Movie Theaters Were Already in Trouble. With Disney's Fox Deal, It's Double (bloomberg.com)
Disney's acquisition of Fox's film studio will unite some of the most lucrative movie franchises, from Disney's Star Wars and Marvel series to Fox's X-Men and Avatar. With control of more blockbusters, not only does Disney gain more leverage over theater chains such as AMC and Carmike Cinemas, it also wins more films it could distribute exclusively on its upcoming online service -- cutting out cinema operators entirely. From a report: "Disney is becoming the Wal-Mart of Hollywood: huge and dominant," says Barton Crockett, a media analyst at B. Riley FBR. "That's going to have a big influence up and down the supply chain." Together, Disney and Fox accounted for 40 percent of ticket sales in 2016 in the U.S. and Canada, a level of market concentration that could draw scrutiny from Washington. If the deal goes through, theater owners could get squeezed. Usually a film's box-office revenue is split evenly between exhibitors and the studio. But Disney previously has gotten theaters to hand over a larger share -- sometimes more than 60 percent -- on its biggest, most popular films, such as the Star Wars series. Now it could try the same tactic with Fox's Avatar, which has four sequels in the works. "While the future of movie exhibition looks increasingly dim, a Disney-Fox merger will elevate its level of pain," says Rich Greenfield, an analyst at BTIG LLC. Cinema chains have already suffered this year from a string of box-office bombs, including Warner Bros' King Arthur: Legend of the Sword, and online video services such as Netflix are keeping more moviegoers at home.
Yep, it's still the Federal Trade Commission!
Anons need not reply. Questions end with a question mark.
I'm shedding so many tears for those multi-million dollar theater chains.
Or Double Trouble? Double dutch? Or is that four x? I know, let's ask Trump. What ever he says, it's the opposite!
"Disney is becoming the Wal-Mart of Hollywood: huge and dominant,"
This is just another example of how monopolies are taking over the US on every level and your elected leaders are facilitating it. You guys really need to take over and purge and then reform your two party system. Doing something similar to the judiciary would probably help too since it has been loaded up with corporate mercenaries right up to the SCOTUS. That is to say, if you don't you'll find yourselves living in a de facto monarchy before middle of the century which I suppose some people on the extreme right wing might find appealing. One dear leader, infallible, above criticism....
Compared to buying real property (property that you can hold in your hand or step on with your boots), the buying of IP is almost like somebody selling you the Brooklyn Bridge. Whether Disney manages to increase or collapse the value of the "property" depends largely on management making the right moves to promote it. With many real properties, say like gold or until recently steel mills, the buyer comes looking for you. Netflix could very well create B-movie franchises worth more than the combined paper cost of the Fox properties simply by acquiring the right source materials and adapting them well for broadcast. Who knows, maybe Netflix, Amazon, or even GooTube can create their own empires of emptiness out of fringe graphic novels, manga or user-generated short-form videos, adapted properly (read, not shamelessly prettified with Disneyesque princess endings) for the variable playing times needed for the multiple (big, medium, small) screens that everybody now seems to have. I'm thinking of movies that can be viewed both episodically on your smart phone during a long commute or in one popcorn session with your SO.
This is Business 101 level stuff at Trump University. What is the problem here? Our Cheeto in Chief would do the same thing given the opportunity.
Trump 2018
The only reason I think cinemas exist at all is for people who want to watch new releases rather than wait for them to come out on disc.
The cinema used to offer something no other place could: A gigantic screen, supremely clear images, and an audio system that'd give you powerful volume from the chair-rumbling explosions to the chirping giggles of children. Then home cinema technology advanced. What does a cinema offer now that you cannot get just by having a big screen TV (or, as we call them now, a TV) and some half-decent speakers? You can't go for the social experience. Comfort of other viewers mandates watching in silence, so you might as well watch alone.
All they can offer now is the time to drive out there, a captive audience to show trailers and advertising, the crying child behind you, the tall man in front, and the fat person who tries to squeeze past you mid-film to get to the toilets.
Only a retard with a name like Drumpf would think this is a good idea. He is probably getting a supply of Cheeto dust from Disney so he will allow this to happen. Only racist neo Nazis could think a mergination between Disney and fox could be a good thing. Stop the hate. Impeach the fucking Cheeto and have Hillary Clinton take his place as president of the United States.
Big-budget films shown in theaters nowadays are played off of hard drives (shipped to the theater, encrypted), on a Windows PC connected to a digital projector. The bitrate of these files can be much higher than what even a UHD Bluray can offer, as the latter is limited to 100GB and hard drives can be had that are 100x+ that capacity. That means video quality can be much higher than what you can get for your home cinema. Even with gigabit internet you can only stream just over 1TB over the course of a 2.5 hour film (and of course no streaming service offers anywhere near gigabit streams). One might argue this kind of bandwidth is unnecessary for film, but the emergence of lightfield photography, and VR video, can make use of it easily. Lytro's top-quality lightfield video currently uses 500GB/minute, for reference. People who care about top-end video quality will still come to theaters. VR can simulate the experience of watching a film in a theater (with other people in it, if you wish), from your home, albeit with reduced fidelity. Watching at home will almost always be about convenience, with some quality tradeoffs.
Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
https://www.amctheatres.com/carmike
STOP giving the mouse your shekels!
The only sensible reply to an irrational destructive force like MegaCorps is STOP GIVING THEM MONEY. Fuck your kids and what they want. This is the war for all the future.
I managed theaters for both ABC and another chain in Florida. In 1968 we all knew full well that theaters were a dying industry. Cable TV was really the announcement of doom. There even petitions that patrons were asked to sign to make cable illegal. i can recall in Mississippi the kid's price was 10 cents and the adult tickets were 25 cents in 1951 and the theaters had audiences. The food was also rather inexpensive. A man and wife could spend the evening get some pop corn and sodas and still not spend $2.50 for the night. There was no color TV back then so if you wanted color it was in the theaters. So color TVs hurt the theaters badly. Then cable came along. Next we had issues with acquiring addresses and building or renting a theater now costs so much money that the ticket prices went up. Regulations also increased. For example I had to install a 180 degree hot water heater and plumb it to the candy stand. The county insisted we have 180 degree water but we had nothing at all that we washed. There was large popcorn spoon that was simply wiped down with a cloth at closing and scrubbed with salt a bit to assure no oils remained on the spoon. So we were forced to spend a lot of money for a water heater that did absolutely nothing. The folks I feel the worst for were the projectionists. The better houses had hard working and intensely skilled projectionists. They did sophisticated electronic work as well as being responsible For very high quality sound systems. It took a lot of training to do what they did and their trade was simply destroyed by the use of newer, inferior equipment.
I am proud, proud citizen of the fruitful and glorious kingdom of the Netherland; soon to be holders and protectors of a global hegemony the likes never seen before. Our mighty ships, our mighty crews, they will set fire to the lands beyond. A fire no mortal can put out. Such is the power of the powerful nationstate "Holland": Saviours of the Just, protectors of the Golden Child.
Competition - to some degree it is a matter of choice. I have seen most Disney plots so I chose to not view the new re-spins of old plots. I now prefer to view plots from a non western culture - they suffer the same problem with re-spinning old stories into new plots, but at least they are not ones I have seen before. I do have to put up with subtitles. shameless plug for an alternative source of entertainment Viki
If you think that either political party is going to protect you from Disney's shenanigans, you need to put down the pipe. Disney has been gaming the government for decades. You can be certain this deal will be approved without questions from either side.
You wait till Fox News get bought out by Russia Today, then I'm sure the FTC will spring into action to rapidly give their permission to the merger.
> Then home cinema technology advanced. What does a cinema offer now that you cannot get just by having a big screen TV (or, as we call them now, a TV) and some half-decent speakers?
What percentage of the population can afford home cinema? Maybe 10% or less. Anyone living in an apartment cannot install the required system and run it at the correct volume because it will disturb the neighbors. Think you can get away with this in a condo? Not if your "cinema room" (likely lounge room) is a shared wall.
What you speak of from the comfort of your plush home does not correspond to most people out there. Most people cannot afford big screens nor the surround sound system that is required to do a film justice.
For you, the 1%er, that has a big clear screen at home and where you don't have to worry about disturbing the neighbors, sure, the cinema has no benefit. But for the 99% who don't have such luxury at home, watching a movie in the cinema is better than at home.
The small, single screen theater I typically go to in a town just north of where I live specifically boycotted bringing in this latest Star Wars as the premier or any showing on the premise of 'Disney wants too much of a cut, and we aren't screwing our patrons over with our costs.' Now this is one of many 1 to 4 screen theaters owned by a local company in our state, so they clearly picked up 'Star Wars' in the bigger cities where they can offset the cut back to Disney with more foot traffic. However, this idea of 'Fuck Disney and their monopolization' is a small case worked.
Honestly, I am like most here, most movies anymore are complete shit and the 2+ hours I sit there hardly was worth the $8-10 or whatever a ticket is now. The small theater I go to, $5 for an adult, $3 for a child, and on certain bargain nights, it's $3 to get in for an adult. I want the 'theater experience' to stay in tact; our theater is a renovated 50's style decor --- it's fun to take the family out, get popcorn, get a soda and watch something on the 'big screen' even though we have ultimate consumer control to stream it in damn near the damn HD/UHD quality in a matter of weeks after it hits the theater in some cases.
In the era of 'having too many choices' now and I can consume most anything I want from a media perspective with a couple of screen taps and a credit card, guess what Disney? I'll just wait, because I value the theater experience more than you turning hand-over-fist profits.
Not too long ago taking the family out to the movies was cheap entertainment. These days it is a major investment and if we go we make sure that there is a very high chance of us liking the movie. If it gets any more expensive I will ask for my money back when the movie sucks. It's not the theater's fault, they just resell defective merchandise. They should charge the distributor and film studios.
I worked in a movie theater in high school for a large theater chain and got to know one of the assistant managers pretty well. He said that they had to pay 90-92% of all ticket sales for Star Wars episodes 2 and 3 to the studios. There's a big difference between 60% and 90%. He said that the tickets paid for the building payments and utilities. The concessions paid for everything else.
Current movie studios:
Disney/Fox
Warner Bros.
Universal
Columbia
Paramount
Lionsgate
MGM
Amblin
Weinstein
And a few dozen smaller studios, as well as the foreign studios (Toei, Canal, Gaumont, Pathe)
So is Disney using their, erm, not-really-monopoly power to keep other movies from being made? No? Then why would the FTC step in?
My Other Computer Is A Data General Nova III.
The problem isn't just the mouse. Not the movie theater's problem, anyway.
The problem with movie theaters is the onslaught of ads, the uncomfortable jammed-in seating, the stunningly overpriced snackage and tickets, and the lack of great new movies in favor of Yet Another Retread Idea.
Some of this comes from outside pressure: the constant devaluation of currency and increases in taxation, demands for more and more income from the movie producers, the conversion of the stock market into a "must increase profitability" hammer.
Or in other words, pretty much on every front, greed.
I've fallen off your lawn, and I can't get up.
Disney will probably try to go back to their artificial scarcity shenanigans that worked so well for them till then 90s. Not any more. If they try that again, it will probably backfire on them spectacularly.
A good chunk of content will be taken out of netflix for Disney's own streaming service. With content being split up again and viewers not wanting to go back to cable with its appointment based viewing schedule, it looks like piracy will probably be on the rise again.
Twinstiq, game news
My brother owned a movie theater until a couple years ago when he sold out to a big chain. He never got a dime from the blockbuster movies, 100% of the first 1 or 2 weeks ticket sales went to the distributor. _IF_ the movie hung on the next 2 weeks he would get 20-30% of the ticket sales. It didn't hit 50% until week 4 or 5. That is why popcorn costs $10, it was his main source of income.
You and I both had a good run of it, but the amount of rude people and boogers on the common areas have killed us with the advent of acceptable, not perfect or as good as our experience, home entertainment. There is no going back. Maybe in 20 years or so, some hipsters can open up wildly overpriced themed bars after our former model. It has been a good run through.
Sincerely,
The Arcade.
With many people having pretty much a home movie theater, other than the draw of the HUGE SCREEN, what's the advantage of going to the movies? High price for the tickets & concessions, putting up with people in the theater yacking and what not, parking, gas to/from the theater, traffic, hot/cold/rain/snow. With online streaming, it's almost a benefit to just wait it out, stay at home and watch it in the comfort of your own home.
Is he funding these Avatar sequels himself? I could maybe understand one sequel, but FOUR is insane for a film that wasn't much more than a novelty. Are there actually people out there who give a damn what happens next to the space smurfs and Dances With Wolves?
Here is an idea:
If you have a problem with a business, do not buy their stuff. Take responsibility yourself instead of running to government to force other people to do what you want.
https://fee.org/articles/breaking-up-antitrust/
do you? And what forced people to shop at Wal-Mart was 40 years of declining wages. They leveraged the low prices to try and maintain their standard of living long enough to see their children on their own so they could free up that money to again, just barely hold on. Those prices were low because Wal-Mart is a predatory business in a largely unregulated economy.
Basically, you're making a lot of choices that others don't have an assuming because you personally have them that everybody else does. If people could just do anything anyone else does without regard to birthplace we'd all be billionaires.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Disney forced the chains to put Star Wars at least 4 of their best screens, whether there was enough ticket volume or not. They'll use Fox's assets to further push their competitors out.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Real wages are way, way down. e.g. raw buying power. Inflation takes _everything_ into account. That means consumer electronics, which thanks to China got dirt cheap, factor in. It throws the numbers off for just about everything when a 32" TV is now $100 bucks instead of $5000.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Me and the rest of the family can only envision one being something we'd go to see. Since creativity in Hollywood has been dead for years, what could they possibly do in three others that wouldn't be boring?
CUR ALLOC 20195.....5804M
If the movie theatres stopped treating their customers like crap that would help to.
Last week I went to watch star wars. The movie was to start at 9:45. Instead I had to watch 20 minutes of advertisements, and the movie started at 10:05. I did not appreciate that.
Being force fed ads is yet another reason I don't feel much sympathy for the movie theatres.
I'm not likely to forget. :)
I've fallen off your lawn, and I can't get up.