Cinema BUZZ - Week of 26 May 2013

Fast and Furious Drives Under the Radar

Kicking Boxoffice Ass and Loving It

With over a $3 billion franchise gross F&F is now in the elite of movie blockbuster moneymakers, and it appears to have accomplished that feat without a lot of Hollywood hoopla.  It is simply a case of giving F&F fans what they want - more and more of the same.  As Director Justin Lin says,  "This is the only set on earth where I can wreck 250 cars and no one bats an eye."

Given its past success, it was no surprise when Fast & Furious 6 raked in over $122 million stateside - a Memorial weekend record breaker - and an additional $200 million overseas and dominated over The Hangover, Gatsby, Star Trek, and Iron Man.  The draw of the franchise is that it remains true to its theme and the core cast (which has a huge fan following) remains. Diesel, Walker, Johnson, Rodriguez, and Brewster cast perfectly and appeal to fans as 'family'  (if you don't know who I'm taking about you're not a F&F fan). And the fan base is maybe not what you think.  F&F-6 moviegoers were 51% male and 57% over 25.

F&F-6 will gate at least $500 million at movie theatres globally - as it is a franchise that bridges social and national biases. It has found huge success in filming over-the-top, best in the business, action scenes coupled with a strong cast and plausible scripts.

Best thing about Fast & Furious - there is no end in sight!


Stranger Than Fiction

Behind the Candelabra, a film about the life of Liberace, includes Matt Damon as Scott Thorson, Liberace's long-time lover and soul mate. The movie, based upon Thorson's book of the same name, will debut at cinemas on June 7th, however, Scott Thorson won't be able to view it as he is currently an inmate at the Washoe county jail in Reno, Nevada. 

Without doubt, in this case, Truth is really stranger than Fiction. In 1977, Thorson, then 17, moved in with Liberace, and showered with gifts and a life style beyond anything Thorson could have ever imagined. He was both Liberace's boy toy and son all rolled into one.  This relationship lasted until 1982 when Thorson was abruptly ousted by Liberace due to Thorson's use of drugs - the two later reconciled before Liberace's death in 1987.  But Thorson went on and the trick to following his life is separating the strange from the unbelievable.

Currently in jail, Scott Thorson (now Jess Marlow, as he claims he changed his name when he entered the Federal Witness Protection Program - which is refuted by  Federal Marshals and makes sense as Thorson ended up at the Haven of Rest, a homeless shelter in Tallahassee, Florida).  At the Haven, Thorson found religion and became a popular evangelical often discussing his life with Liberace. Thorson's story goes on from there and could easily, in itself, become a movie.

Of his relationship with Liberace, Thorson has only to roll up his sleeve to reveal a tattoo with the name 'Liberace' surrounded by floating musical notes, plus the years that Liberace lived and a yellow rose.  "His favorite color," Thorson says.

Liberace was one-of-a-kind. A very talented pianist who intertwined his flare for extravagance into his showmanship and persona.  With an imitation following that includes Elvis, Michael Jackson, Elton John, and Lady Gaga just to name several he will last as a flamboyant figure in entertainment history.

Best
Jim Lavorato

Cinema Report - Week of 17 May 2013

The Cannes Heist

According to French police, $1million of jewellery - to be worn on the red carpet by the 'stars' - was swiped yesterday from the Novotel Hotel room of a Chopard employee.  The jewels were in the room's security safe which was broken into and the cat burglar(s) escaped without a trace.

Chopard was the festival's favorite among jewellery designers and had been providing 'bling' for the stars at Cannes for the last 16 years.  So far, French authorities have no leads regarding the whereabouts of the jewels or who is responsible for the heist. 

Cannes v. Hollywood - A Seductive Relationship

Speaking of Cannes, some say Art and Business never mix - but in the case of the Cannes (pronounced "Can") Film Festival (the world's most prestigious) and Hollywood it seems the two are very compatible bed fellows.  It's just a question of who is seducing who.  In its 66th year this week, the Cannes Fest has, in my mind, become a promotion vehicle, be it a very upscale and glamorous one.  Yes, they will throw in the occasional controversial docu or the steamy indie, but, by and large, Cannes exhibits and promotes what Hollywood wants and tows the line pretty well.  Why? Because that is where the bucks are and the stars gravitate to - like planets around the Hollywood sun.

It's good for the studios to use Cannes as a promo vehicle - it fits into their marketing model perfectly.  Forget about the heavy European films with character and plot, Cannes is now all about, action, animation, and 3D.  And, to be fair, this is exactly what the moviegoing public wants. But does Cannes risk of losing the independence it so prides itself on - maybe yes, but that independence comes at a cost and Cannes itself doesn't want to give up its 'stardom'.  Film festivals need stars -  without stars there is no 'press', without press, no publicity, no panache, no glitz, no glamour.

Hollywood runs Cannes, like it or not, but the 'seduction' continues becomes it makes good 'press'.

The Value of  'Rejected' Movie Posters

Movie posters are very collectible.  Value is based upon genre, scarcity, popularity of movie, age, etc. Some posters can fetch tens of thousands of dollars, but what about the posters that didn't make the 'cut' ? Bill Gold,  had a 70+ year career as a movie poster artist, creating posters for over 1000 movies - from Casablanca to The Unforgiven.  Gold's work spans the decades and now, via an online gallery, his 'rejected' posters are on display (www.movieposterdb.com).

Back in the day, Gold's 'first art work' (if rejected) remained his property, and in some cases there were 20 or 30 versions before the studio would 'green light' the final version.  Many of the originals, which are on display, are starker, edgier, and more realistic then the toned-down and image cramped final approved posters.

Gold's final poster was the the 2012 film 'J. Edgar', directed by Clint Eastwood and starring Leo DiCaprio. It's my guess is that these 'rejected' posters may be more valuable than the originals given their rarity.  Best of luck Bill!

By: Jim Lavorato
Comments Welcomed

Small-town Cinemas : A Question of Survival

For small town cinemas the conversion to digital projection is all about surviving.

Cinemas - the heart of a small town

As a seller/integrator of D-Cinema systems, I have witnessed, first-hand, the financial troubles many community cinemas face.  Serving their local community day-in/day-out for decades and functioning as a main-stay to small-town Main Streets across the U.S. these businesses are, in many cases, the heart of the community.

Unfortunately, some won't survive the digitization of movies simply because they cannot afford the cost - typically $65-70,000 per screen - so, in response many have resorted to a myriad of novel, and in many cases, successful funding tactics to prevent closure.

Private labeling seats, auctioning off the naming rights to auditoriums, holding community bake sales and barbecues. Selling raffle tickets for free concession and movie passes. Allowing, for a fee, patrons to be Theatre Manager for the day or have their names marqueed for birthdays, weddings, or anniversaries.  Whatever it takes - to make the fund raising a community affair.

Another way independent cinemas have fund raised is through Kickstarter - the on-line company whereby people (local fans or anyone) can donate to specific projects. Kickstarter has raised more than $1 million to aid small-town cinemas to purchase digital equipment.  Donors pledge small amounts, typically $25.  The donations are redeemed only if the campaign reaches a declared goal by a certain time. Kickstarter receives a 5% fee.  According to Yancey Strickler, co-founder of Kickstarter, "Most of the movie theatre fund raisers have been successful. The ability to keep these theatres open and ingrained as part of their community is something that people are happy to do."

Half of the U.S. populace live in small towns.  Their only means of getting movie entertainment is at the local cinema and they want to keep it and, for the most part, they are willing to assist anyway they can to keep a vital part of their town alive.

Best and Happy Movie Going!
Jim Lavorato

CinemaBuzz Report - 5 May 2013

WWZ - Biggest 'BOMB' in Cinema History?

WWZ - It's all about the zombies.

World War Z - the zombie festooned flix extravaganza scheduled for release in June - may well turn out to be the biggest cinema flop ever. With a budget exceeding $400 million and a mountain of negative pre-release scuttlebutt, WWZ may be zombie crazed Hollywood's  biggest casualty ever.

With a twice re-written script and a convoluted ending, this horror epic - the movie rights owned by Brad Pitt who is the film's lead character, as well as, exec producer - may still work at the boxoffice if the special effects (which are reported to be 'the best yet') satisfy audiences. Still, that big $ price tag is a giant hurtle so the goal, at this point, may be to recoup in an extremely successful (Paramount hopes) theatrical after-market.  It's rumored that the final (new) version of the film is "less spectacular" but more "emotional" and fits into Paramount's insistence that the film carry a PG-13.  We're all hoping for the best as the boxoffice needs a boost.

When China Met Africa

A great docu film, When China Met Africa, highlights an issue not heard about, if at all - China's economic colonization of Africa - which has been ongoing for over a decade.  China's goal is the extraction and exploitation of Africa's natural resources. The scheme goes like this, we (Chinese enterprises) will build Africa's infrastructure and you (African nations) will supply us with natural resources. Great for China, not so good for African states.

If you have an opportunity to view When China Met Africa do so, it's enlightening and spot-on in detailing the nuances of geo-political maneuvering by an economic super power.

Hollywood 'Bends Over' for Chinese Market

Since we're on China I wanted to discuss Hollywood's adaption of films to satisfy the Chinese market and comply (and closely work) with the Chinese government censors to comport to their social and political demands.

Hollywood, more and more, is placating to the Chinese government wishes to produce alternate cuts of films distributed to Chinese audiences.  China allows just 34 U.S. movies (foreign imports) annually into the Chinese cinema marketplace to compete for China's ever increasing cinema market - which is now second worldwide.  The question, however, is: if all of this placating equates to increased boxoffice admissions or do Chinese moviegoers consider it a juvenile and transparent ploy to induce their attendance.  I believe China is determined to have a thriving, home-grown cinema industry.  It's learning, from Hollywood, the latest film production and post-production technologies and techniques.  This knowledge, coupled with digital movie distribution, makes it a no-brainer for the Chinese in developing a cinema industry.  With seven new screens being opened per day, and distribution by a few 'state approved' exhibitors, the circle will be complete.

CinemaBUZZ Weekly Report - 26 April 2013

How About A Movie and a Root Canal?

Just watch the movie !

A new medical technique whereby patients are encouraged to watch a movie and given only local anaesthetics while having major surgery is coming into vogue.  Pioneering the technique is Peterborough City Hospital in England and several U.S. hospitals are studying the procedure.

The idea is to keep the patient relaxed while their medical procedure is carried out. For example, for certain orthopedic operations only a spinal block is administered while the movie is viewed and the patients seem fine with it. The most often requested films are The Sound of Music and Dirty Dancing - go figure.

This sounds crazy but it is a win/win. The hospital saves on sedation costs, the patient is calmed by watching their favorite movie while avoiding the risks associated with general anaesthetic, and it's great for the cinema industry. As far as I can see the only drawback is that the 'wrong' DVD is slipped into the player - which could reek havoc in the OR. It would probably not be advisable to watch the likes of: The Coma, Sweeney Todd, the Bride of Frankenstein, or Sin City.  Other good/bad suggestions?


Going Through The Backdoor

Expanding the VOD circle

Universal Pictures (subsidiary of Comcast Communications) continues to push the envelope on day-and-date movie distribution of first-run movies and eliminate the cinema's exclusive release window.  At last week's annual CinemaCon convention, Adam Fogelson, Chairman of Universal, told convention attendees that "the studios must partner with theatres to experiment with premium video on demand revenue sharing."

The idea is to give a share of the VOD revenue received by cable and satellite companies on same day first-run movie releases to cinemas.  But as, David Passman, head of Carmike Cinemas stated when asked if  he would be open to an experiment if studios gave cinemas a cut of premium VOD revenue, "I would hope the answer isn't a sharing of revenues while we have empty theatres".

Comcast, has a lot at stake. As the largest TV cable company in the U.S. having distribution rights to first-run movies has to potential to bring in billions of new found revenue - which it needs as more and more consumers move to the internet to satisfy their entertainment needs.  This scheme is a back-door maneuver as is the recent alliance Comcast/Universal made with Prima Cinema, whereby Universal first-run films are made available for at-home viewing on their release date to cinemas.

Best & Happy Movie Going!
Jim

CinemaBuzz Weekly Report - 22 April 2013

World's Fastest Growing Cinema Market

No, not China - but close - Russia. Yes, the land of caviar, vodka, oil, furry hats and gulags is currently the fastest growing cinema market in both movie attendance and new cinema construction. 500 new cinema screens opened in Russia last year representing a 19% increase.  Vodka and a movie anyone?

Digital Cinema Empowers Exhibitors

TI's DLP Chip

D-Cinema provides instant opportunities and future innovations for exhibitors says Texas Instruments.  In a press release last week, Texas Instruments, the developer and provider of the DLP technology used in all of the current digital cinema projectors, noted that over 85,000 movie screens have now converted to their DLP digital technology.  TI further noted that the benefits of digital are becoming more apparent every day to both exhibitors and audiences.

In my mind, exhibitors need to obtain two things from their digital conversion:  improve their bottom line and offer a presentation 'wow' factor that surpasses home and mobile entertainment. TI believes the same, "We have been at the core of the digital cinema movement ever since the first cinemas adopted DLP Cinema nearly 15 years ago. Although we are thrilled as more exhibitors and moviegoers enjoy the benefits of digital now, it's the groundbreaking possibilities still to come that are the most exciting" says, Dave Duncan, TI's Manager of DLP Cinema.  And that is what I am most interested in.

Given its high quality imaging, speed, and reliability it's a matter of when, not if, other content alternatives are made available to exhibitors.  For example, it is not a stretch to foresee audiences interacting with a movie, perhaps to direct a scene or select an alternate ending.  Or, using the capabilities of the projector to bring hologram renditions of famous entertainers to the stage in a new type of live, 3D glasses-free performance.

As Greg Von Hausch, President of Cinema Paradiso in Ft. Lauderdale told us, "With our digital cinema projection, audiences are much happier. So much more content is available and our patrons are delighted by the variety and the brilliant, crisp, and intoxicating image presented. Our crowds love it."

Best & Happy Movie Going!
Jim

CAN A MOVIE CHANGE YOUR LIFE ?

Apparently so. A new survey conducted by The Guardian, a internationally renowned newspaper, says yes! Films can act as a lifeline for over 20% of viewers and can change who they are and now they view the world.

Many more reacted to the notion that an inspirational film will always be there and act as an unwavering companion, like a pet.  For example, almost 25% of the people who took the survey saw It's A Wonderful Life not just as a perennial Christmas favorite but as an important personal moment that taught them the value of family.

And than there are the films that teach how brutal and uncaring the world can be, such as Bambi and Old Yeller. What about love? Over 20% of respondents indicated that they didn't know what love was until they saw it in a movie. You know, I think there is something to this theory of the life changing movie. In further research I came upon lists of life changing movies - listed here are several:

The Shawshank Redemption
The Fall
The Crow
American Beauty
The Silence of the Lambs
Juno
The Tree of Life
American History X

 What are the films that were milestones in your life? Leave your comments.

Summer Movie Preview

Coming off a horrendous first quarter showing at the box-office, this summer's movie line-up looks very promising. Like last summer, there will be films for every demographic and lots of them.  In all, there will be over 100 major releases from May thru August.  Here's our picks:

May
Sure Things: Iron Man 3, The Great Gatsby, Fast & Furious 6, The Hangover III
Sleepers: Epic, Star Trek Into Darkness, Black Rock
Long Shots: The English Teacher, Love Is All You Need, Shadow Dancer

June
Sure Things: After Earth, Man of Steel, World War Z, The Heat
Sleepers: Tiger Eyes, Monsters University, Unfinished Song, White House Down
Long Shots: The Internship, This Is The End, The Bling Ring, Stuck In Love

July
Sure Things: Despicable Me 2, The Lone Ranger, Grown Ups 2, The Wolverine, The Smurfs 2
Sleepers: The Hot Flashes, RED 2, Stranded
Long Shots: The Way, Way Back, Turbo, R.I.P.D., Blue Jasmine, Passion

August
Sure Things: 2 Guns, We're The Millers, Kick-Ass 2, Elysium
Sleepers: Cockneys vs Zombies, Austenland, The To Do List, The Colony, Getaway
Long Shots: Closed Circuit, The Lifeguard, Drinking Buddies

Here's to a great movie going summer!

As Predicted by CMG !

Day-and-Date home viewing of newly released movies, it'll cost $35,000 plus $500 per flix, but it's a definite move to the dark-side by a movie studio.  Prima Cinema (has teamed up with Universal Pictures) in offering first-run movies for home viewing.

Initially targeting super-rich movie stars and other celebrities,
Prima will install a digital set-top-box which allows movies to be delivered via the internet for a single viewing of $500 after an initial output for their 'black box' of $35,000.  Limited to 25 seats, so the service cannot be used as a commerical cinema -  Prima conducts a 'personal' inspection each home. Universal (owned by Comcast, the largest U.S. cable company) is the only studio offering its first-run content via Prima.  Upcoming movies to be made available include, the big-budget Oblivion, as well as recent titles - Les Miserables, Identity Thief, and Admission.

Predicted in this blog years ago, the Prima service will be the first to punch a hole in the armor of the long-standing exclusive 'theatrical release window' and NATO and all movie exhibitors, large and small, should be boycotting Universal pictures - it's that serious.

According to The Hollywood Reporter, Seth MacFarland (this year's Oscar host) will be among the first subscribers.  Prima, which does not advertise, hopes to have 1000 subscribers by year end. "Prima is not Netflix", Jason Pang, Prima CEO informed me, "Prima is what private jets are to aviation".  Currently Prima is being rolled out in CA, NY, and Florida.

Exhibs - you have got to ensure that your cinema is putting on the best persentation possible as the Primas of the world will continue to press the envelope on first-run home viewing and the studios may come to a point where the money involved is too great to ignore.

Best
Jim Lavorato
comments welcomed

CinemaBUZZ Weekly Report - 7 April 2013

Top 10 Family-friendly Films

Smile (www.sheknows.com) a popular family-friendly web site recently surveyed parents to find out which movies were the best all-time films for youngsters. Here are the results:

1. 'A Little Princess' - 1995
2. 'The Goonies' - 1985
3. 'Chicken Run' - 2000
4. 'The Many Adventures of Winnie the Pooh' - 1997
5. 'Swiss Family Robinson' - 1960
6. 'Old Yeller' - 1957
7. 'Chitty Chitty Bang Bang' - 1968
8. 'The Lion King' - 1994
9. 'A Christmas Story' - 1983
10. ' Up' - 2009

Surprisingly, it appears that time doesn't have much of an impact on enjoyment.  Most of the list is comprised of decades old films.  It may be that these films were 'made'  strictly for children and not produced for the wide-audience that many of today's family films are.

Time Heals ALL

It appears that Hollywood believes America is ready to view the White House and other government buildings and structures being destroyed - after an 11 year pause due to 9/11.  The upcoming 'White House Down' and the current 'Olympus Has Fallen' both feature White House demolition.  Heretofore, the White House and other government structures were only destroyed by  natural disasters: an ice age (The Day After Tomorrow) and an earthquake (2012).  Now, all wraps are off, as big media thinks the psycho-wounds of 9/11 have healed and America is now, once again, ready to take on the paranoia of a nation under siege.

Now, we await the first movie detailing the destruction of the new World Financial Center complex in NYC - well, I hope the good guys win.

CINEMA BUZZ Weekly Report - 20 March 2013

European Cinema Retail Group

Least we forget about our cinema mates across the pond, the Intl' Union of Cinemas (a European trade group for cinema exhibitors) recently launched the 'European Cinema Retail Group' whose goal is to assist European exhibitors optimize their retail operations.  As far as I know, there is no equivalent body in the U.S. so the ECRG is unique.

As we all know, concessions and retail are the profit generators for all cinemas, as such the ECRG's goal is ' to understand what works best for each cinema and to meet the demands of ever more connected, informed, and increasingly price-sensitive cinemagoers'.  The group plans to accomplish this by rethinking concession portion sizes, enhancing staff sales skills to increase per cap spending, and reassessing the menus to accommodate changing food tastes.

As marketers, cinema managers must address all of the 'touch points' in the cinema going experience and turn their retail operations into a more personalized and fun experience. This is true no matter which nation or geographic area of the world .  The Intl' Union of Cinemas wants to formalize that process and monitor it on behalf of their members. This is worthy and very appropriate, as admission prices - for the time being - have been pushed to the limit, particularly in Europe given its current financial situation.  Carry-on!

Hollywood Examines The 4K Issue

Earlier this month the Hollywood Post Alliance held its annual Tech Retreat and hosted the best minds in entertainment technology.  At this year's retreat, 4k resolution took center stage after UltraHigh Definition TV was promoted as the next visual coming.

Test results on viewer perceptions of various content was presented by the European Broadcast Union. Participants to the tests were asked to rate viewings bad, poor, fair, good, or excellent.  Between HiDef (1k or less) presentations using 720p, 1080i, and 1080p image lines there was no conclusion on perceptual difference. However, there was a "statistically relevant, but very small" perceived improvement of native 4k content when it was presented on a UltraHigh Def TVs.  So the results of the test regarding 4k was that its slightly better than what the folks are now viewing in their living rooms.

Currently, the only 4k content is being produced by Sony Pictures and they are heavily into 4k because their sister company is manufacturing the only 4k production cameras.
Production in 4k is a different and much more expensive undertaking for the studios, but the major problem is displaying the content.  First, most cinemas can't exhibit 4k films without upgrades to their existing d-cinema projection systems and two, most folks don't own (and have no incentive to own) an UltraHigh Def TV.

So, for the time being, 4k is backburnered - at least until UHTVs become prevalent and moviegoers clamour for higher resolution films (which isn't going to happen).

Customer Service - Who Are The Worst

When consulting or training I always talk about customer service and how important it is for any business, but particularly for small businesses.  I give examples of what I term Mildly Hostel Business Practices (whose things businesses do, that although small, eventually lead customers to seek others to do business with).  Bad customer service is seen in large companies as well and in recent survey by Advertising Age, these companies ranked as those with the worst customer service (listed in best to worst order): Walgreens, TJX Corp. (TJMaxx & Marshalls), The Gap, SuperValue, Sears, CVS, Safeway Supermarkets, Netflix, and worst Walmart.

Too Much of a Good Thing?

Amazon, Microsoft and Google all have TV networks.  Each also have production studios and all are vying - along with Hollywood and others, like on-line streamer Netflix - for the attention span of very fickled viewers. 

The rivalry between these waring parties (which was predicted in this blog 4 years ago) is now in full swing and it's game on.  The tech giants have two advantages over their competition: first, virtually unlimited funds, and second, access to instant feedback from viewers and the flexibility to change their programming as needed.
Additionally, they intend to produce high-quality, Hollywood professional- level content and can well afford to pay the for the best story-lines, scripts, writers, actors, and directors.

But is too much of a good thing - Good? Yes, there will be many more choices for viewers but how much time can they devote to viewing?  TV Guide, Inc. conducted research and found that viewers find organizing and managing their current viewing choices 'stressful'  Nonetheless, there is a war raging for eyeballs and it is going to be fierce - and both the cinema and TV industries will be impacted.

It is said that "content is king" but in the future it will be "captivating content" that is king, and it's anybody's guess as to which media or tech company will produce it.

Best and Happy Movie Going!
Jim Lavorato
Comments Welcomed

CINEMABuzz WEEKLY REPORT - 15 March 2013

Taco Bell Hits It Big At Cinemas

Last week Taco Bell launched the 'Cool Ranch Doritos Locos Tacos - and the new product was a huge success.  Taco Bells across the U.S. sold millions of the new Doritos Locos and cinemas were a major factor in the marketing of the product.

By far the most unique component in the marketing strategy was Taco Bell's 3-D ad, which was the first 3-D spot in cinema history.  It premiered during the pre-show 'FirstLook' at more than 8,000 screens nationwide, while a 2-D version of the ad ran at 19,300 screens.  The cinema ads, which were specific to that audience, feature the image of a Doritos chip spinning and exploding, with pieces of chip and seasoning flying out as it morphs into the Cool Ranch Doritos Locos Taco Supreme.  It is accompanied with the tagline: "If you loved the original, wait until you eat the sequel".

Taco Bell has made a commitment to run various ads in cinemas throughout 2013 to amplify the brand's key promotions.  It is estimated that 90% of cinemas are within a 5 mile radius of a Taco Bell location.

Taco Bell management believes cinemas are a perfect avenue to reach their target audience - adults 18 to 34. "It has been proven time and again that adding cinema to a media promotion increases advertising engagement, recall, and likability, so planning cinema upfront like this is clearly the way to go to make the biggest impact" , says Cliff Marks, President of Sales & Marketing, for NCM Media which created the ads.

Chevy 'Drives' Into Theatres

General Motors' new ad campaign for its Chevrolet brand will include the unprecedented use of cinemas.  Last month, GM shed its long held  'Chevy Runs Deep' marketing slogan and replaced it with the 'Find New Roads' marketing theme.

Alan Batey, GM's Chief Marketing Officer, states "Find New Roads represents an opportunity to leverage the product launches that we've got coming up, and the U.S. is really at the forefront of those plans."  The first new ad under the campaign was aired during the Grammy Awards. The ad highlighted the new Stingray and Impala. "Next up will be four standalone product ads that will run on TV but also at cinemas.  We believe it's really fantastic cinema creative" says Batey. 

The pre-feature cinema ads will include 90, 60, and 30 second versions of the 'Find New Roads' promo. "We haven't done much in cinemas before, said Batey, but the great use of emotion and music lend themselves will to this medium".  GM is clearly trying to appeal to Millennials with its new products and feels these new ads will change its image.

In Theatre Dining Takes Off

I've talked about this before but dine-in at cinemas is really taking off and every exhibitor should take note.  It may seem like your combining two risky business endeavors into one - but dine-in cinemas are becoming a very healthy (and extremely profitable) niche and a way for independent cinemas to not only survive but thrive.

For example, the Nitehawk Theatre, in Brooklyn, NY, opened in 2011 as a second-run house - in its auditoriums there are small tables in front of each pair of seats and space between rows for servers, who take orders during preshow and deliver food and drinks during the opening of the feature.  Patrons can place orders during the movie by posting a slip of paper which 'flags' the servers. One of  Nitehawk's signature items and biggest seller are the Fish Tacos (see insert at right).

"Your first thought when you talk about eating at a movie is that it somehow takes away from the cinema experience, but ultimately the trade-off for us, is that we deliver a really good cinephile experience", says Tim League, CEO of Alamo Drafthouse Theatres.

The payoff for all the effort of running a dine-in cinema come with the check. "Most traditional cinemas see per-head expenditures on concession anywhere from $3 to $6. With us, it's over $18," states Fred Schoenfeld, the owner of the single screen Art Deco Commodore Theatre, in Portsmouth, VA.  Sticking with perennial favorites, like sandwiches, salads, and fish n' chips. Schoenfeld says, "we keep our overhead low and our profits high."

I have consulted on a number of dine-in cinema projects, including Alamo Drafthouses, and can attest to their huge success. My advice,  you don't have to have a large menu selection but can start small with a few 'tried and true' items.  Study your demographic, and select menu items appropriately. Keep it simple, but unique and tasty.

Best and Happy Movie Going!
Jim Lavorato

Microsoft Becomes Movie Distributor/Studio

Pulp, a first in Xbox distribution

Microsoft Uses Xbox For Movie Distribution

Pulp, an independent British movie, will make it debut and be the first film distributed solely through Microsoft's Xbox gaming console - bypassing cinemas and other distribution outlets.

Pulp, a crime drama about the comic book industry, will be available exclusively to Xbox users and Microsoft says, it will not be a one-off but the first of many films they intend to distribute in this manner.  Says Pulp's creator, Adam Hamdy, "For an indie film like Pulp, that doesn't have any bankable stars, it's a challenge getting distribution from a studio".  Microsoft, however, is eager to fill the studio's role. Pav Bhardwaj, Product Manager for Xbox Live says, "It's a great fit.  The film is really well aligned with our audience.  All our audience like that sort and type of film and it's great to support British talent."

Microsoft knows just how important a consumer's living room is for entertainment, so they believe it's a win/win for them and the film's creator/owner to distribute it through Xbox. You will see more and more of this type of innovative movie development and distribution in the coming months.

Pulp is not a film for everyone but it does fit the Xbox user profile  and it will do very well at the 'virtual boxoffice'.

Best,
Jim Lavorato
Comments Welcomed

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
Comments Welcomed

The Life of Film

The End of Film Is Near

How Long Will Film Survive?

More and more, I'm asked by exhibitors "How long will I be able to get 35mm film prints?"  I don't know the precise answer but I do know that the end of film is going to be sooner rather than later.

Looking at the numbers can provide some insight into how long film will still be used for movie exhibition at cinemas. According to IHS Screen Digest - Cinema Intelligence Service (which tracks such things), of the approximately 130,000 cinema screens in the world, as of the end of 2012, over 104,000 had converted to digital. Leaving only 25,000+ to be converted.  Several studios have indicated that by the end of 2013 film distribution in the U.S. will be very scanty, if at all, and they appear to be indicating that the rest of the world will be off film by the end of 2014.

The industry is already grappling with digital issues, such as high-frame rates, 4k image capture, digital archiving, etc. which the industry and cinema owners will need to respond to in the near future. So, we can be reasonably sure that the issue of film's future has already been decided - it will not be!  When was the last time you purchased a roll of film?  There, you answered the question on film.

As more and more cinemas convert to digital projection there will be less and less film prints produced and distributed - until the point (which is coming soon) when there will be no prints available. 

The good about film's demise is that digital projection provides cinemas the tool need to compete with a higher standard then is available (currently) with home movie viewing.  It also allows for the presentation of a wide variety of non-movie content which can be tailored to the local cinema's demographics.  How about Cinema On-Demand. Using social networking technology cinemas should began to take the first steps as part of offering motivated movie patrons the opportunity to influence directly the cinema's programing.  Cinemas should start to experiment with this concept.

Best
Jim Lavorato

CinemaBUZZ Weekly Report - 22 February 2013

Popcorn People - Who Are They?

According to a study released last week by the Nielsen Company's National Research Group's 2012 Report on American Moviegoing ,70% of Americans over the age of 12 reported viewing one or more movies at a cinema in the last 12 months.

Overall attendance in 2012 to new released movies was 6.8 movies per-capita.

People between ages 25 and 54 accounted for 52% of cinema admissions; while 12 to 24 year olds represented 30% of the box office gross. Older moviegoers - 55 to 74 accounted for 18% of ticket sales.  Hispanics had the highest per-capita attendance. Representing 18% of the population, Hispanics accounted for 25% of total movie attendance.

Who Are The BEST Moviegoers

Believe it or not, tablet and smartphone owners are more likely to attend movies and spend more on movie entertainment than the average American.

According to the Nielsen data, mobile-connected moviegoers are more engaged in the overall moviegoing experience as smartphone owners attend 9% more movies than the average and tablet owners, a whopping, 20%, more than the average moviegoer.

Tablet owners went to the cinema an average of 47 times in 2012 - 10 more than the average moviegoer and were 27% more likely than non-connected moviegoers to view a movie more than once at a cinema.

What Are Moviegoers Viewing?

30% of moviegoers stated that their decision to attend certain movies was affected by comments about those films in their social networks. 51% of moviegoers 18 to 24 also texted and/or tweeted their peers right after viewing a movie. 

Viewing previews was the most frequently cited source for online movie information. "Film-makers still have the ability to substantially shape the messages that audiences are seeing and hearing about their movies," states Kathy Benjamin, SVP with Neilsen. "As mobile connectivity continues to increase, they'll want to take advantage of the great avenue that social networks offer to connect directly with potential moviegoers."

This is all good news for movie exhibitors, as long as Hollywood keeps producing the movies audiences want to view. For their part, cinemas must continue to offer a great presentation and moviegoing experience and the folks will keep coming back.

Best
Jim Lavorato

CINEMA BUZZ WEEKLY REPORT - 16 February 2013

Special Report: The Cinema's Competition Is Relentless And Needs A Response

One of this blog's mantras is to educate and inform movie exhibitors of their competition - which has become every home's 'living room'.  This competition is relentless and being pushed (and funded) by the largest internet companies, assisted by, content streamers, A/V equipment manufacturers, and internet service providers with the Hollywood studios in tow. 

We don't want this to be the future of Cinema

To believe otherwise and not address this issue, or worse - ignore it, is foolish and could result in the demise of a cinema's very existence. For several years now, Cinema Mucho Gusto has been addressing and recommending defenses cinemas can adopt to fight against this attack. Digital cinema conversions, if planned and implemented correctly, do offer exhibitors the opportunity to truly enhance their on-screen movie presentation, as well as, afford them the ability to exhibit a wide variety of non-movie content specific to their demographics. To strengthen my position and logic on this issue following are several of the latest moves by the game players:

Microsoft Appoints Head To Run New 'Xbox Entertainment Studios'

Last week Microsoft announced the appointment of long-time media executive and #2 at CBS Inc., Nancy Tellem, to head up Microsoft's new Los Angeles based studio.  Tellem stated, "We want to partner with the entertainment industry to bring it into a new era. It's an era where interactive entertainment becomes the greatest form of all entertainment."  Microsoft says it will partner with content creators, networks, and others to pioneer the future of entertainment, in addition to creating its own content. "We believe that we are at the start of the next wave of truly interactive entertainment. Viewers want to do more than just watch movies or TV shows and sports, they want to interact with them and Xbox makes that possible", says Tellem .

Interactive entertainment is not something a local cinema can offer customers but it can offer the ultimate movie viewing experience and that is the goal it must shoot for.

Netflix And DreamWorks Team UP

Billed as the first time a major Hollywood studio has chosen content streaming over paid television, DreamWorks announced it had sealed a deal to supply its films and television specials through Netflix, replacing it current pact with TimeWarner's HBO.

Netflix will begin streaming DreamWorks films this year, including: 'The Croods', a prehistoric comedy; 'Turbo', about a garden snail; and "Peabody & Sherman", an adaptation of the Rocky and Bullwinkle characters.  DreamWorks believes that capitalizing on the consumer shift to streaming content on their connected "living room" TVs  or on their PCs, tablets, and even smartphones offers more revenue opportunity than premium cable or satellite outlets.  Sony is also in negotiation with Netflix as a content distribution partner.

Best
Jim Lavorato

SIX STRIKES: HOW IT WORKS

Six Strike Rules for the New Copyright Alert System

I received a number of queries to yesterday's post - 'Copyright vs. Piracy" - in regards to the new Copyright Alert System's six strikes and you're out rules. Here's the way it will work.

Users suspected of accessing pirated content on peer-to-peer networks will receive increasingly aggressive notifications and eventually be subject to punitive action.

Strikes 1-2:  In response to notices from a copyright owner, an Internet Service Provider will send online alerts to subscribers that their account may have been misused or involved in copyright infringement and will provide information about legal sources of music, film, and TV content.

Strikes 3-4: Similar to the first two alerts, with addition of a "conspicuous mechanism" such as a click-through popup notice or landing page requiring the subscriber to acknowledge receipt of the alert.

Strikes 5-6:  At this point, ISPs may resort to more punitive "mitigation measures" that may include temporarily throttling Internet speeds or blocking access until a subscriber contacts the ISP to review copyright laws and how to obtain digital content legally.

So that's it.  Will it work? And, more importantly does it solve the piracy problem.

Best
Jim Lavorato

COPYRIGHT vs. PIRACY

New  Copyright Alert System Will Track and Punish

The media giants, in conjunction with, internet service providers (ISPs) are about to institute a massive program to stifle on-line piracy.  The program, entitled the Copyright Alert System (CAS), is to be operational by the end of March.

Spearheaded by the Center for Copyright Information, a consortia consisting of the  Motion Picture Assoc. of America, the Recording Industry Assoc. of America, and a variety of music makers and TV and movie producers, as well as ISPs : AT&T, Cablevision, Comcast, TimeWarner Cable, and Verizon, the CAS is intended to target parents who may not be aware that their children are media pirates.

The CAS is  'six' strikes and you are out! Yes, six.  The first strike is to simply warn offenders that illegal file-sharing has been detected on their account and leads them to legitimate sources for obtaining on-line content.  By the fifth strike however much more drastic actions take place.  For example, after the "fifth violation" Verizon will lower the users Internet connection to a max speed of 256 kilobits/second for up to 3 days (a very slow connect speed).  Time Warner subscribers will receive worse punishment - a suspended account until the offenders calls TW and speaks with a customer service rep about the error of their ways and what further punishment awaits any new offenses.  This is a sea change in the attitude of the ISPs as in the past their policy and retort to copyright holders was, 'it's not our problem'.

Critics of the Copyright Alert System point to several major issues.  One, being that the open WiFi nodes, which users keep open to let anyone in the local area use for free, ie Starbucks, would have to be excluded from the alert system.  Second, the Alert system does nothing to stop hard-core pirates, in part, because it only targets peer-to-peer applications. Professional pirates don't even use Bit Torrent any longer but have moved onto file-locker sites. Acknowledges Gigi Sohn, a CCI Board Member, "It's not about stopping the hard-core uploader/downloader.  It's about educating a new generation of music and TV fans."  What?

My Opinion

Copyright, like current Patent laws, have become absurd to an extreme. These laws do not offer much protection, particularly at the international level, and both need massive reform and overhaul.  Instituting the Copyright Alert System as a means to "educate" the next generation of teens to the unlawful practice of copying copyrighted content is a bad idea on many levels - not the least of which is that the vast majority of people in the U.S. pay for the songs, movies, and TV shows they watch over the net - wether through iTunes, Netflix, Spotify, AmazonPlus etc.  Yes, there is piracy at the fringe but the hard-core pirates are too hard for big media to deter and prosecute so they look at the smaller fry - it's really silly and make big media and the ISPs look really petty.

Best and Happy Movie Going!
Jim Lavorato

CinemaBUZZ WEEKLY REPORT - 8 February 2013

Avengers: Top Grosser for 2012

BOXOFFICE Gets More TOP HEAVY

In keeping with a trend, now over a decade old, the U.S. cinema boxoffice for 2012 was even more skewed toward the top grossing films then in past years.

For 2012 the total domestic box office was $10.8 billion of which the top 25 films represented $5.6 billion or 52% of that total.  The top 50 films generated $7.6 billion or 70% of total gross.  There were 657 movies released last year; therefore, the remaining 607 releases generated only 30% of the total boxoffice take.  Wow!

This top heavy boxoffice favors action/fantasy movies. The top three films: The Avengers, The Dark Knight Rises, and The Hunger Games were also all action hero films. These were followed by Skyfall, The Hobbit, Breaking Dawn 2, and Spider Man, in that order. These top seven films generated, by themselves, over 24% of total 2012 boxoffice gross.  Fantasy, action, violence, with over-the-top special effects is what lures moviegoers into the local cinema and not much else.

BIG PROFITS For MOVIES

 "Movies will be priced based upon the size of the device they are viewed on" said Jeff Katzenberg, CEO of DreamWorks last week at the Founders Forum conference on digital media. "People will pay be the square inch. If a cell phone version of a movie is 75 cents you'll get 350 million people in India to pay that."

So, the theory is that you would pay much less to view a movie on a cell phone or other device than you would going to the local cinema.  This revenue may be the future but I believe the giant revenue generator for distributors (studios and other content developers/streamers) is the day-and-date release of movies across all delivery modes on a worldwide basis.  Would this model hurt cinemas ? Yes, but only at those cinemas that fail to exhibit movies in the way they should be presented - with an excellent on-screen image, terrific sound, an exciting and inviting environment, and thoughtful and innovative concession and other services.

I have often stated that the living room is the major competitor for cinemas, in the future it will also be smart phones, tablets, and PCs.  The potential revenue stream for the studios and other content makers under the above business model is too large to be ignored and the exclusive theatrical release window will become a memory.

The studios will be compelled to find new revenue sources even at the expense of severing long-held industry traditions like the first dibs theatrical release.  Katzenberg may be right but he doesn't push the logic far enough or wide enough.

Paperman - Full Animated Short Film

'Paperman' Will Get Oscar for Best Short Animation

Disney's 'Paperman' is one of the best short films ever - animated or otherwise.  Only 7 minutes in duration it is the story of young and innocent love and achieves its success without dialogue or color (for the most part).

What gives Paperman its great visual draw is not only a great story line and terrific graphics but a new technique in designing animated films which allows artists the ability to draw directly over the top of computer rendered sequences.

Paperman debuted as a front piece for the movie Wreck-It-Ralph and the response to the short was viral.  My bets on Paperman to easily win this year's Best Short Animation Oscar.

CineBUZZ REPORT - 31 January 2013

CHINA MAY LIFT BAN ON VIDEO CONSOLES

X-box, Wii, and PlayStations are ban in China

It is a little known fact, but China has had a ban on the sale of video gaming consoles for over a decade.  You can not purchase an Xbox, Wii, or PlayStation console in China.  This ban was initially instituted because of the government's "fears of the potential harm to the physical and mental development of the young" .

Seven Chinese ministries collectively ban the manufacture, sale, and import of gaming consoles for and by the Chinese public since 2000.  Now there are signs that the ban may finally be lifted.

Microsoft introduced its Kinect console (a controller-free game console) to the Chinese mainland last October.  This put a crack in the game console ban as the Kinect system was not used for playing games but for other purposes, such as medical treatment and education. "We hope to launch the X-box into China as soon as possible, we are awaiting government approval", says Zhang Yaqin, Microsoft's Head of Asia-Pacific R&D, "I think the government will lift the sale ban sooner than later."

It is ironic that China has a ban on the sale of gaming consoles as it is the world's largest manufacturer of  the X-Box and other consoles.


THE MOUSE THAT ROARED : TINY ANTIGUA TO ALLOW PIRACY OF U.S. INTELLECTUAL PROPERTY

On Monday, the U.S. Trade Commission warned the tiny Caribbean countries of Antigua and Barbuda that there suspension of U.S. copyright and patents would not be tolerated by the U.S. government as the suspension would authorize the "theft of intellectual property like movies and music."

The strong statement came after Antigua announced it would enact the suspension unless the United States took its demands for compensation more seriously in a ruling Antigua won at the World Trade Organization (WTO).    Antigua, a former British colony, with few natural resources has been at odds with the U.S. since the late 1990's when it began building an internet gambling industry.  The U.S. has ban on-line gambling.  Antigua argued that the U.S. laws banning internet gambling violated global trade rules and won a key victory on this matter in 2005 when the WTO ruled that the U.S. laws discriminated against foreign companies.  When the U.S. failed to repeal the law, the WTO in 2007, gave Antigua the right to retaliate by waiving intellectual property rights protections.

Mark Mendel, an attorney for Antigua, said "The Americans never negotiated with us. That's the thing about what they say that makes us so upset."  For its part, Nkenge Harmon, U.S. Trade Representative, stated "Antigua would be unwise to proceed with the plan to authorized the theft of intellectual property. Government authorized piracy would undermine chances for a settlement.  It also would serve as a major impediment to foreign investment in the Antiguan economy, particularly in high-tech industries."

My guess is that Antigua will not move forward with its threat and the U.S. will find ways to assist Antigua in replacing lost income for on-line gambling. Trip to the Caribbean anyone?

STAR WARS SAGA LOOKS TO THE FUTURE

Last year, the release of Star Wars: The Phantom Menace 3D was a box-office bomb.  It only generated $43 million in its 16 week run.  Possibly due to this lackluster gross, the other two prequels to the saga - Attack of the Clones and Revenge of the Sith will not be released in 3D versions.  In fact, the scheduled September and October release dates for these two movies has been postponed.

Disney, which now owns the Star Wars franchise, has a new 7th episode in production and may not want to muddy the waters by releasing older, over viewed episodes. In addition to the new 7th movie in the saga, Disney has plans for #8 and #9 episodes.



Best and Happy Movie Going!
Jim Lavorato
Comments Welcomed