Cinemas Will Survive, BUT

There are large drawbacks to on-line, first-run films and to virtual reality content; however, movie exhibitors need to protect the cinema experience they have in place and improve upon it.

High frame rates, and screen brightness levels are critical, and sound improvements are necessary at all cinemas.  Even the smallest local movie theaters need to provide the absolute best possible experience - and they are not there yet!

Cinemas need to protect what they have and better it. Digital projection was a great leap forward in movie presentation and as far as value- based entertainment a trip to the cinema is worth the cost - there is no alternative to a superior cinema presentation, now or in the future.

Movies need to be brighter.  Too many cinemas under-lamp there presentations, when the reverse should be the norm.  All cinemas should be projecting with the highest wattage, brightest lamps and replace them at (or before) warranty limits.  The old, and now defunct 35mm LucasFilm THX cinema calibration and alignment program has been replaced by the use of a reliable and competent cinema dealer/tech company - which are getting harder and harder to find given the complexities of the digital projection and sound systems.

Piracy is another issue that continues to impact the whole cinema industry in a very negative way. A lot of movie content is pirated almost immediately upon release.  File sharing is file stealing and nothing more.  Pirates are making millions of dollars from people going to torrent sites and down-loading movie files. The notion of, "I'll just wait and stream it and I don't have to pay for it" really hurts both movie distributors, but particularly the independent exhibitor.

It is also true that many of these same, let's call them mini-pirates, don't understand or refuse to that watching a movie on a small platform isn't watching the movie as it doesn't have the intended visual or audio experience.

Cinemas, will survive, but both the studios and exhibitors need to understand that the old ways will not be tolerated by consumers, who demand an experience that exceeds what they can watch (in many cases for free) on a smaller (be it inferior) platforms.

A Very Different Summer Box Office

Thus far, this summer's box office has seen a number of big-budget flops. 'The BFG', 'Alice Through The Looking Glass', 'Warcraft', 'The Legend of Tarzan' each with production budgets above $130 million, not to mention marketing and distribution costs, spells not so good news for the studios.

The cinema box office is showing strains, and as CMG has pointed out before, the superhero and fantasy sequel films may have run their course.  Now, not to be too negative, this summer has seen big hits as well.  'Finding Dory' and 'Captain America' helped rise box office receipts by 2% over 2015, but admissions are down which does not bode well - and it's the younger audience (18-39) that is staying away.

It is too much of the same. Audiences can only digest so many super hero films.  Moviegoers need something new and fresh on the big screen.  Coupled with endless competition from TV and on-line content (which is getting better and better) there is little incentive to visit the local cinema.  From Netflix to Pokemon Go the variety of entertainment options is huge.

Much of the box office pain is self-inflicted, by both the studios (repeating the same movie themes over and over) and the exhibitors (in their lack of imagination and originality in selling their cinemas).  Thank goodness for 'The Secret Life of Pets' which essentially rescued July's box office.

Sequels - there are too, too many and people are sick of seeing the same old, regurgitated films. Most sequels are 'deja vu' all over again.  Reboots flock to the big screen in mass: 'Ben Hur', 'Blade Runner', 'Spider Man', 'XXX', 'Beverley Hills Cop', and 'Indiana Jones' just to name a few that are coming up - and which may fall flat as well. Movies need good storylines, a la 'Fast and Furious' which is based around characters who audiences associate  and relate to.

The box office is getting more skewed each year. Last year, the top five movies generated 25% of all admissions.  This is seen at the studio level as well. Disney ponied up $15 billion to purchase Pixar, LucasFilms, and Marvel but their investment is paying off.  This year, Disney has four of the five highest grossing films and thus far over $5 billion in box office receipts - a 31% market share.

All of which begs the question: does Hollywood need consolidation?  Fewer studios, fewer but better movies. Eliminate the waste, the marquee fodder and box office fillers. Stop making movies that were made 10 years ago.

The movie making business and cinemas are up against changing tastes, unyielding competition, and an aging business model. A wider and deeper range of fewer movies is called for and, for their part, cinemas need to keep up with presentation technology.

Horror: Cinema's Stepchild

Horror has even gone comedic

Horror films many times go under the radar as box office bruisers. Particularly in the summer-time there is nothing better when visiting a cool, comfy place (your local cinema) and screaming your head off - as a tension and stress reliever there is nothing better.  Being scared is an adrenaline rush.
Given this, moviegoers' appetite for horror is unrelenting and is second only to the high-impact, action, superhero, or sci-fi blockbusters (many of which teeter on the horror genre cusp).

Horror vs. supernatural, the distinction is very blurry.  Horror's function is to scare through the use of anticipation.  Waiting for the inevitable, frightening, sometimes unspeakable acts of violence toward the innocent and vulnerable.  The supernatural, a sub-set of the horror movie, delves into the more unreal but still frightening - vampires, zombies, aliens, mutant animals are all part of the supernatural.

This summer, the 'Bite', 'Conjuring 2', 'The Purge:Election Year', 'Lights Out', and 'Don't Breathe' will gross over $500 million - not too shabby for films with a total production budget of $42 million.

Horror pays, and it pays big at the box office for both distributors and exhibitors. Never underestimate the entertainment value of the horror film.  Many moviegoers love to be frightened, shocked, scared, and awed. They like to fantasize and are mesmerized by other-worldly beings.
Horror has even gone comedic, a-la films like 'Scary Movie', a slasher spoof, that tears out the heart of the 'serious' horror film.

Go see a good horror film you'll be surprised how entertaining it will be. The horror film is the stepchild for the movie industry but nonetheless draws in big crowds and has become the second highest grossing movie genre.


  

Highest Paid Actor

Someone you never think of as being the highest paid actor given his low-keyed demeanor and non-limelight life style, but Dwayne 'The Rock' Johnson is that person.

The 'Rock', with now famous brow-raiser.

Dubbed the 'hardest working man in Hollywood' by his peers, Johnson made over $70 million last year.  Audiences love Johnson because he is a 'normal guy'.  If you are a studio exec and want your movie to make mega-bucks hire Johnson.

Starting his career in the Worldwide Wrestling Federation, wrestling promoters didn't know if they should cast 'The Rock' as a good guy or bad guy, so they told him to just be himself. So, he branded himself a potty-mouthed, brow-raising, people's champ.  Then, when the WWF started dallying around with musical acts, their then, biggest star was there to perform and would-up making a hit song called, 'It Doesn't Matter'.

Slowly, Johnson has turned into an actor that blockbusters are made for.  An actor that's not striving for critical acclaim in serious message movies but who just wants to have fun making movies and he's obviously become quite good at it.

With non-stop energy and a goal-driven personality, this year he will complete another series of episodes of the HBO hit-show, 'Ballers', star in the reboots of 'Jumanji' and 'Baywatch', and is now shooting for 'Fast & Furious 8'.

Johnson commands $20+ million per film and has worked himself into a position where he can also get a piece of the film's gross take.  Johnson's salary puts him into the elite, not of Hollywood, but of sports - where he started out as a football player in the Canadian Football League.

Dwayne Johnson is half Black Nova Scotian, and half Somoan and comes from a long-line of professional wrestlers. He was born and raised in Hayward, CA where he still lives.

Studio Only Makes Films Based on Video Games

Marla Studios, launched by ex. Ubisoft CEO Jean-Julien Baronnet, will specialize in adapting video games into movies.

Baronnet helmed Ubisoft for 5 years

There have been very mixed results when it comes to turning games into movies, according to Baronnet, "Studios have had difficulty recognizing the need for the stories in video game adaption to have a universality to them. Most of the time they try to copy the video game's story and/or characters, which is exactly what should not be done."

Baronnet contends, one, that a video game, on average, makes more money than a movie, and two, that the superhero based movie era is coming to an end. "People are starting to tire of the comic superhero, but still have a huge appetite for big franchise films", says Baronnet. And that is where the video game characters come to the fore. Having overseen the development of the very popular 'Assassin's Creed' video game franchise, as well as, production of the upcoming movie of the same name, Baronnet knows lots about game and movie production.

Marla will also assist gaming companies in negotiating movie contracts that will provide them strong creative control - which is missing in the current game-to-movie environment - fostering, in Baronnet's view, poor end results. Marla will staff itself with individuals from both the movie and gaming industries but sees its clients as the gaming companies and not the major studio/distributors.

CMG wishes Jean-Julien all the best and believe he is on the right track regarding both the growing moviegoer malaise with superhero films and the need for the gaming companies to have much greater control over the creative process in adapting games-to-movies.

Jim Lavorato

Jail-time for Netflix Password Sharing

Sharing your Netflix password is now illegal. A ruling by the Ninth Circuit Court of Appeals, last week, made sharing your Netflix password a crime under the Computer Fraud and Abuse Act.

Although the thought of harmlessly sharing your password with family members and friends to save a few bucks seems petty use of our judicial system, the ruling has wide implications.  Anyone divulging their login info for any subscription service, Netflix of otherwise, is now illegal.

Although aimed at more serious cyper-crimes that threaten the security and privacy of corporations' and other organizations' data and internal information, the ruling turns the average Joe into a federal criminal. So, you can no longer play the good-guy, password-sharer role at the expense of the service providers and not be considered a criminal worthy of the toughest penalties under the law.

In reality, people share their passwords, especially in a household.  Even Netflix says, "a household can share an account and users can watch Netflix on up to six different devices."  Neither Netflix, HBO-Go, Spotify or any other media streamer is going to criminally charge a subscriber - but the law allows them to if they wish.

Disney Goes 'Emoji'

Just launched, by Disney Studios, are your favorite Disney and Pixar characters' emojis - almost 400 of them.  This emoji barrage comes in conjunction with a new mobile game called, "Disney Emoji Blitz", where you have to match emojis up (a-la 'Candy Crush') before you can store them to use, yourself, later.

The game, announced by Disney this past Thursday (July 7th) is available in both IOS and Android versions.

These promotions, by the studios, help movie exhibitors as they keep relevant and current the best-loved characters and set the stage for new characters in new films - win/win.

What's Up At The Movies by Seymour Flix

AT&T's Buy-One-Get-One Movie Admission

AT&T, the telecom giant, in collaboration with AMC Theaters and Regal Cinemas (the U.S. number one and two largest cinema circuits) is offering its customers a buy-one-get-one free deal on Tuesday movie presentations at over 13,000 screens.

Limited to Tuesday screenings and valid only for 2D films, the free admission tickets are available only to AT&T wireless customers.  Tuesdays are typically one of the slowest days for cinema traffic so AMC and Regal see this as an opportunity to gain attendance from consumers who never frequent a cinema and which won't impinge upon their weekend attendance.

The AT&T offer comes on the heels of T-Mobile's rewards program that offered a free Domino's pizza, Wendy's frosty, and free movie rental from Vudu - however, Domino's backed out of the T-Mobile promo after the first week because of overwhelming demand. In response, AT&T is capping the number of free tickets given out each week.  A ticket voucher is emailed to the AT&T customers chosen and validated at the cinema's box office when one, full-priced admission is purchased.

AT&T's 'Ticket Twosday' promo (as it is termed) is accompanied by pre-feature advertisements, as well as, concession tie-ins and is part of AT&T's overall customer-loyalty program. The 'Ticket Twosday' promo is scheduled to be expanded in the fall to include free tickets to Live Nation concerts.

 Failed 'MoviePass' Is Trying to Revive Itself

Launched in 2011, MoviePass promised to revolutionize the cinema-going experience - but after 5 years the company (which offers unlimited access to cinemas) is little known and floundering.

Exhibitors, generally, view MoviePass as a threat vs. and ally, but the company just hired a new CEO (Mitch Lowe, co-founder of Netflix) who is determined to convince exhibitors that MoviePass can bolster their admission and concession sales.

Cinemas have done a great job, over the past several years, of upgrading the movie-going experience - digital projection, new seating, improved sound have all added-up and cinema admissions have remained static against  a constant barrage of alternative entertainment options.  The problem with MoviePass is that although it's a good concept, it conflicts with a cinema's own in-house loyalty programs.

MoviePass, which now costs between $30-40/month for one subscriber to view an unlimited number of movies, is moving to a tiered pricing system which will start as low as $20/month for access to a smaller collection of movies and extending to $100/month for unlimited viewing of 2D, 3D, and IMAX films.  Last week, MoviePass sent out information on the new pricing to select subscribers which included a $50 package for six 2D or 3D films and a $99 package for unlimited movies in any format.  MoviePass customers use a phone app and credit card to buy tickets.

For the avid movie fan, who visits a cinema at least once or more per week, MoviePass is a great service, but even for the frequent moviegoers who visits a cinema once or twice a month it really is not cost effective - and that is why CMG believes MoviePass will remain a niche service in the cinema industry.

Best,
Seymour

Cinema Buzz

Another new on-line movie streaming service for home entertainment launched last week in the U.S. - FLIX Premiere.  This is the third home-oriented movie service in as many months.

Started in the U.K. in April, FLIX Premiere specializes in presenting independent movies gathered mainly from film festivals - those films that were not picked up by a major studio for theatrical distribution or by one of the bigger streamers like Netflix or Amazon.

FLIX Premiere charges $4.99 per film viewing. The scheme is to give indie films an opportunity to find an audience given their rejection from any cinema distribution.  Eight or nine films will be available each week - which indicates the huge volume of films (indie or otherwise) that don't make the distribution cut.  To be sure there is a lot of decent film product that never gets a screening either on the big or small screen, but are these the films that people are willing to pay for.

FLIX Premiere's management expects to have 2 million subscribers by year's end and be in seven countries withing the next year.  The strategy is to offer consumers alternative programming with first-to-be-seen indie movies.  CMG wishes FLIX Premiere the best but, like its failed predecessors, its road to success is very long and very steep.  The cinema stands alone as the venue to view the best in film entertainment. Home-based entertainment streamers, especially those that intend to charge a per view fee for second-tier content are doomed to fail.

Terrible Movies Do Exist (Gross Wise)

By all accounts, terrible isn't a strong enough word for the movie 'Misconduct' - from a box office perspective.  Last week it opened in the U.K. to a total gross box office of $141 over the three day weekend. Yes, that's $141!

What the hell happened?  With marquee headliners Al Pacino and Anthony Hopkins starring, gross admissions added to only one person per day per cinema over the three day release.

With a production cost of $11 million (marketing costs have not been disclosed) Lionsgate was non-to-happy with the film's gross, which opened  in the U.S. last February and took-in only $24,000 over it entire run. The story-line is about a lawyer who takes on a big pharmaceutical firm. Certainly not a new plot but nonetheless should provide for a good drama=thriller, but moviegoers would have none of it.

When a movie, like 'Misconduct', which isn't a bad movie but one which does not generate any box office chatter, the choices for the studio are limited.  More marketing, which costs more money, which may never be recouped or cut-and-run and try to redeem whatever you can on VOD or royalty from one of the major streamers.

Bad things happen even with the best talent and there will certainly be many more 'Misconducts'

Hollywood's Two-Faced Approach to Violence

Hollywood - Two-faced on Violence

In a recent article for Variety, Michael Showalter explored the role Hollywood plays in our "culture of violence" and if the entertainment industry should be more mindful of what appears in movies, TV shows, and video games.  Showalter suggests that stricter gun control laws and a dialing-down of the violence seen in many movies is warranted. Showalter, is wrong on both issues.

 Yes, I agree that Hollywood is very two-faced regarding violence.  Chock-full of politically correct folks that yet spew-out a non-stop stream of content that puts violence and social chaos center stage.

Gun control needs attention. To be sure, it sickens everyone, but the most jaded and irrational, to see innocents shot dead or wounded in both random and caused-based acts of violence, but are more gun control laws the fix. Last year, according to FBI stats, 372 people died due to mass shootings. For sure that is 372 too many but in relation to other death causes it is not even on the chart. For example, 450 people died from getting in and out of their bathtubs- begging the question: should bathtubs be ban?  What is needed for gun control is the strict enforcement of the existing laws.

High Impact/violent movies have the biggest audiences

Mass shootings, like plane crashes, get a lot of press but are rare. Texting while driving, which caused 3,154 deaths in the U.S. in 2014, got very little attention. Also, I don't believe Hollywood should censor itself with less violent action or gory horror movies. There are plenty of  straight comedies, rom-cons, dramas, children's fare and animation content being screened. There is a market (perhaps the biggest) for high-impact action films and TV shows - and that market appetite should be met.


Yes, Hollywood is two-faced when it comes to violence. A big-name film director or A-list actor thinks nothing of lobbying for more gun control while at the same time directing or staring in a violent film. In this age of un-reason, one needs to have a high tolerance for ambiguity on many social issues - Hollywood is no exception.

Just saying,
Jim

What's UP At The Movies - by Seymour Flxi

Watch A Movie On Father's Day

A recent survey conducted by Fandango, Dads (of all ages) were asked which modern classic movies they would love to share viewing with their children.  To be considered a 'modern classic', the movie had to have been released between 1975 - 2010 and had to be an original film (not a sequel or reboot).  The movie also had to have a 'G', 'PG', or 'PG-13' rating.

Listed are the top 20 movies which the Dads would like best to view with their children this Father's Day"

Star Wars
E.T.
Jurassic Park
Forrest Gump
Toy Story
Shrek
Rocky
Avatar
Lion King
Raiders of the Lost Ark
Finding Nemo
Back to the Future
The Karate Kid
Home Alone
Ghostbusters
The Incredibles
The Goonies
Field of Dreams
Ferris Bueller's Day Off
Jaws

Movies need to be shared - that's the great thing about film as an art form.  Such is the case with parents and children, as they share the experience of watching a movie they may have seen together 20 years prior.  The list has some of the most iconic and popular films of all time and many have themes about children and parent relationships.  Additionally, many of these movies are still going-strong with sequels and several have become mega-franchises, ie Star Wars, Avatar, Finding Nemo, Toy Story, and Ghostbusters.

So, if you can, share one of these classics with Dad this Father's Day - age makes no difference. Better still, go to the cinema and watch a movie that may become 'your' classic that you will remember you shared with your Dad.

Ben-Hur Chariot Race - The Real Deal

No CGI effects here, the chariot race in the upcoming movie, 'Ben-Hur' was completely shot in real-time, with real horses and riders (in many scenes the film's actors and not stunt doubles).

Trucks, outfitted with cameras attached to sliding rails, sped around the specially constructed race arena along with the chariots, to ensure a real depiction of what would have occurred centuries before. No airbags or braking mechanisms were incorporated on the chariots.

The result: a very, very realistic chariot race that highlights the movie and is better than the original 1956 'Ben-Hur' that was also filmed in real-time (there wasn't too much CGI back then).

The new 'Ben-Hur' is scheduled for release this August. If nothing else, it will be worth a visit to your local cinema just to view the chariot race in large format and sound.

What Everyone Makes On a $200 Million Blockbuster

Ever watch a blockbuster film and wonder how much everyone got paid for their efforts? I have, and so has Vanity Fair, which took the time to breakdown what everyone gets working on a hypothetical $200 million mega-budget movie.

Like most businesses, the people at the top make most of the money, but the scale of difference in movie-making is, well, a bit much.  For example, a Lead Actor will earn $12 million, while a bit actor with one or two lines will get $1,900, and an uncredited extra $148.

Here's a sampling of what folks make:

- Director - $4 million  Asst. to Director - $118,000
- Exec. Producers - $1.1 million (normally, at least two)
- Producers - $1 million (normally, at least 3)
- Writers - $250,000 - $3.2 million (normally 2 or 3)
- Director of Photography - $900,000
- Production Designer - $780,000
- Editor - $925,000 (normally 2)
- Costume Designer - $315,000
- Music Composer - $900,000 (Original Score, extra $800,000)

- Lead Actor #1 - $12 million
- Lead #2 - $4.5 million
- Lead #3 - $1.5 million
- Lead #4 - $500,000

- Supporting Actor #1 - $400,000
- Supporting #2 - $75,000
- Supporting #3 - $19,000
- Academy Award Winner in Cameo role - $75,000
- Animal in Scene - $13,000

- Stunt Coordinator - $280,000
- Stunt Double for Lead Actor - $116,000
- Stunt Person - $17,000
- Stunt Person on Fire - extra $7,500
- Stunt Person Going Through Window - extra $3,700

- Camera Man - $125 - 175,000
- Film Loader - $58,000
- VFX Supervisor - $600,000
- Property Master - $296,000
- Casting Director - $233,000

For a full detail view the video below.

Teen Blames Movie For Murders

Between May 12-15th Jonathan Cruz committed several vicious crimes in the Indianapolis, Indiana area.  The 19 year-old confessed to going on a four-day "purge", which included rape and murder.  His comment was that he was influenced by the movie 'The Purge'. Cruz stated that he was constantly watching 'The Purge' and its sequel 'The Purge Anarchy' and referenced the films in text messages to friends and family.

This is certainly not the first time a movie or song (re: Helter Skelter in the Manson murders) have been used as an excuse for demented activities by unstable individuals.  However, I must say, that the world we live in is getting more violent as witnessed by the crowd-riots surrounding the U.S. Presidential campaign.

Although not in any way responsible, Hollywood should take pause and evaluate what type of product to produce given the current social mindset we currently find ourselves - for eventually the thoughts of critics and the citizenry may turn to just how 'responsible' is it to create this type of movie or TV show.

Universal, the distributor of the 'Purge' films, is set to release the third film in the series, on July 1st, 'The Purge: Election Year', and must be just a wee bit anxious.  This, particularly in light of what is occurring at every political gathering and the huge protests which are going to surround this summer's upcoming Party Presidential Conventions. Will Universal postpone the release of 'The Purge: Election Year' ?  This maybe a good idea in light of the Cruz case, but the July 1st release is still set.
For those unfamiliar with the premise of 'The Purge', it is that for one night each year the government would allow citizens to commit any crime without fear of prosecution.

Cruz is obviously a demented individual but the question remains: if a movie can put one crazed soul over the tipping point to commit random acts of the worst type of violence is there responsibility on the part of the film-makers?  Heretofore, that question resulted in a 'No' but the times they are a changing.

Diary of a Drive-In Theater: Installment #3

It's all about concession for any cinema, but for Drive-Ins (which in many cases are only opened for 5 months or less) concessions are the real-life blood of survival.

Typical drive-in concession building

Drive-In theaters normally screen a double-feature each evening and start the presentation at dusk, which in summer is about 9pm. Patrons normally arrive early to get the best parking spots and to settle in for their 5-7 hour stay.

Many drive-ins have play-grounds for children, miniature golf, and other pre-show activities and events, such as fireworks, to bring the crowd in early and give ample opportunity for concession purchases. Additionally, there is always an intermission between features, at least, 15 minutes.  This provides a great opportunity to sell concession and of course during the movie people will walk to the concession stand to purchase items and will not miss much, if any, of the presentation.  Drive-ins pipe-in the film's soundtrack into the concession stand and many have table/seating areas just outside the concession area so patrons can eat and enjoy their snacks outside their vehicles and not miss any of the presentation.

Concession stands are large w/checkout at end

Drive-in concession menus offer a much wider food selection than in-door cinemas.  Although in-door cinemas sell other food items besides popcorn, soda, and candy, drive-ins are food meccas. Hot dogs, hamburgers, pizza, sub-sandwiches, fried items including french fries, shrimp, onion rings, mushrooms, and chicken wings. Corn-dogs, barbecue pork and beef ribs, sausage are also big sellers.
Cotton candy, a variety of ice cream treats, and caramel corn are also very common concession items.

Lots of items to choose 

It is not unusual for the per-cap tally for concession to be $20 and more if the right combination of food items are sold and marketed.  Combo meals are very popular as are large family-style items like large pizza and wing combos.

If managed properly, drive-ins will not only bring in large numbers of admissions but huge concession sales and large profits.  Drive-ins attract a certain type of moviegoer: families looking for a relatively inexpensive night of entertainment, couples on dates, and older folks seeking nostalgia and remembrance of youthful good-times.

Drive-ins are an entertainment bargain.  Where else can you get 6 hours of entertainment for a $10 (or in many cases less) admission, with fireworks thrown in. And, unlike in-door cinemas where patrons are strictly forbidden to bring in food and drinks at drive-ins you can bring whatever you like -  and most moviegoer do, but they also buy a lot of concession.

Best Cannes Movie Posters of 2016

Each year, ok it started last year, CMG selects the best posters from the Cannes Film Festival.  This year was definitely not a let-down with some of the best ever movie posters - and I mean just that.

With hundreds of films being 'hawked' at Cannes, the festival reveals the under-belly of the the movie industry. For example, some of the same films pop-up for sale year-after-year - it's like going to the dog pound knowing that the older dogs will never be 'rescued'. However, these very same dogs, in many cases, have the best, most vivid, thought-provoking, in-yur-face message senders.

These were CMG's 2016 favorites:

 Dying for donuts? Here's the movie for
you.

More dragons, smaller budget - the quest continues.

And you thought restrooms were the only issue.

Not sure what this film is about from the poster - but I like it.

Monkey with top-billing and an entourage - oh yes!

And finally, by far, my favorite Cannes poster for 2016.  What's worse than hell? A shark satan.

Cranston's Cinema Palme d'Or Closes Due To 'Clearances'

Last year CMG reported that a Palm Desert cinema, the Cinema Palme d'Or - a small, independent cinema - was being financially hurt because of the practice of clearance booking policies. But unlike most independent cinemas this one happened to be owned by actor Bryan Cranston and ESPN show-host Steve Mason.

Unfortunately, the Cinema Palme d'Or had no choice but to shutter its doors this week after a 13-year struggle with the large theater circuits. Cranston commented, "Cinemark finally succeeded in driving the last nail in our coffin. We just couldn't continue the struggle in this unfair business climate."

A letter sent to the studios by Cranston and Mason stated, "We could no longer stay solvent because of Cinemark's constant pressure on studios and distributors to shut us out of major titles.  We have fought hard, but clearance booking has made it impossible to stay in business."

Clearance, is what I would call a privilege system, whereby large theater circuits get the exclusive privilege of screening a movie at the exclusion of other exhibitors (smaller independents) within a certain geographical area.

Steve Mason told CMG, "To give you an example of how much pressure Cinemark exerted on the studios to prevent us from playing certain films, take 'Star Wars'.  For any independent cinema, 'Star Wars' could make your year, we knew it was a must to have this film. So, we offered to pay Disney 100% film rental, every penny from every ticket, and Disney said no.  Then, to really make our point, we offered 150% on every ticket and they still said no.  We also offered Sony 100% on 'Spectre' and were declined.  This is what put us out of business." Cinema Palme d'Or has been engaged in a lawsuit with Cinemark since 2006 and that suit will continue.

To its credit, Fox Entertainment recently stated that it would no longer honor clearance bookings but no other studio has followed Fox's example.  The National Assoc. of Theater Owners (NATO), which is commonly known to be the stooge of the studios and large circuits, weaseled-out of the clearance issue by stating, "NATO does not concern itself with distribution issues".

The U.S. Department of Justice has been investigating the anti-trust aspects of clearance bookings by the studios and the Cinemark, Regal, and AMC theater chains, but in typical DOJ fashion under the Obama administration, the investigation has been on-going for almost two years with no resolution in sight. In another lawsuit, brought by iPic Theaters against Regal Entertainment in Texas last January, iPic won a reprieve and the Judge in that case has ordered Regal to stop the practice of clearance bookings in Texas.

And so the battle goes on. CMG believes that clearance booking is a restraint of trade and should be stopped. Like Fox, the other studios should bar the practice and make the playing-field level and fair. To believe that the large circuits would not screen blockbusters (even one) because they didn't get clearance is fantasy - they need the films to survive just like the little guy. We might add, that if the small, independent exhibitor has that much of an impact on their business success than perhaps the circuits need to take a hard look inward.

It should be noted that the 9 screen Palme d'Or will re-open under new management, the Tristone Cinema Group, and will continue with screening 'arthouse' films and the clearance war.

Just saying,
Jim

Cinema Admission Tickets on SnapChat

In a first for the cinema industry, 20th Century Fox used Snapchat's Lenses to promote 'X-Men Apocalypse' and have fans purchase admission tickets directly from Fox's Snapchat video ads for the movie.

Snapchat, for those of you not in the loop, is a very popular image messaging app that allows you to send photos or videos that self-destruct after 10 seconds of the receiver viewing them. Alternatively, you can add photos/videos with a caption or doodle and add it to your 'story' - a 24-hour collection of your photos/videos which can be broadcasted to the world or just your followers.

So, for 24 hours this past Monday (5/23) Snapchat users in the U.S. were able to transform themselves into any of nine different characters from the 'X-Men' movie via Snapchat Lenses, and then send these photos/videos to their friends, family, and acquaintances or post them to their 'story' timelines.  The movie opens this Friday (5/27) to start the Memorial Day holiday weekend. The nine 'X-Men' characters available were: Apocalypse, Cyclops, Mystique, Storm, Nightcrawler, Magneto, Quicksilver, Professor X, and Beast.

Through a link the user can purchase advance tickets directly from Fox's Snapchat ad from either Fandango or MovieTickets.com.  The 'X-Men' ads are also running across multiple channels in the Snapchat Discover section of People, BuzzFeed, Food Network, Vox, Vice, and Wall Street Journal apps.

This use of Snapchat is an innovative first in ticket purchasing and could turn out to be a very lucrative way to solicit and sell movie tickets. CMG will keep a watch on it.

007 : Will There Be A Bond #25?

Possible 007s

According to Daniel Craig, he is currently not interested in returning as 007. So, the question now becomes who will be the next Bond?  Perhaps a different Bond? A female, a Hispanic or African-American. Several actors have expressed interest, including: Tom Hiddleston ('Thor'), Idris Elba ('Beasts of no Nation') and Gillian Anderson ('X-Files') who are using social media to promote their cause as SM is the latest means of self-promotion in Hollywood these days.

The next Bond will be #25.  Craig has starred in the last four 007 films and is contracted to star in one more but wants a long break, so the earliest Bond #25 could hit marquees, at this point, is 2018.

We all need another Powers flix

To add to the confusion, the distribution rights to the Bond franchise are up for grabs. Sony had distribution rights but those ended with 'Spectre'. There will definitely be a bidding war for distribution as Sony had a great run with Bond, which started with Craig's debut as 007 in 'Casino Royale'. 

At this point, Bond #25 has no script, director, or distributor.  Craig will most likely play Bond once more and fulfill his contract - expect a new 007 in Bond #26.

Speaking of secret agents, when will we be seeing the next (#4) Austin Powers?That International Man of Mystery accompanied by a cadre of crazy and over-the-top characters. It seems Mike Meyers and Jay Roach (director of the first three films) are searching for a concept for the next sequel - but nothing yet. We all eagerly await the next shagadelic episode.

Cinemas vs. Streamers

As Hollywood and cinema exhibitors seem focused on blockbusters , the streamers seem content on airing smaller, perhaps, more relevant films and series.  And why not, there appears to be an audience for all things. For cinemas, audience reach is limited but they provide large screens and big sound. For streamers, audience reach is unlimited but screen size and sound are limited.

Currently, good film-makers have a choice on how to bring their work to audiences: theatrical release, streaming, cable VOD, or a combination of these.  The impact of the distribution changes taking place in the movie industry are best seen at film festivals, where streamers (such as Netflix or Amazon) snatch-up and pay the highest prices for the best content.  For example, at Sundance this year, Amazon ponied-up $10 million for 'Manchester by the Sea', beating out Fox and Universal for distribution rights. Netflix paid $7 million for 'The Fundamentals of Caring'.  Under its model, Netflix releases its films in cinemas and via streaming day-and-date.  Amazon releases it films to cinemas first and waits at least one month before release on its Prime Video service.

For smaller films, which have to struggle for box-office attention in a market dominated by big-budget blockbusters, linking up to a streamer may be the best distribution bet; however, it is still the case that a movie loses some of its cachet when bypassing the cinema release.  Additionally, there is no arguing, a movie loses its immersive quality if viewed at home on a TV or iPad. A movie viewed at a cinema is a totally different experience than viewed at home, but most people will wind-up watching in-home.

VR will co-exist with cinemas and streamers

Like it or not, there is a new landscape for movie distribution and it is being driven by what and how people view films.  Cinemas still provide the impact and immersiveness but its hard to beat content distribution to 80 million people around the world at the same time.

Beyond cinemas and streamers, it's worth looking at the new technology of virtual reality which is neither and may present the next big competition for both.  VR offers total immersion. VR is not consuming entertainment by gathering in a group around a TV or going on a date to the cinema - but it could be both. Going forward, we won't have the bi-polar distinction of cinema or TV viewing but other ways of enjoying entertainment and they will all co-exist together.

Cinemas Breathe A Sigh Of Relief

A jury has found that Cinemark was not liable in the 2012 shooting at its theater in Aurora, CO. where 12 people were killed and over 70 wounded when James Holmes opened fire in a crowded auditorium.

Attorneys for 28 of the victims filed a civil lawsuit claiming that Cinemark should have done more to protect its patrons, including: having armed guards, better camera surveillance, and alarms on the exit doors.  Cinemark's lawyers argued that the attack was completely "unpredictable, unforeseen, unpreventable, and unstoppable".

Cinema where shootings took place

Had the lawsuit prevailed, Cinemark, which is the third largest theater chain in the U.S., would have been required, not only to pay damages to the plaintiffs, but to add more and heightened security measures to its cinemas - which would have prompted more security at cinemas across the country.

The six jurors took less than a day to reach their unanimous, not guilty, verdict. However, another lawsuit, on the same issue, this one in Federal court, will begin in July.

Certainly, the odds of being killed in a mass shooting are low.  In 2015 there were 325 people killed in mass shootings in the U.S. this compares, say to, the 450 deaths that were attributed to getting in and out of bathtubs last year.  The odds are very small that you would be killed in a mass shooting, it's about one in 10 million, but nonetheless mass shootings have a profound, and over-reactive, impact on the populace.

For now, cinemas can breathe a sigh of relief, at least until the outcome of the Federal lawsuit - where the emotional issue of gun control will surely surface. James Holmes, the shooter, is in prison serving a 3,000 year-life sentence but building a defense for a retrial based on mental illness issues.

Best,
Jim

The 'REMAKE' : Hollywood's Best New Idea

Always searching for new content, the Hollywood studios have grabbed-on to a new concept: turning documentary movies into full-length feature films.

Warner Bros. and Roberts to make film based on 'Batkid' docu

It started with 'Batkid Begins', a docu about a 5-year old boy who asked the Make-A-Wish Foundation to be Batman for a day.  The 'Batkid' documentary screened in 14 auditoriums for one showing and grossed $75,000, not great, but nonetheless caught the eye of Warner Bros. and Julia Roberts who are now making a movie about this story.

Documentary-to-feature deals are catching-on big in Hollywood and popular ones, like 'Making a Murderer' and 'The Jinx' are being turned (the industry word is 'remake') into feature films. What's good about this scheme is that the docus come with a built-in awareness and doing a remake jump-starts the entire film writing and development process.

Remake rights vary but are typically in the low six figures - which is cheap (by industry standards) for good source material and a bit of a windfall for docu owners - as in the U.S. facts contained in documentaries are considered part of the public domain, meaning producers aren't legally obligated to pay for the remake rights to create a feature version based upon the same events.  However, the studios, by paying the small sum for the remake rights, get access to the documentary's director, narrative, subjects, and footage that didn't make the final cut - essentially the hardest parts of crafting a story.

Eagle Huntress

CMG has talked about the current trend of making movies that straddle the multiplex and arthouse and this scheme fits perfectly into that notion. Other popular documentaries in remake include: 'Best of Enemies' (the William Buckley vs. Gore Vidal debates), and 'The Eagle Huntress' a Fox remake about a Mongolian teenager who hunts with a pet eagle.

The documentary remake is a win-win all around: for the documentary maker, the studio, and the moviegoer. Look for more and more remake screenings at your local cinema.

Thailand: Getting In On The Action

From 007 to 'The Hangover' films

Last week, Thailand became the latest country to introduce a financial incentive program for movie and TV show production.  To begin next year, the Thai government will offer a minimum of 15% cash rebate for production costs that exceed $1.5 million - with the rebate increasing to 20% if Thai cast and crews are hired and the movie is deemed good for promoting Thailand tourism.

Announced at the Cannes Film Festival by Thai officials, the rebate program is to promote Thailand as the production hub of Southeast Asia - as it already has studios, post-production facilities, and experienced production crews. There is currently an on-going battle for movie and TV show production between Singapore, Indonesia, and Malaysia which prompted the Thai rebate program.

Thailand has a large and very profitable tourist industry and is fully aware that movie production will drive tourism numbers. Several years ago, the Thai government created the Thailand International Destination Film Festival, its goal - to attract short-documentary film-makers to create films which highlight Thailand's natural beauty and tourist attractions.

A 20% rebate on production costs is very significant, especially when coupled with Thailand's already, in-place film production facilities, trained crews, scenic beauty, and big city shoot locations. All this makes Thailand a great movie production destination.

Movie Apps

There are on-line apps for almost anything - and that includes movies. Lets forget about the movie and TV streaming apps, of which there are many, most of which are free, but compete against cinemas for eyeballs and we don't like that.

Listed below are several good movie apps.  Those that provide information and make it easier for consumers to choose which movies to view at their local cinema, discuss them after viewing, and some which provide very peculiar but vital information.

- iTunes Movie Trailers - Free. Trailers, film reviews, etc.

- RunPee - Free. List of movies w/run times, reviews, etc. Also the best time to go to the restroom          mid-movie so not too much is missed. Hey, there are no pause buttons at cinemas.

- Movie Quest - $. Movie reviews, cast and crew info, trailers, etc. OK app but all of the info on this      site is available for free on others.

- Film Study - Free.  For film enthusiasts. Commenting on films, discussion groups, etc. App that         delves into the movie.

- Flixster - Free. Trailers, reviews, showtimes, release dates, etc.

- MovieWatch - $. Allows you to search for similar movies to those you like and that are currently         playing. Many trailers and reviews don't provide enough info, MovieWatch does.

- TodoMovies - Free. Manage movies you have seen or are going to view. Make custom lists with          posters, scene indicators, cast profiles, etc. Very good free app for the movie buff.

- Movie Quiz - Free. Movie trivia game - Try it.