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TOPIC: Clearance Question

Clearance Question 23 May 2010 16:14 #34016

Hello,

I am trying to start a couple of theaters, one to be re-openned and the other a new build. Both the existing theater and the location I have selected for the new build are both in competitive markets with larger theater companies nearby.

The new build theater will have 5 theaters within a 15 minute driving distance, however none of them are in the same city as the city I am planning to build in. The theaters are approximately 6 miles, 8 miles, 9 miles and 10 miles away from my proposed location. With every one of those theaters belonging to larger exhibitors, do I need to worry about any clearance issues? I know that other exhibitors can pull clearances with the distributors if another theater is within a short distance, however, can they still do this if I that theater is in a different city? All the cases of clearances I have heard of were dealing with cinemas within the same city.

The existing theater I am trying to re-open faces the same issue... Larger theater chains within a short drive, but all in different cities. When this theater was last open it did not have to deal with any clearances, however its last owners did not do much with it. I am concerned that if I can make it more successful, I may end up with the other chains wanting to cut me out. This theater really only has two theaters close enough for me to worry about it... one about 7 miles, the other 13.5 miles away. There is another big cinema about 16 miles away, but I figured that one was pretty much out of range for a clearance problem.

Any information concerning this issue would be helpful.

Thank you.
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Re:Clearance Question 23 May 2010 17:23 #34018

  • rufusjack
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I suggest contacting a booker to answer these questions for you. Larry who posts on here has been a good person to talk to.
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Re:Clearance Question 23 May 2010 19:21 #34019

  • slapintheface
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THE AVERAGE CLEARANCE IS 3 TO 5 MILES IN ANY MAJOR TO MID SIZE TOWN. In order to give you a correct answer we need the population . If your in a very rural area the clearance can be 10 to 15 miles away.
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Re:Clearance Question 23 May 2010 23:05 #34021

No, these are urban areas. The new build will be in the middle of a large metroplex (hundreds of thousands of people within a 30 minute drive) and the existing theater is in an area of mid-sized cities with good populations (17k-60k - the one 16 miles away having over 100k).
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Re:Clearance Question 24 May 2010 01:28 #34022

  • slapintheface
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then 3 to 5 miles is the norm
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Re:Clearance Question 24 May 2010 09:04 #34023

  • rufusjack
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Still it would not take much (time and $$) to have a booker call on your behalf to be certain what you could get. If that theater you would re-open was doing poor grosses, it would not matter how far away your competitors were.

It sounds like you should be okay but again, have it checked out first. One of the easiest tasks to do and may not cost you anything to do.
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Re:Clearance Question 26 May 2010 00:05 #34034

  • revrobor
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Why not use at least one of your theatres to do something DIFFERENT than the competition. There are many films out there (independent, foreign, faith-based) that never play multiplexes. The only time the circuits will look twice at you is when you're trying to go head-to-head with them. I second the advise about consulting (a thoroughly experienced) booker.
Bob Allen
The Old Showman
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Re:Clearance Question 26 May 2010 00:40 #34035

  • slapintheface
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This is a pretty simple question that anyone in the biz over a year can respond to..
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Re:Clearance Question 26 May 2010 08:20 #34038

  • rufusjack
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This is not that simple of a question. Instead saying yea you are find b/c you are more than 5 miles away, call or have someone call on your behalf to make sure. We do not know the reason(s) why the one theater closed. Studios will be skeptical if that theater was a poor grosser and if they never got paid from that theater. Re-opening closed theaters is not a slam dunk. I would want to know if I can get movies on the break in these locations before I spent one more $ on this.

I would also be concerned about the competition. The following previous posts can show how hard it can be to get a feel of a market. Why has no one else opened up in these areas? How will your theaters be better? Mercedes seats?

www.bigscreenbiz.com/Forums/The-Lobby/31...orrect-location.html

www.bigscreenbiz.com/Forums/The-Lobby/33...A-SINGLE-SCREEN.html
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Re:Clearance Question 26 May 2010 10:19 #34041

  • slapintheface
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the question was not will they make money ---the question is on clearance-- Those links you posted have no bearing on clearance. Your little mud slinging again just shows what a D--- you are.
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Re:Clearance Question 26 May 2010 10:22 #34042

  • slapintheface
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These are also multi- plex theaters not a single screen.
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Re:Clearance Question 26 May 2010 15:49 #34045

  • Mike
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deciding if it is a "go or no go" without adequate knowledge is dangerous. In my experience: there are no mile markers and on top of that in some sates clearances are illegal. Get professional advice.
Michael Hurley
Impresario
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Re:Clearance Question 26 May 2010 16:18 #34047

  • rufusjack
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Well said Mike. I have never seen any published rules by any studio regarding clearances. All just anecdotal. So I a not sure that one year's experience means you know anything about clearance.

Just because you do not have a clearance issue, does not mean you will get the movies you desire to play. I know I had to battle a bit early after re-opening a theater because of the prior operaters grosses.

As far as you believeing I am a d---, I will respond to that in the one of the other threads.
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Re:Clearance Question 26 May 2010 18:34 #34051

  • slapintheface
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So I a not sure that one year's experience means you know anything about clearance???---wow thats something you learn your first year.
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Re:Clearance Question 26 May 2010 19:26 #34053

  • rufusjack
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The subject of clearance has never come up in a conversation with any studio rep. that I have had. I have read stories of such on this website.
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