Before we jump into this week’s editorial, I’d like to take a moment for a little self promotion.
First, our managing editor Helen Budge will be attending the 2024 Norwegian Cinema Conference being organized by Film & Kino in Lillehammer, Norway from 4-7 November to give a presentation on her well received editorial series, CJ People.
Secondly, on 7 November, our special guest on the CJ Cinema Summit will be Tony Chambers, Executive Vice President and Head of Theatrical Distribution at The Walt Disney Studios Company. As well, Dimitrios Mitsinikos, CEO of Gower Street Analytics will provide us with some insight into what audiences and exhibitors can look forward to for the remainder of 2024 and into next year. Christie and CINITY will be sponsoring the session (not to mention the very newsletter you are now reading). Register here.
Now, onto a subject that over the past two weeks has been generating a lot of conversation around industry-centric Los Angeles, as well as a lot of ink in trade publications and mainstream media; the definition and relevance of a theatrical release for a movie. The discussion revolves around two different movies at opposite ends of completion, both of which are being handled by Warner Bros.
The first is Clint Eastwood’s latest film “Juror #2” which, after premiering to generally positive reviews at the AFI Fest last weekend, began a limited theatrical distribution strategy. The movie is getting an extremely limited theatrical release in the United States, playing in fewer than 50 cinemas. This is in stark contrast to the film’s wider release in other countries like the United Kingdom, where it’s showing in over 300 theaters. In addition, Warner Bros. has made the unusual decision not to disclose box office earnings for “Juror #2” and the film is conspicuously absent from the studio’s “For Your Consideration” awards website.
“Juror #2,” which stars Nicholas Hoult, Toni Collette and Zoey Deutch, is a courtroom drama that was originally produced as a streaming release. Apparently, after the film tested well with audiences, Michael De Luca and Pamela Abdy, the co-chairs and CEOs of Warner Bros. Pictures Group, decided to give Eastwood’s film a theatrical run. Even so, there seems to be very little, if any, traditional marketing in support of “Juror #2,” which is perceived to be the 94-year-old Eastwood’s last film.
This raised questions about why Warner Bros. has such a limited distribution plan for the movie, with widespread industry speculation pointing towards Warner Bros. Discovery CEO David Zaslav being behind the move, as he had been critical of of green-lighting Eastwood’s films based on their long-standing relationship rather than quality. Something about it being called “show business” not “show friends.” There is no proof that Zaslav had anything to do with planning the theatrical run of “Juror #2,” though the whole situation generated a debate over what constitutes a true theatrical release. The jury is still out on that one and has been for several years. A verdict seems a long way off.
In the same moment that Warner Bros. is being criticized for throttling the theatrical distribution of “Juror #2,” the studio is winning bidding wars for high profile projects with A-list talent in large part because they promise a traditional theatrical release. More impressively, they are doing so by offering to pay far less than other bidders.
When Emerald Fennell, known for directing edgy films like “Promising Young Woman” and “Saltburn,” announced she will be directing an adaptation of Emily Brontë’s classic novel “Wuthering Heights” as her next project, there was plenty of interest. Once Margot Robbie signed on to play the main character, Catherine Earnshaw, and Jacob Elordi was cast as Heathcliff, Fennell had her pick of studios and streaming services to work.
Though Netflix offered to pay USD $150 million to land the production, Fennell and Robbie, who is also producing the film through her LuckyChap production company, chose Warner Bros. which offered them a production budget of USD $80 million. To be sure, LuckyChap has a first-look deal with Warner Bros., however it was the willingness of the studio to provide the film with a theatrical release supported by a generous marketing campaign that sealed the deal.
Robbie has never starred in a streaming movie and it appears she doesn’t want to start now. Meanwhile, Fennell has had experience working for a streamer on “Saltburn,” which was distributed by Amazon Studios. Her gothic, modern spin on Evelyn Waugh’s “Brideshead Revisited” spent 30 days in theatres domestically, in the United Kingdom and Australia, before being sent to Amazon’s Prime streaming platform, where it was wildly popular. Still, Fennell seemingly wants “Wuthering Heights” to have a robust theatrical distribution, something she knew would be impossible with Netflix.
Ted Sarandos, Co-CEO and Chief Content Officer at Netflix confirmed this just a few days before Warner Bros. picked up Fennell’s project. “I’m just going to reiterate, we are in the subscription entertainment business,” he said during the company’s third quarter earnings call. “What we do for filmmakers is we bring them the biggest audience in the world for their films, and then we help them make the best films of their life. I’m sure that we can continue to pierce the zeitgeist and have those moments in the culture, even when those moments begin on Netflix.”
Ultimately it says a lot about the perceived value of a theatrical release that the same industry-insiders who are baffled by why Warner Bros. is “burying” a well reviewed title from a decorated filmmaker all agree Fennell and Robbie made the right choice in selling their their latest project to that same studio for 47% less than Netflix.
Film Festivals
Japan’s Thriving Film Industry On Display at the Tokyo International Film Festival
The Tokyo International Film Festival kicked off last Monday amid a general election that saw a reduced parliamentary mandate for the ruling Liberal Democratic Party. Despite this political shift, Japanese audiences remain enthusiastic about movies, with the country’s movie industry showing resilience in the face of sector-wide challenges. Japan’s theatrical box office is expected to grow moderately this year, with forecasts predicting a year-end total of $1.88 billion, solidifying Japan’s position as the world’s third-largest cinema market.
Japanese films have been especially popular, accounting for nine of the top ten titles in 2024, led by the blockbuster “Detective Conan: The Billion Dollar Pentagram.” Hollywood has struggled to compete, with “Inside Out 2” being the only U.S. film in the top ten, earning $34.4 million. This trend underscores the increasing challenges faced by foreign studios in the Japanese market. Vivek Couto, executive director at Media Partners Asia, noted, “Encouragingly, the number of theatrical releases [in Japan] has recovered back to pre-COVID levels, and local movies continue their dominance at home with roughly 70% share of gross box office.”
The Tokyo festival also highlights Japan’s growing diplomatic connections with China, featuring three Chinese films in its main competition, a trend that aligns with a cautious warming in Japan-China relations. Japan’s Prime Minister, Ishiba Shigeru, addressed the festival via video, demonstrating the importance of the industry. In emphasizing the importance of Japan’s content industry, he said it rivals that of steel and semiconductors in export value. The Prime Minister proved he was up-to-date with industry trends when he highlighted the government’s efforts to support film co-productions, referencing the recent Japan-Italy coproduction treaty as an example of this initiative.
Source: Variety
Premium Large Format
IMAX’s Third Quarter Earnings Highlight Growth and Profitability
In reporting their financials for the third quarter of 2024, IMAX was able to surpass earnings expectations despite a slight decline in revenue. The company announced a net income of USD $13.9 million, representing a 16% increase compared to the same period last year, with earnings per share of USD $0.35, significantly exceeding analyst forecasts of USD $0.22.
Keeping in mind that last year “Oppenheimer” over-performed for IMAX during the third quarter, in 2024 the period saw revenue fall to $91.5 million, reflecting a 12% decline year-over-year. However, the company demonstrated improved profitability with a profit margin of 15%, up from 12% in 2023.
For Richard Gelfond, the CEO of IMAX, it’s all about creating a sustained era for growth for the company over the next several years. “As we look forward, we expect 2025 to be our best year ever at the global box office, with more than $1.2 billion in IMAX grosses worldwide,” he said, highlighting at least 14 Filmed for IMAX releases shot on the company’s cameras scheduled to hit their screens. That number of screens expanded with IMAX completing 49 system installations completed in the third quarter alone, marking a 63% increase from the previous year.
Source: Celluloid Junkie
Cinema Service Providers
Fithian Group Announces Distribution Platform Connecting Filmmakers and Cinema Operators
For anyone wondering what The Fithian Group has been up to, the firm used last week’s Australian International Movie Convention (AIMC) to unveil an online theatrical distribution marketplace. The group, made up of former National Association of Theatre Owner executives John Fithian, Jackie Brenneman and Patrick Corcoran, has been quietly working on the platform for some time now. It is designed to connect filmmakers directly with theatre owners and streamline the booking process.
According to Brenneman, Attend aims to reverse a years-long trend of declining mid-range releases. While the number of theatrical releases has dropped in the post-pandemic era by 26%, the Fithian Group reports that the number of mid-range titles is off by 29%. This has caused a 38% decline in revenue and 47% admissions for mid-range films, underscoring the platform’s mission to reinvigorate theatrical releases and make them more accessible.
The platform will utilize data-driven strategies for theatre selection, scheduling, and marketing to help these films reach broader audiences. Jackie Brenneman emphasized the platform’s potential, stating, “Attend expands possibilities for filmmakers and non-studio movies to reach audiences and to expand the reach and efficiency of existing distributors.” The Fithian Group is partnering with the Vista Group to develop Attend with plans to initially launch the solution in the United States and Australia, with an alpha phase beginning in the U.S. in early 2025.
Source: Celluloid Junkie
Box Office
German Box Office Is Down Through First Nine Months of 2024
Germany’s box office has experienced a notable downturn in 2024, with ticket sales and revenue falling significantly compared to last year. Preliminary figures from Comscore show the box office for the first nine months of 2024 are down by 16% year-on-year, totaling EUR €559 million. Approximately 57 million cinema tickets were sold between January 2 and October 2, a 14.5% drop from the same period in 2023, making it unlikely that the target of 90 million admissions for the full year will be met.
Disney is the top distributor in the market 2024, overtaking Warner Bros, with a total box office revenue of EUR €117 million and 11.85 million admissions. “Inside Out 2,” released in mid-June, has been the top-performing film of the year, grossing over EUR €51 million with 5 million admissions. Warner Bros’ “Dune: Part Two,” which had led earlier in the year, now trails with EUR €38 million in earnings. Remarkably, “Inside Out 2” remained in the top 10 in late September, still showing at 640 locations after 14 weeks.
Among local German titles, Constantin Film’s comedy “Chantal in Fairyland” has been the most successful domestic release, grossing EUR €27.4 million. Close behind is “School of Magical Animals 3,” which earned EUR €10.2 million in just two weeks and has passed the one-million admissions mark. The family film franchise, based on Margit Auer’s book series, continues its winning streak after its first two installments were the top-grossing local films of 2022 and 2023.
Source: Screen Daily
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