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Wednesday, August 10, 2005

We Don't Need Your Stinkin' Theaters

In a moment of fortuitous timing (or is it corporate synergy?) both CNN and Entertainment Weekly took to examining the future, if any, of movie theaters. EW, in its latest issue, tackles the "slump" in box office take with its own puny approach "You're Mad As Hell And You're Not Going To Take It Anymore." While CNN, in its mini special Hollywood Today, focuses on the transition of theatrical play from prominent, sole studio revenue source to glorified DVD extended-trailers.

The gist of the coverage, not unfairly, is that the experience of movie-going had been more special event, magical moment, entertainment extravaganzas that have devolved into smaller box, stadium seating, cell-phone ringing, baby-crying, one-week outings for films before a quick hop to DVD and then television. Or as EW approaches the issue:
"How rising prices, bad behavior, and all those ads have created a perfect storm that's ruining the moviegoing experience and what the industry plans to do about it"
While it is certainly too early to declaim the death of the first window -- that would take several years of declining revenues and attendance -- and CNN wisely points to the fact that the three previous years saw unprecedented growth in movie attendance, both articles do highlight that:
  • The prominence of certain forms of entertainment changes over time (vaudeville anyone?); and

  • With new technologies and media equipment available in the home, and the shortening of the theatrical window to allow for DVD release within four months of theatrical debut, moviegoers are now asking "Why Should I?" rather than "Why Shouldn't I?" for attending their local multiplex.
The theatrical experience is becoming more expensive -- as theater owners boost ticket prices -- to gain more total dollars against a smaller percentage of the gross as movies clock out in under a month, as opposed to the months of release a movie used to play; more like television -- as theater owners boost pre-show advertising -- to further bolster their coffers; and less exclusive -- as movies become available on other platforms sooner.

It's not clear that this really means anything for studios today, but if theatrical experiences disappear or even decline, the model changes.

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