Zeina Tabbara’s Post

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.”

This article asks an interesting question and maybe it is a glass-half-full situation. Yes, exhibitors leaning on landlords to lower rents is part of the explanation - as WSJ recently pointed out, it is hard to re-purpose cinemas into anything else. But my suspicion is that lowering seating numbers with the introduction of recliners, doubling down on premium and introducing wider location-based entertainment options (climbing walls!) also has something to do with this. No doubt this and more being discussed at CinemaCon https://lnkd.in/e2yCEMpX

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

The Economist : “The box office has a bad case of long #covid. Worldwide takings last year were a quarter below their pre-pandemic peak. Americans, who went to the cinema more than five times each in 2000, last year went fewer than three times. As streaming services keep audiences glued to the small screen, theatre chains including #Cineworld, the world’s second-largest, have entered administration. Yet the biggest of the big screens are thriving. #imax, whose screens are as large as 38 metres (125 feet) wide with denture-rattling sound systems, had worldwide box-office takings of $1.1bn last year and its biggest-ever haul in America and Canada. On February 27th IMAX reported that its annual revenue was up by a quarter, and it expects to install up to 150 new screens in 2024” #cinema #leisurepropertyESS https://lnkd.in/euU66uVi

Can someone bring John Goodman back for a "Matinee" sequel? Sony's acquisition of dine-in theater chain Alamo Drafthouse Cinema comes at a critical inflection point for the movie industry struggling to get moviegoers back into theaters. But, it's also a gamble on a format that harkens back to the 1950s and 1960s where the movie wasn't the only thing that drew audiences. Let's start with the trailer...the acquisition is notable because it puts a major Hollywood studio back in the business of owning a movie theater for the first time in more than 75 years. Following a Supreme Court decision in 1948, the Department of Justice implemented the Paramount Consent Decrees, which aimed to break up the power of major studios by prohibiting them from owning movie theaters as well. This effectively dismantled the old Hollywood system where studios controlled both film production and exhibition. Sony is the first major Hollywood studio to step forward and test the waters since the decrees were rescinded. Now, back to our main feature...from subscription passes to premium seating, theater companies like AMC and Cinemark have tried a hodgepodge of different strategies to drive up ticket sales. Since the pandemic and the dawn of the streaming era, the couch potato generation has taken over. One of the big selling points of Alamo Drafthouse is that the chain goes beyond just showing movies. They curate clever pre-shows packed with archival footage relevant to the film, keeping the experience ad-free. Their commitment to unique programming extends to events like the hilarious "Master Pancake" live movie mocking shows. And they're not afraid to get creative with occasional stunts. Compared to most movie theater experiences today, Alamo's approach is considerably different, more entertaining, and highly engaging. Duds...not the milk kind. The movie theater industry faces a number of challenges beyond changing audience preferences. Aside from the high cost of going to a movie these days, which is around $30 per person (ticket and food), there's the quality of films these days. This summer alone is likely to see a box office barely clear $3 billion, well short of its typical $4 billion milestone. Unfortunately, the lack of blockbusters or even interesting movies along with the high cost really undermines any notion of value especially under the current economic conditions. The Sony-Alamo presents a number of different opportunities. Sony Pictures CEO Tom Rothman has championed the theatrical experience. While other studios embraced streaming and shortened theatrical windows, or even bypassed theaters altogether, he has been a vocal advocate for keeping Sony's films on the big screen. With Alamo's independent and engaging approach, they may be able to offer what moviegoers have been lacking so far https://lnkd.in/g62esPkX #sony #movies #hollywood #entertainment #theater #streaming #subscription

“How to Create the Ultimate Home Theatre Experience: A Comprehensive Guide” Setting up a home theatre is more than just picking out a big screen and speakers. It’s about creating an immersive experience that turns your living room into a personal cinema. In this guide, we’ll walk you through the essentials—from choosing the right TV size and sound system to optimizing acoustics and seating arrangements. Whether you’re a movie enthusiast or looking to enhance your home entertainment, these tips will help you build a space where every movie night feels special. #HomeTheatreSetup #homeentertainment #ImmersiveExperience #WebdroitTechnologies #acousticsolution #homecinema

In earth-shattering entertainment news, the studio Sony Pictures bought the Austin-based cinema chain Alamo Drafthouse. Studios could not own movie theaters due to anti-trust competition until the 1948 Paramount Decree sunset in 2020. The rule was established after a few studios bought theaters on the verge of bankruptcy because of the Spanish Flu. What's old is new again in the post-pandemic era. The one major studio without a streaming service buying a theater chain is an interesting development. (Their movies usually go to Netflix, 4-5 months after theatrical.) The theatrical exhibition industry needs this, and I am hopeful for Alamo's future and the chain's creative business model, which leans into experiences.

At a time when the box office is starved for content and audiences seem pickier than ever, Fathom Events is posting record revenue gains. For 20 years, the joint venture between AMC, Regal and Cinemark has been best known for bringing alternative content to the big screen in the form of classic Hollywood titles, live telecasts of theater and opera productions, concerts and even television series. In 2023, Fathom generated $100 million at the box office, a 116% increase over 2019 levels and its highest-grossing year ever. And that momentum has continued into 2024, as the company tallied $43 million in the first quarter, up nearly 140% compared to the $18 million it tallied in the year-earlier period. Fathom’s relationships with Hollywood’s biggest studios and its cinematic reach — as the partnership of the industry’s three biggest theater chains — has made it a formidable force at the box office. Its value proposition is twofold: It breathes new life into older films, and into theaters. https://lnkd.in/gtd7VGqP

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?

Movie theater business is so dead. For the last 3 years, PVR Inox has been going through multiple quarters of losses that’s the case for most movie theatres They shut down more than 800 underperforming screens, now most people might think the reason is the adoption of OTT platforms But the truth is after the digital revolution, access to content in all formats has become easier, Consumers are experiencing platforms short-quality and engaging content on platforms like reels and shorts more frequently So the bar to get attention is much higher now, if movies are crafted with common stories and common actors it won’t be enough to attract consumers to the theatres Consumers are more likely to be drawn to theatres when it’s top actors and top storylines, if you observe last year - PVR Inox ticketing sales, most sales were dominated by the top 4 movies last year.