In a keynote address this morning, head of the trade group representing movie theaters asked Hollywood studios to commit to a 45-day window for all films and to marketing that emphasizes “only in theatres.”
Michal O’Leary, president of Cinema United, also warned about the growing mania for costly premium large screen formats, and the need for independent theaters to have more autonomy in scheduling.
“We need a system that recognizes our common goals and does not pit one sector against another in a short-sighted quest for immediate financial return at the cost of longterm success,” he told theater owners gathered at CinemaCon, the industry’s biggest gathering in Las Vegas, in remarks punctuated by frequent applause.
It’s windows that are on everyone’s and in the air as exhibition just closed a rocky first quarter with Covid in the rearview mirror and a new paradigm necessary.
O’Leary said a 45-day window should be the baseline, “a clear, consistent starting point” because “for most movies, the ultimate box office success and consumer demand cannot be effectively determined short of a 45-day window.”
A compelling movie, he said, will do just as well, possibly better, on PVOD at 45 days as it would at 20.”
“A clear, consistent period of exclusivity, supported by meaningful nationwide marketing from both distribution and exhibition, is essential for all theatrically released films to be successful. It is the bedrock upon which our collective prosperity is built.”
He noted a more robust theatrical recovery outside of the U.S. in markets where longer windows are in place. Shorter windows hit smaller movies disproportionately. “If we continue to shorten windows, and crowd out the small and medium sized movies, creating the impression that the only reason to go to the theatre are the big blockbusters, then eventually, the very network needed to make those blockbusters successful, will atrophy.”
Also key — not promoting “see-at-home” options while a movie is still in theaters. “At-home should never be the default app option while a movie can still be seen in thousands of theatres across the country,” the former Fox executive who also worked at the Motion Picture Association. “A good starting point would be an aggressive re-commitment to emphasizing “Only in Theatres” across all marketing platforms,” he suggested. Shorter windows also undercut marketing and consumer awareness of new movies, which has been dwindling.
Marketing in theaters is key as well, he said, “Imagine the positive response if, hypothetically, the preshow was tailored, the green band rating, as appropriate, appeared only before the first trailer, the trailers were 90 seconds in length, and exhibition played between four and six before a movie?” The marketing and the guest experience would be better.
An interesting ask was for everyone to take a beat on PLFS, or premium large format screens. Upgrading has been a priority as premium auditoriums take a disproportionate share of ticket sales. But they are costly and still only a small percentage of the global box office he noted.
“We should continue to invest in the experiences people want – this includes large screen formats … [but] investment in large screen formats cannot be at the expense of other auditoriums. If, in our collective zeal to promote large screen experiences, we lead movie lovers to believe that the only reason to go to the theatre is for large screen formats, we are destroying the very heart of our business.” Keeping theaters clean, vibrant and comfortable is a priority.
Scheduling requirements which, for example, result in a G or PG-rated family-movie being played at 10:15 pm on a school night “when the theatre owner knows there is no audience for it, doesn’t make sense for movie fans, the exhibitor or the distributor.”
For indie theaters, hold requirements should not extend beyond the time a movie is exclusively in theaters. If an independent operator feels passionate about playing a movie, they should be able to confirm it early, so they have the same opportunity as their competitors to adequately market it to their guests.
“Everyone feels the pressures of today’s marketplace – from the biggest studios to the one-screen independents. But clinging to the norms of a pre-pandemic world or to the temporary adjustments made during that time, threatens the overall health of this great industry,” he said.
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