It is supposed to be summer, at least here in the northern hemisphere. It’s a time that historically is meant to be filled with relaxing, laid back sunny days, family vacations, blockbuster movies that earn beaucoup box office and most importantly, at least for those of us here at Celluloid Junkie, a string of incredibly slow news days. What we’ve gotten this summer is a never-ending heatwave due to some atmospheric occurrence known as a “heat dome,” torrential rains flooding entire cities within minutes, exorbitantly priced airfare, supposedly underperforming film releases and, worst of all, more industry news stories than one small trade publication could possibly handle.
I mean, I was personally hoping for a few quiet weeks after CineEurope to do some strategic planning for longterm initiatives, you know, the kind that we always say will be done by next summer. Instead, the industry is now contending with not one, but two labor strikes for both writers and actors which have halted film and television production. It’s the first time both the Writers Guild of America and the Screen Actors Guild have been on strike at the same time in over 60 years. So just as cinema operators were getting a steady flow of new film releases they now have to prepare for a drought at some point during the next 18-months.
There are a ton of business stories to research that have nothing to do with the WGA/SAG strikes such as Cineworld exiting bankruptcy, Empire Cinemas entering administration in the United Kingdom and the pending court ruling over AMC’s shareholder settlement. And don’t get me started on whatever absolutely insane conspiracy theories have generated the frenzy of headlines around Angel Studios’ hit “Sound of Freedom.”
Oh, and what’s with all the announcements concerning industry CEOs? We’ve got Donna Langley getting a well earned promotion at NBCUniversal, Bob Iger extending his contract as Disney CEO for two years and the restructured Cineworld landing Eduardo Acuna as their new CEO. Couldn’t these kind of personnel decisions have waited until September when trade journalists are prepared to work overtime getting the word out?
And before anyone writes back telling me that I’d complain just as much if there were no news to report or that it’s better than the summer of 2020 when there was only bad news, well, you’d be right… on both counts. I guess I’ll try and adopt filmmaker Christopher Nolan’s attitude. When asked about having his latest movie, “Oppenheimer,” open against “Barbie,” he said optimistically, “Summer, in a healthy marketplace, is always crowded… I think for those of us who care about movies, we’ve been really waiting to have a crowded marketplace again, and now it’s here and that’s terrific.”
So fine, I guess if there are a lot of exhibition and distribution updates to cover this summer then it’s a sign of a “healthy” industry and I won’t complain. But can someone at least find out if there is a retractable roof on this heat dome thing so we can all cool off a bit?
Movies
“Sound of Freedom” Rings Up Box Office and Conspiracy Theories
Most distributors would be ecstatic to get the kind of mainstream media attention Angel Studios is getting for one of their indie movies. However, “Sound of Freedom” isn’t just generating headlines as an unexpected box office hit, finishing its debut weekend with USD $19.7 million before topping blockbusters such as “Indiana Jones and the Dial of Destiny” by mid-week. Instead news stories have revolved around the film’s association with the conspiracy group QAnon as well as conspiracy theories that movie theatre chains are actively trying to prevent audiences from seeing the movie.
The movie stars Jim Caviezel as Tim Ballard, a former Homeland Security investigations agent who started an organization called Operation Underground Railroad to combat child sex trafficking. Posts on social media platforms like TikTok and Twitter, accused major theater chains, particularly AMC Theatres, of trying to alienate viewership for “Sound of Freedom” through various methods; turning off air conditioning in theatres, claiming empty auditoriums are sold out and in once case trying to smoke the patrons out of the cinema. One post from someone claiming to be an AMC employee said he was ordered to pour a liquid containing nanobots into the drinks of moviegoers seeing film. Seriously!
AMC’s CEO Adam Aron has disputed these theories, emphasizing the film’s wide release and significant viewership throughout the circuit. Angel Studios published a statement confirming that AMC has been one of its best partners on “Sound of Freedom.” Rather than viewer suppression most theatre owners will see the issues being highlighted as common operational snafus, even if handled poorly. When projector bulbs blow they sometimes smoke, exhibitors cap attendance in auditoriums during times they aren’t properly staffed given the unusual heatwave affecting certain parts of North America, overtaxed air condition systems fail.
It hasn’t helped that Caviezel’s attempt to distance “Sound of Freedom” from QAnon during interviews managed to do just the opposite. Rather than regret abandoning a potential box office hit, Disney, which shelved the film when it acquired Twentieth Century Fox, is probably happy to have avoided the headache.
Despite all of this, or perhaps because of it, “Sound of Freedom” has managed to attract moviegoers thanks to a marketing strategy that targets both its core Christian audience and attempts to appeal to a broader mainstream audience.
Source: Newsweek
Exhibitors
Eduardo Acuna Set to Become CEO of Restructured Cineworld
For those of you who put their money on longtime Cinépolis executive Eduardo Acuna becoming the Chief Executive Officer of Cineworld as it emerges from bankruptcy as a restructured company, well, congratulations. Cineworld’s lenders have officially proposed Acuna take over the role, formerly held by Mooky Greidinger.
This is a smart move for Cineworld, the world’s second largest movie theatre chain, as Acuna is a very well respected exhibition executive who has been working in the industry for decades. Acuna, who is fluent in at least three languages, has been the President of Cinépolis Americas since 2015. He began his career at Cinépolis in 2005 and worked his way up the corporate ladder. In his current role, he heads all operations for Cinépolis in 11 countries across North America and South America. Previously, Acuna served as President and CEO of Cinépolis Brazil. He began his career in consulting and banking with positions at McKinsey & Company in Mexico and Argentina, Goldman Sachs in New York and the Bank of Mexico. Acuna currently serves on the Board of Directors at Global Cinema Federation and The Cinema Foundation.
To be sure, it is perfectly understandable that Cinépolis might be disappointed to lose a seasoned executive such as Acuna, though we would suggest that Cinépolis should feel proud at having enabling the continued growth of its senior management, something the exhibitor has gained a deservedly solid reputation for allowing.
Source: Celluloid Junkie
People
Bob Iger to Remain CEO of Disney Through 2026
Now here’s a bit of news that should come a shock to absolutely nobody; Robert Iger has “agreed” to remain the Chief Executive Officer of the Walt Disney Company through 31 December 2026. The company’s board of directors has unanimously approved an extension of Iger’s contract. Is it a coincidence that this should come a week after Donna Langley, a potential successor, was promoted to Chief Content Officer at NBCUniversal? Perhaps.
This is a move that just about everyone in the entertainment industry knew would occur when Iger returned to Disney for his second stint as CEO last November. At the time he was replacing his hand-picked successor Bob Chapek who oversaw the entertainment giant as its share price sank and various business arms struggled. Iger previously served as Disney’s CEO from 2005 through 2020. When came back for what was said to be two years to steady the company and search for a new CEO it was believed the time frame was too short.
In a statement announcing the contract extension Iger acknowledge having had to make difficult decisions over the past seven months, including laying off 7,000 employees, in order to address “existing structural and efficiency issues.” He went on to say, “I believe Disney’s long-term future is incredibly bright, but there is more to accomplish before this transformative work is complete…”
Source: Celluloid Junkie
Premium Large Format
IMAX to Acquire Full Ownership of IMAX China
IMAX is making a bid to acquire the outstanding 96.3 million shares in IMAX China, its Hong Kong based subsidiary that oversees its business in Greater China. Purchasing the remaining 28.4% of IMAX China that it doesn’t own will cost roughly USD $124 million, representing a 49% premium over the 30-day trading average of the subsidiary.
The proposed acquisition of IMAX China will enable greater operational flexibility to pursue new growth opportunities and applications of IMAX technology in the Chinese market. IMAX China was established as a subsidiary of IMAX Corporation in 2011. IMAX China attracted financial partners in the market to help drive growth and listed on the Hong Kong Stock Exchange in October 2015. Today, there are more than 770 IMAX commercial locations in Greater China — the most of any market in the world.
If the shareholders of both countries, not to mention government authorities, approve the transaction the deal should be closed by the end of 2023. When asked about the political and economic tensions which currently exist between China and the west, Rich Gelfond, the CEO of IMAX said the company has good relations with the Chinese government and sees prospects in the country improving, “Hollywood films are securing release dates in China with increasing consistency,” he said. “We consistently deliver double-digit opening weekend box office market share on Hollywood releases, even though we are on 1% of screen penetration in China.”
Source: Celluloid Junkie
Exhibitors
Empire Cinemas Enters Administration in the United Kingdom
Empire Cinemas, a cinema chain in the UK, has closed six of its locations and faces the potential closure of eight more as it falls into administration. The company cited the significant impact of the COVID-19 pandemic and a cost of living crisis as major factors affecting its business. The closed Empire cinemas are located in Bishop’s Stortford, Catterick Garrison, Sunderland, Swindon, Walthamstow, and Wigan, leaving the latter two cities without a main cinema. The remaining sites will continue to operate as administrators seek a buyer.
According to local reports, employees arrived at their branches on Friday to find closure notices on the windows. BDO, the administrators, stated that Empire employed a total of 437 staff across England and Scotland. The closures have sparked an outcry on social media, with some patrons attributing the company’s difficulties to high ticket and concession prices in addition to the pandemic.
Empire Cinemas was established in 2005 through the mergers of Odeon and UCI, and Cineworld and UGC. The Office of Fair Trading ruled that the newly formed groups should divest some of their cinemas, creating an opportunity for Empire Cinemas to be formed. Prior to the closure of the six cinemas, the chain operated on 129 screens, including IMAX and IMPACT screens.
Source: BBC
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