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TOPIC: Why do studios play those 5% of theaters now-?

Why do studios play those 5% of theaters now-? 26 Sep 2011 17:49 #37073

  • Mike
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W"hy do studios play those 5% of theaters now-- A very good question.. They play them now because they can recycle the pints after they play on the break in better grossing theaters. Now the better grossing theaters will be digital hence no prints to play small houses."

There is another reason and it isn't just that everything gets calculated down to the last grossing %. It is that if you seek to have an international product you must be everywhere. Coca Cola, Levi's, Chevy, Wal-Mart knows as well as the film distribs that they want to be everywhere. Film companies are not the Trader Joe's that only show up in major markets.

I ran into a retired studio exec last month, used to run Disney, and he grew up in a town of 250 outside a town of 1600 in a western state and it still has a movie theatre today. Maybe the distribs are ready to write off every small town in the world and the Last Picture Show really is playing. Somehow I do not think so.

If you want to big you have to be everywhere. It all helps tv cable sales aftermarket VOD etc. etc.
Michael Hurley
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Re: Why do studios play those 5% of theaters now-? 26 Sep 2011 18:20 #37075

  • rufusjack
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So film will around forever and there is no need to convert to digital. If I was paying you to consult me, would you give that advice?
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Re: Why do studios play those 5% of theaters now-? 26 Sep 2011 22:37 #37083

  • JPRM
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I thought it was 5% of gross, not 5% of the number of theaters. (rufusjack, I think, had pointed out that it's 35% of theaters. I THINK that's right - don't want to misrepresent!)

Anyway, I see a fair number of these theaters playing films on the break now (in 35mm), so they'd either need to convert or continue to get prints.

And I think the 'want to be big' point is not to be overlooked! In talking to a booker quite awhile ago, he mentioned to me that studios get about 1% of their gross from second-run. When I started to have the 'why do they bother' thoughts, the best I could come up with in my very small brain was...marketing.

The print is already made, the studio marketing/advertising campaign is done, so why not keep your film in the mind of the public a little longer? Keep interest alive for the DVD, etc. Does it hurt to have the title "Cars 2" on a marquee on a busy street till the day it comes out on DVD? I reckon not.

Of course, there's also that last 1% to rake in...
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Re: Why do studios play those 5% of theaters now-? 27 Sep 2011 01:25 #37084

  • slapintheface
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I would tell my clients they must go digital if they are new.
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