In a resolution announced here last April, a federal ruling ruled today in favor of primary school, allowing them to own the cinemas where their films are shown, for the first time since 1949.
This revolutionary resolution can lead to a complete overhaul of who owns short- and long-term cinema chains, but also how, when and where consumers will gain advantages from feature film content.
In yesterday’s system, movie channels were separated from the studios.
Overall, the way it worked was that movie channels had an exclusive window – usually 90 days, this window has gotten smaller and smaller with recent chords and advances – with the films they showed, before the studio exploded them. titles on various other platforms, such as PVOD, SVOD, premium cable, hotels, airlines, television broadcasts, etc.
The film networks earned about 50% of the film’s entry price, and the remaining 50% returned to the studio.
The formula has been the source of primary tensions for more than a decade, with film studios spending more than $100 million (and occasionally much more) on stunning films, as well as marketing budgets that sometimes equal the value of the films themselves.
Channels gain advantages from huge marketing costs, while studios argue that they will have to re-market the same titles once they leave the cinema.
This is a complicated alliance, as the studios have tried to particularly reduce the window of exclusivity of film networks, so that they can leverage various profit resources by marketing their film titles to the public.
With these new regulations in place, leverage is changing powerfully to film studios.
Now they can watch to buy existing movie channels and, therefore, for themselves which window of exclusivity, if any, deserves to be established between film exposure and broadcast/PVOD opportunities.
Or, if studios don’t want to win a movie chain, they can simply create their own or simply renegotiate what they understand as large windows of exclusivity that existing movie channel owners now impose.
For today’s movie operators, this resolution may have come at a worse time.
As a result of the pandemic, the largest chains in the sector (AMC, Cinemark, Regal, etc.) are suffering losses.
Studies may have designed a more commercially advantageous moment to rethink, renegotiate and definitively redefine the study/exhibitor relationship.
The duration and scope of this federal resolution go beyond the owner of the place where the cinema is passed.
We may soon see a full Cineplex film committed to the production of a single studio. Can you believe you’re going to your local mall and can only see Disney-owned content? Will you have to travel more to see a movie produced through a rival studio? What about independent movies and house fees?
The last time there was a renaissance of the film exhibition in 1920.
Independent cinemas and small chains belonging to the open-air vendors of the studios had enormous monetary problems.
For what? The 1918/1919 pandemic had destroyed his business.
An era of out-of-control force has the norm in an industry, filmed entertainment, which was still a new logo.
Some have this era “Hollywood’s golden age.”
Others saw it as a compelling moment when artists signed exclusive multi-year contracts and the decision makers’ siphon, six wonderful studio directors, was incredibly narrow and monopolistic.
In 1949, the United States dismantled the old formula and since then we have experienced entertainment that has grown exponentially beyond the big six studios. Earlier this year, for example, Netflix outperformed The Walt Disney Company in terms of market capitalization.
In many ways, the customer can get advantages from the current resolution: first, viewers probably wouldn’t have to decide if they need to see a blockbuster in the cinema when it originally debuts or if they have to wait a few months or more. . Arrange to see him at home. This waiting window is expected to be significantly reduced or even disappear.
But it remains to be seen what kind of movies the customer can see in the cinema, what variety of titles they will have and whether the price of tickets will increase considerably.
And, of course, all of this takes place in a genuine debate about whether any of us will feel really confident with the concept of re-watching the videos… it doesn’t matter who owns the theater.
I’m Tom Nunan. I helped manage networks and studios, president of NBC Studios and UPN (after holding executive positions at ABC and FOX previously). Since my years as a
I’m Tom Nunan. I helped manage networks and studios, being president of NBC Studios and UPN (after holding executive positions at ABC and FOX previously). Since my years as a wardrobe, I’ve created my own business: Bull’s Eye Entertainment. We are the most productive known for Best Crash Film (2006), winner of several Oscars, which also co-EP. I teach at UCLA Graduate School of Theater, Film and Television in my spare time. I’m the former president of the Hollywood Radio and TV Society, and I’m also a board member of the Joyful Heart Foundation in Mariska Hargitay. I am a public speaker, a media expert and I am known as a ‘pop culture guru’. I love sharing my opinion on film and TV trends and commenting on what it means.