But do you think that it could be because we have oversaturated our market with so many theatres? A year ago, everywhere I turned there was a new theatre being constructed. Huge gigantic megaplexes, with up to 24 screens each. Does the world really need a place with so many screens in one building? I don't think so. Every once in a while, a company will close an older "unprofitable" theatre, but they usually stay open because they sign leases that they can't escape. I've heard of leases so high that even if they sold out the entire building every show 7 days a week, the profit would barely be there if even at all.

But with so many new theatres, the customer base is being dispersed. Now instead of selling out half of your auditoriums on Saturday night, they are half full at best, while all of the other people that WOULD HAVE been there are at other theatres, which are also not full, making the new theatre a disaster.

Another drawback of all of this is that projector manufacturers cannot keep up with the demand. So the products get really bad or they just drop in quality overall. Remember Christie projectors from 7 or more years ago? They were great! And the prototypes of what they have offered for the last few years are outstanding! But the actual production models are where you can really see that they are pumping them out way too fast. It's not just Christie, either. It's just about everybody. When my theatre was built, we could not order Neumade splicers, they were completely backlogged. At the Telluride Film Festival, we had trouble getting Xekote for the same reason (but that's OK with me since I hate the stuff).

First, I do believe the market is over saturated with theaters. Thats obvious from the growth of Regal Cinemas over the past, oh, I'd say eight years. They are building so many theaters so quickly that its played hell with the independents. Not to be out done, Regal's closest competitors also have their own building boom. Here, I think companies like Cinemark are probably a bit more cautious about the type of environment they're about to enter into, but they are also expanding quickly. I was shocked to find out a few months ago that Carmike is buying up older, smaller Wal-Mart stores and converting these into theaters. You ask if the world really needs a 24 plex theater to see movies and your answer is NO, I agree with that answer. One reason why I think Hollywood is putting out some AWFULL PRODUCTS is just to keep something on each screen of these monsterplexes!

Now here is where we differ in opinion. You feel that with so many screens in one area, the customer base is dispersed and not one theater can reach full capacity. I think people go to where they can take in the most activities on a Saturday night. For example: here in extreme Western Pennsylvania we are located only 12 miles from Youngstown, Ohio. There are more activities in the Youngstown area than you'll find in our small post-industrial community of New Castle. Our theater does OK, and even sells out (mostly teens and young adults), but many New Castle people who drive head to the Youngstown area where the night-life is much, much better. A friend of mine worked at a theater in Youngstown and reported to me that he was selling out when we were selling out. In my opinion, it comes down to product.

Equipment. If something is good, some pimple-faced engineer fresh out of college finds a way to f**k it up! I won't disagree that the building boom in theaters is causing companies like Christie and Neumade to cut back on their quality control, but I will say that these same companies will try to maximize profits while they know the getting is good. As a result, cost goes up while craftmanship goes down.

I could go on and on in this area but will see what others say.

As for the company, we showed what was, apparently, our first loss ever (and it was pocket change) and everyone is in panic mode. However, some smaller chains (like AMC) and showing hugh loses each quarter. All these are due to over expansion.

While it is real easy to book a 6 or an 8 with quality product, it is not so easy to book a 20 screen with quality stuff. It is always funny when Ac Neision call s us and out groses range anywhere from $3000 to $12.

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