The WEEKLY CineBUZZ REPORT - 6/6/11

FIRST MAJOR STREAMING DEAL INKED

Netflix and Miramax inked a deal last week whereby Netflix will have the rights to stream hundreds of Miramax films to Netflix subscribers. The agreement does not, as yet, include new films but the stage is being set for Netflix (and others) to stream new releases in the future.
In signing the deal, Miramax stated that it believes this is the only way its films can get the exposure (distribution) they deserve.  The deal calls for Netflix to pay Miramax $100 million for the streaming rights to 700+ films on a rotating basis.  The films will be accessible to tablets, PCs, SmartPhones, and SmartTVs.
And so, it has begun. Movies will be streamed and cinemas will be but one outlet for film content. There is just too much money involved for the studios to allow cinemas first dibs on films.  This will not happen overnight but the stage is being set.  Please take note cinema operators and start now (if you haven't already) to change your business model.

3D FATIGUE - Is It Already Here !

Time is not boding well for 3D movies.  Data is starting to reveal that 3D films are not resonating with moviegoers and that 3D attendance is dropping as compared to 2D showings.  The studios have countered by insisting that cinemas play the 3D version and not release the 2D version to the same cinema and push for 3 weeks runs of the 3D movie.
Obviously, the studios like the high admission surcharge on 3D flixs (on average $3/admission) but this is, in my opinion, one of 3Ds problems.  Moviegoers don't perceive the extra expense as value based.  Another reason is that many people (young and old) don't like the 3D experience and are quite satisfied with 2D viewing.
My suggestion: Have a 3D surcharge of $1.  Think about it.

PRAY FOR RAIN

At over $165 million domestically, Hangover II stumbled and bumbled its way to a record boxoffice of $225 million on a global basis.  The month of May ended with a bang and racked up a total domestic box office of $ 1.07 billion with Pirates of the Carib contributing over $167 million and over $700 million world wide.  No doubt May was a stellar box office month but it was also a very wet month which helped bolster in-door admissions.

Total domestic box office now stands at approximately $3.96 billion equating to about 500 million admissions.  This compares to 2010s total of $4.35 billion, so total box office receipts are still down 9% vs. last year.  This has been a big comeback however, as at first quarter end gross box office receipts were down by over 25% vs. 2010.  Several potential big earners are in the wings, including: the final Harry Potter and Cars.

Pray for Rain!