We surveyed lots of theater owners about their plans coming out of the pandemic about adding premium large format screens, about replacing their sound systems, about adding alcohol service, about continuing to replace their seats. And the numbers are really strong. Now that the business is coming back, the theater owners have already started to continue to innovate and improve the experience so that it’s always better than the home.
In both Los Angeles and New York, quite a few prime theaters that catered to independent film have shut down. Do you think independent film is struggling for a home nowadays?
There’s a fascinating thing to me that I’ve noticed throughout my 30 years of representing theater owners, and that is what happens in Los Angeles or New York suggest to the creative community, the moviemakers, the reporters who cover our business, and the financial community, that is the movie experience. There’s a lot more out there. One company, Pacific Theaters, which ran the ArcLight, is the only company in the country who filed Chapter Seven bankruptcy. They went out of business entirely. There were a couple Chapter 11 reorganizations, but the only one that said, “Eh, I’m done” was Pacific. It does not mean that the art houses across the country closed down.
What is a misconception people have about the movie theater business that you’ve tried to correct but didn’t succeed?
Ticket prices. Even through all the innovations and improvements in the technology, and the sound systems and the premium screens — all the ways that we’ve improved the cinema experience over the last decade or two, it’s still the case that the average price of a ticket today on a cost-of-living basis is less than it was in the 1970s. And yet people always say movie tickets are too expensive.
What are the biggest challenges facing the theatrical exhibition business going forward?
I think the existential challenges — the pandemic, the streaming wars — are gone. I’m really the most optimistic I’ve been in 30 years about the future of the business. The biggest immediate challenge is it’s going to take a while to fix the balance sheets.
Long term, it’s still about two things: the creation and distribution of really good movies that appeal to all demographics in all different genres, with diverse casts and diverse themes, and really good operational experiences at theaters that also offer diversity and different value-based judgments. If the studio partners keep making really good movies that appeal to diverse audiences, and we keep innovating and upgrading cinema experiences, I’m very bullish on the long-term health of the industry.
Nicole Sperling
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