Archive for the 'Movie theatres' Category
Ant-Man 2: This time it’s personal. Not that it wasn’t before. But now it’s personal and expensive.
Sean Parker, the Napster founder who taught everybody that digital piracy means never having to say you’re sorry, has come up with a new killer app. Called The Screening Room, the pitch is catching the eye of an industry that thrives on finding new niches for its product.
Stuff you probably already know
Recall, as background, that Hollywood’s economic model depends on two conditions.
(1) Strong Intellectual Property measures, both technological and legal. (Intellectual is to be taken in a broad sense here. It includes Paul Blart movies.) Encryption is designed to protect DVDs, streaming, and the Digital Cinema Package that plays in your local multiplex. Law enforcement, under the auspices of the Digital Millennium Copyright Act, backs up anti-piracy with fines and jail time.
(2) Price discrimination. The premise of the classic vertically-integrated studio system was that people will pay more to see a movie sooner than other people. Why this is true still mystifies me, but facts are facts. Hence the old system of “runs.” First-run movies demanded top dollar, then second runs were at lower prices, and subsequent runs were still cheaper. When the studios surrendered their theatre ownership, the runs system remained roughly in place, chiefly because most films were platform released, playing the big cities before gradually expanding to the provinces. And network TV was basically the only ancillary market. But wide releases–hundreds or even thousands of copies playing everywhere–became the industry norm as cable, home video, and other technologies came along. The run system was reborn, and price discrimination became much more fine-grained.
Known, confusingly, as “windows,” phases of the film’s life are assigned to various platforms. After the theatrical window, typically 90 days after release, there are windows for airline/hotel access, disc (DVD, Blu-ray), Pay-per-View, streaming, cable, and on down the line. The order of these windows for any one title can vary somewhat, depending on negotiations. Most of them are designed to define price points scaled along a curve: how much it’s worth to somebody to see the movie at intervals after the initial theatrical release. By the time a movie comes to free cable, you’ve pretty much squeezed everything out of it, though the industry relies very extensively on worldwide cable purchases.
The studios depend on the theatrical release, but not because it’s the biggest source of revenue. (For the top films it can yield a lot, of course, but most films don’t recoup their costs in that window.) The theatrical release builds awareness, making it stand out downstream in the ancillaries. Without theatrical release, a film needs a lot of publicity to draw notice. Witness all those films on your Netflix or Hulu menu, all those John Cusack movies you didn’t know existed.
Independent films are increasingly relying on day-and-date release between a mild theatrical run and some form of Video on Demand. Other indie titles, along with foreign ones, are going wholly VOD, and the big players–Netflix, Hulu, and Amazon–are vigorously buying titles and backing new projects against the looming day when the studios will license fewer blockbusters to them.
The studios need the theatre chains as a shop window for their top-tier product. The theatre chains obviously need the studios to keep crowds flowing in. But some parties have flirted with day-and-date theatrical/VOD. Most famously Ted Sarandos of Netflix argued for it in 2013, then had to backtrack a few days later. On the studio end, Universal in 2011 proposed softening the theatrical window by offering Tower Heist on “premium VOD.” The plan was to drastically cut into the theatrical window by making the film available after three weeks of release, for the hefty price of $59.95. Theatre owners threatened to boycott the film, and filmmakers howled in protest. Many feared that it was the thin edge of a wedge that would eventually, through price wars, shorten windows and lower prices–not to mention wreck theatre attendance. The idea was quickly dropped.
No bad idea ever goes away, as we learn from claims that tax cuts create jobs and that we’re just one intervention away from creating peace in the world. Thanks to Parker, we now have Premium VOD in a new guise. That means a new window, with corresponding price discrimination.
Premium VOD, steroidal
Last week, The Screening Room project, sponsored by Parker and entrepreneur Prem Akkaraju, was made public. Brent Lang of Variety outlined the plan circulating among the major players.
Individuals briefed on the plan said Screening Room would charge about $150 for access to the set-top box that transmits the movies and charge $50 per view. Consumers have a 48-hour window to view the film.
To get exhibitors on board, the company proposes cutting them in on a significant percentage of the revenue, as much as $20 of the fee. As an added incentive to theater owners, Screening Room is also offering customers who pay the $50 two free tickets to see the movie at a cinema of their choice. That way, exhibitors would get the added benefit of profiting from concession sales to those moviegoers.
Participating distributors would also get a cut of the $50-per-view proceeds, also believed to be 20%, before Screening Room took its own fee of 10%.
Parker assures all stakeholders that the magic box would assure maximum antipiracy controls.
Since then, developments have been swift. Peter Jackson, Ron Howard, and J.J. Abrams are supporting the plan, while James Cameron is opposing it. The Cinemark and Regal chains, at this point the biggest theatre chains in the country, are against it, but there are hints that AMC, soon to be the biggest chain in the world if it’s allowed to purchase Carmike, might be interested. As for studios, Universal, Sony, and Fox are rumored to be considering the prospect. Once the give-and-take of dealmaking gets under way, there’s no telling what a final arrangement might look like.
What’s transparently clear is the opposition of the art-house sector. Tim League of Alamo Drafthouse issued the first warning on Monday, calling The Screening Room a “half-baked” idea. Today the Art House Convergence, an association of 600 theatres, issued a severe criticism of Parker’s plan. The open letter has been summarized in Variety and The Hollywood Reporter. Indiewire has published it in its entirety, and I do the same, as follows.
The Art House Convergence, a specialty cinema organization representing 600 theaters and allied cinema exhibition businesses, strongly opposes Screening Room, the start-up backed by Napster co-founder Sean Parker and Prem Akkaraju. The proposed model is incongruous with the movie exhibition sector by devaluing the in-theater experience and enabling increased piracy. Furthermore, we seriously question the economics of the proposed revenue-sharing model.
We are not debating the day-and-date aspect of this model, nor are we arguing for the decrease in home entertainment availability for customers – most independent theaters already play alongside VOD and Premium VOD, and as exhibitors, we are acutely aware of patrons who stay home to watch films instead of coming out to our theaters.
Rather, we are focused on the impact this particular model will have on the cinema market as a whole. We strongly believe if the studios, distributors, and major chains adopt this model, we will see a wildfire spread of pirated content, and consequently, a decline in overall film profitability through the cannibalization of theatrical revenue. The theatrical experience is unique and beneficial to maximizing profit for films. A theatrical release contributes to healthy ancillary revenue generation and thus cinema grosses must be protected from the potential erosion effect of piracy.
The exhibition community was required to subscribe to DCI-compliance in a very material way – either by financing through VPF integrators (and those contracts have not yet expired) or by turning to other models which necessitated substantial time and commitment. Those exhibitors who were unable to make the transition were punished by a loss of product. The digital conversion had a substantial cost per theater, upwards of $100,000 per screen, all in the name of piracy eradication and lowering print, storage and delivery costs to benefit the distributors. How will Screening Room prevent piracy? If studios are concerned enough with projectionists and patrons videotaping a film in theaters that they provide security with night-vision goggles for premieres and opening weekends, how do they reason that an at-home viewer won’t set up a $40 HD camera and capture a near-pristine version of the film for immediate upload to torrent sites?
This proposed model would negate DCI-compliance by making first-run titles available to anyone with the set-top device for an incredibly low fee – how will Screening Room prevent the sale of these devices to an apartment complex, a bar owner, or any other individual or company interested in creating their own pop-up exhibition space? We must consider how the existing structures for exhibition will be affected or enforced, including rights fees, VPFs and box office percentages.
A model like this will also have a local economic impact by encouraging traditional moviegoers to stay home, reducing in-theater revenue and making high-quality pirated content readily available. This loss of revenue through box office decline and piracy will result in a loss of jobs, both entry level and long-term, from part time concessions and ticket-takers to full time projectionists and programmers, and will negatively impact local establishments in the restaurant industry and other nearby businesses. How many of today’s filmmakers started their careers at their local moviehouse?
There are many unanswered questions as to how this business model will actually work. The proposed model, as we have read in countless articles, suggests exhibitors will receive $20 for each film purchased. At first glance, an exhibitor may think it represents a small, but potentially steady, additional revenue stream. But how will this actually be divided among the number of theaters playing the purchased title; will exhibitors who open the title receive more than an exhibitor who does not get the title until several weeks later (based on a distributor’s decision); who will audit the revenue to ensure exhibitors are being paid fairly; does this revenue come from Screening Room or from the distributor… these are just a few of the issues yet to be explained.
Similarly, Screening Room promises to give each subscriber two free cinema tickets with each film purchase. Yet to be disclosed is how an exhibitor will recoup the value of those tickets from Screening Room so they can then pay the percentage of box office revenue owed to the distributor of the film. Yet to be explained is who will manage the ticket program details such as location choice, method of purchase, and so on. Will all exhibitors be expected to honor Screening Room free tickets, or will some exhibitors receive preferential treatment over others?
We strongly urge the studios, filmmakers, and exhibitors to truly consider the impact this model could have on the exhibition industry. We as the Art House and independent community have serious concerns regarding the security of an at-home set-top box system as well as the transparency and effectiveness of the revenue-sharing model. Our exhibition sector has always welcomed innovation, disruption and forward-thinking ideas, most especially onscreen through independent film; however, we do not see Screening Room as innovative or forward-thinking in our favor, rather we see it as inviting piracy and significantly decreasing the overall profitability of film releases.
At this time and with the information available to us we strongly encourage all studios to deny all content to this service.
One point of clarification. Some reports have interpreted the paragraph beginning “We are not debating the day-and-date aspect of this model…” as meaning that art-house programmers, managers, and owners are okay with day-and-date VOD. But many Art Housers wish that day-and-date VOD had been strangled in its cradle. For those people, “not debating” doesn’t mean “accepting” or “not disputing.” It means that this is not the occasion for taking issue with that feature of the concept, as the Parker proposal introduces serious problems of its own.
The churn around this proposal is turbulent; stories kept popping up as I was writing the entry. A useful update is here. To keep up to speed, you may want to visit these two summative links, one for Variety and the other for The Hollywood Reporter.
There were, and are, still second-run movie houses. To my joy, Ant-Man, released last summer, has been playing for at least seven months at our second-run house here in Madison. And in 35! Is this a record in modern times? Also, too: My Ant-Man image up top comes from the first film, not the sequel, which doesn’t yet exist. I was just fooling and pretending.
By now everybody knows that Tarantino’s forthcoming The Hateful Eight was shot on film in the Ultra Panavision 70 format. This anamorphic widescreen process yields a projected aspect ratio of 2.76–in a word, humongous. An early version of it, MGM Camera 65, was employed on Ben-Hur (1959), but Panavision quickly developed a new generation of cameras and renamed the process. It wasn’t heavily used; supposedly Khartoum (1966) was the last film shot in the format.
The process by which Tarantino, ace cinematographer Robert Richardson, and the enthusiastic boffins at Panavision revived Ultra Panavision 70 is detailed in the current American Cinematographer (alas, not yet online). The production is an extraordinary tale. But what about exhibition? Luckily, the widescreen fans among us can glean a lot about that from veteran projectionist Paul Rayton’s interview with Chapin Cutler, co-owner of Boston Light & Sound. It was the task of Chapin and his team to find over 100 projectors, refurbish them, test them, and set them up in theatres all over America.
Chapin is a legendary figure in movie exhibition. Trained as a projectionist during his college years, he and Larry Shaw have made BL&S one of the very top companies for installation and maintenance of theatre projection equipment. He has supervised theatrical setups at festivals (Sundance, Telluride, TCM), industry gatherings (CinemaCon), and at some of the world’s top-notch theatres.
He’s more than a professional’s professional: He loves film and prides himself on delivering a powerhouse show. He was a natural choice for a movie geek like Tarantino to arrange the roadshow screenings of The Hateful Eight.
Chapin has discussed the nearly military precision necessary to fulfill Tarantino’s mandate in The New York Times and The Boston Globe. You should read these pieces for essential background. When Chapin added some new information courtesy of the listserv of the Art House Convergence, I jumped at the chance to include you in the audience. I know that many of our readers are keen to devour whatever they can learn about this film, one of the year’s major American releases.
So here are Chapin’s notes on how you prepare and ship out 100+ 70mm film prints.
For those of you that are interested in these things, attached is a picture of our “platter farm” in Valencia CA. This is where all the prints are being made up.
The space before, in Academy ratio.
The space after, in sort of Ultra Panavision.
We are getting the prints as 1000 ft. loads, so we have to assemble 20 rolls to make a print up.
About 90 of the prints will be made up for platter operation and shipped totally assembled. The prints are being ultrasonically welded so that it is one continuous piece of film; no splices. The remaining prints are going out for reel to reel houses.
On the right of the frame above you can see part of one of the shipping cases. It is 5 ft. x 5 ft. by 1 ft. thick. When loaded, it weighs about 400 lbs. On the platter next to it, there is a partially disassembled platter reel. With the reel full, out of the box, the film and reel weigh about 250 lbs. Four people can easily lift it onto a platter deck.
We have a dedicated team of four folks working 7 days a week to get this done.
All this makes you appreciate the effort behind the scenes that makes this remarkable enterprise work. (So far, there have been a couple of problematic press screenings, but a dozen or so other shows–notably last night’s SAG screening at the Egyptian–have gone off perfectly.) Whatever you think of Tarantino as a filmmaker (I like him), he deserves credit for exposing a new generation to the volcanic fun of a roadshow presentation. And we should thank Chapin, the guru with the bandit mustache, as well.
Photo credits: Chas. Phillips.
The Hateful Eight.
Out of Print (2014).
It’s a portrait of a theatre and its history. It’s also a portrait of a team that is a community that is a family that is a way of life for hundreds of people. The film includes interviews with Joe Dante, Stuart Gordon, and other friends of our blog.
After she finished the film, Ms Marchese found herself in a very different situation at the theatre. She explains here.
We haven’t heard the last of this, I expect. In the meantime, netizens are rushing to watch the movie, which is indeed enjoyable. In its late sections it constitutes a plea for retaining and circulating 35mm prints as well as digital copies. It’s also an invigorating testament to revival and repertory cinemas and to the creativity of programmers.
Thanks to John Toner of Renew Theaters for the link!
Cinema Theater, 1985, with JoAnn Morreale.
For a while now I’ve been tracking the consolidation of digital cinema. After a blog series, I melded the entries with other information and created the e-book Pandora’s Digital Box. (To the readers who bought it, thanks!) Last year, in a blog called “End Times” I updated the information. Now we’re at post-End Times, I suppose.
David Hancock, who keeps meticulous account of these things, issued an IHS Technology Profile report on the state of things at end 2013.
*Of the world’s nearly 129,000 screens, over 112, 000, or 87%, are digital in some format. Most screens are compliant with the Digital Cinema Initiative standard used in the US, but India has pioneered the cheaper “electronic cinema” formats. Many of these e-screens will upgrade to the DCI standard.
*The UK and France have fully converted, along with most smaller European countries. Those countries benefited from various degrees of government support for the conversion.
*China now contains over half of the 32,642 digital screens in Asia.
*High concentrations of 35mm venues remain in Egypt, Morocco, Greece, Portugal, Ireland, and other areas with economic troubles. Other analog countries, such as Slovakia and Slovenia, lack public funding and contain mostly single-screen venues. The more multiplexes a country has, the greater the pressure to go DCI.
*In North America, out of about 40,000 screens, close to 93% have converted. That leaves about 3200 analog venues. It’s hard to know how many of those have closed or will close soon.
Most of the surviving analog sites, I suspect, are subsequent-run, like the five 35mm screens at our Landmark/Silver Cinemas ‘plex. And our Cinematheque and student-run Marquee continue to find and show excellent film prints. But clearly the moving finger has written. We at the University are striving for funding to make the changeover.
So too is a wonderful cinema I visited back in January. A family trip carried me back to my stomping grounds in New York’s Finger Lakes. I’ve already retailed some information about my hometown cinema, and a 1915 film that was discovered there. For now, let me tell you about a theatre I visited during a few days in Rochester.
Let George do it
Eastman Company, 1892.
Before there was Hollywood film production there was New York film production. Before that, there was West Orange, New Jersey, where Mr. Edison and Mr. Dickson devised a movie machine. And somewhat before that, before movies themselves, there was Rochester.
Rochester was the home of the George Eastman company, founded in 1880. Eastman pioneered consumer still photography; he made up the word “kodak” to suggest the click of the shutter button. The company manufactured the flexible 35m film stock that formed the basis of the American cinema industry. Another Rochester industry, the venerable Bausch & Lomb provided camera and projector lenses, including those for CinemaScope in the 1950s.
I suppose most people under thirty have never used a film-based camera, and for them the firm’s cheery yellow-and-red logo looks the way an ad for Packards looked to me in my teen years. Throughout most of the twentieth century, though, Eastman Kodak was one of America’s great technology firms. Here’s the Kodak Park facility ca. 1940.
The firm’s tragic decline will eventually get book-length treatments, but a short version is here.
Despite having invented the first digital camera, Kodak was overwhelmed by faster-moving competitors in that realm. As the firm mounted huge losses, the CEO, Antonio Perez, sought to leverage cash through Kodak’s many patents, but that tactic couldn’t stave off disaster. By 2011 Kodak stock was selling at about $1, down from the $25 it had been at when Perez arrived. In the same year, he was appointed to President Obama’s Council on Jobs and Competitiveness. Kodak filed for Chapter 11 bankruptcy in the following year.
Kodak has tried to reinvent itself, but its collapse has damaged Rochester badly. Growing up, I encountered in Kodak a supreme example of paternalistic capitalism; George Eastman even paid for dental care for all of Rochester’s children. In the 1980s over 60,000 people in Rochester worked at the firm; now fewer than 7,000 do. As the company imploded, its pension funds fell behind. During my stay I met former employees who had counted on a secure retirement and are now struggling to make ends meet. There were also plenty of salty epithets aimed at Perez, who is said to receive an annual salary of over $1 million, along with millions more in other compensation.
Still, for cinephiles, Rochester remains a remarkable city. There is the historic Little Theater. It’s one of the oldest art houses in the country and now has several screens, all but one of them digital. The theatre has been taken over by the local NPR outlet and presents indie and foreign titles, along with some live music events. There’s also the magnificent Dryden Theatre operating under the auspices of the George Eastman House, one of the world’s great archives. Its programming has always been stellar, and it continues to bring rare films to the city.
Then there’s a real survivor: the Cinema Theater.
The South Wedge upstart
The Clinton Theatre, mid-1930s. The features are In Old Kentucky (1935) and The Return of Peter Grimm (1935).
It opened in 1914, smack in that period when motion pictures became the movies. It was initially called the Clinton Theatre because it occupies the corner of South Clinton Avenue and South Goodman Street. It offered minimal comforts. Donovan A. Shilling, in his colorfuland nostalgic Rochester’s Movie Mania, tells of wooden benches and a dirt floor.
Those amenities couldn’t easily compete with the offerings of the Clinton’s more splendid rivals.
There was, for instance, the Piccadilly, opened in 1916. Advertised as a million-dollar house, the Piccadilly was built with a grand stairway and an orchestra pit for a sixteen-piece ensemble. Its auditorium could seat 1500 people in what the trade press announced as exceptionally comfortable seats. A beautiful exterior photo is here. Eventually the Piccadilly became the Paramount. Rochester was a pretty rich city then.
The Clinton closed in 1916, reopened briefly, closed again, and reopened in 1918. This time it held on. Located outside the central theatre district, in a neighborhood known as South Wedge or Swillburgh, the Clinton was a classic neighborhood second-run house. You might have to wait quite a while to see a release, which would play the downtown theatres first. But at least you benefited from a swift turnover. During one week of February 1929, you could see The Big Killing and Bachelor’s Paradise (on a double bill), Uncle Tom’s Cabin, Tim McCoy in Wyoming, The Crowd, and While the City Sleeps, starring Lon Chaney. These titles had been released in spring and early fall of the previous year.
The Clinton wasn’t part of a chain, but it hung on through Hollywood’s biggest studio years. In 1934 it was one of thirty-two Rochester theatres, some of them huge. The Century could hold 2500 people, the RKO Palace 3000. (Of course many such theatres hosted live shows as well.) With capacity of only 500 (about the same as the Little), the Clinton was in the same category as the Aster, the Broad, the Empress, the Hudson, the Lyric, the Majestic, and the Rexy. Admission was typically $.15, and that usually got you two pictures. Bills changed three times a week, with the big pictures running three days.
Surprisingly by our standards, the major films weren’t playing Friday and Saturday. I can’t prove this, but I’ve read that Sunday afternoons and evenings yielded the big audiences for neighborhood theatres–possibly because many people worked six-day weeks. (See the codicil for more information.)
But, as mentioned in an earlier entry, the late 1940s were problematic for exhibitors because attendance plummeted. In 1949, the Clinton was taken over by Jo-Mor Enterprises, a major Rochester chain. Renovated with the Art Deco façade it now has, the newly named Cinema played arthouse fare as well as subsequent-run Hollywood films.
The Cinema was headed for closure in the mid-1980s when it was saved by an unlikely heroine. Earth Science teacher JoAnn Morreale bought it and spent over $100,000 in improvements. She did everything from negotiating with distributors to cleaning toilets.
Her energy made the theatre what it had been in its heyday, a center for community activity. Locals came in with gifts and home-made treats. Some spent the day there, watching the double-feature matinee and the double-feature evening show. Six bucks got you four movies. Here’s the old beauty in 1992.
Two years ago the Cinema was bought by John Trickey. The house is still a second-run venue, but unlike most it still offers double bills. The night I visited with my sister Diane you could have seen Mandela and Gravity in one go. The prices have gone up only a little since the 1980s: $5 for adults, $3 for seniors, students, and kids under 12.
We met the Cinema’s majordomo Benjamin Tucker. By day Ben is a Curatorial Assistant at Eastman House, but he loves film history and is happy to help out the theatre.
The shows are still in 35mm, although Ben is coordinating a crowdfunding campaign to help out digital conversion.
We met the staff, including the projectionists and the ticket lady Pat Russo, who has worked there for about ten years. She gives you real pasteboard tickets, not those flimsy, curly multiplex printouts.
And there’s the proud lineage of Cinema Theater cats, starting with Princess to Princess the second (ruling for about fifteen years) up to Sue, who’s been in residence about six months.
The Princesses would circulate among the seats, startling patrons by rubbing up against their legs or leaping onto their laps. Sue has a habit of settling down for a snooze in the middle of the line at the concession stand, forcing customers to step over her on their way to the popcorn.
I never visited the Cinema in my salad days (the 1960s). It wasn’t playing so much arthouse fare, I think, so I tended to visit the Little or the Dryden. I wish I had sought out the Cinema. This is one of the oldest continuously operating theatres in the country. Long may it flourish.
Thanks to Ben Tucker for information and images, to Jim Healy for tipping me off to the theatre, and to Diane and Darlene Bordwell for their company.
The image of the mid-1930s Clinton comes from Shilling’s Rochester’s Movie Mania; Carl Baxter supplied the original photo. More Clinton/Cinema Theatre memories here. The Rochester Subway site hosts stupendous, recently discovered photos of the RKO and Loew’s picture palaces.
PS 16 March 2014: Alert reader Andrea Comiskey supplies some background on the Clinton’s scheduling three programs per week during the classic years.
Mae Huettig (Economic Control of the Motion Picture Industry, 1944) says that only theaters that did not have to block-book (majors’ affiliates, members of large chains, etc.) got to choose films’ playdates. Whether this was really as absolute as she makes it sound, who knows? But what this means for when the “best films” (typically the A pictures) would tend to appear is tough to determine. On the one hand, you could imagine that distributors would want the strongest, most appealing films showing on the weekends when they could bring in the biggest crowds. On the other hand, you could imagine distributors trying to force underperforming/weaker films onto bills on the busier days since there’d be higher baseline business regardless of the merits of the films on the program. Exhibitors that didn’t get to pick playdates certainly did complain.
In an interview published in Kings of the B’s, (1975) Monogram’s Steve Broidy says that Saturday is the busiest day, at least for small-town exhibs. He also says that these exhibs liked flat-rate rentals on Saturdays so they could run up the profits and echoes the idea that the particular film didn’t matter a ton since people were going out to the movies regardless.
As was the case with your Rochester example, theaters that changed programs 2 or more times a week (which, at least in big cities, were more likely to be sub-run houses) often split the weekend days across two programs, with many theaters adding an extra feature exclusively for the Saturday kiddie matinee. I’ve seen just about every possible permutation, but for a twice-weekly changeover, Sun-Wed & Thurs-Sat was a pretty common pattern. For thrice-weekly, Sun-Tues, Wed-Thurs, & Fri-Sat was common. But I’ve also got plenty of examples of theaters that showed the same program Sat. & Sun.
Andrea is writing a dissertation about distribution and playdate patterns in the 1930s. I’m happy to get her clarification here, which shows, as usual, that film history is always more complicated than it seems at first.
The Cinema, 2014. Photograph by Darlene Bordwell.