The earnings statement from the largest theater chain begins with a statement from CEO Amy Miles about last week’s shooting in Aurora. “We believe that movie theatres have always been and will continue to be places where friends, families and communities can safely gather together for a few hours of fun and entertainment,” she says. “We were devastated and heartbroken by the senseless acts that took place in one of those theatres last week, but remain committed to providing a safe and secure environment for our guests.” There was virtually no commentary about the Q2 results themselves, which were mixed. Regal reported net income of $37.2M, up 6.9% vs the same period last year, on revenues of $723.3M, -4%. The revenue figure missed analysts’ expectation for $732.9M. But adjusted earnings at 25 cents a share beat the 20 cent forecasts. Attendance at 54,297 was down 8.5% from last year — but at 6,552 screens, down about 100. The average ticket price was $9.11, up from $8.75. Concessions revenues also were up to $3.55 per patron from $3.37.

Regal’s financial results of course came before the Colorado massacre.
But that horrible crime is the worst thing that could have happened to an industry where, short of a blockbuster, attendance has been declining for some time now.
With higher admission prices, noisy and misbehaved crowds, and in many cases films that aren’t that good, people have been increasingly avoiding going to the movies.
“… and in many cases films that aren’t that good, people have been increasingly avoiding going to the movies.”
Not to mention theatres that show the same film on four (often MORE) screens, completely ignoring smaller films that appeal to adults.
In my area, Regal is the ONLY chain represented, with 22 screens, but I have to drive 20 miles to the Arclight to see “The Artist” and “The Best Exotic Marigold Hotel”
Rather than do that, screw theatres and wait for them to be on cable.
I’m of the opinion that Regal is the best of them – by far the best of them. But dumping the product through the roof into the square footage of a Best Buy or a Lowe’s feels exactly what it is – the cynical first step of the marketing and distribution food chain. The movie-going EXPERIENCE has become kind of depressing. What’s so special about dumping “Hugo” or “War Horse” into such circumstances – an “exclusive” engagement for a coupla weeks – those are movies that would have had better awareness at the box office in the long run playing in a classy theater with a genuinely exclusive engagement first. The Clearview chain is interesting. The auditoriums are nothing special but they’re smaller and at least they make an effort with some special programming and a conversant relationship with the community in which they’re set as for instance with “Magic Mike” in Chelsea. They’re no big deal but friendly and comfortable; easy to duck into and meet friends…they make an effort at knowledgeable interaction. So I sincerely hope that the Roberts family takes the Ziegfeld off the market. The last truly unique movie-going experience in New York…conceivably could go forever.
Not only that but the experience of the movie, in my opinion, does indeed impact word-of-mouth and the bottom line in the long run. If the experience is unpleasant…you may just decide that the movie you’re watching is a piece of crap. Go viral long from there in terms of units and consumer products.
Years ago, movie were movies–not events. In the early 1970′s films were often released territorially across the nation–each major metropolitan market hit for two weeks and then the prints moved on to the next area (or “held over” if audience demand warranted). I liked that era. I miss that era.
But thanks to an incessant pushing from Tom “Billy Jack” Laughlin, movies started opening nationwide on 1000 screens. Columbia’s ultra-successful 1975 1000-screen nationwide opening of BREAKOUT with Charlie Bronson clinched that approach. Then Tim Burton’s BATMAN (1989) opened on 2000 screens. And INDEPENDENCE DAY (1996) on 4000. Between 2000 to 4000 screens is where it’s stayed. It made sense, too, and profits were maximized.
Now, thanks to the need to quickly exploit homevid & ancillaries as well as the need to defeat worldwide digital piracy, movies are no longer nationwide events but global events–quarter billion dollar comic-books (truly appealing to a global lowest of lowest cross-cultural common demoninators) opening in all markets around the planet on or as close to the same weekend as possible.
With tongue firmly planet in cheek, this one-minute video sums-up what all the tentpoles today have become…
http://www.funnyordie.com/videos/fd747e8af8/every-3d-movie-is-the-same