, hence no competition anyway.) I inquired around once about building a theatre in one of the larger towns and was told that the town wasn't big enough to put the theatre far enough away from the competition.
Posted by Mike Spaeth (Member # 524) on 10-20-2001, 04:54 PM:
Alright - let me attempt to shed some light on this subject. I (until just recently) was running an 8-screen theater in Mankato, MN that had to split product w/ 2 4-screen Carmikes. It was basically a 50-50 film split ... in other words ... the distributors treated the Carmikes like 1 8-screen theater ... Carmike placed the film wherever they wanted when it was allocated to them. A lot of it has to do with the quality of your film buyer. Booking is not an exact science ... there is a lot of wheeling and dealing and schmoozing that goes on between bookers and film companies. There were instances where I ended up with extra product for 2 reasons: 1) my booker had a good relationship with the film companies and 2) I had the higher "gross potential". In other words ... a movie would gross more at my theater than the same movie would gross at the other theater. For example, "Road Trip" grossed $2000 more opening weekend than both prints of "Dinosaur" did combined. When we would move product over from Carmike, the gross would often jump 50% or more the following weekend. Now, if you have a film buyer that just doesn't care ... or, worse, doesn't pay any attention ... then you're basically up shit creek. Often, a booker needs to FIGHT for a picture after it has been allocated by saying, "blah blah blah ... you played the last x number of pictures there ... blah blah blah" Also, film companies allocate film differently. The one thing that helped me come to an understanding on this was to call and have a nice, long conversation with my film buyer. He explained to me EXACTLY how the allocation process works, with the different Wheels of product ... or the A-picture, B-picture way of allocating ... or in some cases ... the better theatre plays the good product ... the crappy theater plays the junk. If your booker is unwilling to discuss this with you, then that sucks, because I can tell you that my business was improved by my staying in the booking loop and being aware of allocations and the like. Plus, if you have a good relationship with your booker, it shows him that you CARE about your theatre and he just might go the extra mile to help you out. Good luck, I know it's awful frustrating ... but now I'm managing discount which is a whole new monster.
Posted by Joshua Lott (Member # 240) on 10-21-2001, 01:36 AM:
So in everyones experience who is a good film booking company? Both to get first run and art house/second run films?
Posted by Mike Spaeth (Member # 524) on 10-21-2001, 02:44 AM:
My booker is GREAT - however ... it is done within the company (Cinemark).
Posted by Chad Souder (Member # 343) on 10-21-2001, 06:56 PM:
I think the whole reason for sharing can be summed up pretty simple. It's in the film company's interest to keep as many screens open as possible. If they allowed day and date competition, one theatre would usually prevail, and the other would close. Instead, they share films to keep both open. That way, when you don't get "Harry Potter", you've gotta play something on that screen, so you keep "Bandits" for another week, or whatever. I'm in a newly remodeled 12 plex and our competition is a cruddy old 4 plex, and we still share. We get about 75% of the good ones, but they get enough to stay open. Then maybe on the screen we would have shown "Zoolander", we instead keep around "American Pie 2" and it makes a few more bucks. The only exception is with a couple companies, we play all their pictures exclusively. That's where the "you scratch my back..." thing comes in. Overall, I don't think sharing is all bad. Otherwise, all the theatres in town would be playing the same 10 movies or whatever.------------------
"Asleep at the switch? I wasn't asleep, I was drunk!" - Homer Simpson
Posted by Charles Everett (Member # 889) on 08-21-2002, 04:52 PM:
Doylestown PA has a 14-screen Regal and the 2-screen County Theater. For mainstream movies it's a free zone -- the Regal gets most every new release. On upmarket/arthouse titles the Regal and the County split product. In fact, the County raised a stink last winter about not being able to play In the Bedroom and said so on their website.If you run an arthouse and have to split product you've got to keep the "Coming Soon" section of your website up to date. In Doylestown the Regal picked up Tadpole last week but the County is still listing that picture as "Coming Soon".
Posted by Bill Gabel (Member # 1105) on 08-21-2002, 05:28 PM:
In the 80's in Westwood and Hollywood. Mann Theatres had a 5 mile
zone on films in the area. So if Mann's National in Westwood was playing the movie, AMC or Plitt in Century City could not book the same film. Because Century City was within the 5 mile zone from the National.But at that time the business was moving west to Santa Monica.
The Cinerama Dome had a policy that the film would play only at
the Dome for x weeks, before going citywide. That was till the
mid 80's for the Dome.
A ind. chain filed suit againist Mann theatres over zone rights.
They won the case.
Posted by Manny Knowles (Member # 1171) on 08-21-2002, 08:31 PM:
The "Competitive Zone" is also known as the "Catchment Area"There was this one theatre I used to work for who ended up on Paramount's "shit-list" (evidently there is such a thing...who knew?) but even though our competitor (right across the street) got all of those movies, Sony was apparently "in love with us" and so we got all of that studio's movies.
As it turned out that was a VERY BIG summer for Sony ("My Best Friend's Wedding" and "Men In Black" were just two Sony hits that came out that summer).
I know of another instance where a theatre ran afoul of several distributors by not paying grosses on time.
Another case: a cinema did not complete construction on time and missed an entire season of first-run product.
And, still another case, where one cinema earned favors from Sony for running "Joan of Arc" when it was likely nobody in that market would patronize it. The payoff: an exclusive on "Stuart Little." Make no mistake, an exclusive on a kiddie flick during summer is a big, big deal.
~Manny (Behold: The Power of Cheese!)
Posted by Mike Spaeth (Member # 524) on 08-27-2002, 01:36 AM:
If I remember correctly, Stuart Little was a mid-December release ...
Posted by Robert E. Allen (Member # 1351) on 08-27-2002, 03:08 AM:
Steven:You're absolutely right. But if you have paid much attention to the state of the exhibition industry recently you've seen that corporate bookers play right into the hands of the distributors. I haven't seen anyone give them too much credit for having any brains.
Bob
The Old Showman
Posted by Charles Everett (Member # 889) on 10-31-2002, 04:00 PM:
You think your theater gets the short end? Look to Connecticut!The York Square Cinema is a 3-plex in New Haven that's nominally an arthouse. National Amusements has larger theaters nearby in Orange and North Haven. The only other theater in New Haven is a 4-plex that plays 20th Century Fox titles and mid-run arthouse product.
Spirited Away and Comedian have been allocated to the York Square. Secretary, Igby Goes Down, Bowling for Columbine, and Auto Focus have been allocated to National Amusements. That got the York Square angry enough to say on its phone message that it was not getting the movies it wants and was suing the studios. What are the movies the York Square wants? Secretary, Igby Goes Down, Bowling for Columbine, and Auto Focus.
This isn't the first time this has happened. The York Square sued all the majors and some of the minimajors a few years ago over the way they were allocating product. BV and Miramax have relented for now, mainly because the Connecticut attorney general's office got involved the first time.
Also, because the York Square gets shut out of the movies it wants it sometimes has to play a mainstream movie that's about to go subrun. Three weeks ago the York Square was playing Signs in a double-up.
Posted by Dennis Benjamin (Member # 1137) on 10-31-2002, 10:23 PM:
It's all a friggin conspiracy!Every 'rule' that the film distributors have set in the U.S. (zoning, split product, etc.) is being broken somewhere out there. I have managed theatres in over 30 cities and seen every 'rule' being broken somewhere. There are theatres out there -right across the street from each other- that are playing 'day and date' with each other. It is all a political process - much like our government. As long as the film companies control it - there is nothing we can do about it. My only advice - is to build a theatre where there is NO competition - whatsoever. And that is getting pretty impossible these days.
Think about it - we are paying an average of OVER 55% of the reciepts back to the distributors now. We are simply THEIR pawns in THEIR game.
We just have to deal with it.
------------------
"Running through life at 24 frames per second"
Posted by Brent Mahaney (Member # 1090) on 11-03-2002, 08:25 PM:
The mystery will never be solved. All I can tell you is that in our split-market, we have movies in their third and fourth week of release that regularly and SIGNIFICANTLY outgross the competition's opening weekends. I have had customers yell at me because they don't understand that we have virtually no control over what we get in this market. They are angry that they can't see it in a theatre that is FAR superior to the competition. People in my community feel like they deserve a nice place to see the movies they want to see. And what can I say? "Well, Ma'am, we are in a split-market. Let me explain to you how it works." It doesn't work. The reason it doesn't work is because it doesn't make any sense to them...or to ME, for that matter. Look...bottom line. Competition forces companies to work to be the best at what they do. When there are rules in place that ensure the dumpy theatres will get the big pictures, the patrons lose. It's a shame.
Posted by Steve Kraus (Member # 476) on 11-04-2002, 06:00 PM:
What about when they force you to take something you don't want to get something you do? This is all illegal isn't it?
Posted by Stephen Jones 1 (Member # 114) on 11-07-2002, 12:26 AM:
I run a theatre in Conway, AR and our competition is less than spectacular. We have customers that call and ask if we get a certain movie and when I tell them that we won't get it, they get upset and tell me that they'll wait for it to come out on video. Sometimes we play a print after our competition and then our customers will wait to see it at my theatre. It really is sad, because of the following:I play Santa Clause 2 so THEY get Treasure Planet
I played Hannibal so THEY get Die Another Day
I played the first Harry Potter so THEY get Harry 2
I played Austin Powers 3 so THEY get LOTR:2 Towers
My employees and customers are upset. I've thought about getting some phone numbers of distributors and telling customers to call them and complain about the situation. I've also heard one customer asking about a petition. You think if I sent a petition signed by X amount of people that the distributors would listen. People don't like the other theatre.
That's my two cents...
Posted by Mike Spaeth (Member # 524) on 11-07-2002, 11:53 AM:
Stephen - The best thing that you can do is to stay on top of the situation. I used to be in the same type of situation in Mankato, MN (we work for the same company, I believe). In Mankato, I had an 8-screen, but we split product w/ 2 4-screen Carmikes. Have you ever noticed how the allocations tend to be "feast" or "famine"? Create a relationship with your competitor's manager so that you can call on Mondays and find out what he's dropping. During your famine periods, pay attention - he will always be dropping stuff you can "move over" because of his feast. Call your booker first thing Tuesday (your booker is NL, I believe, he's very helpful ... helps me get subrun product here ASAP), and ask if you can move over the decent title. Once the distributors start seeing that a movie grosses more at your theater after the move-over, they will start playing more product there. To give you some examples from Mankato ...
2001 Buena Vista
played Pearl Harbor AND Monsters, Inc.
2001 Universal
Cinemark - Mummy Returns, Fast & Furious, Jurassic Park 3, K-PAX, Spy Game, Beautiful Mind
Carmike - Head Over Heels, Josie/Pussycats, American Pie 2, Captain Corelli's Mandolin, Musketeer
2002 Sony Summer
Cinemark - Spider-man, Mr. Deeds, Men In Black II, XXX
Carmike - Stuart Little 2, The New Guy, Master of Disguise
You can definitely get them to play a good portion of their better product at your theater, but it takes a little bit of work. Email me if you want some more tips.
Posted by Charles Everett (Member # 889) on 11-13-2002, 11:11 AM:
Stephen 1: I'm surprised your theater wasn't given Harry Potter this year. Generally if you're in a competitive zone and you opened Harry Potter last year Warner Bros. will let you open the sequel.Look to lower Manhattan: The UA Union Square splits product with the Village East, two Loews multiplexes and four arthouses. UA opened Harry Potter last year and will do so again this year.
Posted by Mike Spaeth (Member # 524) on 11-13-2002, 10:44 PM:
Charles - That depends on the zone. It also depends on whether you played the "A" picture from Warner Bros. this summer, Scooby-Doo. I'd be willing to bet Stephen's theatre played Scooby-Doo this summer. Warners is not going to allocate 3 "A" pictures in a row to the same theater in a 50-50 product split.
Posted by Charles Everett (Member # 889) on 11-14-2002, 12:12 PM:
Mike S: The UA Union Square also opened Scooby-Doo.
Posted by John Carpenter (Member # 1488) on 11-26-2002, 12:51 PM:
From Steven's "competition", the originator of this topic... I guess what goes around comes around. Last year we got Harry Potter & LOTR. This year they have them both, and we get all of the upset people complaining that they "only want to see the film at our theatre." I too wish that we could both have all the films, or at least we could both get the "big" ones to make the customers happier.
Posted by Charles Everett (Member # 889) on 12-01-2002, 11:35 AM:
Update to an earlier post: In New Haven CT the York Square Cinemas goes Bowling for Columbine after all. Their booker must have bitched long and loud to MGM about the allocations.
Also, the York Square opened Solaris since National Amusements is not playing that picture in the New Haven area.
Posted by Mike Spaeth (Member # 524) on 12-01-2002, 01:52 PM:
Charles - either that or they "moved it over" from the competition when they finaled it.
Posted by John Carpenter (Member # 1488) on 10-18-2003, 02:10 PM:
Just out of curiosity mostly... who decides if 2 theatres will run the same product? The exhibitor (theatre owners) or the distributors (studios). Does an exhibitor even have a choice?
Posted by Steve Kraus (Member # 476) on 10-18-2003, 06:47 PM:
Upon rereading...
Think about it - we are paying an average of OVER 55% of the reciepts back to the distributors now
Um....so? What portion of vehicle sales receipts does your Ford dealer remit back to Ford? The Exxon franchisee back to Exxon?
You get to keep $45 out of every $100 which is, in a manner of speaking, an approximate 82% markup on the product that lures the people in so they will buy concession items even more massively marked up and view commercials for additional profit. And your complaint is?
Posted by Paul G. Thompson (Member # 655) on 10-20-2003, 01:24 AM:
OOPS! Please delete.
Posted by Dustin Mitchell (Member # 372) on 10-20-2003, 01:52 AM:
I can't help but think how the eventual implementation of digital projection will change the booking landscape. A major factor that keeps two theatres that are in the same 'zone' from playing the same title is the additional cost to the distributor of striking additional prints. Once everything is satelite/dvd/whatever instead of on film this cost will largely disapear. I can't think of any logical reason from a studio perspective to continue making theatres split product once this happens.
Posted by Chris Liczbinski (Member # 1957) on 10-20-2003, 01:17 PM:
I work for a Cinemark with 15 screens and about 5 or 6 years ago UA/Regal built a 10 screen so close you can read their marquee from our roof. I have noticed the distribution fair but we also have a good customer base. A number of times we have gotten a print from the UA across the street a month or two after it came out and will sell more tickets than expected. Frequently customers ask me when or if we will get a print they (UA) have because they want to watch it at our theater. I think it is interesting because niether of the theaters have stadium seating, DLP or exceptional pizazz.
Posted by Mike Spaeth (Member # 524) on 10-20-2003, 03:49 PM:
The main reason for splitting product is not the cost of the print. In a town with 16 screens, 8 vs 8 ... nothing would hold long enough playing day-and-date. Both theatres would be turning over product left-and-right ... nothing would hold for a decent amount of time. This is what they are trying to prevent.
Posted by Timothy Eiler (Member # 383) on 10-20-2003, 08:43 PM:
[QUOTE]In a town with 16 screens, 8 vs 8 ... nothing would hold long enough playing day-and-date. Both theatres would be turning over product left-and-right ... nothing would hold for a decent amount of time. This is what they are trying to prevent. [QUOTE] I am in a town of 6,800 People. I have the 5 screen outdoor and the indoor is 3. .
Indoor Plays Films Usually 2 weeks. Nemo was the exception it was 4.
Outdoor
Anger management 19 weeks (opening weekend to closing weekend)
Bruce Almighty 13 Weeks
Bad Boys 2 9 Weeks
Nemo and Pirates 8 Weeks