What a week. Things are changing and changing fast. The vulnerabilities that have been woven into the fabric of the business of motion picture exhibition are rising to the forefront. Exhibition giants are in deep jeopardy as a result of the effects of the panic instilled by the Coronavirus. Schools and universities are shuttered and there is a high chance that movie theaters could be next. Globally, theaters have been shut down, decimating the box office and laying waste to revenues.
Releases are being delayed as long as a year and new movies are becoming scarce. I have no idea what is going to happen, but I do know if the industry as a whole does not rally then the results will be devastating. It is time to come together large and small and abandon the mantle of self-interest and ensure that the culture of movie going endures.
There is not enough product; we have lost Bond, Peter Rabbit 2, Mulan, and Fast and the Furious 9. I am asking the studios to step up and open their vault and offer their library titles to theaters at 17.5% rental rate with no minimum. This will effectively cost the studios nothing and will reflect the spaced seating precautions being put forward by many. We need to see the original Star Wars, Back to The Future, Titanic, and The Notebook back on the big screen. It is time that the studios do their part to assuage the damage being caused. If studios sit back and use this calamity to increase the case for streaming, then I suggest that the industry as a whole start collectively developing plans to ensure this does not happen again and once and for all cease their reliance of the media conglomerates.
Given the pattern that exists globally, it is likely that some form of restriction will be placed on theaters. If that happens there will be economic damage and that could be tragic in some communities. Community based theaters both private and not for profit must be protected. I would make overtures to economic development authorities and State economic development offices to provide measures to mitigate the damage this virus is causing. Movie going has to be protected.
To that end I want people to turn an eye to the drive-in. This American invention, brilliant in its conception, could be the greatest tool in maintaining the movie going tradition. Movie goers could view movies from the safety of their cars and drive-ins could offer alternative strategies for the delivery of concessions. It is imperative that the industry as a whole, especially if the hard top theaters are forced to shut down, to make a strong push to introduce the public as a whole to the genius that is the drive-in movie theater. There is a strong danger that if the pattern of movie going is broken for a longer duration, then the tradition of movie going will be forever damaged.
A new poll released by The Hollywood Reporter found most people are split on whether to close movie theaters amid the Coronavirus outbreak.
Closing theaters:
About 38% of Americans support closing theaters amid the outbreak.
44% oppose shutting theaters.
46% of Americans generally support studios postponing upcoming premieres.
40% of respondents said theater should be held “somewhat responsible” to prevent virus spread.
Staying home:
21% said they subscribed to a streaming service since beginning of 2020 because of the coronavirus.
43% said they’d watch movies on a streaming service amid calls for social distancing.
32% said they would be more likely to rent movies from home.
The 32% number is particularly worrisome.
The world’s leading entertainment industry analysts have all predicted that the global film industry faces at least a $5 billion loss due to Coronavirus; most are skewing the loss to be around $8 billion .China’s entertainment industry was the first to come to a halt in January amid the fallout, with over 70,000 movie theaters shut down. Analysts at investment firms including JP Morgan raised serious doubt this week about the short term viability of major operators such as AMC, Cinemark, and IMAX . As a result these companies have been pounded in the stock market.
U.K.-based Cineworld, the world’s second-biggest movie theater operator, said that the Coronavirus could put it at risk of defaulting on its lenders. Industry experts have suggested it abandon its acquisition of Canada’s Cineplex Inc.
There had been hope that business would be back up and running in Asia before American releases were affected, but it’s clear that things will continue to get worse everywhere for the foreseeable future.
The full economic impact of Coronavirus is still unknown for the motion picture business, but supposedly studios are convening crisis teams to implement a response to this global disaster.
Studios. open up your libraries at a highly reduced rate, think of the industry as a whole.
