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At movie industry convention, leaders say blockbusters alone aren’t enough - https://lnkd.in/gybpWriX Movie theater owners are still feeling the high from “ Barbenheimer.” The counterprogramming of “Barbie” and “Oppenheimer” brought audiences to cinemas around with the world, ultimately earning nearly $2.5 billion in combined ticket sales. But, gathered in Las Vegas this week for the annual CinemaCon convention and trade show, they're also acutely aware that they need more than two movies to survive. “It is not enough to rely solely on blockbusters,” said Michael O’Leary, the president and CEO of the National Association of Theater Owners. “To have a truly successful filmed entertainment industry, a variety of movies that appeal to movie goers is critical.” That means, O’Leary said, “a strong and vibrant market for movies with smaller or medium sized budgets." At CinemaCon, Hollywood studios, exhibitors and tech companies come together to preview what’s next in moviegoing, from the films that they hope will get audiences to the theaters to the latest and greatest in snacks, seating and projection. On stage, the message is (by design) optimistic about the future of cinemas and the industry’s capacity for evolution. Whether it’s streaming, piracy, VHS or television, the leaders in the filmed entertainment industry are always quick to remind that their business has survived its share of existential crises: Someone is always forecasting its demise. O’Leary made a plea to “our friends in the financial industry” to invest more capital into the system, calling it a “smart investment” that benefits “creatives, studios, exhibition, local communities and, most importantly, movie fans.” “We know that a movie that begins its journey with theatrical exclusivity is more successful in every subsequent ancillary platform,” he added. “This should appeal to people who want as many film fans as possible to see their movies, but also to people that want to make money.” Studios including Warner Bros., Universal Pictures, Paramount, Disney and Lionsgate will all take the big stage at Caesar’s Palace to show new trailers or footage from their biggest upcoming films, from “Furiosa” to “Deadpool & Wolverine,” sometimes with the help of movie stars, to stoke excitement in the people who will put these films in their theaters. 2023 was a rollercoaster year for movie theaters. The overall box office was up 20% from the previous year in the U.S., surpassing $9 billion. But that’s still $2 billion shy of where the business was pre-pandemic. There were hits, like “Oppenheimer” and “Barbie,” of course, and other notable successes from traditional studios, like “The Super Mario Bros. Movie,” “Spider-Man: Across the Spider-Verse,” “Wonka” and “Guardians of the Galaxy Vol. 3.” There were surprises lik

Interesting acquisition on this… I say interesting not because I disapprove, but actually because I would have guessed that The Walt Disney Company, Netflix or Amazon Prime didn’t make a play for it. I figured that the main streamers would love to acquire a theater chain to expand their reach. A theater chain would have given them the ability to showcase their content exclusively, create promotional experiences, etc. Plus, I would have been excited to see what innovative offerings they may have brought to the theater experience. Since the pandemic, theaters are in a free fall and need to find a way to rethink customer experience. But, most of them are so buried by debt that they can’t make those type of pivots. Nonetheless, curious to see what Sony does with the acquisition. What are your thoughts?

The Power of Cinema: More Than Just Entertainment The magic of the big screen extends beyond mere #entertainment. It fosters a sense of community and shared experiences. Michael O’Leary, President & CEO of the National Association of Theater Owners, shares his insights on why #cinema holds such a powerful sway: • The Ripple Effect of a Thriving Movie Industry: Robust theatrical releases cultivate a growing base of movie enthusiasts, fueling an industry abuzz with fresh productions. This creates a win-win scenario for everyone - filmmakers, studios, theater owners, and streamers alike. • The Impact of Exclusive Theatrical Runs: Films that debut in theaters tend to outperform, benefiting not just moviegoers but also #studios and #streamers. • Benefit for Film Fans & #Financiers: Backing theatrical releases caters to those who relish sharing the enchantment of films with large audiences, as well as those who view movies as lucrative ventures. • Uniting Through Shared Experiences: In an increasingly fragmented world, theaters provide a unique platform for people to connect and partake in a collective experience. • A Sanctuary for Storytelling: A theater is more than a screen - it’s a space that inspires us to listen, think, learn, and celebrate the transformative power of #storytelling. Let’s rally to preserve this extraordinary place! #CinemaPower #FilmIndustry The Hollywood Reporter

Sony Acquires the Alamo Drafthouse Theater Chain https://ift.tt/ys4iAzN In a surprising move, Sony Pictures Entertainment has acquired Alamo Drafthouse Cinemas, a unique and beloved theater chain that delivers one of the best possible movie-going experiences. As reported in Bloomberg, this deal “reinforces SPE’s long-held commitment to theatrical exhibition and continued initiatives in experiential entertainment,” said Sony. Despite overall theatrical numbers being down, Alamo Drafthouse was crushing it. They experienced a significant boost in 2023, with box office revenue surging 30 percent compared to the previous year. This impressive growth outpaced the overall North American market, which saw a 20 percent increase in box office revenue, according to ComScore. Sony is committed to theatrical; they don't have a streamer, so they're still focusing on bringing movies to people. Alamo delivers maybe the best theatrical experience out there, with a 'no phones' policy and lots of other amenities. Still, many people are wondering if it's actually legal for a movie studio to acquire a theater chain. If you remember, back in 2020, the Paramount decrees ended. So, this may be the first domino to fall when it comes to a return to vertical integration. What's vertical integration? In Hollywood, vertical integration refers to a studio owning multiple levels of the movie-making process, from production to distribution and exhibition. Historically, this was common practice during the "Golden Age of Hollywood" (1920s-1950s). Sony, owning their own theater, falls under this category. They could just use Alamo theaters to only show their movies and force others out. There is currently no documented plan for that, and no changes to the Alamo have been announced, but we'll keep our eyes on this story. via No Film School https://ift.tt/w1OCdAa June 13, 2024 at 05:33AM

Staying Competetive, Movie Theater Chains Get $2 Billion Renovation Movie Theater Chains Movie theater chains have had a tough few years. Between COVID shutdowns and the Hollywood strikes… These companies have been bleeding money trying to bring back audiences. But now, with a fresh new $2 billion investment, movie theaters across North America have a new ace up their sleeve… But is it enough to keep the projectors running? Investing In Movie Theater Chains Last Month, the National Association of Theater Owners, AKA NATO, a group representing some of the biggest movie theater chains… Announced a massive new $2.2 billion investment to remodel thousands of theaters nationwide. NATO, which represents AMC theaters, Regal Cinemas, and Cinemark, will be using the investment to renovate 21,000 screens… THIS MEANS OVER 70% OF THEATERS IN AMERICA WILL BE A MUCH-NEEDED FACELIFT. The renovation plans encompass every part of movie theater chains. Inside the actual theater, the latest projection and sound systems will be installed, along with new seating. Movie theater chains will also feature new concession areas, and in some theaters, bowling alleys or arcades. Most importantly, the renovations include new carpets. Say goodbye to the mildewy scent of 90s carpeting on your way to watching the latest Marvel movie. This move for movie theater chains is part of a larger strategy shift that makes these companies more competitive. AMC theaters, for example, are shifting their plan to include more diversity… By offering concert films… And by banking on the hype of movie popcorn buckets. Chains are also facing pressure from luxury theater chains… Like Alamo Drafthouse which offers a higher-end experience. …And We’re Rolling! It’s not just theaters that are trying to bring audiences out of their homes… Earlier this year, Netflix announced it was expanding into the in-person experiences sector, with Netflix House. As it stands, NATO is confident in its ability to revive movie theater chains and bring them back to their former glory… And industry analysts agree. Paul Dergarabedian, senior analyst at Comscore, said… “WHILE THE MOVIE THEATER BUSINESS HAS ITS UPS-AND-DOWNS LIKE ANY OTHER, THE THROUGH LINE IS THAT YOU SHOULD NEVER BET AGAINST THE BIG SCREEN EXPERIENCE AS IT HAS SURVIVED AND THRIVED THROUGH DECADES OF CHALLENGES AND INTENSE COMPETITION…” It seems clear that despite the challenges… For now, movie theater chains are going to keep projecting the latest and greatest in cinema.

Data suggests classic rereleases could bring welcome ancillary revenue to studios and theaters, which would offer these titles during off-peak hours. The results of a 2022 Cinema Foundation survey suggests there’s interest in this model. Per the findings, 64% of respondents said they were interested in theatrical presentations of films from cinema’s Golden Age (i.e., 1939’s “The Wizard of Oz”) , 66% in films from the ’70s, 69% in movies from the ’80s and 73% in film from the ’90s. More than 50% of respondents who described themselves as “non-active” theatergoers were interested in films from each of these periods, as did those considered “frequent” moviegoers. A recent example suggests that creative tie-ins with current films could be good business.

The greatest challenge facing theaters right now is a dearth of theatrical releases, exhibitors say. Theater owners urged studio executives at CinemaCon to put more films in theaters — and not just big-budget tent poles timed for summer movie season and holiday weekends. An additional issue affecting owners of independent theaters and smaller chains is studio-imposed three-week minimum runs for major movies. Multiple exhibitors can’t afford to let one movie to take up a screen for three weeks because there simply isn’t enough population where they operate to fill seats for that long. One way that exhibitors are trying to fill the void of studio releases is by showing “alternative content” — from reissues of beloved films and screenings of TV shows to musical performances and sporting events.

In the hospitality industry, enhancing the customer experience during product consumption is pivotal for maximizing revenue opportunities.

Q: Why is it unusual for movie studios to own movie theaters? Sony Pictures Entertainment acquired the eclectic dine-in theater chain Alamo Drafthouse Cinema, an unusual example of a studio owner buying a theater chain. But why isn’t it more common? We asked reporter Robbie Whelan. A: “For starters, from the late 1940s until 2020, most big movie studios were prohibited under federal law from owning theater chains. A law from Hollywood’s Golden Age was meant to reduce the control that the original major studios like Warner Bros., 20th Century Fox and Paramount Pictures maintained over the industry by owning both the means of production and distribution of movies. That law didn’t apply to Sony, a relatively new entrant in the world of film distribution. These days, however, there’s a simpler explanation for why studios haven’t shown much interest in owning theaters: Theatrical exhibition is a business in decline. Most theaters were shut down during the pandemic, when the anti-consolidation law was overturned, and most big media companies pivoted hard over the last five years to the direct-to-consumer model, investing billions in building their own streaming services, which have since majorly eaten into the profits of theaters. Sony, which is sometimes referred to as an ‘arms dealer’ of content that is then distributed by other companies, has mostly resisted the trend of investing in streaming, preferring instead to license its content to established streaming services like Netflix. Buying Alamo makes a bit more sense for Sony compared to others, because Sony doesn’t own one of the major streaming platforms that might cannibalize the sales of tickets to its movies at the box office.”