Going To Market

Cinemacon 2023 has come and gone. The war cry "Movies are back" was shouted in the hallways of Cesar's Palace, and I am sure there was a bit of a glow from the attendees. Hollywood's increased focus on cinema is vital for me in looking at the event. However, as years passed, it was more than evident that there existed an annoyance by the studios having to participate, now trotting out far more stars, and an internal realization that they screwed the pooch with their obsession with streaming.?

With solid urban markets, moviegoing is on the upswing. However, in other markets, there are still profound problems. Rural and secondary markets suffer from a lack of products and a pathological disdain for anything from Hollywood. As a result, the box office numbers between rural and urban theaters are markedly different.?

At one time, there was not just one theatrical market in America; there were many In the early years of the movie industry. In the early days of the movies, establishing regional film exchanges allowed a more connected view of the market. In larger cities, there were "Film Rows" where the studios had offices or agents that worked on their behalf. A studio rep could visit a theater; a theater could twist the arm of a studio rep to get a booking. There was a connectedness to the market and the awareness that each regional market was, in many ways, unique. As a result, each market would ask for programming that would appeal to their demographic base.?

In today's market, the only programming differentiator is faith-based movies; everything else is handled similarly, whether rural or urban.?

At one time, a movie was made for specific US markets. A solid example of that is the Southern Drive-in Circuit. At its height, drive-in theaters numbered 4000; at that number, drive-in theaters were a substantial portion of the market. The drive-in theater market exploded in the South because of better weather and longer operating seasons. Coupled with the passing of the Paramount Decree, independent filmmakers, and studios had access to theaters for the first time. They created a line of drive-in-specific products like motorcycle movies from AIP, beach party movie after beach party movie, and exploitive science fiction movies. As a result, the drive-ins and the producers prospered.

What was vital, though, in making these movies was that Rural American values were celebrated. It was the time of the Western. For many audience members, the Western echoed themes they believed in: the struggle between good and evil. They were drawn to allegorical tales of capitalism versus communism, the celebration of faith and family. Now many of these values were held by folks in urban markets, but in the rural markets, that opinion was owned by a much broader base.?

In the movie "Easy Rider," when the protagonists, played by Dennis Hopper and Peter Fonda, were killed at the end by conservative rural rednecks, it launched a Grand Canyon-like chasm between rural and urban markets. This separation exists to this day. The villains in horror movies that played on the drive-in screen often had some rural-derived lousy guy. Quickly Hollywood decided to start in some ways to scorn this market. In return, that market is now disrespecting Hollywood.

Some clever movie promoters like Pacific Western, Sunn International, and Doty-Dayton productions specifically targeted this market from the mid 70's to early 80s. They distributed movies like "Chariots of The Gods," "Where The Red Fern Grows, "In Search for Noah's Ark," "In Search of Historical Jesus," and my personal favorite, "Late Great Planet Earth."

The movies were four-walled in primary, secondary, and rural theaters and did well. The producers bought cheap air time and did saturated advertising, usually two days before the movie opened. Unfortunately, these producers were all tempted by the allure of Hollywood, one even producing the movie CUJO. Their forays into the studio world eventually caused their demise.

The day of the exchanges, now evolved into a print repository, ended. Prints were shipped to sit in a salt mine in Kansas. Alternative or retro content became more expensive when you included shipping fees. Local film offices were shut down, and Film Row buildings were re-purposed and primarily sold or leased out to non-movie businesses. All regional offices were shut down, with most bookings now being via email.

The once proud drive-in market now comprises 321 locations from a high of 4000. Because of the stumbling expenditure of streaming launches, Hollywood is looking at the theatrical market with fresh eyes. There is hope, and there is opportunity.

A key thing the industry as a whole must consider is the polarization of revenue. If you keep building the tentpole and blockbuster model, you will be in danger of harming the market by placing all your chips on one horse. Theatrical movie releases must be expanded, and you have to back away from the idea there is one national market; there is not. There are probably seven cinematic economies; Urban Based, Rural Based, Afro-American, Hispanic, Evangelical Faith based, South Asian, and Regional arthouse. You must program for these distinct and vital markets to ensure you get all the benefits.