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TOPIC: new terms from WB

Re: new terms from WB 04 Jul 2007 12:08 #15586

  • leeler
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wonder what the dollar theaters are going to be hit with.....
"What a crazy business"
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Re: new terms from WB 04 Jul 2007 12:31 #15587

  • rodeojack
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I only charge $3.50 for all tickets.

I'm impressed you could even get a print. Around here, first-run prices are between $8.50 and $9.75, with matinees running around $6.50.
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Re: new terms from WB 04 Jul 2007 13:01 #15588

  • muviebuf
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The studios are prohibited by law from telling theatres what to charge. Therefore "Per Caps" have been historically used to nudge the price in the direction that the studios want it to go.

In the old days the distribs sometimes would claim they would not have a print available if they did not like your admission price. In these days of 8,000 to 10,000 prints for releases like Potter this clearly does not pass the smell test.
wonder what the dollar theaters are going to be hit with

As I have pointed out in previous posts, there are first runs venues run by the major chains (e.g. Carmike Cinema 3 in Oneida TN) where they charge $1.00 all seats during the week and $3.00 on the weekends and they get all the major first run pictures on break. I am sure if you ask the studios they will insist that these venues have paid the requisite per capitas. And just how do you prove otherwise?
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Re: new terms from WB 04 Jul 2007 19:24 #15589

  • jholliger
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Our booker has rescheduled all his HP openings... seems WB is willing to postpone the per cap increase till after Harry... I didn't think he'd be able to pull it off... gotta take my hat off to him (and wipe the sweat from my brow as we had already started preselling).
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Re: new terms from WB 05 Jul 2007 00:30 #15590

  • BurneyFalls
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I read the letter again and I realize now I did not read it correctly the first time. My "blended per cap" is $4.25. I am still not happy with this new per cap, but I don't find it as terrible as I first thought.

Rather than take their monetary frustrations and poor investment strategies out on the exhibitors (many who barely survive as it is) why not cut the over-inflated actors and directors pay? Seems like the studios would be ahead of the game that way.

Is it time for us to organize a truly influential exhibitor organization?
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Re: new terms from WB 05 Jul 2007 11:09 #15591

  • Transit Drive in
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<BLOCKQUOTE><font size="1" face="Verdana, Arial, helvetica">quote:</font><HR>Originally posted by BurneyFalls:
Is it time for us to organize a truly influential exhibitor organization?<HR></BLOCKQUOTE>

There already is one existing, it is called NATO. You might actually try attending one of their meetings in Chicago, ShowEast, or ShoWest if you would like to learn more about how they serve the exhibition industry and their member theatres. They even have an Independent Theatre Owners Committee
for us small fries. I have found my membership to be very valuable both personally and professionally.

If you really think a group of small town independents with single screens, twin screens, or even some 4 plexes can band together to form a new organization which will wield influence with the major studios, my hat is off to you.

Rick Cohen
Transit Drive-in Theatre
Lockport, New York


"As long as there are sunsets and stars at night, there will always be drive-in movies."
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Re: new terms from WB 05 Jul 2007 11:14 #15592

  • Mike
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"Is it time for us to organize a truly influential exhibitor organization?" All we need is Jimmy Hoffa.
Personally: the cost of oil has had a greater impact on my business than this item.

BY the way: when I spoke with WB I asked what about drive-ins with their freebies for 10 and under and they said.... "drive ins are completely different and none of this applies."

The rub is the blended per cap of each individual theatre vs. your actual gross: whichever is more is what you pay your % of. So if your own true actual blended per cap is 6.23 , even if yours is at 4.25 you'd pay the 70 % against the 6.23. Follow?
You savy?


Michael Hurley
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Michael Hurley
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Re: new terms from WB 05 Jul 2007 13:44 #15593

  • Mike Spaeth
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I got hit with a $6.50 Blended Per Cap.

Ticket prices:
Adult - $7.50
Student/Senior - $6.50
Matinee - $5.50
Child - $4.50
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Re: new terms from WB 05 Jul 2007 14:51 #15594

  • BurneyFalls
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I do belong to NATO and have attended a few ShoWests. It is a good organization, but it never really flexes any muscle toward the studios.

I'm glad I didn't get hit with your blended cap, Mike S.

No, I didn't follow that Mike H.

[This message has been edited by BurneyFalls (edited July 05, 2007).]
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Re: new terms from WB 06 Jul 2007 12:10 #15595

  • LanceC
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"Personally: the cost of oil has had a greater impact on my business than this item."-"Impresario"
So lets say for an instant Mike that your matinee ticket for Potter is $5. Your blended per cap is 5.75.
Your attendance for your daily matinee is 100.
You owe WB $575.00 for this show...but took in $500.00, of course you can make up the difference with concession sales right? Or at 70% you would have owed WB $350.00. So when did OPEC start distributing movies?
Next thing they will insist on is that any WB prints stay in the largest house for all shows. Here in NY we pay sales tax on film rental. So with this new blend, not only would I have lost $75 dollars, I would have needed to pay an additional $18 in sales tax. We can only hope no one shows up for the cheap seats, and everyone that comes in is an adult ticket and hungry.
So, what is the answer? If we raise our prices, they will then adjust the blend next year and soon we price ourselves out of the business.
lance
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Re: new terms from WB 06 Jul 2007 14:30 #15596

  • lionheart
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Whooooa there! I think you need to check your arithmetic, Lance, unless I've misunderstood what is going on in this thread. Wouldn't a blended per cap of $5.75 mean that WB will bill you the agreed upon percentage of the $5.75 per person instead of the whole $5.75?

If you are running Harry Potter with an agreed rate of 70% then it would be 70% of $5.75 or about $4.03 per person instead of the whole $5.75. If they had not raised the per cap it would have been more like $3.50 instead of $4.03, so it still hurts pretty bad, but not as bad as you are suggesting. Or am I totally misunderstanding what's going on here?

I'm sure the end result for most will be higher ticket prices and possibly lower attendance. That will be the really painful part, should it happen.

When was the last time you raised your ticket prices? Hopefully it has been a while.
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Re: new terms from WB 06 Jul 2007 15:08 #15597

  • dsschoenborn
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The blended per cap should cover more than your theatre. According to the letter you can contact WB and they will tell all the theatres they included in your blended percap. Being the low cost provider as many of us here are we can either pay what amounts to a higher percentage or raise the price.

In the listed example $5.00 is my real average ticket prices for all tickets classes sold on 100 tickets therefore I collected $500 at the boxoffice. $5.75 is WB blended number for the area. If the rate is 50% then normally I pay 50% of $500 or $250. But now I must calculate using the WB number of $5.75 x 100 tickets or $575x50% = $287.50. so I must pay the higher number $287.50 ( or $37.50 more than normal ) So instead of paying 50% like my megaplex neighbor I end up paying 57.5%.

If I get lucky and all 100 tickets are evening adult so my boxoffice for 100 tickets is now $600 (100 ticketsx$6) I do the same two calculations. $600x50%=$300 and then $5.75 x 100 tickets or $575x50% = $287.50. In this example I have to pay using the normal method because it is higher than using the blended number.
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Re: new terms from WB 07 Jul 2007 01:07 #15598

  • RoxyVaudeville
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Many of you do not understand how this works.

dsschoenborn and lionheart are both correct. You pay your normal agreed upon percentage on the blended per cap amount based on the total amount of admissions:

total admissions X blended per cap X %

Using the example given by Lance at Harry Potter terms:
100 adm X 5.75 blended per cap = $575.00 X 70% = $402.50 film rent
Regular terms: 100 X $5.00 = $500.00 X 70% = $350.00

Warners will take the blended per cap which is $402.50 which is $52.50 higher. Your actual film rental would be 80.5%.

What it comes down to is this, if your ticket prices are equal or greater then your blended per cap, nothing changes... you'll get charged the straight percentage. But if any or all of your prices are lower then your blended per cap you will be paying more.

This only pertains to first runs on the national break or during the first several weeks after the break.

It does not pertain to drive-ins, and it does not pertain to subruns either. They both stay the same as before.

The ones that really get hurt are low priced first runs such as leeler. It seems like they want to boost that ever so important first week gross.
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Re: new terms from WB 13 Jul 2007 15:20 #15599

  • dsschoenborn
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So is WB going to enforce this on Harry or hold off till after Harry? I have heard both so don't be too fast with those checks.

We ended up with a flat % too.

Because of this we did some analysis with our booker and ended up raising prices for our Matinee, child and student tickets to bring up our average. We just had a big increase in minimum wage too so it should help us there as well.

[This message has been edited by dsschoenborn (edited July 16, 2007).]
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Re: new terms from WB 13 Jul 2007 15:55 #15600

  • Mike
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we ended up with a flat %

Michael Hurley
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