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This topic comprises 2 pages: 1 2
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Author
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Topic: New SONY policy for sub runs cinemas
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Galen Murphy-Fahlgren
Master Film Handler
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Posts: 405
From: Canton, MI, USA
Registered: Oct 2007
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posted 10-31-2008 11:33 AM
Well, from my experience and what I've been told, Sony and to a lesser extent Paramount and perhaps other studios already follow a policy of standard market pricing for first run. If a theater's admission prices deviate substantially lower than the typical market pricing, the product may not be booked. I've mentioned issues about this previously, and another member here from a company in my region knows more about this than me, but my old theater has not booked a Sony movie since Spiderman 3, and at one point was denied booking a Paramount movie, supposedly because the $7 adult evening price was well below the market average of $9-10 for first run. The ticket price was raised to $7.50 and Paramount product suddenly appeared again. I am no lawyer (yet), so I don't really know what the legality of all this is, but the practical implication of what Monte is saying would be a direct shot at putting sub runs out of business.
This is stupid, because sub runs picking up big movies after their first run is pretty much over not only generates some additional box office, but it adds to promotion for DVD sales. I saw Wall•E for the fourth time recently at an historic sub run near me for $3, and if I weren't expecting to get the DVD for Christmas already, that would have just reinforced my physiological need to own the movie.
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Galen Murphy-Fahlgren
Master Film Handler
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Posts: 405
From: Canton, MI, USA
Registered: Oct 2007
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posted 10-31-2008 08:22 PM
Mike, all I know is what I was told. There was a substantial disconnect between myself and the company's booker, so I don't know this to be fact and haven't presented it as such.
As for your three conditions, I doubt that there was a run on prints of Surfs Up (Sony) or Drillbit Taylor (Paramount). The theater did very well on all large releases, especially family fare such as what I have cited. And I can assure you that the company I worked for at the time was not back on film rent, but you'll just have to take my word for it I guess. And, suspiciously, we once again started booking Paramount product as soon as ticket prices went up. To me, these things suggest, but certainly do not prove, some kind of minimum pricing like I have described.
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Jack Ondracek
Film God
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Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
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posted 11-02-2008 12:46 PM
quote: Kenneth Wuepper Are they saying, "we want $5.00 per person or 70% of the gross whichever is more?"
Yes, Ken. In a situation where $5 was set as a per-capita admission (I haven't run into anything that high), you would pay the higher of the two.
quote: David Mann The studios have been price fixing for years by charging minimum per capita film rentals. So, If their minimum per capita for an adult ticket is $5.00 @ 70%, and your admission price is $7.00, your rental should be $4.90 per ticket sold. BUT, the studio will penalty bill you .10 cents per ticket. If that's not price fixing, I don't know what is.
It is not price fixing. The studios are setting a minimum price for their product, just like the wholesale prices that any retail store pays, except for the percentage part. Even then, it's not that unheard of. You're welcome to charge anything you like. If the percentage applied for that week is below the per-cap, you get to make up the difference. If it's over, then the applicable percentage applies.
As with many other conditions in the studio master licenses, the minimum per-cap applies when they want it to apply, and they generally tell you when it's coming.
Can they get away with it? Probably. Locally, Costco stores were denied products from some manufacturer (I forget who it was), because their prices were so low. Costco sued, and lost.
This is all part of the game we play. The consumer does not have a right to see multi-million dollar productions for only a buck or so. We don't have the right to demand the product under those terms, even if it seems the only way we can keep people coming in our doors. The studios never agreed to be our loss leader, so we could sell more popcorn.
In my circle of conversation, some drive-in owners are unhappy that they can't get first-run product, on 3-day bookings, for $5 a carload. Why is that unreasonable? Probably because the studios see a carload as one person paying, and everyone else getting in for free. It's not much different than someone buying a ticket at an indoor, then opening up the auditorium exit and letting his friends in, but some owners don't see the resemblance.
Dog or not, the studios are providing the product that attracts people to our theatres... it's not just our popcorn. I don't begrudge their percentages... I just book more carefully. That's my part of the game.
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Monte L Fullmer
Film God
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Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004
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posted 11-02-2008 08:08 PM
quote: Jack Ondracek I just book more carefully. That's my part of the game.
..and the only game to play if you're going to stay one step ahead of the rest of the pack.
How many of us "veterans" remember when theatres played new movies on a two (Sun-Mon), three (Sun to Tues, Tues to Thurs, or Thurs to Sat), or four (Wed-Sat) day run in the olden days? And seeing a week run was a rare thing to have.
Course, those where when the concept of a nationwide saturation was unheard of, or when there were only a number of prints struck and it was an absolute rare thing to open those two cans and see "A New Print" inspection stickers that sealed the strings down on the wraps.
Also back then, drive-ins did open new movies as well in larger venues on the break.
But, interesting how times changed everything in the film release world.
quote: Jack Ondracek The studios are setting a minimum price for their product
Isn't that like when studios ask for "up front" money for their movies before you can get their movie? Plus, each studio has their own rate to charge "up front?"
Is the 90/10 percentage thing still in effect, or has most everything gone to the aggregated rate system?
-Monte
-Monte
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