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Author Topic: Is the motion picture industry still recession proof? John T. Hendrickson, Jr Jedi Master Film Handler Posts: 889 From: Freehold, NJ, USA Registered: Apr 2001 posted 09-21-2008 07:49 PM                     There was a time when many people in the industry argued that the motion picture industry was recession proof. Much was made of the fact that during the depression of the 1930's, people flocked to theaters that provided a cheap form of entertainment, and an escape (though temporary) from hard times. Still true? At least for exhibitors, I don't think so. Are your attendance numbers holding up? How about revenue? Per caps? Where I work, those answers are no, no, and no. Theater owners are faced with increasing costs everywhere you look. Electric- up. Concession costs- up. Insurance- up. Cleaning costs- up. Labor cost holding, but for how long? For those theaters who lease space, is your rent being adjusted to accommodate the downturn? Another problem is trying to get a loan if you are looking to make any kind of improvements. The credit markets are in a shambles and money is tight. Have distributors given you a break on film costs? Patrons suddenly complaining about prices at the concession stand and the box office? Would you dare to impose a price increase at this point in time? My belief is that exhibitors everywhere are in a terrible squeeze. The post here on Film-Tech about theater closings is growing longer all the time. Lets face it, times are tough. Today, our industry is competing with home entertainment, sports, the internet, video games, and a plethora of other pursuits for "descretionary income" that is shrinking for many folks. What's your take on the state of the industry?  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 09-21-2008 08:04 PM                        My take is the same as it always is: If we get good movies, we put butts in the seats. Bad movies: Fewer butts. But I do agree the economy is affecting us a little - because a lot of our customers are from smaller towns 25 and 35 miles away, so it's an investment to drive over for a movie. However, I don't think most people are really cutting back much - yet. Here, our numbers are holding up well to last year -- we were a little behind until the summer came along with the better movies, and now things are softening again due to less-popular movies, but overall we're up over last year.  |  IP: Logged Adam Holland Film Handler Posts: 66 From: Oak Grove, LA Registered: Nov 2007 posted 09-22-2008 07:22 PM                     This is where the small community theatres will once again fill a void and the studios need to realize it. With the rising cost of gas, the local theatre is once again finding a market for itself. In our small comunity of 2,176 in the city and 14,000 in the parish the theatre is holding its own showing a movie one weekend a month. And showing pictures on less than adequate equipment. In the coming months we are looking at investing in new 35mm equipment which will allow us to get new movies and increase the frequency of shows. The feed back from our customers, many of whom come everytime the doors are open is how nice it is not to have to drive 40-60 miles to watch a movie. It is my belief that if the studios would see how valuable the little guys could be in this time or recession we could vary well see the rise of the small community theatres once again. And the community theatres would be recession proof just as they were in the depression. Our theatre opened in 1928 and by 1950 had become the largest theatre in Northeast Louisiana when it moved to its new state of the art house that we are in now.  |  IP: Logged Joe Redifer You need a beating today Posts: 12859 From: Denver, Colorado Registered: May 99 posted 09-22-2008 08:10 PM                        It is as long as Adam Sandler keeps making movies.  |  IP: Logged Louis Bornwasser Film God Posts: 4441 From: prospect ky usa Registered: Mar 2005 posted 09-22-2008 08:37 PM                        Please, just Kill me! Louis  |  IP: Logged Kurt Zupin Jedi Master Film Handler Posts: 989 From: Maricopa, Arizona Registered: Oct 2004 posted 09-22-2008 09:51 PM                     LONG LIVE THE SANDMAN! I don't think we are recession proof, but I don't think were going to drop off the face of the planet either. We may hit a slow period, but once something comes out that everyone wants to see again, all bets are off as to how busy we will get.  |  IP: Logged Brian Guckian Jedi Master Film Handler Posts: 594 From: Dublin, Ireland Registered: Apr 2003 posted 09-24-2008 06:14 PM                     quote: John T. Hendrickson, Jr My belief is that exhibitors everywhere are in a terrible squeeze. The post here on Film-Tech about theater closings is growing longer all the time. I couldn't agree more; I think closures of large multi-screen cinemas will accelerate worldwide in the coming years. The elephant in the room is soaring energy costs brought about by peak oil and peak gas. Coupled with bigger home cinema displays, the advent of Blu-Ray DVD and unimaginative product the future for the mega-plex cinema model is grim. It just won't be feasible to run these vast complexes with their huge energy and maintenance demands. And cutting staff and wage costs (how fewer people can be employed for how much less, at this stage?) can't address the underlying economic problems of the large-scale exhibition model that has prevailed for the last 30 years or so. But...this is good news for the small, independent theatre! Hence: quote: Adam Holland It is my belief that if the studios would see how valuable the little guys could be in this time or recession we could vary well see the rise of the small community theatres once again. And the community theatres would be recession proof just as they were in the depression. How true  |  IP: Logged Justin Hamaker Film God Posts: 2253 From: Lakeport, CA USA Registered: Jan 2004 posted 09-24-2008 07:27 PM                        I think my theatre might be a little more vulnerable to recessions and other economic slow downs. Our business from local residents stays fairly constant from year to year - allowing for movies. But the area is largely supported by tourists in the summer. This summer, there were far fewer tourists in town all summer. Many who did come seemed to either choose going to the movies or going on the lake, but not both. I also talked to a local police officer and someone who works at a gas station and both said the volume of out-of-towners seems to be significantly down from last year. 2007 also seemed to be down from previous years.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 09-24-2008 08:05 PM                        Tourism at the national parks in Montana (Yellowstone, Glacier) was up this year. I think maybe the "big" downturn, if there's going to be one, might be next year; for 2008, people may have already had reservations pre-paid, vacation funds saved, etc. 2009 could be another story. Our numbers are still ahead of last year but I'm not sure I'll be able to say that a month from now!  |  IP: Logged Gordon McLeod Film God Posts: 9532 From: Toronto Ontario Canada Registered: Jun 99 posted 09-26-2008 09:38 AM                     A couple of side notes the great depression which was a big period for the movies was not really for the theatres many were saddled with large debt from construction cost in the booming twenties and the cost of converting to sound many having to replace sound equipment that was leased or purchased at great expense with optical rather than disk or rental service contracts on sound equipment . And the shortage of available to credit to finance with. Sounds familiar doesn't it  |  IP: Logged Brad Allen Jedi Master Film Handler Posts: 688 From: Evansville, IN, USA Registered: May 2000 posted 10-05-2008 06:58 PM                     There is no doubt that the current economic conditions are affecting the small town theatres in this neck of the woods. Mainly gas prices. Mainy other business owners in our area have expressed the same sentiment. Just finished our worst September in 15 years. And all the small town area theatre owners I talk to are in the exact same boat. Of course, we all agree, that there has been more crap released than ever before in the past 6 weeks as well.  |  IP: Logged Louis Bornwasser Film God Posts: 4441 From: prospect ky usa Registered: Mar 2005 posted 10-05-2008 09:40 PM                        Small town theatres are the first ones affected in bad times; the last to recover. I have a special place in my heart for mom & pops, smaller places that are allowed to rise and fall over time. "Corporates" would surely have killed these locations during bad times. Louis  |  IP: Logged Richard C. Wolfe Master Film Handler Posts: 250 From: Northampton, PA, USA Registered: Apr 2000 posted 10-05-2008 10:06 PM                        I just finshed the best September that I have had in many years at my small town single screen theatre. So far October has been great as well. So why have I done well while many others have not. I don't think it has much to do with the economy. It has to do with only one thing. PRODUCT! The product that has been released since Labor Day has sucked big time, and that is what most of you have been playing. I on the otherhand, as a subrun, am still playing good product from the summer... and it's STILL doing great business, just as it did then. If it were the economy or gas prices, it wouldn't matter what we played... business would be down. If you're playing pictures that people want to see, you'll do well, if not, you'll die... and that is what has been happening for the most part with the current product. I have decent product to take me through October, but then I have nothing to play but the junk that has been released since Labor Day, and I will die with it just as you folks have. It's going to be a long November and December before Christmas. The only decent film I'll have to play during that period will be (I hope) the Dark Knight. I actually think that if gas prices have any effect on my business, it will help by keeping people from driving out of towm. I'm not too concerned about the recession, as I don't think it will take many customers from me, BUT I am VERY concerned about energy prices, and inflation in general. With prices rising so quickly, it's not enough to just maintain the same amout of patrons... either more patrons or higher prices will be needed. Of course, we all know that higher prices always means LESS patrons. Therefore, higher prices defeats inself, so the question becomes... during these recessionary, inflationary and bad product times, how the hell do we attract more patrons?  |  IP: Logged Thomas Dieter Expert Film Handler Posts: 234 From: Yakima, WA Registered: Jun 2004 posted 10-06-2008 04:35 PM                     From my experience at our location, we have done nothing but increase year after year, and this year is no different. We just set record breaking number labor day weekend, our first 3000 people ever, and the week after. I think that the days of the good old discount theatres is going to be back. Our entry fee is very reasonable, and our concessions are equally reasonable. Last time I went to AMC or Regal to get popcorn and 2 drinks, i paid close to 20 or 25 dollars, just for concessions alone. That's not counting the 8 or 9 for each ticket. If you are in the market for discount theatres, that's where the money will be so long as you know how to market it.  |  IP: Logged Martin McCaffery Film God Posts: 2481 From: Montgomery, AL Registered: Jun 99 posted 10-06-2008 05:28 PM                        As we run a small town art theatre, we are suffering the decline art films are suffering throughout the industry. We're off 30% from last year and 15% of our five year average. But this has been coming for years, it's not so much a function of the economy. Fundraising on the other hand (we're a non-profit, so fundraising is important to us). Overall, I agree it is the movie that gets butts in the seats (ok, and a strong advertising push). In 2002, when most people in the art business were having the post 9/11 recession, we had our best year ever thanks to Greek Wedding. Which we banked for just such a rainy year as this one. Talking to one of the really small distributors, she summed it up nicely. We are the cockroaches. We're still around after the bomb goes off.  |  IP: Logged

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