Tag Archives: NATO

NATO Reports Declining Ticket Prices

November 5, 2011

In Technorati Media’s “State of the Blogosphere 2011” report it is noted that the number one influencer of bloggers, whether professionals or hobbyists, is other blogs. Over 60% of all bloggers surveyed say they look to other blogs to find topics and subjects to write about. All the copy-cat posts on the same news story or subject have led some to criticize the blogosphere as nothing more than an echo chamber of people all writing about the same ideas in the same way.

Such an effect was demonstrated over the past two days with a news story about the decline of movie ticket prices. I first saw the story posted yesterday on The Wrap followed shortly after by one published on the Hollywood Reporter‘s website. They stated the National Association of Theatre Owners had announced the average ticket price for the third quarter of 2011 had dropped to USD $7.94. That’s lower than the second quarter’s record setting USD $8.06, but higher than the USD $7.86 price of 2011′s first quarter.

The publications “attributed” the price drop to having fewer 3D releases in the quarter, in comparison to the higher number of titles released in the second quarter. Both stories were short and practically carbon copies of one another leading me to believe they must have been citing a press release of some sort.

I waited for NATO’s press release to arrive via email for confirmation of the news, though nothing ever arrived. So, I went to the press release section of the organizations website, but found nothing had been published since October 14th.

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Universal Cancels “Tower Heist” Premium-VOD Test

By J. Sperling Reich

October 12, 2011

Ben Stiller and Eddie Murphy Star In "Tower Heist"

Well that didn’t take long. Facing stiff opposition from exhibitors Universal Pictures has decided to scrap its plan of releasing “Tower Heist” on premium-video-on-demand three weeks after its November 4th release. The move comes a week after the studio originally announced its intentions to run a PVOD test in Atlanta and Portland which would make the film available to about 500,000 cable subscribers for USD$59.99.

No doubt the number of exhibitors willing to boycott the film outright had a great deal to do with the decision. Previously Cinemark, Emagine Theatres, Galaxy Theatres, Regency Theatres and an additional 50 screens owned by independent operators all publicly stated they would not be booking the film if Universal went ahead with the premium-VOD test. Then today National Amusements joined the list of exhibitors opting not to show “Tower Heist”. With 950 screens worldwide, National Amusements is one of the largest chains in the United. States. Bloomberg reported that of the 39,000 screens in the U.S., 12% were participating in the boycott.

If that figure directly corresponds to the drop in box office Universal could expect for “Tower Heist” then that’s significant. Given that it is predicted the film will make upwards of a USD $100 million or more, that could mean foregoing USD $12 million in receipts. It’s unlikely that Universal’s PVOD test would have brought in as much, even if the studio decided to roll it out nationwide. Try explaining that to talent whose contracts are tied to theatrical box office gross.

So earlier today Universal released a prepared statement reversing their decision to test PVOD with “Tower Heist”:

“Universal Pictures today announced that in response to a request from theater owners, it has decided to delay its planned premium home video on demand (PVOD) experiment. Universal continues to believe that the theater experience and a PVOD window are business models that can coincide and thrive and we look forward to working with our partners in exhibition to find a way to experiment in this area in the future.”

Before Universal’s original plan was made public, they reached out to key theater owners to inform them of their desire to release “Tower Heist” on PVOD. I’m not sure what came of these conversations or whether they were more of a warning to exhibitors rather than a request or negotiation. Jon Fithian, head of the National Association of Theatre Owners, who had been mum on Universal’s plans until today, referenced this ongoing dialogue in his response to the studios about-face:

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A Deeper Look At Sony’s Battle With Exhibitors Over 3D Glasses

By J. Sperling Reich

September 30, 2011

Some industry professionals will look back at September 27, 2011 as the day motion picture studios took their first step on what may be a long road to end the practice of subsidizing 3D glasses for their movies. Others will remember it as the day the inevitable finally happened.

For those who still aren’t aware of the events of the past week, I’d like to be the first to officially welcome you to the planet earth and invite you to join us as we read between-the-lines of this latest industry scuffle. On Tuesday of this week The Hollywood Reporter broke the news that Sony Pictures Entertainment had sent a letter to North American theatre owners stating as of May 1, 2012 they would no longer pay for 3D glasses. What makes this major industry news is that Twentieth Century Fox tried a similar move back in 2009 with the release of “Ice Age: Dawn of the Dinosaurs” but retreated when exhibitors revolted en masse. They now fear Sony might succeed this time around causing other studios to follow suit. Talking to the Reporter, Sony’s president of worldwide distribution. Rory Bruer said:

“This is an issue that has to be resolved between us and our exhibition partners. We are trying to give them a very lengthy lead time in regards to the change in policy.”

As one might expect, it didn’t take long for the National Association of Theatre Owners, the trade organization which represents exhibitors, to respond to Sony’s move. Their press release dated September 28, 2011 stated:

NATO believes Sony’s suggestion is insensitive to our patrons, particularly in the midst of continuing economic distress. Sony’s actions raise serious concerns for our members who believe that provision of 3D glasses to patrons is well established as part of the 3D experience… we are concerned that Sony’s attempt to change this business model would unilaterally upend long-standing industry practices… Sony would be well advised to revisit its decision.

There were some grumblings from theatre owners and the media that NATO’s statement had no bite, though making sweeping threats is not necessarily their responsibility. This is not true of the organization’s members, like Amy Miles, chief executive officer of Regal Entertainment, who said if Sony stuck with their announced plan to stop paying for 3D glasses, then her circuit might show 2D version’s of Sony’s films in the future.

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Posted in Digital 3D

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CinemaCon 2011: Fithian Urges NATO Members To Begin Digital Transition

By J. Sperling Reich

March 30, 2011

John Fithian At CinemaCon 2011

John Fithian, President of the National Association of Theatre Owners, gave his annual State of the Industry address yesterday at the trade group’s inaugural CinemaCon convention in Las Vegas. His speech covered all the necessary points while reiterating some of the comments about the digital cinema transition which Fithian has made to smaller groups over the past several months.

He began with a handful of statistics that highlighted some economic figures, including a global box office which climbed 30% over the past five years to reach USD $31.8 billion in 2010. North American box office receipts rose 15% to USD $10.6 billion in that same period, while inflation only rose 8%. In what was perhaps a jab at the studios rumored plans to begin offering new films via premium video-on-demand, Fithian compared these numbers to home video sales, which have declined 13% during the past five years.

Fithian also provided an update on North America’s digital cinema roll out, telling the audience of over 2,000 delegates that almost 16,000 screens, out of a total of 39,000 had been converted to digital. Nearly 9,000 of those screens are equipped for 3D projection. After running through more industry numbers than most could ever remember, Fithian paused as he came to the most important point in his speech:

“For any exhibitor who can hear my voice who hasn’t begun your digital transition, I urge you to get moving. The distribution and exhibition industries achieved history when we agreed to technical standards and a virtual print fee model to enable this transition. But the VPFs won’t last forever. Domestically, you must be installed by the end of 2012 if you want to qualify. Equally significantly, based on our assessment of the roll-out schedule and our conversations with our distribution partners, I believe that film prints could be unavailable as early as the end of 2013. Simply put, if you don’t make the decision to get on the digital train soon, you will be making the decision to get out of the business.”

Fithian went on to remark that admissions had climbed in each of the last four decades and that 3D grosses in 2010 made up 21% of total receipts, doubling the amount such films earned in 2009. However, his earlier comments about the ongoing digital cinema transition is what most of the show’s attendees focused on after Fithian’s speech concluded. Was it true that all cinema owners had to convert their screens to digital before 2012 to qualify for a VPF? Are studios really going to stop distributing 35mm film prints after 2013?

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Posted in Trade Shows

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First Run Movies Headed Into The Home At Premium Prices

By J. Sperling Reich

December 13, 2010

The debate over motion picture release windows heated up again last week as two studios spoke openly about their plans for allowing limited home viewing of movies shortly after their theatrical opening. In addition, news came of a pricey new service looking to make films available in living rooms day-and-date with their theatrical launch.

On Tuesday, Sony’s CFO, Rob Wiesenthal, said that his company was not only looking to cable and satellite operators to provide early releases for the studio’s titles, but has high hopes for its new streaming video service, Qriocity. The service was established earlier this year to beam content directly into Sony’s consumer electronics products (televisions, video game consoles, Blu-Ray players, etc.).

Speaking at the UBS Global Media and Communications Conference in New York, Wiesenthal spoke of the “big white space” between theatrical and home video release dates for movies, stating there was “a real consumer desire for a premium offer” for such content. He did not cite any studies or reports to back up the claim that consumers were clamoring for such services.

In fact, it often seems that the only people making such statements publicly are the studios themselves, rather than moviegoers. This is probably because a number of studios are exploring premium video on demand models that will enable them to release movies for home viewing during their theatrical window but with significantly hire prices; around $30 per viewing.

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Posted in Business

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NATO Responds To ‘Twilight’ Pirate’s Lawsuit

By J. Sperling Reich

July 14, 2010

Less than 24-hours after we posted a story on the lawsuit filed against Muvico by a 22-year-old for being arrested for filming inside a movie theatre an email arrived from Patrick Corcoran, the National Association of Theatre Owners’ Director of Media & Research.

Corcoran not only provided a statement about Samantha Tumpach’s suit, but along with Brigette Buehlman also filled in a few details about the organization’s Take Action reward program.

Tumpach was arrested in November for filming portions of “Twilight: New Moon” during her sister’s birthday party inside a Chicago movie theatre. Her suit alleges that she was given no warning to stop filming and that even after the MPAA suggested releasing her, the theatre’s management had her arrested to collect a reward for stopping a camcorder pirate.

In our previous post Corcoran pointed out that Tumpach’s assertions were printed as fact, rather than allegations. Fair enough. That the history being presented was being drawn from Tumpach’s allegations and news reports could have been made clearer.

Corcoran also wrote:

“Any upset or unpleasantness Miss Tumpach believes she has suffered was a consequence of her own actions. Muvico was well within its rights to act as they did. Recording any part of a movie in a theater is illegal.

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NATO Sets Dates For Inaugural CinemaCon

By J. Sperling Reich

June 3, 2010

It’s hard to believe it’s been more than two years since the National Association Of Theatre Owners (NATO) announced they would be taking control of their annual trade show in 2011 when their contract expired with Nielsen Film Group. At ShoWest in March NATO made public the name of their new confab, Cinemacon. Now NATO has solidified the dates of the revamped convention, which will be held at March 28th to March 31st, 2011 at Caesars Palace in Las Vegas.

ShoWest ran for 36 years and grew into one of the largest and most important annual events for motion picture exhibitors and distributors. NATO is planning for CinemaCon to take up the mantle of largest annual gathering of worldwide theatre owners and as such are moving the event across the Vegas strip from Bally’s and Paris Hotels to Caesars Palace.

The new venue will offer more modern facilities and is meant to accommodate the size of the trade show, especially when it comes to screening product reels and upcoming releases from big Hollywood studios. Such presentations will be held in The Colosseum, a 4,200 seat theatre usually reserved for the likes of Celine Dion and Elton John. NATO is expecting 5,000 attendees at the first CinemaCon.

Like ShoWest, NATO plans for CinemaCon to set the tone for the upcoming summer movie season and will fill the schedule with “sponsored events, seminars, trade show, screenings, product presentations and a gala award show”.

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MPAA’s Glickman, NATO’s Fithian Deliver Upbeat Industry Prognosis

By J. Sperling Reich

March 17, 2010

Gan Glickman & John Fithian (ShoWest - March 16, 2010).jpg

Dan Glickman and John Fithian at ShoWest

The National Association of Theatre Owners president, John Fithian, and the outgoing chairman of the Motion Picture Assn. of America, Dan Glickman, trumpeted 2009′s record breaking box office grosses as well as advances in piracy protection during their annual “State of the Industry” address at ShoWest on Tuesday. What seemed more important to everyone in attendance however was that the speech marked the last appearance by Glickman as the head of the MPAA.

Not that Glickman plans on disappearing entirely. As he put it moments before walking onstage to deliver his remarks, “It may not be my last time at ShoWest, hopefully it is not. John has promised to invite me every year, but it’s my last time in this job.” Glickman is leaving his post April 1st to take over as head of the non-profit organization Refugees International.

Of course, technically this will be the last time Glickman attends ShoWest since NATO will be taking the show over next year and changing its name to CinemaCon. Glickman may not have to worry about getting an invite though, for Fithian had nothing but kind words to say about him. “He really has contributed an amazing amount of leadership and support to this industry over the last six years, from intellectual property to the ratings system to opening up new markets oversees,” Fithian said of Glickman. He’s been just a terrific partner. . . he will be sorely missed by those of us in the movie business.”

Speaking of the movie business, it’s apparently doing quite well, at least theatrically. Fithian highlighted the USD $30 billion international box office gross earned in 2009 with USD $10.6 billion coming from North American, an increase of more than 10%. The NATO exec credits the ongoing theatrical success to advances in technology which have allowed for better presentations at modern luxury cinemas and the ease of purchasing tickets on mobile devices or online. Studios were also major contributors by spreading out their releases according to Fithian:

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NATO To Transform ShoWest Into CinemaCon

By J. Sperling Reich

March 16, 2010

On the first day of this year’s ShoWest, the National Association of Theatre Owners (NATO) has made it known that when they take back the event next year it will undergo a name change to CinemaCon. The logo being used for the annual convention of theatre owners and movie distributors can be seen above.

ShoWest (which is taking place in Las Vegas now through March 19th) was originally NATO’s annual trade show. The group still co-produces the event, however ten years ago they contracted with the Sunshine Group to actually organize and run it. Since then, the Sunshine Group was purchased by Nielsen Business Media who ran the conference as a for-profit endeavor. In 2008, NATO announced it would launch it’s own convention in 2011, once the contract for ShoWest expired. Since the ShoWest name is now owned by Nielsen, NATO had to come up with a different moniker.

In talking with NATO spokesman Patrick Corcoran about the new show he stated, “By running a new non-profit convention, NATO can provide greater value at lower costs to theater industry. Having a show run by and for the industry allows us to celebrate and promote moviegoing in a way that benefits the industry and our customers.”

NATO’s president, John Fithian, echoed Corcoran’s comments during a press conference held early Tuesday morning, just before his annual State of the Industry address:

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Fithian Keynote Kicks Off ICTA Tech Conference

By J. Sperling Reich

January 20, 2010

John Fithian of NATO

Not even a record setting rain storm could keep cinema professionals away from the Universal Hilton in Universal City yesterday where the International Cinema Technology Association was holding it’s annual tech conference. After a Monday evening cocktail reception, the program began in earnest with a keynote address from John Fithian, President of the National Association of Theatre Owners.

In a speech billed as a “State of the Industry” in the conference schedule, Fithian covered a wide range of hot button topics not all of which were geared strictly to many of the motion picture engineers in the room. He began by recapping the box office records that were shattered in 2009, a year which saw North American combined grosses surpass the USD $10 billion mark. Fithian was quick to point out that such earnings were not due to just the rise in ticket prices, but rather an increase in the number of patrons visiting cinemas nationwide. In fact, decade-over-decade, the average number of moviegoers rose from 995 million in the 1970′s to 1.13 billion in 1980′s upwards to 1.28 billion in the 1990′s settling at 1.44 billion for the decade which just ended.

A good portion of Fithian’s talk was focused on many of the reasons 2009 was such a spectacular year for the cinema business and how the industry might continue to grow even more. He detailed three key drivers he believed were responsible, not the least of which was the major studios getting better at understanding there are 12 months in the calender. Fithian stated:

For years we put out everything in the summer, we put out everything in the holidays and you couldn’t find an person in the cinema in February or September. That is no longer the case…. we’re getting good pictures that appeal to different demographics with different genres spread throughout the 12 months and that’s fantastic. That’s what we have to have.

Affordability of movies as a form of entertainment was the second reason Fithian gave for 2009′s growth. Despite the increase in ticket prices over the years, and even with the premium for 3D films, the price of a movie ticket has not outpaced inflation. In 1969 the price of a movie ticket in the U.S. was USD $1.42. In 2009 that price had risen to a nationwide average of roughly USD $7.56. If ticket prices had kept up with the rate of inflation, then starting with USD $1.42 in 1969, we should presently have an average ticket price of USD $8.37.

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