This is topic Drive-in theatre must go digital or close in forum Film-Yak at Film-Tech Forum ARCHIVE.
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Posted by Frank Cox (Member # 6258) on 01-15-2012, 01:35 AM:
Drive-in theatre must go digital or close
quote:
One of the last drive-in movie theatres in the province, the Twilite in Wolseley, is faced with closing down unless it can convert to a digital projection format.
The Twilite is hoping film buffs will help out with the $100,000-plus cost to make the switch, made necessary because movies distributors will no longer be sending film prints, beginning next year.
Diane Banbury's family has run the Wolseley theatre since the 1950s.
"There's got to be somebody out there that has a love for the past and the movies and movie memorabilia," Banbury said. "If they could get some money together than maybe somebody else could say 'Well, they raised 40,000, we'll raise 40,000.'"
Banbury is seeking sponsorship money and is planning a fundraising campaign.
"We'll do all the fundraising we can," she said. "But because we are such a small community every little sportsplex, and the curling club, and everyone else all needs fundraising all the time too."
Banbury's cousin, Don Zuba, runs the theatre. His dad Stan Zuba built it in 1954.
There are only a few drive-in theatres left in Saskatchewan and many of them are only open for a very short season.
Posted by Justin Hamaker (Member # 2165) on 01-15-2012, 01:45 AM:
My drive-in is in the same boat. I've considered doing something similar.
Posted by Monte L Fullmer (Member # 2797) on 01-15-2012, 04:30 AM:
Thx to progress .. it hurts some. Definitely not fair at all..
Posted by Ian Parfrey (Member # 5122) on 01-15-2012, 06:37 AM:
It would be cheaper for the Drive-ins to band together, pay for a negative to be struck and use independent labs to make prints.
It is highly doubtful that any drive in currently running would be able to sustain the kind of finance needed to go digital.
And what happens when the mediocre life span of these things expires?
Posted by Edward Havens (Member # 4715) on 01-15-2012, 10:17 AM:
The Solano Drive-In, not two miles from where I am typing out this message, has had digital projection on one of their two screens for a year now. The other screen is expected to be digital by summer.
Posted by Chris Slycord (Member # 4239) on 01-15-2012, 10:46 AM:
quote: Edward Havens
The Solano Drive-In, not two miles from where I am typing out this message, has had digital projection on one of their two screens for a year now. The other screen is expected to be digital by summer.
Apples and oranges. That drive-in is in a city 42 times larger than the one in the article. It's not surprising that a theater in a big city can afford digital while one almost in the middle of nowhere can't.
Posted by Frank Cox (Member # 6258) on 01-15-2012, 11:21 AM:
Actually, Concord CA is 156.10 times larger than Wolseley Saskatchewan (according to the population figures on Wikipedia).
One thing that I didn't see in that article, though, is any offer to make it into a community theatre. Is it reasonable for a privately owned business (which this drive-in appears to be) to expect the public to hand over money to pay for an upgrade?
Posted by Frank Angel (Member # 248) on 01-15-2012, 12:30 PM:
Anyone can go begging -- it's not illegal, but is it reasonable? I certainly don't think so. They are basically asking for an outright handout without any defined parameters. If it is a viable business, why won't the bank give them a loan? If the bank won't do it, then as a part buyer of a digital projector, I'd want to know why. I would want to know what happens if the owners can't keep operating even AFTER they get a digital projector. Is it a viable business to begin with? If they are asking for $100,000 (where are they getting this price from -- shouldn't it be more like $65,000?), then there should be a proviso saying if the business goes under, that projector gets sold and the monies go back to the contributors. Or as Ian rightly asks, after Series II is no longer DCI compliant and they need to get a Series III, then what do they do? Seems that should all be defined when such a large sum of money is involved.
The owners probably don't mean it to be a scam, but in reality, it pretty much is. If the contributors don't demand some kind of assurances in case of the What Ifs, they are foolish.
Posted by Chris Slycord (Member # 4239) on 01-15-2012, 12:33 PM:
I was going by his location in Pleasant Hill, and didn't bother checking what city the drive-in is in... and apparently it's in Concord
Posted by Scott Norwood (Member # 30) on 01-15-2012, 12:55 PM:
What Frank said. And what happens if they raise, say, $60k? Do the "donors" get their money back if the $100k total that the "need" is not raised?
I am sure that this place provides a valuable service to its patrons and I am sorry if the business may get to the point where it is no longer viable, but I think it looks bad for a private business to seek public assistance, especially when the expense is an ongoing one that requires periodic replacement and maintenance, rather than a one-time-only expense.
In any case, they can stay open by booking film.
Posted by Victor Liorentas (Member # 5272) on 01-15-2012, 01:35 PM:
This is why film should be helped along to coexist well into the future.It may seem expensive now but when you look at it long term,small print runs are cheaper than massive digital investments over the next 20 years.For smaller towns and drive-ins at least.
Of course they are not considered important enough to save , all the big players could care less.
In fact it's part of the plan!
Posted by Tony L. Hernandez (Member # 3524) on 01-15-2012, 05:10 PM:
I don't think that your blanket statement about all DIs being unable to logistically sustain the cost of digital conversion is correct, Ian. Drive-In Theaters are individual businesses like any others. While some (perhaps even most; I don't honestly know) are undoubtedly money-burners kept alive for posterity alone, there are quite a few that are still viable businesses that make good money for their owners, management and staff. Our drive in does wonderful (albeit seasonal, due to Colorado's cold winters) business. We are a single screen with 500 car capacity and during the peak summer months, if you are not there within 20 minutes of us opening the gates, you ain't getting in. It is not uncommon for us to have a line of cars out to the highway (about 1 mile away) and we are sold out (if not oversold) on 9 out of 10 weekends. In fact, we have pondered adding not only a 2nd screen but a 2nd lot as well. The Holiday Twin DI in Fort Collins (some 10 miles away from my home) also does a ton of business and is sold out most nights as well.
That said, our drive in is the only DI that serves the entire Denver Metro area and the Holiday (in Fort Collins)serves a semi-large college city along with the fact that it is the only DI serving many other fair sized Northern Colorado towns and cities. I cannot speak for what these small town DIs do for business as I have never run one nor do I know any owners or operators of any.
From what I have seen, the drive-in is back. Weather or not this is yet another passing fad, I do not know. The drive in started with the post-war generation who loved the fact that for the first time in history, everyone owned a car (big ones, at that) and they did not want to leave them. With the baby boom, it also solved the problem of what to do with the little ones when they wanted to attend a show and additionally, they loved the fact that they did not have to dress up for the show, as was socially expected in that era. While that generation has largely died off and/or tired of the fad, we now have my generation that is a whole new beast any loves the drive-in for their own modern-day reasons. People now want to have control of their own sound (any many people pour lots of $$$ in their car sound systems), they want to text and talk during the film, they want to be able to smoke a joint or enjoy a beer at the movies, the die-hard, yuppie dog lovers of today hate parting with "Fido" for any amount of time and finally, this era's "baby boom" presents brand new problems that the drive in can solve. Women are once again having children younger and younger in life and many of them are single mothers. As a single mother, they cannot simply leave the kids with their husband or mother-in-law when they want a "girls night out" and their Taco Bell wages often prohibit hiring a baby sitter. At the drive in, with many (such as ours) offering free admission to children 12 and under, that problem is solved. Many of the upper-class young people are also starved for a personal taste of nostalgia, and the drive in is always a wonderful fix. So just as my WWII-era grandparents loved the drive in back in 1950 for the problems it solved in their lives, my generation loves the drive in for the unique problems it solves in theirs.
Fads come and go, however, and it's anyone's guess how long they will last as people are always changing. I have a friend who has been in the carpet business since 1969 and he mused to me a while back on how he sells and installs more shag carpet now than he ever did in the 70's. Go figure!
We can and will go digital, but only when we have no other choice. This is due to the fact that we prefer the quality of 35mm film as well as the fact that we do not want to put wear and tear on a new digital system that we do not need to be using at this time. Also, we speculate that the equipment may even be slightly better at the time we must convert. I believe the owners of the Holiday told me that they will be going digital in the very near future.
While I both like and advocate the "co-op" idea of a few theaters banding together to have prints made, I worry that with the entire industry's swing to digital, in a few short years we may find ourselves running worn-out antiques that will be next to impossible to find parts, support and service for. I think the print idea would work, but if we have no reliable equipment to run the said prints on, what do we do? This worries me more than the shortage of prints because I still have an indoor arthouse that runs a lot of 35 and 16mm archival stuff and will for the entire foreseeable future, but that's a whole 'nuther topic.
I like the community donation idea (as I said in another post some 2 months ago) but only time will tell if it works or not. There is NOTHING wrong with a private business owner asking for help to keep something running that he/she believes to be both important to and enjoyed by the community it serves. It is their choice to decide weather or not it is worth forking over "free" money to and if so, how much to give.
I know myself that there are businesses in my community that would greatly inconvenience me if they closed. For example, there is a nearby truckstop in my area that me and my family frequent, especially with me not getting off work until 1-5am and needing "dinner". It runs 24 hours, has good food at reasonable prices, is comfortable to sit in, has a great staff and is historic. I know that the owner (who I do not personally know) is making money hand over fist but if he were to get up and say that he needed a new freezer and would close if the community did not raise the funds to purchase it, I'd gladly fork over $50 so as not to loose something that I enjoy and helps my life. And I ain't rich...
Most of these small towns greatly value their old theaters and these people are too stubborn to let them go. In many cases, they are the area's one source of entertainment, only way to keep their teens and seniors from driving many dangerous miles on highways to seek other entertainment, an important source of tax revenue and last but not least, a great piece of history that puts one of the few important feathers in the town's hat.
I do, however, feel that groups/businesses that do this should carefully record who donated what and return all funds if the intended project fails. Keeping the money is no different than not handing over an item or rendering a service that one has paid you for.
Posted by Justin Hamaker (Member # 2165) on 01-15-2012, 06:11 PM:
Two points about the drive-in I operate. Because it sits on the same property as the hard top theatre, there is very little extra cost in operating our drive-in aside from the supplies, labor, and electricity used during operating season.
While it is not a high grossing drive-in, it does essentially provide us with a sixth and seventh screen for our cinema which allows us to drop movies a week or two earlier than we otherwise would. This provides us greater flexibility when we hit a log jam in the summer season.
Whether we are able to convert to digital will largely depend on whether they can establish a VPF plan for drive-ins. Otherwise, 2012 will likely be our last season, and even that is still unknown because we don't know what the outlook is for 35mm prints come summer.
Posted by Tony L. Hernandez (Member # 3524) on 01-15-2012, 06:27 PM:
Alas, Justin, this is why many small/old theaters, both indoor and outdoor, are in trouble. They have been able to limp along for this long because everything is paid for, most are family-operated and there is not much money lost in these money pits. At this juncture where a lot of money must be spent on them for the first time in decades in order for them to continue, it is up to a good-willed owner, community or organization to donate the funds if they want the theater to continue.
I was unaware that VPFs were not offered to DIs.....
Posted by Monte L Fullmer (Member # 2797) on 01-15-2012, 07:30 PM:
quote: Justin Hamaker
they can establish a VPF plan for drive-ins
..and right now, that is a huge hurdle for the DI owners to face where the majority of the venues are in seasonal locations along with being discount or 2nd run venues - not "tentpole" locations to attact VPF's.
Posted by Brad Miller (Member # 2) on 01-15-2012, 08:25 PM:
quote: Tony L. Hernandez
I was unaware that VPFs were not offered to DIs.....
Can your drive-in provide discrete 5.1 sound? Nope.
Can your drive-in provide proper masking? Nope.
Can your drive-in provide 14fl of light on the screen? Well, depending on the projector you choose and your screen specifics maybe...but you don't WANT 14fl of light on that screen or people will be watching the surface of the screen instead of the movie.
Regardless, a requirement of VPF payments from the studios is to meet DCI spec for picture and sound, and drive-ins by their sheer nature can't do it. Any drive-in that does enough business for the studios to care about will have enough money to convert anyway...so what makes anyone think the studios will give VPFs to the drive-ins? There is no incentive.
Anyway, anyone promising VPF payments to a drive-in is trying to sell you something to look after their best interests, whether it be a piece of equipment that company manufactures, or some sort of bulk "group" purchase where a minimum quantity is required. There are people working hard to try and get the studios to make an exception for drive-ins, but my personal opinion is that it won't happen for the reasons I outlined above.
For those drive-ins that do find the money to convert, make your equipment selection very carefully. If a 14 plex goes down on a screen and loses a weekend, it isn't the end of the world for them. If a drive-in goes down, most of them will suffer tremendously. As such everything needs to be taken into account.
How resistant is your projector to the typical drive-in booth's conditions?
How about the server's capability to be remotely re-installed in the event of a crash?
How far away are your service techs?
What capabilities does your NOC actually have vs. the others to keep you on screen, rebuild that server, etc?
These are important questions that most people are trivializing.
Posted by Monte L Fullmer (Member # 2797) on 01-15-2012, 08:40 PM:
..looks like Digital isn't everybody's "friend" .. almost like a "destroyer virus" of sorts.
Posted by Scott Norwood (Member # 30) on 01-15-2012, 09:52 PM:
I really don't get why people are so obsessed with VPFs. If your theatre cannot make the conversion (which will no doubt be required at some point in the the future) on its own, then VPFs do nothing more than push the inevitable closing of the venue forward by a number of years equal to the lifespan of the current generation of D-cinema equipment (let's say 5-10 years).
DCI has the effect of increasing the ongoing costs of running a cinema by requiring expensive equipment with a short expected lifespan. If your business cannot support this, then VPFs will not help over the long term. (No, I do not consider delaying the inevitable to be "helping" anything.) Even in the short term, it is not the "free money" that some people make it sound like it is.
This is why I do not see a public "donation" working for a private cinema business. This is not a one-time expense. It is not in the same category as helping a local business deal with a catastrophic event (fire, flood, etc.) or with a one-time capital expense. It is an ongoing increase in the costs of doing business, and the public likely will not (and should not) take kindly to being repeatedly asked for handouts to keep a local business solvent.
The drive-in in question needs to do one or more of the following: a) decide to close when 35mm prints are no longer available; b) figure out some sort of financing deal that will work with their current business model; c) change the business model (raise prices, lease out some land/space for retail or other use, re-negotiate terms with film distributors, make the business work with fewer employees, etc.) to make the higher costs work; or d) convert to a non-profit organization that can accept donations.
I am completely sympathetic to business like this which are being threatened by distributor to install D-cinema equipment, but asking the public for a handout is not a viable long-term strategy to stay in business.
Posted by Sam Graham (Member # 2889) on 01-15-2012, 09:52 PM:
The story that started this thread is being written for small-town theatres across the US (both indoor and outdoor). They're almost getting to be cookie-cutter. They're all looking for ways to get community support in raising the funds to go digital.
Digital is already a significant problem for small independent operators running movies after the break because there's an increasing lack of film prints available to move down, forcing these theatres to either commit to more first-run movies than they would have done otherwise (which gets them a print commitment)...or face an abysmal availability of movies to show later because prints aren't available.
Posted by Ian Parfrey (Member # 5122) on 01-15-2012, 11:42 PM:
Brad has brought to light some VERY important issues in regards to the ultimate appropriateness or otherwise of digital equipment in drive in scenarios.
It is apparent, regardless of the suitability or otherwise of digital equipment, that drive in conditions will only exacerbate the operational degradation of that equipment much faster than the current mechanical systems.
This will mean a correspondingly shorter lifespan and therefore an INCREASE in operational costs over and above multiplex/hardtop locations using comparable digital projection equipment.
Without the benefits of 5-6 screenings a day per screen, the shorter lifespan of the equipment AND little if any chance of VPF's then the one remaining option (at the moment) is to maximise the use of the infrastructure that is already in situ.
Where is the UDITOA (United Drive-In Theatre Owners Association) in all of this?
NATO can't be expected to help out considering Fithian's views and stance on this issue, so it should fall to the likes of the UDITOA with their clout to put up plans and schemes to maximise the life of film-based distribution for the drive in industry.
As I have mentioned before, here in Australia we have numerous independant repertory houses that BUY the prints to films that they run frequently, and then store them onsite for the next screening. The usual B.O reporting continues. Why could this not be extended to striking the Digital Intermediate and limited print runs to cater for that market?
With the UDITOA's backing, the remaining drive ins that are facing the conversion issue (read: all of them) would at the very least have half a chance at remaining in operation for just that little bit longer.
Posted by Brad Miller (Member # 2) on 01-16-2012, 02:51 AM:
Ian, you also forgot the fact that most drive-ins play double features. Sure that second movie isn't a 90/10 split, but it just makes life even more difficult even if it was at a 50/50 split.
Scott, don't discount the VPFs. They are the ONLY reason that A LOT of theaters will continue to operate!
Unless UDITOA can get VPFs arranged for the drive-ins, they won't be doing anything substantial to help the cause. I stress again, there is no VPF program for a drive-in that exists today.
Posted by Justin Hamaker (Member # 2165) on 01-16-2012, 03:51 AM:
The way I see it, there are several issues besides digital which threaten most drive-ins over the long run. These could also factor into any argument about maintaining 35mm print availability.
1. The property is more valuable than the business. How many drive-ins would close tomorrow if someone made an offer on the land for a shopping center or housing development?
2. Can the small town single screen drive-in survive as it becomes more difficult to get prints in a timely fashion?
3. Are there enough drive-ins that put up a strong enough gross to prop up a niche industry if you're trying to make an argument for the continued availability of a small number of 35mm prints?
4. For drive-ins that play most of their product a few weeks off the break, can they survive when there are fewer prints in circulation? Especially when this makes it more difficult to schedule strong double features, or target tent pole pictures for peak weeks. These drive-ins are already being hurt by shrinking DVD windows and other entertainment choices.
5. If you argue for a supply of 35mm prints for the sake of drive-ins, how do you account for the seasonal fluctuation in the number of screens? Are seasonal drive-ins going to be lower on the food chain for getting prints?
Posted by Edward Havens (Member # 4715) on 01-16-2012, 04:03 AM:
Chris, I was simply responding to Ian's ascertain that "It is highly doubtful that any drive in currently running would be able to sustain the kind of finance needed to go digital." All I did was provide a single instance that proved overwise.
Posted by Barry Floyd (Member # 385) on 01-16-2012, 09:49 AM:
quote: Ian Parfrey
Where is the UDITOA (United Drive-In Theatre Owners Association) in all of this?
I do NOT speak on behalf of UDITOA, but I am a member who follows their discussion group and forums everyday.
The UDITOA group does have a "Digital Cinema Committee" formed, and some of it's members have traveled from one end of the country to the other working on DCI specs for drive-ins. The UDITOA digital cinema committee has diligently worked with several equipment vendors and negotiated a fairly good "digital cinema package" that "price wise" will work for our needs.
Like has been said in previous posts, paying for it is a whole different ballgame. Me personally, I agree with Scott - I don't do "hand-outs"... it cheapens the whole drive-in experience. Same reason I'd never do carload pricing or flea market / swap meets. I've never seen the local 14 screen Regal host a flea market in their parking lot, and I won't either.
Digital conversion for drive-ins (and small mom & pop indoors too) will all come down to the "survival of the financially fittest". In my area (middle TN) there are currently 7 drive-ins within a 50 mile radius of Nashville. 2 are shuttered and for sale, 1 sits on leased land - and may be for sale by spring due to the owners health, and that leaves 4. Of those 4, one is a single screen that grossed 15% of what I did (ticket sales), my closet competitor who grossed 50% of what I did, another just over the state line who is doing just fine, and me.
I have been very fortunate that our customers have taken care of us very well over the last eight years. We will convert, but still waiting for the right deal to come along. My local bank said they'd do the financing for an outright purchase, but I'm probably going to lease the equipment instead. Only make sense to me.
Posted by Monte L Fullmer (Member # 2797) on 01-16-2012, 01:46 PM:
quote: Barry Floyd
but I'm probably going to lease the equipment instead
?..are leasing options open for those who can't do VPF's?
Heard that it was impossible to lease, but the only way is to purchase outright for the conversion.
Posted by Frank Cox (Member # 6258) on 01-16-2012, 02:15 PM:
Most things can be leased. The leasing company buys whatever you need, and you lease it from them. It's kind of like taking out a loan but it's structured like a lease.
I know that the Credit Union here can do that if you want.
Posted by Scott Norwood (Member # 30) on 01-17-2012, 05:37 AM:
quote:
Scott, don't discount the VPFs. They are the ONLY reason that A LOT of theaters will continue to operate!
So, what happens in 5-10 years when they need to buy the next generation of equipment? It seems to me that VPFs are just delaying the inevitable for many venues.
Posted by Rick Raskin (Member # 1561) on 01-17-2012, 07:34 AM:
There are certain issues being discussed here that I find particularly troubling from an anti-trust perspective. Has anyone thought of contacting a good anti-trust lawyer?
Posted by Jack Ondracek (Member # 1466) on 01-17-2012, 11:28 AM:
quote: Ian Parfrey
It would be cheaper for the Drive-ins to band together, pay for a negative to be struck and use independent labs to make prints.
It is highly doubtful that any drive in currently running would be able to sustain the kind of finance needed to go digital.
And what happens when the mediocre life span of these things expires?
Good grief, people. Where does all this come from?
Given the push to digitize the country, I don't see the studios showing any interest in a group of relatively low-grossing theatres "banding together" to extend the life of film. Just their (debatable) piracy rationale should be enough to stop that. The infrastructure required to make a small number of prints available to the bottom end of the food chain, I think, would be too much trouble for them to consider it.
I suppose drive-ins in other countries might not have the life spans that they do here, considering here is where they were invented. Ours is over 60 years old, and we're not the only one that's been around awhile. Hardly mediocre.
The anti-trust angle has been circulating around for a long time. Personally, I don't see much there. There are plenty of examples where industries have changed directions, taking the troops along for the ride. Probably the most recent is television's switch to digital. You think it wasn't cheap for TV stations, large and small to switch their studio and transmitter infrastructures to an incompatible format, then push the "off" button on million-dollar analog transmitter plants? OK. The government mandated it, but governments can be sued (remember AM stereo?). It didn't happen, and television has somehow survived.
There have ALWAYS been signals out there, that VPFs might not be the way to go for drive-ins, if they could get them at all. Even if you could get them in the first place, the conditions that came along with them were enough to make you think.
The notion that a $60,000 digital projector is somehow more fragile than glass is ludicrous. To begin with, the published specs for those things go way beyond most peoples' comfort levels, so ranges that would make a person wilt (or freeze) would also be noticed by the projector. Nothing much difficult there... reasonably decent ventillation, temperature and humidity controls. I have 5 computers, a Dolby box and two DTS units in my drive-in booth. They like where they are just fine, so with some appropriate adjustments, I expect I'll be in reasonably good shape for digital.
Not quite sure how the Twilight figures they need $100k to convert one screen, but OK, if that's what they've got penciled out. I'm doing 3 this Fall, and it's not going to cost me $300k to do it.
I suppose the emergency service and NOC issues are something to think about, but I guess I have that reasonably well worked out. The nearest company to me is 3 hours out. Yah... if you lose a projector, you've probably lost your show for the night. However, there's not much choice being presented to the drive-ins that are left in this country. If we have to accept that risk or close, then that's one of many adjustments we've made in this business since it started.
Mom & Pop indoor theatres across the country are facing exactly the same issues that we are. Maybe they're just too marginal to make this work. If so, then it's a sad thing, but businesses start and fail all the time. Drive-ins will be no different. Those theatres, indoor and out, that have the ability to plan their business models around periodic upgrades... screens, roofs, driveways, etc., will not be freaked out by the prospect of changing out their projector(s). Those dynamics aren't that much unlike any other business.
Posted by Barry Floyd (Member # 385) on 01-17-2012, 12:38 PM:
We are NOT pursuing VPF's. VPF's while marketed as a savior for helping us little guys (and the big guys) pay for digital conversion, they are in my opinion a double edge sword that will come back to bite you in the ass in the spring and the fall.
If the negotiated VPF for your theatre is $800.00 per NEW first run print, that means the studio will pay $800.00 to your 3rd party integrator (Cinedigm, NEC Financial, whoever) no matter what you do business-wise. In the summer months that's not a big deal since we (drive-in's) all can churn out fairly decent numbers during the months of May, June, & July. It's folks like me who open in March and don't close until Thanksgiving weekend that can get burned in a VPF scenario. I don't know about all drive-ins, but there are many times in the spring and fall at my place (weather related issues, county fairs, etc.) where our negotiated percentages for film rental won''t equal the guaranteed minimum of the studio. In that scenario we'd end up paying the shipping and the guaranteed minimum (usually $250 +/-) to the studio for playing their product whereas the studio was forced to pay an $800.00 VPF. I know our grosses in the spring and the fall are low, and so do the studios. Instead of us paying the minimum, and they being forced to pay the $800.00 VPF, they'll end up just refusing to book the film at our place. I'd hate to think that we might have missed the opening of "Breaking Dawn" a couple of months ago due to some studio person thinking it MIGHT rain, resulting in low grosses and we'd have been passed up on the opportunity to play the product. That ONE film practically paid the bills for the whole entire month.
Posted by Mike Blakesley (Member # 26) on 01-17-2012, 01:41 PM:
quote: Scott Norwood
So, what happens in 5-10 years when they need to buy the next generation of equipment? It seems to me that VPFs are just delaying the inevitable for many venues.
While I do worry about this issue, two thoughts give me small amounts of comfort:
1. I don't anticipate having to buy a whole new setup all at once, like I had to do the first time. A repair or upgrade SHOULD be cheaper than a whole new unit, I'd think.
2. Everything should get cheaper as time goes on, given the typical way things go in electronic gear. (I know, economics of scale don't apply as much to theatres, but the equipment companies are going to have to do SOMEthing to keep the wheels turning....maybe charge the home market a little more and theatrical a little less?)
Anyway I don't buy the whole 5-10 year doom and gloom scenario. Maybe I'm wrong, but we always seem to figure something out. If not....see you around the bankruptcy court!
Posted by Rick Raskin (Member # 1561) on 01-17-2012, 02:42 PM:
I was going to comment on the anti-trust issue but I think I'll just let it pass.
Posted by Frank Angel (Member # 248) on 01-17-2012, 03:42 PM:
The studios will argue that digital has been coming for ten years so if exhibitors didn't start planning for a way to "upgrade" when this all started, then extending the deadline for a film distribution end-date won't help them as it's been "extended" now for years.
Problem with that argument, which I've heard made often, is that the transition has been fraught with vaguaries, unfounded predictions, inuendo and plain old pulled-out-of-the-ass BS. Studios have not, even to this day, said the full monte will be on such-and-such a date. No one has said, "Boys, this is when film will end." Had they done that five years ago, even three, I think smaller exhibitors would have been more focused on the need to start a real financial plan to get to a point where upgrading wouldn't force them to close their doors. I think it was Scott who posted that the digital conversion process was done very poorly; rightly so.
Distribution should have established a kind of "April 15" day which would have motivate the procrastinator types, most of whom typically would be the smaller exhibitor and the mom and pops operations (which most ozoners are) because of their much more limited financial resources than the chains. A definative end-date would have motivated them to get off the fence or face really dire consequences. Even now, there is still no April 15 bye bye film date, so the fence sitters are still procrastinating and some realizing it may be too late.
As for collusion on the part of the studios, well, there may not be any overt collusion, or at least none that can be proven, but some how we all know that even though they are not supposed to get in a back room and conspire to all do the same thing, ever look at the Master Contracts or the way terms are set? You wouldn't be able to tell one studio from another....so how did they all get on the same 20 or 30 pages with THAT stuff? That only tells me there is iffy collusion and then there is overt collusion. Exhibitors should have long ago been doing a lot more iffy collusion for themselves. NATO...are you listening to this...?
Posted by Jack Ondracek (Member # 1466) on 01-18-2012, 01:55 PM:
quote: Frank Angel
Studios have not, even to this day, said the full monte will be on such-and-such a date.
And they probably won't, Frank.
For me, the early effect of conversion is the unavailability of move-over prints in my area. As the declining number of release prints roll out of theatres farther away from mine, the studios will place those prints where it costs the least to get them there (read: circuiting). This is a problem for me, because, as Barry describes, I don't tend to book release prints on the ends of my season. There is a much higher percentage of chain theatres in my area than independents, and most of them have nearly completed conversion. Converting myself removes the move-over problem for me, but admittedly reduces required print counts for new films even more in my area. I therefore contribute to my own problem, but I think critical mass has already been achieved.
I imagine the "end date" for film, whatever that winds up being, will more likely be a matter of theatres not being willing (or able) to pay the increasing costs involved in obtaining the media. Those theatres converting, or dropping out of the market, will continue to lower print counts until 35mm can not be economically justified by the exhibitor. In the end, the theatre will have made the decision, and why would the studio fight that?
Posted by Justin Hamaker (Member # 2165) on 01-18-2012, 09:21 PM:
quote: Frank Angel
No one has said, "Boys, this is when film will end."
The problem here is the studios could not reasonably make such a statement until the market conditions changed, otherwise they risk hurting themselves. For example, if they said they would stop producing 35mm prints when just 20% of the screens were digital, there would have been significantly more pressure for them to keep making prints or lose dates.
With the industry over 60% (? exact number) and expected to be at 85-90% by the end of summer, it's much easier for them to give a date. While I don't think anyone has actually set a date for the end of 35mm releases, I don't think there is any reason to expect them to continue beyond 2012.
To a certain extent, it's the cyan dye sound track problem on a larger scale. How long did that conversion take? How long was the "drop-dead" date pushed back due to lack of compliance.
Posted by Monte L Fullmer (Member # 2797) on 01-19-2012, 03:35 AM:
Plus, the digital units in a drive-in that are geographically located for a seasonal operation, should last ten times longer since they're not getting the hours on them as the indoor houses are shoving on these units - being almost 10 hrs a day every day.
I suspect 1000 hrs max per season per unit and that's a over-the-hill figure.
And, for a year round operation, the hours would still be less since their only operating 5 hours a day at the most and that's with dbl feature and trailer pak inbetween the features.
Thus, I can see a good 20 plus year life span on digital units for drive-ins before they even think on having problems.
Posted by Barry Floyd (Member # 385) on 01-19-2012, 08:27 AM:
Monte does have a good point. We (at my place) typically run 180 - 185 days a year from March thru November, each night running about 4.5 - 5 hours a night. We probably won't cycle through as many bulbs as our indoor counterparts, and the hours we rack up on the light engines won't be as high either. In a drive-in setting, a future "change in technology" will probably get us before the end of life for the projector in most cases.
Posted by Monte L Fullmer (Member # 2797) on 01-19-2012, 02:32 PM:
Let's do some simple math with Barry's figures then: (saying the drive-in runs full 7 days from opening to close as the maximum figure):
I come up with 925 hours of operation from open to close.
with a bulb warranty of 650 hours, there would be almost a 2 bulb changeout per season.
..less money going out the door for bulbs at a drive-in than an indoor house by a long shot.
Posted by Louis Bornwasser (Member # 3063) on 01-19-2012, 02:45 PM:
Same cph, though. (Cost per hour) Louis
Posted by Monte L Fullmer (Member # 2797) on 01-19-2012, 03:06 PM:
..only gimp with this though is paying for a unit that is not being used inbetween seasons.
Posted by Mike Blakesley (Member # 26) on 01-19-2012, 07:37 PM:
quote: Frank Angel
ever look at the Master Contracts or the way terms are set? You wouldn't be able to tell one studio from another....so how did they all get on the same 20 or 30 pages with THAT stuff?
One word: Lawyers. Stuff like this is probably boilerplate among entertainment industry lawyers.
Posted by Louis Bornwasser (Member # 3063) on 01-20-2012, 01:18 AM:
You are right. My lawyer laughs heartily when I tell him how low my bill should be because "it's all in the boilerplate" in his computer. "Yeah, but I have to pay for the boilerplate."
He agreed that all the paperwork could be done in 15 minutes, except that the right person had left for the day: 2pm. Louis
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