Monday, April 11, 2011

It WAR: Studios vs Distributors.

There is a war going on in this industry, it is one waged by the Studios and the Theatres. Studios are now offering a window with DirecTV to show first run films 60 days day after their release. You can tell that the theatre chains are not happy. See ticket sales are down, and they were forced to pay million to upgrade their theatres to show 3D films and have to raise ticket prices to pay off the difference.

Sutdios make the most of the films money in the opening weekend, the theater gets the difference called the House Nut. As the weekends go by the House Nut gets bigger for the Theater. So a film that has legs will make more money for the distributor in the long run. This deal with DirecTV will cut into that, a business that is already under assault from declining ticket sales and piracy.

You see this should be a symbiotic relationship, Studios make films, but need a place to show them. Theatres show movies but need someone to make them. You wold think there would be a form of mutual understanding, No this is an industry that prefers backstabbing and one upmanship even if it hurts the industry in the long run.

Regal Cinemas has sent  notice to Sony, WB, FOX and Universal that it will reduce the run time for any film
they show in their movie houses, this is just in time for Summer Movie Season, which will be a crowded one at that.

Some distributors are getting fed up and taking matters into their own hands. Since the Studios, are producing less and what they are making is not that GOOD, Netflix is now in the game making original content.

Dropping ticket sales are also due to other factors, one going to a theater today is a hassle. Why pay 60 per person (3D Ticket+concessions) to see a 90-120 minute movie when you cam plop down the same money for Call of Duty Black Ops and get several months of entertainment out of it.

No only that you have to deal with less than enthusiastic staff, who consist of underpaid and overworked HS age staff. Since the theater is losing money they are cutting staff during busy times to maximize profits just to get by.

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