CinemaBUZZ REPORT - 4 March 2013

Michael Lynton

Sony Honcho Says "Cinemas will get movies first"

In a recent interview, Michael Lynton, CEO of Sony Corp. U.S. and Sony Entertainment stated, "The only way you're going to see a blockbuster movie like 'Skyfall', is if a studio like Sony foots the bill.  And once they do, they're not going to let you see it anywhere but in a theatre in the first few months it's out."

Technology drives the way we all consume media, but some parts of the media world aren't likely to change much (such as the cinema release window) anytime soon, at least if Lynton has his say.

"There are plenty of reasons why people like me, and maybe you, would like to see a movie like 'Skyfall' at home while it's still playing in cinemas.  But Sony has very good reasons for keeping things the way they are", stated Lynton.  "We are happy to experiment when it comes time for other windows - perhaps there is a way to charge viewers a premium for home viewing before the movie makes it to DVD, for instance".

Lynton, who was very candid during the interview, had a lot to say about the other ways digital technology was impacting Sony, from the demand for streaming media to the way it is dealing with Twitter, Facebook, and YouTube users, who can sink a movie's attendance in record time.

Cinema Audio Is Back

While Digital-Cinema conversions have been the gorilla in the cinema room for years, exhibitors lost focus (and interest) on the audio side of the movie presentation. However, over the past few years, audio for both the cinema and home theatre has greatly improved and audio is once again on the radar screen.

The new generation of  cinema audio products is multifunctional and, with the implementation of advancements like, HDMI, ethernet, Airplay, and Dolby 7.1 and 11.1 Atmos, deliver an enhanced, never before heard, movie experience.   Improvements in digital amplifiers, sound processors, and loud speakers have made cinema sound upgrades affordable and feasible.

Cost is always a factor when upgrading equipment, but research shows that moviegoers are willing to pay more for a superior movie presentation (screen image and sound) which offsets the incurred expense of an audio upgrade.  Don't forget, now that cinemas have the capability to exhibit alternative content, such as the Met's Opera program, sound becomes even more relevant.

It is no longer acceptable for moviegoers to tolerate inferior sound, and quality sound is now the new normal which consumers expect and demand.  Whether it's to embellish the movie experience, upgrade old components, or embrace new technologies, exhibitors are increasingly putting audio back in their sights.

Comcast Says, "We're All In"

Comcast, the nation's largest TV cable operator announced last week that it would purchase General Electrics remaining stake in NBC-Universal for $16.7 billion.
"This is a really special moment for our company," Comcast Chairman and CEO Brien Roberts stated in a conference call, "We're all in."

Comcast, like the other cable operators, see their core business eroding as more and more consumers move to the internet for their viewing entertainment.  Comcast needs distribution and, more importantly, content - therefore the purchase of NBC-Universal fits into their long-term strategy very nicely.  For its money, Comcast gets a premier TV network (NBC) and all of its subsidiaries, as well as, a movie studio (Universal).
The goal being to offset the expected gradual losses in the cable industry with original content which can be delivered in cinemas, and pay-per-view via network TV  through on-line streamers, or in partner with the likes of Apple, Amazon, Google, and other internet entertainment providers.

Best and Happy Movie Going!
Jim Lavorato
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