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This topic comprises 4 pages: 1 2 3 4
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Author
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Topic: digital conversion gone bad
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Frank Angel
Film God
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Posts: 5305
From: Brooklyn NY USA
Registered: Dec 1999
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posted 08-26-2014 11:55 AM
I always found this concept of begging laymen to pay for a digital conversion to be quite iffy...in fact IMHO, it borders on the unethically if not the illegal. These theatres are most often independents, art houses or non-commercial operations and the like, and they went begging for money from loyal patrons which as far as I can tell, turns out to be monies handed over as an unencumbered, outright gift, no strings attached other than the assumption that the digital equipement will go in an keep the beloved theatre in operation. This usually is surrounded my lots of media coverage and it's all packaged in this great cumbiah-we-are-all-one-big-family concept. I guess it now takes a village to run a movie theatre. In the end, though, it's just a bunch of people forking over lots of money and basically giving the exhibitor some very expensive equipment with not much more hope and a prayer that what they think will happen, i.e., digital will keep the theatre running, actually will.
But what it if doesn't? What if either by unforeseen circumstances as in this case, or by nefarious shenanigans the theatre shutters its doors anyway? What protects those poor schlubs who forked over $90,000? Is there ever any contractual, legal commitments made in these drives to the donors?
Me, I would want a hellofalot more that a "thank you" and an "I'll the best he can to keep the theatre running" from the exhibitor. I would want some legal guarantees that the recipient of this donation has obligations and contingency plans in place in case, for whatever reason, he CAN'T keep the theatre running. What happens to that digital equipment? Without legal restrictions, what's to prevent an unscrupulous owner from deciding to retire a month later and disappear, money in hand? Or even he legitimately arrive at this type of situation described here where the best laid plans are thwarted?
If this guy can't keep the theatre operating, is he going to sell the new digital equipment and return the money to the donors?
Nah, I would have to think long and hard before I'd make a donation for a digital conversion, even if I was a huge fan of the theatre. It's too easy for these things that start off with the best intentions to easily morph into a pyramid or a ponzi scheme. Can anyone say, Max Bialystock?!
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Scott Jentsch
Phenomenal Film Handler
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Posts: 1061
From: New Berlin, WI, USA
Registered: Apr 2003
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posted 08-26-2014 02:10 PM
quote: Marcel Birgelen Do they lease it from the owner? Or is there some kind of revenue sharing contract? Or is the whole issue that there is no such thing as a clearly formulated agreement at all?
Because, whenever my landlord would shut me out of a building I would rent from him, in violation of whatever contract is in place, I would get the police on his ass...
That was my thought as well. Wouldn't there be some kind of legally binding contract in place to protect the operators from an owner locking them out?
Let's hope for their sake that it wasn't an oral agreement with a handshake to seal the deal, because then they'll be lucky if they are able to get those projectors back, much less the business intact.
I, too, never cared for the idea of a for-profit business begging for funds. Whether it's a movie theater looking for a projector or a dance center asking for donations for a bake sale to fund their operations, it's not cool to expect or even ask people to donate to a for-profit business.
If you don't have what it takes to be for-profit, then become a non-profit and all the things that entails.
In regards to the Majestic in Streator, I'm confused as to whether it's actually open or not? They have showtimes on their site, we have them on our site, but their gofundme page shows that the theater is boarded up as of 11 hours ago:
http://www.gofundme.com/6e0h4w
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Mike Blakesley
Film God
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Posts: 12767
From: Forsyth, Montana
Registered: Jun 99
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posted 08-26-2014 03:18 PM
The relevant part of the article is this:
quote: "It was about 24 hours from the time the news hit the press that my business partner and the owner of the building, Tim Burke, began screaming and yelling at me," she wrote on the "Majestic Streator" Facebook page Saturday. "He told me to get out of the building and take those (bad word) digital projectors with me."
In 16 hours, Troccoli's Facebook post had 81 comments, 91 likes and 258 shares, almost all of them in support of her.
Troccoli told The Times she made Burke aware she was raising money to go digital.
"He said, 'I did not think you would last this long. I have been waiting for you to quit, so I could shutter the place. I did not think you could raise the money.' ..." Troccoli said.
So if you can believe this person, the guy was just raking in whatever profits there were, or (if there were no profits) using it as a tax writeoff, figuring the theater would go out of business eventually and then he could sell the building for some other use, but they did TOO well and surprised him.
The idea that he "got mad" when they moved the 35mm projectors is just dumb, unless the guy has a collection of old movies he wants to run someday. Even then it's still kind of dumb.
I agree with all the sentiments that it's not good business to ask for donations to fund a conversion. I sincerely hope that by the time we're ready to upgrade again, prices will have gone down somewhat. Not holding my breath on that one, but companies like Barco, Christie, NEC, Dolby, GDC etc etc are going to want to keep selling equipment so maybe they'll come up with some kind of creative solutions for upgrades.
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Marcel Birgelen
Film God
Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012
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posted 08-26-2014 05:52 PM
It's totally unclear to me if they just moved or REmoved his (?) DP70/Norelco AA11. If you'll be primarily playing digital content, it makes perfect sense to give that projector your prime position inside the booth.
Then again, nothing else in this story seems to make sense...
quote: In regards to the Majestic in Streator, I'm confused as to whether it's actually open or not? They have showtimes on their site, we have them on our site, but their gofundme page shows that the theater is boarded up as of 11 hours ago:
So, that would be the second fundraiser for this theater in just a few months...
quote: Scott Jentsch I, too, never cared for the idea of a for-profit business begging for funds.
I also don't understand the idea of DONATING to a for-profit business. If you raise funds, you should at least give shares in your business in return. I would never donate money to a for-profit business without actually investing in it, yet it seems there are sufficient people that are willing to do so... Maybe we're all in the wrong business
quote: Mike Blakesley I agree with all the sentiments that it's not good business to ask for donations to fund a conversion. I sincerely hope that by the time we're ready to upgrade again, prices will have gone down somewhat. Not holding my breath on that one, but companies like Barco, Christie, NEC, Dolby, GDC etc etc are going to want to keep selling equipment so maybe they'll come up with some kind of creative solutions for upgrades.
I'm afraid you can kiss the hope for selective upgrades on stuff like projectors goodbye. While there are a few models that can, for example, be upgraded from 2K to 4K, those prices are so outrageous, you're better off buying a new projector. The same goes for stuff like servers. This is just basic PC server hardware, which get old very fast. The upgrade path generally is: Buy a new one. Of course, with a little bit of planning and insight in the technology at hand, you can still spread out investments.
On the bright side although, prices have come down already and like with almost all tech products, I'm pretty sure they will continue to do so. Especially if you don't need the absolute bleeding edge in current technology.
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Marcel Birgelen
Film God
Posts: 3357
From: Maastricht, Limburg, Netherlands
Registered: Feb 2012
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posted 08-26-2014 06:18 PM
quote: Bill Gabel Most likely for the legal fees, since there is a lock out.
According to the actual fundraiser (which was also already mentioned by Scott a few posts earlier), it's the full $267k for the theater.
This page also contains a bit more "background information", from the perspective of the current, or rather former operators.
quote: Carsten Kurz Why shouldn't people decide freely wether to donate money to any matter they want, be it profit, non-profit or anything in-between?
Nobody is claiming that they shouldn't be able to do so or am I missing something?* Personally, I think it's awkward to donate to a for-profit business. But unless we enact a global law against stupidity, people are still free to sink their money in almost any hole of their pleasing .
* It seems I was totally missing Frank's post. Although he's only claiming that it borders on the illegal
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