On Saturday, Netflix chief content officer Ted Sarandos outraged NATO when he slammed theater owners with potentially killing the movie business. Here’s Sarandos’ keynote speech at Film Independent‘s 9th annual confab at DGA HQ.
EXCLUSIVE: NATO president/CEO John Fithian struck back at Netflix chief content officer Ted Sarandos, who today gave the keynote speech at the Film Independent Forum and charged theater owners with potentially killing the movie business by being inflexible with shrinking theatrical windows. Fithian said that if anybody is imperiling the time-tested movie going experience, it is upstarts like Netflix.
“Subscription movie services and cheap rentals killed the DVD business, and now Sarandos wants to kill the cinema as well,” Fithian said. As for Sarandos’ assertion that studios should offer their films on Netflix day and date with theatrical openings, Fithian said that “The only business that would be helped by day-and-day release to Netflix is Netflix. If Hollywood did what Sarandos suggests, there wouldn’t be many movies left for Netflix’s customers or for anyone else. It makes absolutely no business sense to accelerate the release of the lowest value in the chain.”
Netflix is just the latest party to join the ongoing argument over how movie distribution models should evolve, if at all. TV has grown nimble, with cable systems and networks making it easier than ever for audiences to catch shows so that initial air times are almost irrelevant. In the independent film space, multi-platform releasing continues to grow as a viable alternative to a theatrical model which requires a significant P&A spend. The major chains have largely refused to play ball, and often force multi platform distributors to “four wall” screens, instead of the revenue split formula that is usually the way distributors and theaters do business. Many have argued that it is inefficient for studios to spend huge P&A sums to open films in theaters, and then be forced to wait half a year or more, and spend more money to rebuild awareness for the DVD, VOD and pay windows for films that consumers have long since forgotten about. But the last time a studio tried to buck the system, as Universal did on the Brett Ratner-directed Tower Heist, the major film chains banded together and arm-twisted Universal to shut down a limited test that would have offered day and date VOD viewing at a premium price. The theaters are protecting their own business, after having gone to the expense of building and upgrading theaters all over the country.
Related: Netflix Shares Hit New Highs in Q3
The average was 0.8% higher than in the same period last year, and a dime lower than in 2011′s Q3, according to data just out from the National Association of Theater Owners. The relatively small increase likely …
(Washington, D.C. and North Hollywood, Calif. – 8 October 2013) The National Association of Theatre Owners (NATO), announced today the election of new officers to two-year terms by the Executive Board of Directors at the association’s annual meeting, October 2-3, 2013 at the Park Hyatt hotel in Washington, D.C. Prior to the meeting, on October 1, NATO members took part in Hill Day visits to senators and representatives on Capitol Hill, even as the federal government shut down over political gridlock.
The Q3 figure out today from the National Association of Theater Owners represents a 4.2% decline from Q2 (when it was $8.12), and is down 2% vs the same quarter last year ($7.94). The drop is consistent with what we’ve heard …
Here’s the announcement in a letter today from National Association of Theatre Owners chief John Fithian seeking contributions from the group’s members:
Dear Exhibition Colleagues,
The tragic events that occurred in Aurora, Colorado have been devastating to the victims, their familiesand loved ones, the community, the state and the nation.
As we watch the aftermath unfold and try to make sense of this terrible crime, you should be encouraged by the leadership and dedication of the community of Aurora as they comfort and assist their families and neighbors. The courage of the victims, their families and loved ones, the theater employees involved, the first responders and hospital staff members has steeled the resolve of the community and its leaders to recover from this tragedy and to emerge even stronger than before.
The former senator made the comment as he defended the trade group’s ratings efforts. They came under fire when the MPAA initially gave Bully, a Weinstein Co documentary about teenage bullying, an R due to characters’ use of profanity. The rating would have made the film off-limits for the very teens the movie was designed to help. (The producers ultimately cut a few of the words, and won a PG-13 rating.) Although Dodd says that the public should have a clearer sense of what goes into the decision making, he told reporters in a meeting that the people who make the judgments have “a thankless job” in a system that basically “works well.” National Association of Theatre Owners CEO John Fithian concurred. If the MPAA didn’t take on the assignment then it could result in government censorship or local ratings. That would result in havoc because “what people care about in LA is vastly different than what they care about in Omaha.” Although the ratings process results in lost ticket sales, “the alternative is far worse.”
The CEOs of the MPAA and the National Association of Theatre Owners used their opening addresses to the exhibition industry’s CinemaCon convention today to advocate a new spirit of cooperation between the embattled and often warring businesses. Last year’s convention “ended on a sour note,” NATO CEO John Fithian said, when word spread that three studios planned to launch a premium VOD experiment — they let DirecTV offer some movies two months after their theatrical release for $30 a viewing. That threatened to give audiences an incentive to stay at home, theater owners feared. But Fithian says that the experiment “was not a resounding success.” Now, he says, theaters and studios are “talking about how to grow the business together.” MPAA chief Chris Dodd also talked up the need to persuade audiences that “the movie-going experience remains something special, something to be savored and enjoyed, something so innovative and creative that it cannot be duplicated at home no matter how many boxes they have.” He also thanked theater owners for supporting a big issue on his agenda: legislation to combat movie piracy. The MPAA ended up with a black eye this year when it failed to persuade Congress to pass the controversial bills that would have empowered the government to block sites run by overseas pirates. “I urge you to continue to be a part of a thoughtful and rational solution to protecting intellectual property,” Dodd told theater owners. He added that he remains “committed to doing all I can to achieve a satisfactory resolution to the protection of intellectual property” and is trying to build bridges to the tech industry which opposed the bills.
Some of Washington’s most powerful lobby groups ramped up their fight today over the Stop Online Piracy Act, which was just introduced in the U.S. House of Representatives. The Independent Film & Television Alliance echoed points that MPAA chief Chris Dodd made in a speech today — that the bill empowering the government to block overseas websites that traffic in copyrighted content would protect jobs. It’s needed to stop “drastic damage to the legitimate marketplace … measured both in films that cannot be produced and in lost returns on investment in films that have been,” IFTA CEO Jean Prewitt said. National Association of Theatre Owners CEO John Fithian adds that the legislation “is an important step to protect the jobs of 160,000 movie theater employees and sustain one of the vital engines of the nation’s economic growth.” The plan also was supported by a collection of unions including the American Federation of Musicians, American Federation of Television and Radio Artists, Directors Guild of America, International Alliance of Theatrical Stage Employees, International Brotherhood of Teamsters, and Screen Actors Guild. If the bill doesn’t become law, they said in a joint statement, then “rogue sites will continue to siphon away wages and benefits from members of the creative community, greatly compromising our industry’s ability to foster creativity, provide opportunities, and ensure good jobs.”
But Consumer Electronics Association CEO Gary Shapiro warned that if Congress passes the bill — also known as the Protect IP Act — then “the notoriously litigious content industry could simply accuse a site that it is selling a product that could ‘enable or facilitate’ a copyright infringement, thereby allowing accusations to shut down sites vital to the Internet economy.” He says that “could lead to mass shutdowns of websites and Internet-enabled services.” The group plans to bring several Internet venture capitalists to Washington tomorrow to make that case.
Creative America, the coalition formed by labor unions, guilds, studios and networks that launched in July, said today that it has kicked off awareness campaign as well as a redesigned website. The group also said the AFL-CIO, the Association of Talent Agents, …
(Washington, D.C. and North Hollywood, Calif., October 14, 2011) – The National Association of Theatre Owners (NATO) announced today the election of new officers by the Executive Board of Directors at the association’s annual meeting, October 5-6, at the Park Hyatt hotel in Washington, D.C.
Elected to two-year terms were – S. David Passman, III, President and CEO, Carmike Cinemas, Inc., as Chairman; Nora Dashwood, Chief Brand Officer, Pacific Theatres/ArcLight Cinemas, as Vice-Chairperson; Byron Berkley, President, Foothills Entertainment Co., as Treasurer; and re-elected as Secretary, Mark O’Meara, President, University Mall Theatres.