Monthly Archives: April 2009

Daily Cinema Roundup – Mon 20 April

– US box office is holding up, this weeks thanks to “17″, according to THR.com, “Industry wide, the $107 million weekend represented a 14% improvement over the same frame last year, according to Nielsen EDI. Year to date, 2009 is pacing 8% ahead of last year, at $2.73 billion. The year-over-year improvement appears more modest than it might as the year-ago period boasted an extra winter weekend.”

- Indian multiplexes in Mumbai are turning to theatre in an attempt to offset loos of revenue from the on-going producers boycott, according to BusinessofCinema.com. “Inox Nariman Point will be staging the Divya Palat directed play 26/11 on 19 April at 12 pm. Tickets for the play are priced at Rs 250 and Rs 230.” Meanwhile Fame had previously shown a production of the “Vagina Monologues.”

- Gefen is promoting its digital cinemascaler at NAB. for cinemas that want to show DVDs, Blu Rays, games and PC content. “ AV Cinema Scaler Pro I and II both interface with all digital cinema projectors and integrate flawlessly with digital cinema audio systems.” Both products enable HDMI, DVI, VGA and component video inputs and both digital and analog audio inputs;

- German centre-left SPD party wants to support digital cinema conversion as a means of rescuing cinemas from closure, according to Der Tagesspiegel (in German, Google translation to English here). “The transition from analog to digital projection means for cinema operators that must be retrofitted. The costs are approximately 60 000 euros – per projector. The overwhelmed especially the smaller, financially weak cinemas. These are in Berlin, 58 of 98 cinemas. The German Institute for Economic Research (DIW) predicted in a study submitted in March, only 30 percent of them could be the wave of digitization survive if no help measures are initiated.

- Disney gave a sneak peak of the upcoming “Toy Story 3D” at NAB, according to Variety. “Custom-animated short shows Woody supervising the Toy Story characters as they improvise a sign for the pic, only to have Buzz upstage them all with a high-tech version. The Mouse House will re-release 3-D versions of “Toy Story” and “Toy Story 2″ in a double feature. “Toy Story 3″ bows June 18, 2010.” No word on funding of 3D glasses in the article.

- The Loft Cinema is voted Tuscon’s Best Cinema by Tuscon Weekly’s readers. “The edible fare sits high above the typical multiplex offerings as well. Where else in town can you get a microbrew or two, a slice or three of Fresco pizza, and a Fargo revival?” Sounds like our kind of cinema.

Popularity: 13% [?]

Daily Cinema Roundup – Sun 19 April 2009

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- UK cinema goers spent GBP 250m in the first quarter of 2009, reports the FT, with “Slumdog Millionaire” leading the way with 6m visitors. “The latest figures, compiled by the Film Distributors’ Association (FDA), support the frequent claim that cinema-going, perceived as a cheap night out, actually increases during times of economic hardship.”;

- Multiplex opening in Damascus represents the first new cinema to open in the Syrian capital since 1985. AFP reports that just 10 cinemas in Syria cater to the city’s population of 4m, though only two of them are functioning effectively (see photo above). “Filmmakers and cinema owners blame the parlous state of the industry on high taxes slapped on admission tickets, the state’s financing of commercial instead of artistic productions and the ready availability of pirated DVDs.”;

- Adding to Pakistan’s many other woes, the renewed screening of Bollywood (Indian Hindi) films in the past two years has failed to attract audiences back to the cinemas, according to The Hindu. “After the closure of 1,300 of the 1,500 cinema halls across the country in recent times, the Pakistan Film Exhibitors Association pressed the government to allow the screening of Indian movies, saying it was the only way to save the remaining 200 theatres.” But of some 5 Bollywood films released, only “Singh I Kinng” was a hit.Terrorism and piracy said to be to blame.

- Radio on the big screen! US National Public Radio (NPR) is coming to some 400 cinemas near you. ‘This American Life – Live’ “Popular NPR show will be simulcast live to more than 400 theaters in the country. Ira Glass to host. Guests include Joss Whedon, David Rakoff, Starlee Kline, Mike Birbiglia and Dan Savage. When: 8 p.m. Thursday Cost: $20, available through www.Fandango.com or at the theater.”

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- Indian multiplexes have lost Rs 450m ($9m) since the Bollywood producers’ non-release boycott began on 4 April, according to Indiantelevision. Its research article states that ” this difference in occupancy rates would amount to revenue losses of Rs 850-900 million per month in multiplexes. This figure is much lesser than Rs 1-1.5 billion per month as is being claimed by some industry sources.”

- 2008 was a record year for German films at cinemas according to Welt Online (in German). Local fare accounted for 27 per cent of box office, the highest in two decades. Cinema going in the ge bracket 20-29 is down while the 40+ is up, confirming world wde trends of baby boomers re-discovering the joy of cinema going;

- Philips Electronics researchers have come up with a haptic jacket, lined with vibration motors, that ‘lets you feel the movies‘. ““We want people to feel Bruce Lee’s anxiety about whether he will get out alive,” says the Philips researcher. The jacket, responding to signals encoded in the DVD or to a program designed to control the jacket on the fly, can do a host of things, such as “causing a shiver to go up the viewer’s spine and creating the feeling of tension in the limbs.”” No plans for matching trousers yet.

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Popularity: 17% [?]

Daily Cinema Roundup – Sat 18th April

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- Cinemas in the UK are anticipating a bumper box office this summer and the Film Distributors Association has put together a trailer (see above) and website for SummerOfCinema, reports the BBC;

- UK actors Meera Syal and Tony Robinson are amongst those campaigning to save London’s historic EMD cinema in Walthmastow where a young Alfred Hitchcock got his first taste of celluloid dreams (and nightmares);

- The Scotsman highlights the visit by the Screen Machine, UK’s only mobile cinema, as it visits Barra, “a tiny Scottish island in the Outer Hebrides on the furthermost edge of the Atlantic.” as driver-projectionist Iain MacColl brings 2009′s most watched film in the UK, saying, “They’d crucify me in Barra if I didn’t bring them Slumdog.”

- Heavy metal band Iron Maiden’s eponymous “Iron Maiden Flight 666″ will  be shown in 34 countries on over 500 screens around the world for one day only on Tuesday 21st of April, which according to Elmbridge Guardian will be, “a day which has now been renamed ‘Maiden Day’.”

- Sign o Recession Times #139: Chicago’s Classic Cinemas screens recent G or PG rated his for just $1, including “Hotel For Dogs,” “Kung Fu Panda” and ” Star Wars: The Clone Wars.” No word on discounted or BYO concessions;

- Sad waste of cinema #6,871: Inverness cinema turned into eight million pound luxury hotel, just hat the world needs more of right now;

- UK exhibitor Vue will introduce Tue night ‘mystery’ screenings of films of films ahead of their official release;

- NAMC Newswire’s Lou Victor highlights the strength of cinema advertising: “The recall rate of cinema advertising is upwards of 70% while the recall rate of television sits at approximately 23%, the reason for this is that advertisers have a totally captive and receptive audience. They finally can advertise directly to the elusive teen and tween market in their own environment.”;

- The Scotsman (again) trumpets the re-opening of Scotlan’s first purpose-built cinema after a two million pound facelift. “The cinema building, designed by the local architect Matthew Steele, was a notorious eyesore in Bo’ness for years until it was rescued by Falkirk Council after years of demands for action by heritage campaigners. Opened in 1912 by an enigmatic showman who helped lure in audiences by screening short films shot locally, it was the nation’s first purpose-built cinema.” The re-inauguration film was “Mamma Mia!”;

- Samosas remain the most popular Indian cinema snack, according to the Economic Times. “With an approximate daily consumption of over 30-35,000 samosas across the city’s 95 theatres (40 multiplexes with approximately 120 screens and 55 single screens, including those in the adjoining Thane district), this crusty triangle of spiced-up pea and potato mash, remains a hot favourite, pipping the nachos and noodles or pasta and pizzas to the cash counter.”

- Angel Broking recommends neutral rating on India’s multiplex sector. “Over the last one month, Multiplex stocks have witnessed sharp rally in the range of 35-50% despite looming concerns including lower occupancies and possible delays in handover of properties.”;

Popularity: 7% [?]

Front Row Report: Beer Wars – A Live NCM World Premier

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This report just in from our friend and colleague Jerry Pierce:

Beer Wars – A Live NCM World Premier
Jerry Pierce April 17, 2009
National Cinemedia (NCM) that runs “Fathom” a “live” to the theater network for single play events. They have Concerts, The Met, Performing Arts, Anime, etc. Cinemedia’s main business is advertising for many theaters. But Fathom seems to be their new baby – below is the list of upcoming shows.
Enjoy one of our upcoming shows
MET – The Audition April 19, 2009
So I decided to attend the “World Premier” of “Beer Wars” held last night. (Never mind that I am getting involved in Beer Making … that’s a different story.) I attended a CineMark Theater in Northern California at 8 pm. Well, first off it was not LIVE, it was delayed. Not that it would matter much, but if you are attending a live broadcast it should appear to be live. The theater was the same one that housed “Monsters vs Aliens.” Seemed right, the rest of the screens at this location are still film.
So they got a late start – seems the DVR recording of the show didn’t work right and they had technical difficulty – did I mention it was supposed to give the IMPRESSION of being live? Funny seeing the EchoStar’s DVR interface on a 50 foot screen.
They the show finally started. They did not use the big projector! It was the little NCM advertising projector. Not a bad image, but the masking was set for 1.85 and the broadcast was 16:9 (1.77) so the top/bottom was cut off – not even in safe title – many of the titles got lost in the bottom masking. The projector was dim – but not bad. The contrast ratio was muddy to say the least. I mean really, who needs black? I was pleased that the silver screen did not have a noticeable hot spot, then again maybe you can’t have a hot spot with a dim projector (not).
They did show a live question/answer session with the film makers after the show. It was clear the LA premier was sparsely attended and there were about 50 people in my 500 seat theater. Lots of space to spread out. They charged $15 which was a $5 up fee from their normal presentation charge. Did not look like a money maker to me.
Finally, the presentation crashed at the end. Another 50 foot error screen with audio continuing in the background. I didn’t ask for my money back, but if this is their idea of a live, quality event – they had better go back to the drawing board and re-think the experience.
—-
Jerry Pierce

Popularity: 13% [?]

Cricket Won’t Play In Indian Multiplexes As Film Strike Worsens

Indian multiplexes will not be able to offset the impact of the film strike/boycott/non-releasing with screening of Indian Premier League (IPL) cricket matches. The imminent IPL season was anyways going to put a damper on the box office for the next six weeks, but with Hindi producers refusing to release any new films, screening of cricket matches would have provided some respite for the multiplex operators.

From the Economic Times:

A senior executive with a Delhi-based multiplex chain, who did not wish to be quoted, said, “The IPL committee was asking for a very high price as minimum guarantee, in addition to revenue sharing arrangements. This is not a financially viable business model that multiplexes operate on.” He added that multiplexes can’t hike ticket prices significantly as that would not help in attracting volumes.

As per another senior executive with a company that was looking to bid for the multiplex distribution rights, IPL was looking at a minimum guarantee of Rs 35-45 crore and was awarding the distribution rights only for a year.

“Since the matches are happening in South Africa this year, it would have been an even bigger business opportunity for multiplexes, distributors and advertisers,” UFO Moviez CFO Kapil Agarwal said. The digital cinema solutions firm had evinced interest in providing back-end technology for live telecast of the matches at multiplexes.

Meanwhile, there appears to be no end in sight for the stand off between producers and multiplex operators. Though no major films were set for release during the IPL tournament anyway, there are no dangerous signs of post-IPL releases getting pushed back. From Times of India:

Films like Shortkut, Luck, Kaminaay, Kambakht Ishq, New York and Love Aaj Kal are a few biggies awaiting release. Going by last year’s IPL record, all but one film (Jannat) released during the matches bombed. Then, Ramzan begins on August 22 and most producers won’t release during the holy month. That leaves about two-and-a-half clear months for movies to release between the IPL and Ramzan. “The current situation is so fluid that one can’t say anything definite,” says Dinesh Vijan, Saif Ali Khan’s partner on Love Aaj Kal. “Movies with release dates slotted for May have been postponed. We intend to stick to our scheduled release date (June 26) and hope this situation gets sorted out soon,” he adds.

Trade sources confirm Vipul Shah had chosen August 14 as his release date for London Dreams. The producer had assumed he would get a clear run until Ramzan, and even further. “Now that films are being moved from their original release date; there is going to be a big clash from the time the strike lifts,” says Mehra.

CNBC-TV18 does a good job of crunching the numbers of what the multiplexes are losing from the current standoff:

Here’s the math:

The big-five multiplex chains together have 1.62 lakh seats. Each seat screens at least 4.9 shows a day, that’s 34.3 shows a week. This means every week, 54.55 lakh seats are available to generate revenues.

But weekly occupancy levels at most multiplexes stand at around 27% even with higher rates on weekends and holidays. This leaves just 16.36 lakh seats that actually generate revenues.

On average, a seat at a multiplex generates Rs 121 per show, with an additional Rs 31 on food and beverage. That’s a weekly revenue of around Rs 24 crore for the big-five chains.

INR 24 crore (Rs 240m) works out to almost $5m per week, which is a LOT for the nascent Indian multiplex industry. Meanwhile producers have floated the idea of each production house ‘adopting’ a single screen cinema and refurbishing it to multiplex standard, though how much substance or chance of realization such a proposal has is open to speculation.

Meanwhile, Bollywood stars like Shahrukh Khan, Preity Zinta and Shilpa Shetty – who have tended to side with the producers, perhaps not surprisingly given that many of them have their own production banners – can afford to take a relaxed attitude about both films and cricket’s no-show on multiplex screens at least for now as they own stakes in the competing cricket teams. Moreover from AFP:

Action hero Akshay Kumar is brand ambassador for Delhi Daredevils, movie hearthrob Hrithik Roshan is flying the flag for the Mumbai Indians, while screen siren Katrina Kaif is supporting the Bangalore Royal Challengers.

Top performers and music directors have also got in on the act, producing music videos for many of the teams that owe much to Bollywood’s song and dance routine tradition.

In their oversized filmstar sunglasses and designer clothes, Shetty, Zinta and Kaif added much-needed glamour to the gathering of corporate suits at the auction for new players in the resort state of Goa earlier this year.

For the actors, many of whom who have been making the rounds at promotional events before the start of IPL’s second season, merging cricket and film makes perfect sense given the fanatical following that both have on the subcontinent.

As Shilpa Shetty correctly observes, “Cricket is not a sport in our country, it’s a religion.” But if multiplexes are the temples, then the gods have deserted them and show no signs of returning until the keepers of the temples appease them.

Popularity: 17% [?]

Sony Pictures VPF Deal With Regal & AMC Makes Warner Bros The Only Hold-Out Studio

sony-pictures-logo Sony Pictures has become the next-to-last  Hollywood studio to sign a virtual print fee (VPF) agreement with DCIP, the digital cinema integrator representing the three largest US cinema chains (AMC, Regal and Cinemark). This should help DCIP re-start the intended 3 1/2 year roll-out of digital cinema to all of its screens as of this summer, when credit is predicted to start flowing again. Variety only did a brief item on the announcement, covering the bare basics:

Sony’s deal with the Digital Cinema Implementation Group, a consortium repping Regal, AMC and Cinemark, means that Warner Bros. is the odd man out. Every other major, as well as Lionsgate, has already signed its own agreement with DCIP.

DCIP intends to use the studio deals as collateral in securing a multimillion-dollar line of credit that theaters can use to pay for the cost of the conversion. Those efforts have been sidelined by the economic crisis.

THR.com went a little more in depth with the analysis and implications, particularly as to why Warner Bros might be holding out:

“We’re in the middle of negotiations,” Warners domestic distribution president Dan Fellman said. “We’re close. So we might be the last one, but we’re going to get there.”

Sony signed its VPF pact with Digital Cinema Implementation Partners several weeks ago, but the news was delayed pending internal review of the formal announcement.

Through VPFs, studios volunteer to pay the equivalent of print costs for years after switching to digital distribution as a means of defraying most exhibitor costs to convert auditoriums. Sony refers to its VPF as a “digital conversion fee.”

For Warners, set to release more films this year than any other distributor, the cost of a VPF is likely to run considerably higher than that for studios with lower annual output. Sony also is among the most prolific film distributors.

Neither of the two articles makes an explicit link between the SPE-DCIP deal and the earlier announced deal between DCIP member AMC and Sony Electronics to equip its cinemas with SXRD 4K projectors. While the SPE deal would not have been contingent on the AMC-4K deal, it most likely didn’t hurt and may have acted as a sweetener.

So what does WB have to hold out for? Noit much. Coming in last amongst all the studios means that the it will benefit from whatever best terms have been previously agreed under the Most Favoured Nation (MFN) provisions that states that DCIP cannot offer a better deal to a future studio unless those terms are offered retroactively to those already signed.

This means that DCIP will be resisting getting squeezed on VPF terms by WB, who in turn (as the biggest releaser of 35mm prints) will have seen the price of celluloid prints [acetate prints actually, as true celluloid was phased out decades ago, only 'Acetate Junkie' doesn't sounds as good; Ed.] drop significantly as Kodak offers cheaper and cheaper film stock prices to maximise what is left of the film print stock business. Why pay a VPF of, say, $725, when a print has dropped to, say, between $600 and $500. Particularly in these times of plunging DVD sales.

If DCIP want to blame anybody for the delay in Warner Bros signing a VPF deal, the telephone number for Kodak’s switchboard in Rochester, NY, is 1-800-621-FILM. See how far you get arguing with a sunset industry.

Popularity: 25% [?]

“Bart” Got A Grass Roots Marketing Campaign

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These days trying to gain awareness for a product through the marketing clutter can be an uphill battle in the best of times.  The amount of advertising most people are subjected to on a daily basis has skyrocketed over the last decade to hundreds, if not thousands, of messages per day.  Whatever the number, getting the message out about a new product is no easy task and that is certainly true when it comes to movies.

With at least three new films opening each week in North America, moviegoers are inundated with trailers, posters, news stories, commercials, billboards, merchandise, promotions, etc. for new releases.  Up until the last five years there almost seemed to be a set formula for how to market an upcoming release.  Now with media such as the Internet and video games competing for consumers attention, it’s even more difficult to market products, especially movies.  As many companies in various industries are discovering, the hugely expensive marketing campaigns movie studios are known for throwing at their films may not be as effective as a grass roots word of mouth campaign implemented that employs the networking characteristics of the web.

Just ask the filmmakers behind “Bart Got A Room”.  What. . . . you haven’t heard of the indie film “Bart Got A Room?”  Yeah, neither had I until mid-February.  Read More »

Popularity: 12% [?]

Oh Dear, New York Times Not Impressed By ShoWest

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Don’t take our word for it, the New York Times has taken a long hard look at ShoWest and noted that it is not what it used to be. In fairness to both NYT and ShoWest the article’s author Brook Barnes does an admirable job of giving a balanced portrait of a complex relationship between studios, exhibitors, vendors and the organisers of the event. It is worth reading the whole piece to get a proper overview, but a flavour can be had from this bit:

…there are signs everywhere that the event’s once-infamous sizzle has been snuffed out. Gone are the trade show vendors handing out free hot dogs. Gone is the parade of megawatt stars. Gone are some attendees: the number of registered conventiongoers is 2,400, a 15 percent decline from last year.

Booth rentals are down by 5 percent, although Mr. Neuhauser emphasized that a number of first-time renters have made up for others who have left.

Universal issued a statement saying cost cutting was behind its decision. “We looked hard at conventions and felt it was necessary to cut in that area,” the statement read, in part.

While trimming their spending on ShoWest, some studios say they will remain loyal. “We’re not hosting an event that involves much pageantry or really any food,” said Jeff Blake, chairman of Sony Pictures’ worldwide marketing and distribution. “But we still see this as an important opportunity to let exhibitors know what we have coming.”

Nowhere is there any mention of the show being taken back by NATO in two years’ time. Nor are there any implications discussed for the likes of ShowEast (unlikely to survive without its bigger West Coast sibling), Cinema Expo (challenged by a new cinema trade show in Brussels), CineAsia (constantly moving and seemingly too small to last), though chances are that ShowCanada will survive because, well, why shouldn’t Canada have its own cinema show? Read More »

Popularity: 17% [?]

It Was A Very Good ShoWest 2009 For Sony

The popcorn has been swept away, the 3D movie banners folded, the quiet talk about how cinema is holding up in the recession has faded – ShoWest 2009 is over.

While VNU will continue to host the Las Vegas-set cinema trade show and exhibition for one more year before NATO is rumoured to take the show back (and move it to Ceasar’ Palace) in 2011, there was something of an End Credits roll feel to the confab. The number of attendees was down, the studios were (with two exceptions) largely absent, the parties scaled back and nowhere was there any open celebration of the fact that this year’s box office easily looks set to cross $10bn.

So who did well in this year’s conference? Digital Cinema? Old hat. 3D? Sure, “Monsters vs. Aliens” did well, but that was to be expected. Instead it would seem that ShoWest 2009 will go down as the year that Sony and its 4K SXRD technology took its decisive step into the limelight. No, it was not a case of audiences waking up and suddenly finding 2K resolution inadequate and demanding 4K, as Sony still hasn’t figured out how to create a pixel-fetish driven demand amongst cinema goers (free hint: don’t call it ’4K’ – call it an ’8 megapixel projector’ versus DLP’s ’2 megapixel’ – sure, it’s not correct, but since when did that stand in the way of aggressive marketing?).

No, it was three interlinked announcement that helped crown Sony Electronics (not SPE – Sony Pictures Entertainment) the unofficial King of the ShoWest hill. Read More »

Popularity: 43% [?]

Heavyweights Debate Self-Financing Of Digital Rollout At ShoWest

Panel members (from left) George Solomon, Julian Levin, Mark Christiansen and G. Kendrick Macdowell

(From left) G. Solomon, J. Levin, M. Christiansen and G. K. Macdowell

Las Vegas is a city known for its many spectacles; bright lights, showgirls, casinos, fancy restaurants and prize fights are all just some of the attractions.  So, it should come as no surprise that ShoWest, the annual gathering of motion picture exhibitors and distributors in Las Vegas, decided to add to the city’s attractions with their own version of a prize fight.  On Wednesday, the convention held a lunchtime panel discussion titled “Show Me The Money! Does Digital Self-Financing During A Credit Crisis Offer Hope?”.  One might ordinarily expect a panel discussion on financing to be incredibly dry, though whenever you mix senior level studio executives with independent theatre owners and raise the topic of the stalled digital cinema rollout, you are bound to see some sparks fly.

No doubt the ShoWest panel was put together in the wake of Paramount Pictures’ direct-to-exhibitor virtual print fee announcement.  Indeed, Mark Christiansen, Paramount’s Executive Vice President of Operations was one of the panel members.  He was joined by Julian Levin, EVP of Digital Exhibition and Non-Theatrical Sales & Exhibition at Twentieth Century Fox, Bill Campbell, Managing Director of the Cinema Buying Group, George Solomon, Southern Theatres CEO and Andrew Sriubas, a Managing Director of JP Morgan Investment Bank.  Moderating the brouhaha was the general counsel for the National Association of Theatre Owners, G. Kendrick Macdowell.

Christiansen started off by explaining that Paramount had a lot of exhibitors asking if they could install digital cinema equipment on their own, rather than rely on integrators to do so.  Paramount was able to capitalize on their existing relationship with theatre owners to put the direct-to-exhibitor virtual print fee agreement together.  Since the 21-page document was  made public in January, the industry has been combing over it in search of any detail that might be missing.  Christiansen doesn’t think they’ll find much. Read More »

Popularity: 32% [?]