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Author Topic: Credit requirements for booking prints (and photos of film equipment being junked) Paul Looker Film Handler Posts: 83 From: Pittsburgh, PA/United States Registered: Sep 2009 posted 08-19-2011 12:33 PM                     Hello all. The owner of the theater I manage wants me to buy the business. The price is good and as of now I'm seriously considering it. Something she mentioned to me though was potentially very strict credit requirements put forth by distributors. I know nothing about any of that. The owner herself probably only knows a little bit more than I do. She hasn't been in the theater in over 4 years now. I know this is kind of a vague broad question but any info anyone could give me would be greatly appreciated. <Edited title due to Steve Guttag's photos on page 2> [ 08-20-2011, 11:42 PM: Message edited by: Brad Miller ]  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 08-19-2011 12:38 PM                        Like anything else, it depends on your credit-worthiness. If you and the theatre you are buying have a good reputation, then you'll probably be able to just change the ownership over and continue on as you have been. You'll have to fill out credit apps and sign some guaranty letters, etc. (The process will be easier if you have a booker already...and if you have one but are thinking of changing, this is NOT the time to do it. Wait until you are established.) If your theatre's payment schedule has been spotty, or it is very low grossing, or you yourself are credit-dicey, then prepare to pay big deposits and/or advances on your bookings.  |  IP: Logged Frank Cox Film God Posts: 2234 From: Melville Saskatchewan Canada Registered: Apr 2011 posted 08-19-2011 01:48 PM                        When I set up my theatre there had been no theatre in this town for several years prior to my moving here. (My theatre building was formerly a paint and wallpaper store.) Most of the distributors required a cash deposit and I was told that after one year I could get the deposits back if I paid everyone on time during that year. When the year was up I wrote a letter to each of them to remind them that the year was up and they all told me to apply the deposits against whatever I owed them at that time. On the other hand, one guy I used to know was apparently rather casual about paying for his movies and I know that he was required to pay a substantial amount "up front" whenever he wanted to book a movie from certain companies, and I think that continued right up until he was out of the theatre business.  |  IP: Logged Martin McCaffery Film God Posts: 2481 From: Montgomery, AL Registered: Jun 99 posted 08-19-2011 01:51 PM                        Keep in mind you will also have to sign a Master Licensing Agreement (MLA) with every studio in which you promise them your first born and soul. The MLA's are very intimidating, but if you don't try to screw them, they won't come after you.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 08-19-2011 02:04 PM                        quote: Paul Looker Something she mentioned to me though was potentially very strict credit requirements put forth by distributors. In this, she could also be referring to the fact that you have to pay film rent very quickly, often within 14 days -- otherwise they can hold-up your future shipments, put you on COD, or require the afore-mentioned advances. And, if terms are not firm, you need to make an "on account" payment at the end of each play week.  |  IP: Logged Jake Spell Master Film Handler Posts: 294 From: Johns Island SC Registered: May 2009 posted 08-19-2011 10:45 PM                     Due to low grosses as well as several other factors our theater is required to mange an advance as well as part a percentage ion account at the end of every week. I  |  IP: Logged Brad Miller Administrator Posts: 17775 From: Plano, TX (36.2 miles NW of Rockwall) Registered: May 99 posted 08-19-2011 11:52 PM                     Is your theater all digital yet? If not, WALK AWAY!!!  |  IP: Logged Paul Looker Film Handler Posts: 83 From: Pittsburgh, PA/United States Registered: Sep 2009 posted 08-20-2011 01:35 PM                     Why do you say that Brad? Do you know something that I haven't been able to find out anywhere else?  |  IP: Logged Brad Miller Administrator Posts: 17775 From: Plano, TX (36.2 miles NW of Rockwall) Registered: May 99 posted 08-20-2011 03:00 PM                     Because you will go out of business within 2 years if you are stuck running film. Film is about to be discontinued. The owner is setting you up for failure/bankruptcy.  |  IP: Logged Paul Looker Film Handler Posts: 83 From: Pittsburgh, PA/United States Registered: Sep 2009 posted 08-20-2011 03:34 PM                     Is that on the record somewhere or just speculation? What percentage of screens in the US are digital right now? What is the cheapest available digital equipment?  |  IP: Logged Justin Hamaker Film God Posts: 2253 From: Lakeport, CA USA Registered: Jan 2004 posted 08-20-2011 04:15 PM                        US screens are right about the 50% digital threshold. The writing is already on the wall for the end of film when you look at things like the consolidation of Deluxe and Technicolor, the end of 35mm distribution in some foreign markets, and other factors. Plus, my understanding is some of the studios have said they will start to cut their 35mm print orders once the 50% digital threshold has been reached. Unless the theatre is a high grossing location, it will become increasingly difficult to get prints on the break. And depending on how many theatres in the area have already converted, it may be difficult to get 35mm a few weeks off the break as there are few prints to circuit. Furthermore, you're too late to be able to get into any of the VPF agreements for converting to digital. You would have to self finance and you would not recoup anything.  |  IP: Logged Aaron Mehocic Jedi Master Film Handler Posts: 804 From: New Castle, PA, USA Registered: Jun 99 posted 08-20-2011 05:35 PM                     Our company operates a 35mm multiplex in the Pittsburgh market and keeps consistent with the 100% digitized competitors. Telling Paul he should walk away just because he is film-based was another example of digital projection coloring everybody's mindset rather prematurely. On the other hand, digitization is coming. I am rather convinced that it will not roll-out as quickly as some are suggesting. Steve Guttag, for example, recently wrote on the forum that the one thing exhibition does not need is 50% of the screens being digitized along with 50% still running 35mm. With another down-turn in the economy, small markets (like the 'Burgh), might be forced to keep film around. Unlike most of the country, many theaters in the Pittsburgh/Western Pennsylvania market are still 35mm. I doubt that we are not alone in that. Quite frankly, the only place I see major digital role-outs are in markets that saw SUBSTANTIAL population growth during the 1990's. Its the other way around out here in the "sticks". It does seem, however, that your owner is getting out because she cannot afford the transition . . . and that would be enough for a "no go" for me.  |  IP: Logged Justin Hamaker Film God Posts: 2253 From: Lakeport, CA USA Registered: Jan 2004 posted 08-20-2011 06:09 PM                        Aaron: The issue is not what has been the case to date, but what will happen in the future. My theatre is going to be converting to 100% digital in the next couple weeks (presently we have 2 of 5 screens digital). Up to this point we have not had any issue getting 35mm prints, as long as the release falls within our "platform". The problem is that we have been getting pushed further and further out. A few years ago we were getting prints at a 2000-2200 theatre release. Now we aren't included until 2500 for some studios. I don't know all the politics of book film, but I can't help but think this is related to digital in one way or another. You also have to realize that 35mm prints will become more expensive as the demand decreases. As the cost of 35mm prints rises, it is less likely the studios will provide prints to low grossing theatres on the break. The unfortunate reality is some small/independent theatres will be forced out of business because they are not able to foot the bill for converting to digital.  |  IP: Logged Paul Looker Film Handler Posts: 83 From: Pittsburgh, PA/United States Registered: Sep 2009 posted 08-20-2011 06:18 PM                     It's not so much that she can't afford it as it is she never wanted this place to begin with and therefore never bothered to even consider any kind of upgrades to anything. She was more than happy to pocket money that could have gone towards investing in our future. I still have faith in this place. And I want it. Way down in my gut even if it's going to go down in flames before this year is out, I want it. Does anyone have a rough idea of the lowest end price for converting a screen these days? We are small. 2k projectors would do the trick for us.  |  IP: Logged Monte L Fullmer Film God Posts: 8367 From: Nampa, Idaho, USA Registered: Nov 2004 posted 08-20-2011 06:21 PM                     quote: Paul Looker Does anyone have a rough idea of the lowest end price for converting a screen these days? We are small. 2k projectors would do the trick for us With the right dealer and bargains, roughly $55K plus for a 2K, 2D unit...along with revisions needed in the booth for the conversions. ...just plan for the future and digital is where it's at for I've been helping "indies" some on the future of digital since they know 35mm is on it's way out as the medium for cinema presentations. (should post that pict of the "graveyard" of STRONG equipment destined for the shredder that Steve posted in FB to enlighten the truth on how film is rapidly diminishing out of the cinemas)  |  IP: Logged

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