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The Collapsing Theatrical Window for Films

Thursday, May 18th, 2017

As Anthony D’Alessandro notes in Deadline, theatrical release windows for movies are in jeopardy.

There’s been a lot of talk recently that film distribution is moving away from theaters, and towards PVOD – Premium Video on Demand – viewing a film at home on the day of release for as much as $50 a pop. It’s been tried before, and except for big ticket sporting events, it hasn’t really worked out. But that may be changing.

As  D’Alessandro reports, “The urban myth feared by many is that if the per-title rental price in the PVOD window drops down to $20, consumers ultimately will realize that it’s cheaper to watch a movie at home then in cinemas, forgoing costs that come with a night out, i.e. babysitter, parking, dinner, etc. Some studio executives claim their talks with exhibition over PVOD aren’t contentious, but many insiders say that both parties’ working relationship is best described as ‘frenemies.’

Says one distribution veteran: ‘Exhibitors are freaking out. They can’t make money unless they grow their companies, and it’s hard to build these $40M multiplexes. If you have your investors hearing about windows closings, what incentive is there for them to hold on to their stocks?’ The former executive adds that PVOD, if not managed properly, could cause ‘a slowdown in exhibitions’ luxury-seat remodeling and force the mom-and-pop theaters out of business.’ Some also forecast that the domestic supply will shrink, that moviegoing will be relegated to tentpoles with mid- to low-budget fare relegated to in-home streaming.

However, these are doomsday theories, and there’s some positive evidence that the majors aren’t going to cannibalize their own business. Here they are:

The Theatrical Window Will Be Protected: ‘The last thing studios would want to do is threaten that lucrative revenue stream by encroaching on the theatrical window,’ says Tony Wible, Media & Entertainment Senior Analyst at Drexel Hamilton. ‘Theatrical plays a role in pricing the TV licenses for films, and there’s an incentive for studios to maintain the theatrical window.’

Despite Their Bullishness, Studios Haven’t Figured Out a PVOD Formula Yet: There’s buzz that Warner Bros. will come to terms on a PVOD solution by Q4 or Q1 2018, but they’re not going to act alone in the marketplace without another studio. In addition, there are too many moving parts to the PVOD equation, and the whole notion of it goes beyond the Monday-morning haggling between a distributor and exhibitor to hold a film on screens. Other windows like electronic sell-through [EST, when the consumer purchases a permanent video download, either in the cloud or on their computer] would be impacted, and that’s another discussion studios need to have with digital partners including iTunes and Vudu.

If PVOD Becomes a Reality, It Will Face Its Own Challenges: Home consumers already have committed their [money] to cable bundles, Netflix, Hulu and Amazon Prime. When it comes to content in the home, they have way too much of it, not to mention VOD menus are already crowded. So, where’s the incentive to rent one title for [as an example] $30? ‘If you have a $30 VOD product, it’s going to be too expensive for the home consumer when it’s priced against these services,’ says Wible, ‘There’s a value trade-off.’

In Addition, Exhibition Claims That In-Home Streaming Services Aren’t Their Direct Competition: According to Alamo Drafthouse and Neon label chief Tim League,’Theaters are more in competition with restaurants and comedy clubs and the types of entertainment that gets you out of the house.’ Currently, exhibitors such as Regal, Cinemark and AMC are barreling forward with luxury modeling and food/alcohol amenities, and these efforts have led to increased capacity and B.O. revenue upticks, with increased cash-on-cash returns.

Mid- and Low-Budget Movies Can Remain in the Theatrical Space: Some have screamed that economically budgeted fare doesn’t have a chance going forward in an event-driven theatrical marketplace, but the success of Get Out, Split, Fifty Shades Darker, Hidden Figures, John Wick: Chapter 2 and even La La Land have proved otherwise; that’s all about how a studio positions and sells a film. ‘There’s not a clear delineating line of what is meant for theatrical and what’s intended for streaming,’ says Amazon’s distribution and marketing chief Bob Berney.

Whether a mid-budget or indie film winds up on streaming or theatrical has a lot to do with a film’s financiers, and when there’s a company like Netflix willing to pony up big bucks for the smaller screen, money talks. In addition, mid-level and low-budget films ‘need to be event-ized,’ says Berney. Whether they thrive on the big screen boils down to several factors, i.e. a distributor’s passion for the film, how far they’re willing to go with it, a pic’s critical and festival reactions. Not to mention, as long as there are Oscars, there will be smart, upscale specialty movies on the big screen.”

There’s much more to this excellent article; you can read the whole piece by clicking here.

Reel Film Day – March 5th, 2017

Wednesday, March 1st, 2017

Support Reel Film Day – films screened the way they were meant to be seen.

As The Alamo Draft House theatre chain announces, “mark your calendars, cinephiles! 35mm film will be alive in all its glory on March 5th — or 3/5. A collaborative initiative from Alamo Drafthouse and Kodak, the first-ever Reel Film Day will champion the beauty of cinema’s richest and most enduring format with celebratory screenings at Alamo Drafthouse and independent theaters across the U.S.

‘There is nothing like experiencing actual 35mm projected film,’ said Steve Bellamy President of Kodak Motion Picture Film and Entertainment. ‘I don’t care if it is the greatest 8K projector in the world, 35mm is a radically different thing and there is simply no comparison. Projected film is watching light blast through dozens of layers of color dye clouds and emulsion, 24 times per second.

A film projectionist is a master craftsman and seeing his or her work is akin to performance art. While the world has largely migrated to the utility of video projectors, there is a massive growth in consumers who understand the experience of film projection. This is why theatres projecting film are coming back so strongly and doing so well!’

As a true celebration of the wide-ranging scope of cinema, Reel Film Day programming will be deeply eclectic, featuring classics including Powell and Pressburger’s The Red Shoes and Orson Welles’ Touch of Evil rubbing reels with cult favorites like W. D. Richter’s The Adventures of Buckaroo Banzai Across the 8th Dimension and Quentin Tarantino’s Inglorious Basterds.

At press time over 25 screenings are taking place, and it is expected that ultimately hundreds of theaters across the country will join in. No matter the location, the unifying factor is that all films will be presented large and lustrous from 35mm film.

‘Less than 5% of our film history exists in a high-definition digital format,’ says Alamo Drafthouse CEO and Founder Tim League. ‘If you really love film, then join us to recognize, celebrate and support film screenings in independent theaters everywhere. This scrappy group of fellow cinephiles is truly preserving film history. Support your local theater, support 35mm (and 70mm) film on 3/5, the first annual Reel Film Day.'”

‘Nuff said, as Stan Lee would say. Support Reel Film Day at a theater near you!

About the Author

Headshot of Wheeler Winston Dixon Wheeler Winston Dixon, Ryan Professor of Film Studies at the University of Nebraska-Lincoln, is an internationally recognized scholar and writer of film history, theory and criticism. He is the author of thirty books and more than 100 articles on film, and appears regularly in national media outlets discussing film and culture trends. Frame by Frame is a collection of his thoughts on a number of those topics. All comments by Dixon on this blog are his own opinions.

In The National News

Wheeler Winston Dixon has been quoted by Fast Company, The New Yorker, The New York Times, the BBC, CNN, The Christian Science Monitor, US News and World Report, The Boston Globe, Entertainment Weekly, The Los Angeles Times, NPR, The PBS Newshour, USA Today and other national media outlets on digital cinema, film and related topics - see the UNL newsroom at http://news.unl.edu/news-releases/1/ for more details.

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