Welcome to BigScreenBiz.com

rufusjack wrote:
Sorry but I disagree on one simple point: this bigscreenbiz.com thing is something I have invested many years and tens of thousands of dollars in. I have set standards and rules of civility for communication. It's an open door for anyone who can communicate politely. For the greatest part we have been blessed by people who can sit with each other and communicate across boundaries that include race, geography, gender, age, politics, nationality and whatever scale of theatres we own or hope to own because we have one thing in common: the love of theatres and movie going. I don't care what anyone's opinion is except to learn from it. I like all opinions and respect people who walk through Times Square or the village green to get home. I will not tolerate, we cannot tolerate the bully who would insult and denigrate anyone who is generous enough to post here. And that's a bottom line for me.

Mike wrote:
I respect your right to operate like that. It does get frustrating sometimes when the forum is slow.

I think the point is this: a newbie coming to this forum (there have been many lately)and sees Bob's comments and no one challenging it because it might not be respectful to tell someone they are wrong is your standard. So people stay quiet. Leeler chimes in that it may be okay to go with film equipment but he is all digital. Even after your long post about how film maybe still be around just switched to digital at one theater. The other one I guess you have not as you are trying to sell it?

These newbies come in with high expectations and have blinders on already. They are looking for anything to validate their idea.

I do think your policy does keep some people from participating and that cuts down on this forum's activity.

BTW, the owner of the highly successful 13 screen may loose out on approx. $850,000 in VPFs. I am not sure what benefit a 13 screen theater would have by not taking the VPF. Plus imagine the booth labor savings that he is currently missing out on. What $60-70,000 a year?

And do not forget in this situation that we are talking about is a closed theater that the owners did not reopen and the following owner was running as a discount theater. That is a far cry from a 13 screen theater grossing $200k or more per screen.

1) How long of a lease is the property owner making you sign? If they are having to put cash into the project, I doubt if they are only giving you a one year lease with options for you.


We can do a 2-1-1-1 agreement where the first 2 years are firm, and we can option the subsequent years for 7.5% more each year. We can also do 5 year firm at a a lower over all cost.


2) Currently VPF agreements have to be put into place by 9/30 and the equipment installed 6 mos. later. that means by April 1, the 99% of the top 3000 locations will be digital. While you may get a print for the 2013 summer Pixar movie, what are you going to play in April? September & October 2013?

Correct, we have to sign the agreement by 9/30 and install by 1/31/13. Good questions as to what we can book. We know that the theater previously was able to get 90+% of the top films at the break, so we are hopeful to do well in getting the big movies early on. Obviously there are no guarantees!

3) This theater was not re-opened by the people who knew it the best.

Certainly.

4) How long will this take to get re-opened? 60 days min? That puts us in September. I bet we here stories about film being unavailable for many movies in September & October.

We could realistically re-open in 30 days as far as the facility and staffing is concerned. Waiting on more info from other parts of the equation, but I would think realistically everything would be good to go within 60-90 days.

5) How many re-opened theaters do you know have a positive cash flow the first 12 months? I doubt you will be able to obtain financing 12 mos from now any easier than now.

It is pretty much what I was thinking, but the loan officer said she thinks it would be do able with as little as 12 months...why argue?

6) Getting equipment financing with a VPF is easier to get?

One would think, and some of the financiers we have talked to were a LOT more interested in talking to us after we explained the VPF situation.

7) Is there any equipment left in this place at all? popcorn machine? ice machine? sound equipment? seats?

All of it.

8) Have you even spoken to a booker yet?

Reached out to several and have only heard "I'll get with you soon" mostly. Any recommendations for folks to talk to?

9) How many screens?

5 screens, 800-1000 seats depending on configuration (maybe a lot less if we decide to go movie pub)

10) How close is your competition?

Premiere 6 - 12 miles
Cinemark 18 - 12 miles
Cinemark 12 - 15 miles
Cinemark 13 - 16 miles
AMC 24 - 26 miles

Not exactly direct competition.

I should also note, I don't want people to "tell me what I want to hear," I want people to give me their honest and informed opinions. I'm a young guy, but I've been a business owner for 8 years. I know MY industry really well and can give solid advice to anybody looking to enter the electronic access control industry, so I'm looking to people in the industry to give me their thoughts on all of this.

Even though I've wanted to be in the exhibition biz for a long time, I'm not married to this project and can drop it if the numbers don't square. But I can't find that out without doing a research. You guys are just one of many avenues of research I'm doing.

Thanks for your time!

It is unfortunate for newbies that Bob chimes in with inaccurate and out-of-date information. However, I think those of us who keep up with this forum have gotten used to it, so it feels pointless to point it out. It seems that usually someone does chime in to point out his inaccuracies, though, so if a person reads the whole thread they do get a reality check. I just don't understand why you convey such rage about it. If you feel it needs to be said that Bob is wrong all the time, just chime in and say "Bob is wrong." You're yelling at all of us about it, when you can do it yourself. I guess the reason I don't scream at Bob or Mike over the internet is because I'm a decent person and I wouldn't scream at them in real life. And I don't understand why anyone is mad at Mike. He's a successful theater owner who provides this forum for us to bicker on.

Many of us are running successful theaters and have converted to digital and are collecting VPFs. Newbies can feel free to PM any of us with their questions.

Also, Andrew, when we financed our theater the bigger banks wouldn't touch our project. They practically laughed us out the door, mostly because we were so young and our theater is so old. We went to the smallest bank in town and they were willing and able to work with us. Oftentimes the commercial lenders at smaller banks have a bit more control over their decisions than the big banks who just hire a guy in a suit to punch numbers in the computer.

BusyBee wrote:
Time will tell whether or not I'm wrong. As has been said no one here can predict the future and our opinions are based on our experiences. There are plenty of resources to keep abreast of the industry for one who retired 5 years ago. There are many decent people in our industry. Apparently Mr. Mult-names is not one of them.

and folks... much as I love being the bouncer in a raucously lively room I do have other stuff going on.... like making a living and oh yeah.... installing digital cinema in one of my theatres. Have you ever looked at the various businesses I run? And the political stuff I am involved in? I do not sit here all day tweaking this well oiled machine and I do trust to you to keep the ball rolling. I served as Mayor of my town for 8 years and we had a Wal-Mart war (wanted to come to town and many folks did not want them to do so) that lasted nearly the entire time. I had to preside over intense public meetings with hundreds of people and somehow all these neighbors with very different views had to be corralled to speak with each other respectfully even though they disagreed deeply. That was my job and I did it. My goal here is the exact same. Not to control what people say but how they say it. As publisher and editor that is my job and I take it serious. I'm not in this to be provocative and fire people up playing them against each other in some kind of game. Say whatever the heck you want. But: be nice.

a quick note about the 13 screen who was "undecided on digital". I told him to run not walk and get the vpf and convert as fast as he could. I was shocked that such a large prominent successful theatre would not be converted yet and not even seem to know about the issues very much. They were running Technicolor 35mm 3-d. I gave it as an example: it's not just the small town theatres that are dragging their tails. And IMHO that's why all the distribs are considering extending the VPF. Why else?

Had some really encouraging equipment quotes come in. Makes it seem a lot more likely we can privately finance switching all 5 screens to digital. Still a ways to go, but the cost was definitely less than I had estimated. Also had good conversations with some real no BS film bookers.

Andrew Thomas wrote:
Very important to do.

You know what sometimes I don't agree with everything said here. And sometimes I feel some of us live in a dream world and that everything will be alright. But in reality this is a tough Tim in the industry and no one really knows what direction it is heading and who will be standing when the smoke clears.
But this is a forum for people to inquire and answer requests. To be mean spirited and pompous is no way to get through this.
Lighten up and post your beliefs but don't get nasty. Don't you have a life rants and raves that are nasty are not helping anyone. Go see a shrink or your local priest and go to confession!
I hardly get involved in conflict but to go after and hurt Mike who has done so much for everyone and Bob who has nothing but good intentions should take a good luck in the mirror and cut it out and go elsewhere!

Thanks to all who sent messages. Believe me ..I can take care of myself and I'm not much for wallowing in the hurt feelings department. I have real pain in my life so I do not sweat the small stuff. As Deniro said when asked in Ronin.. "Did you ever kill someone?" Long thoughtful pause "I hurt someone's feelings once."

Thanks jacker5. I love you guys and all the kind and knowledgeable people here, including our moderator, are the reason I stick around. I hope to return to "active duty" in the industry one day. Anyone looking for an "old showman" out there?

Listening to both sides.
You might be able to work something out with the landlord in return for free rent or a longer term lease if he buys the digital projectors. Or if the landlord buys the digital projectors you might be able to lease them off him for a few years in extra rent. You might need to explain that you need the digital to stay in business in the future and the best time is now to obtain the vpf.
The digital projectors do save on labour and some cost if you need to get 35mm back up. But also the advantage is the vpf which I have heard is also becoming harder and harder to obtain.
Maybe you could also negotiate with the banks half way. Provide say 18 months worth of books and a larger deposit. Or after one year if the landlord buys the projectors take over the lease from the landlord with the finance from the bank. You have some options there to work with.