Casting A Wider Net

The business of exhibition inherently embodies cycles, reflecting technology, audience, societal pressures, and the entire economy. In most industries, leadership assesses these pressures and tries to adapt. However, there is a reluctance within the industry to evaluate and respond to these pressures appropriately. What I have noticed is that as of late the media has been tolling the bells for the demise of cinema. This is not going to happen.? What we should be doing is looking at this industry with a hopeful eye and beginning to make much needed changes. Change is always necessary, but sweeping changes such as the rush to stadium seating and the embracing of the VPF should be looked at with very suspicious eyes. The studios as self-involved narcissistic entities who are not your partner in any way shape or form. They will cast you aside in a moment's notice and let you die in a ditch. They do not have the long term health of the industry in mind when they make their decisions, they have always resented having to share with theater owners and are short sighted in their outlook.

?"When I was a child, I received some really great advice. One of the cherished pieces of wisdom I received was: "Anyone will tell you what you want to hear, but a real friend will tell you the truth." I believe that the entertainment industry needs more genuine friends. We also need studios that embrace creativity and storytelling skills. There is in the history of exhibition example after example of independent visions reshaping the cinematic landscape, I truly believe many will rise to the challenge and present alternative visions as a path forward.

?At the recently concluded Cannes Film Festival, George Lucas received an honorary award. When asked about the future of movies, Lucas did not pull any punches: "Sa" thing as it is now ... The stories they are telling are just old movies. 'Let sequel, let another version of this movie'..' There's no original thinking ... the big studios ... they don't have imagination." He is right, but frankly he had the deep financial opportunity to drive the industry into a more diverse business model, he stayed that path of the status quo and we, as a business, are the weaker for it.

Marvel for the past decade has been pushed forward as the major blockbuster machine, and has now endured a well-deserved black eye over the utter poorness of "Madame Web." . I viewed the movie and was shocked at the lack of a defined story, serious mistakes and an overall uninteresting piece of cinema. “Madam Web” is now seeing huge numbers as a result of a Netflix release. Many prognosticators are now claiming that future superhero movies will now head to streaming. Again, this is shallow thinking. "Madame Web" is doing well because the movie had a theatrical release: no theatrical release, no streaming numbers. Whatever you deem it, a theatrical release is the best advertising a movie can ever have.

?Many analysts are predicting a successful 2025, but I am skeptical. I believe that whatever forecast is being made, a phoenix is not rising from the ashes of COVID-19. We need to widen ticket sales, widen the demographic base and start rebuilding a base of constant moviegoers. What's needed is diversification across the board. The era of attracting customers solely through stadium seating is over; people now seek diverse entertainment options. The current lineup of movies from the studios needs to be revamped. Ticket sales are declining; some reports indicate a 20% drop in 2024 compared to 2023. “Barbie” and Oppenheimer showed the exhibitor that it still had vitality, but this continued vitality requires a steady stream of well produced and well told products coupled with offering products that can offer everybody something.

The simple fact is that we have to stop looking at gross dollars and focus on individual ticket sales. In the 1940s, 90 million people went to the movies every week. There was limited advertising, and people just wanted to go to the theater, unaware of what was on the screen then. That year, the population of the USA was 132 million. Gross dollars is a lie and is predicated on increased ticket pricing, as the old saying goes. What we really need is bums in seats. As an industry we have to start focusing on moving past an average 13% occupancy and shape an industry that can produce a 27-30% occupancy. If we can achieve this we can reinvigorate and revitalize what can be an amazing business.

As an attendee at Cinemacon, I sit at the overpriced Giada coffee shop at Caesars and just listen to the conversations around. Over the discussion regarding the Top Gun sequel, the majority of the conversations center around golf games, expense accounts and the weather. What is surprising is that with exhibitors there is not much conversation about movies.? There seems to be a dilution of the previous passion for movies. It may be because of the stream of disappointment being fed to the industry by the studios, but I think it's time the industry rediscovered its passion for movies again. It is time that the business of exhibition fell in love with movies again. If they do that then they can start marketing based on their own passions.

In April and May of 2022, a survey was conducted to see the modern habits of moviegoers. Folks were asked to report their moviegoing frequency during the past few years. Approximately 21 percent of the interviewees said they went to the movies often before the COVID-19 outbreak started. In comparison, 38 percent said they sometimes saw a film in theaters before the pandemic began. The shares stood at 21 percent during the first four months of 2022. Tragically, eight percent of U.S. adults reported going to the movies often as of May 2022. Another sobering fact is that in 2020, moviegoers declined by 81% in the U.S. and Canada. Of course the last number was caused by COVID but it is having difficulty recovering. And this is not just a phenomena for exhibition, all performance based businesses are suffering.

?A recent study conducted by the National Endowment for the Arts found that after the arrival and retreat of COVID-19, there was a deep decline in the American population who were willing to venture out and see a public event. From 2017 to 2022, there was a six-point drop in participation in the arts as a spectator in any form of public venue. 82% of the USA population would rather watch an event in some form of digital and or streaming medium. The number of American adults who reported seeing a musical theater production fell from about 17 percent to 10 percent, and the number for non-musical plays being attended dropped from about 9 percent to 5 percent. Attendance for ballet, opera, and classical music performances saw similarly dramatic decreases. Museums have seen a 27% decline.

?During a recent podcast, actor/writer Seth Rogen explained why he firmly believes in the future of cinema. "I think if movies were going to go away, they would have a long time ago," he said. Paintings are still around. People still go to museums! There's flashier or more 'interesting' than oil on canvas, but people still flock worldwide, enough to keep museums open." Well Mr. Rogen, museums are gasping for air, and we are an industry that does not to have a similar fate.

?We must acknowledge that movies are no longer the dominant cultural medium in our society. Once the frontrunner, movies have slipped into fourth place, trailing social media, video games, and mobile gaming. More importantly though the whole concept of community viewing of either live performances and movies is in decline. We must rebuild the community, we must promote and sell diverse products and we have to sell the audiences on the idea that there is a great value in the collective viewing expense. If it goes away we are all so much lessened