Film-Tech Forum ARCHIVE: What some cos. management tell their staff

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Posted by Mike Frese (Member # 4361) on 08-18-2010, 08:59 AM:

How many mistakes can you find in this facebook post?

The following comes from my competitor's facebook page:

(Name removed) ‎*takes deep breath*
The Capital 8 theater is a theater unlike many theaters in the Goodrich company. It is one of the only ones that doesn't actually have any competition that near to it. It is also the theater that is furthest away from it's mother location in Grand Rapids Michigan. With a population of only 40,000 in Jefferson City and with no competition it is a miracle the Capital 8 gets the attention it does. Goodrich Quality theaters is in the process of converting all of its 28 theaters (consisting of 270 screens) to digital by the end of the year. To convert a theater to digital it costs roughly$150,000 per screen. Now lets do some math. If we do not include the Capital 8 that means Goodrich Quality Theaters is spending around $39,300,000 just to upgrade its other theaters (you know the ones that actually have competition and need to have these upgrades to compete with the other competitors). Goodrich Quality Theater also has some of the lowest concession prices compared to other competitors. Theater prices for concession are high but thats because it makes less than 1% on its ticket prices. They are also one of the only company's that won't make you leave that soda and candy you so indiscreetly have sticking out of your purse at home. Out of the many theaters I have gone to Capital 8 is one of the kindest and cheapest (and I'm just not saying that because I used to work there). Getting a free drink if your in line for more than 6 minutes, highly discounted coupons...Their ya go! Everyone who is complaining about concession prices, sign up for an FMG card here. You get free concession after you see only 3 movies, you get coupons sent to your email address every week for half off on drinks and popcorn (sm drink sm popcorn $3, md drink md popcorn $3.5, lg drink lg popcorn $4).
http://www.gqti.com/signup.aspx

Now about Holts Summit's supposed 3D projector...its not a 3D projector.
Holts Summit has a 3D lens attached to their 35 mm film projector. This is the cheapest way to create the 3D effect for movie goers. Goodrich Quality Theater is doing realD 3D. Its a whole new DIGITAL projector with the best digital sound and a new $5000 screen. That lens Holts Summit is using is around $10,000 to $20,000 lens that still uses 35mm film. Meaning you will still get dust particles and scratches on your prints which greatly effect the quality of the 3D effect. All those problems get taken away when you use digital. Meaning Goodrich is paying $150,000 per each of its 270 theaters, not to mention a couple $1,000 more for 3D, for its movie goers while Holts Summit bought a $15,000 lens.

Posted by Martin McCaffery (Member # 37) on 08-18-2010, 09:53 AM:

But, but, but... it's DIGITAL!

Wowser, gave up counting mistakes. Reminds me of when Carmike used to own everything in this town, except us. They would tell their employees they owned us, for whatever nefarious reason made them feel good.

Have to really love the "It's not a real 3D projector line". Only a 3D effect. Does this idiot think putting on the magic DIGITAL glasses actually makes the little blue people come into the room. Movies are nothing but "effects."

Made my day [evil]

Posted by Chris Slycord (Member # 4239) on 08-18-2010, 02:18 PM:

quote: Mike Frese
Now about Holts Summit's supposed 3D projector...its not a 3D projector.
Holts Summit has a 3D lens attached to their 35 mm film projector. This is the cheapest way to create the 3D effect for movie goers.

I assume this means they're running Technicolor's 3D system as it's the only one I know of that is using 35mm with current releases and it being "the cheapest way for movie goers" doesn't ring true since they'll have:
1) The same surchages as anyone else, unless they want to eat the cost and make even less money off tickets.
2) The per-movie extra print fee to pay to Technicolor.

It can be cheaper but it's not necessarily going to be. It depends on varying factors.

Posted by Mike Frese (Member # 4361) on 08-18-2010, 07:28 PM:

IMHO, the biggest mistake is saying that "makes less than 1% on its ticket prices". I hate when theater people say that! most 1st run theaters will keep 45% of the ticket price.

Second: $150,000! Plain digital w/o 3d is more like $60-70k per screen?

Third: Of course he has no idea about cost of Tech 3d.

Fourth: Quality: It seems the heirarchy of quality goes as follows 1) Dolby 3d, distant 2nd every other system. (At least that is what I take from the past discussions)

Posted by Jack Ondracek (Member # 1466) on 08-18-2010, 11:29 PM:

quote: Mike Frese
most 1st run theaters will keep 45% of the ticket price.

Really? On what authority do you state that?

In our corner of the country, first run is substantially higher. Having owned one recently and paid the film bills, I would love to have kept 45% on a release print.

Add city and state taxes, plus admission taxes in many areas and that percentage drops even more.

Posted by Mike Blakesley (Member # 26) on 08-19-2010, 06:56 AM:

I think, when you figure in the subsequent weeks that are cheaper, that 45% is fairly close to reality. If all the studios start going to the Disney/Warners method of the "standard aggregate" for their bigger releases, that'll diminish to about 38% or so.

Whatever the true figure is for everyone, that 1% is definitely wrong! Sounds like his manager is giving him a sob story.

Posted by Louis Bornwasser (Member # 3063) on 08-19-2010, 09:51 AM:

Remember that the "master" for Technicolor 3D is the the exact same master as the Digital systems. The 'delivery system" is, however, different, and also brighter. Louis

Posted by Mike Frese (Member # 4361) on 08-19-2010, 11:05 AM:

quote: Mike Frese
most 1st run theaters will keep 45% of the ticket price.
Really? On what authority do you state that?

In our corner of the country, first run is substantially higher. Having owned one recently and paid the film bills, I would love to have kept 45% on a release print.

Add city and state taxes, plus admission taxes in many areas and that percentage drops even more.

Jack,

I book and write the checks, so on my experience.

Here are recent film rental cuts to the studios:

Disney: (uses the aggregate method, all weeks pay the same)
Toy Story 3 - 62%
Prince of Persia - 51%
Sorcerer's Apprentice - 49-50% (depends on what it final gross is)

Warner Bros: (aggregate as well)
Inception - 56.5%
Cats & Dogs 2 - 54%
Clash of the Titans - 58%
Valentine's Day - 55%
Sherlock Holmes - 57%

Sony: (Uses sliding scale)
Other Guys/Salt/Grownups all 60/50/40

If you run a movie for 2 weeks only and see a 50% drop from week 1 to week 2, you will pay 56.67%. If you play for 3 weeks and get a 50% drop for each subsequent weeks, you will pay 54.5%.

Avatar: you had the choice of 61% agg or sliding scale. I took the scale as I knew I would keep it a while and paid approx. 55%.

Despicable Me: (sliding scale)
It held up well week to week, my film rental was 52%.

I am a tiny theater. I doubt if I am getting any good deals.

Taxes: You are allowed to deduct taxes before film rental is calculated.

Posted by Jack Ondracek (Member # 1466) on 08-21-2010, 01:29 AM:

quote: Mike Frese
Jack,

I book and write the checks, so on my experience.

OK... I see where you're going with that. It wasn't clear from your post, so I assumed you were talking about the first week or so.

We weren't able to hold our pictures very long, so average percentages were higher.

Posted by David E. Nedrow (Member # 4981) on 08-21-2010, 12:07 PM:

Mike,

Sony has us for 70/50/40/35 on EAT PRAY LOVE. First time the percentage has ever been that high for us. I guess I've really gotten used to indie/foreign percentages and aggregates from the rest of the big boys.

Posted by Mike Frese (Member # 4361) on 08-21-2010, 02:50 PM:

Jack,

You still should not go over 60% over the course of the year.

David,

Yea that 70% week 1 sucks. Keep it 2 weeks with 50% drop and you will pay 63.33% which would be the highest of any movie I have seen for a while.

The point is 60% should be the highest any first-run theater pays assuming you are only keeping movies for 2 weeks. Far from 99% like this person mentioned in their facebook post.

Plus one more important point/mistake to point out: I would be shocked if they were not getting some sort of VPF. In the end they are paying very little for that equipment.