Film-Tech Forum ARCHIVE: Studios worried About Box Office Slowdown

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Posted by Mark Gulbrandsen (Member # 72) on 08-12-2005, 08:25 AM:

Link to Article

Talk of movie slump dominates Hollywood's summer By Bob Tourtellotte
Thu Aug 11, 3:23 PM ET

LOS ANGELES (Reuters) - A bumpy ride at the summer box office and signs that booming DVD sales may be slowing have Hollywood studios looking for new ways to win fans as the movie industry faces increased competition.

But studio executives say the key to recapturing audiences is to make better films -- an age-old answer in Hollywood -- and industry watchers are divided over whether film and DVD markets truly are weakening.

"If you believe all the press reports, we are in the middle of Armageddon with box office erosion," said Peter Chernin, president of News Corp., parent of the Twentieth Century Fox film studio. "I believe that is a definite overreaction."

Movie studios and theater owners have had a rough summer, which is a problem since the season makes up nearly 40 percent of annual movie ticket sales.

By September's Labor Day holiday in the United States, the box office is expected to be down 7 to 12 percent after films such like "The Island" and "Stealth" failed to connect with audiences.

Tracking service Exhibitor Relations sees ticket sales at around $3.7 billion for the season, about 7 percent below 2004's $3.96 billion, marking the worst summer since 2001.

Admissions, or the number of people attending movies, are seen down 9 percent at 578 million for the worst year since 1999.

But Exhibitor Relations President Paul Dergarabedian admitted his figures were optimistic. By contrast, Boxofficemojo President Brandon Gray figures summer box office will be off 12 percent.

Others are quick to point out that a strong line-up of fall movies could still rescue the year. "I think fall is going to be exceptional this year, financially," said David Poland at the Web site, Movie City News, citing upcoming films like November's " Harry Potter and the Goblet of Fire."

MAKE BETTER MOVIES

Industry watchers cite many reasons for weaker ticket sales -- competition from video games, the narrowing of time between a film playing in theaters and on DVD, and Internet piracy -- but the one factor that seems to outweigh all the others is that some of this summer's films lack a fresh appeal.

"We can all try to blame the closing window of DVD and all that, but you see the movies that are really distinctive still going out and doing really well," said Mark Gill, president of Warner Independent Pictures, which released surprise summer hit nature documentary "March of the Penguins."

Films like "Batman Begins" and "Charlie and the Chocolate Factory" were often mentioned as two films that won fans with fresh takes on tried-and-true Hollywood formulas.

Roger Birnbaum, co-founder of Spyglass Entertainment which had modest spring success, "The Hitchhiker's Guide to the Galaxy" said some summer releases were "a little tired."

Birnbaum said Spyglass, which is behind fall films "Memoirs of a Geisha" and "The Legend of Zorro," will not change the way it develops or makes movies just because of one bumpy summer.

In recent years, difficult times at box offices would be offset by the booming DVD market where studios would recoup their investment and profit from films. But there are signs that DVD growth may be slowing, too.

Earlier this week, Bob Iger, the incoming chief executive of The Walt Disney Co, said industrywide DVD sales were about the same this summer as last. But because the number of homes owning DVD players had risen, the average number of sales per home had fallen, he said.

"One thing is clear, consumer choice is increasing, making quality ... content more important than ever," he said.

Posted by Thomas Dieter (Member # 2507) on 08-12-2005, 01:25 PM:

I personally think that if the distributers take and stop releasing the DVD 6 months after it comes out on the big screen would be best. Lucas did that with Episode I and look how well it did when the DVD came out 2 years later. I keep hearing how Episode I was the worst of the new trilogy, yet it did more than all of them.

It seems to be a psychological thing. Once people know that they won't be able to see if after it leaves the theatre, creating the must have situation.

Posted by Robert Harrison (Member # 3202) on 08-12-2005, 04:27 PM:

Mark (and all you other techs out there),

Are you getting any requests to lower your fees, seeing that as this same subject has come up perpetually all year? I half expect my boss to glom onto this "strategy" pretty soon. I guess I'm just saying, don't be surprised if it does occur and be ready with a quick answer.

Posted by Mark Gulbrandsen (Member # 72) on 08-12-2005, 07:26 PM:

quote: Robert Harrison
Are you getting any requests to lower your fees, seeing that as this same subject has come up perpetually all year?

To be honest I would be more inclined to raise our rates than lower them. About 97% of our customers are serious about what they do but we do have a few "we'll get by", or "we know better than you do" customers sprinkled in there that raising the prices might weed out. I'd prefer to see a few of them go get aquainted with a less experienced dealer [Big Grin]

. Also, our expereinced customers also know that the movie exhibition buisness is always an up and down roller coaster ride and they generally don't panick about it but you might hear a few complaints about the crappy films being made in general from them.

Overall if you do excellent work the smart customer will not bat an eye at what you charge and he/she will know that they are getting their moneys worth.... a smart buisness person will know that. Our 3 main techs have 35, 32, and 25 years(me) experience each and can accomplish more work done throughly in 2 hours than many techs can in half a day and when a customer sees that kind of throughness done that efficiently it is generally appreciated.

My favorite service calls are new customers wherein I pleasantly find that just about everyting is wrong, Recently I encountered a twin theatre with both X-L's opearting with 7 degree up-tilt that have the oil intake still in the front of the projector! I love finding stuff like this [Big Grin]

. I will withhold the name of the now defunct dealer that installed this booth [Roll Eyes]

. They have also had no way to drain the oil.... These projectors have been running this way for over 7 years... only lasting because the manager was smart enough to overfill them with oil each night to be sure there was a constant spray on the gear window.... but if that manager leaves.... [Eek!]

. I love finding this sort of substandard work and making it right once and for all.

Our field rate is $65.00 an hour(30.00 an hour driving plus per mile based on gas prices) and getting X job done efficiently in 3 hours that may take a less experienced tech charging $45.00 an hour 5 hours to complete, so overall we cost the customer a bit less than the inexperiencd guy does.

In reality you get what you pay for! In ther service buisness a higher per hour rate doesn't always mean a higher end cost to the customer.

Mark @ CLACO

Posted by Mike Blakesley (Member # 26) on 08-12-2005, 09:32 PM:

quote: Mark Gulbrandsen
Our 3 main techs have 35, 32, and 25 years(me) experience

Jeez, Mark, I didn't realize you were so inexperienced! [Razz]

Posted by Mark Gulbrandsen (Member # 72) on 08-12-2005, 10:45 PM:

Gee Mike,
Donno what to say [Confused]

Before this wonderful career started I also had a number of years working in repairing Audio electronics for a local Hi-Fi chain, was a bench Tech at Panasonic, at Canon USA, and then went into Broadcast Television engineering. Machining things has always been a hobby of mine as well. The interesting thing is that all the experience from all the other jobs and some of the hobbys combined are ALL put to work in this field [thumbsup]

.......

Mark

Posted by Michael Schaffer (Member # 1204) on 08-12-2005, 10:56 PM:

quote: Thomas Dieter
I keep hearing how Episode I was the worst of the new trilogy, yet it did more than all of them.

That's because it had the element of surprise. Many, including myself, would not have imagined in their worst dreams that it would be that bad, and once seen, it was just very hard to cope with the fact that it was actually worse. I remember rewatching the movie myself 2-3 times, unable to believe what I saw, looking for something to like.
When "Episode II" came out, I watched the first 45 minutes or so, then was called out of the theater (it was during the opening week of a new location) because of some technical problem in another auditorium, and never bothered to watch the rest.
I actually watched "Episode III" 3 times because we showed it in digital and I had to QC the installation and the downloads. I am still thinking about sueing for emotional damage.

Yes, MAKE BETTER MOVIES, then they will come again.