Welcome to BigScreenBiz.com

We have been approached to do feasibility studies for several locations that are in the centre of smaller urban areas. Sometimes, these involve building a new small multiplex (4 to 6 screens)and sometimes they involve renovating and/or splitting an existing cinema. There is clearly a resurgence of the "neighbourhood" theatre, and I believe that an operator who really knows his market can do very well withthese venues. Can I get some insight from you owners out there in this situation?

How small is "smaller"? Are the chains now going to go after the only piece they don't have?

Bird

In our recent experience, these "smaller" urban markets are being developed by independent operators. I don't think the big chains are really that interested. In one instance, a site one of our clients is considering has been turned down by a large chain. The chains don't really understand the unique needs of a particular market. They tend to book all their locations the same. I think this is why they're not interested in these locations.

We independents are quite capable of functioning in these smaller markets as long as we are allowed to by everyone else. We have to know our markets very well by actually spending time on the premises and listening to what people are saying. The movie companies have to let us get film on decent terms without making us compete with the gigantor plex 10 miles away for film and the chains have to STAY OUT. Just because we can make a profit does not mean that the market is ripe for development by the next guy coming in and building on top of you.

Sorry, I am in "fight mode". The shenanigins in my market are keeping me on edge.

[This message has been edited by BECKWITH1 (edited April 25, 2002).]

Beckwith1

I think the chains generally aren't too interested in the smaller markets. Most are greatly overextended in larger markets, or they are emerging from bankruptcy and are gun shy about trying anything new. I really believe that the sustainable and profitable growth in our industry is going to come primarily from the smaller operators and independents. This is certainly where our new business in the US is coming from.