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by Terrell E. Falk
Reprinted with permission from the April 1999 issue of Original Cinema: The Newsletter of the Large Format Cinema Association.
Now that a number of commercial theater circuits have decided that adding a large format theater to their multi- and mega-plex theaters makes economic sense, what does this mean to the large format industry?
The circuits that have signed multiple theater deals for large format theaters include Cinemark, Regal, Edwards, Muvico, Marcus, Famous Players, Cinema Plus and Gaumont. Among these newcomers to the large format industry, there is a general belief that the traditional documentary-style films made for the educational market will make way for a different style of filmmaking more in tune with entertainment seeking audiences.
They point to a recent announcement that Disney and Imax Corp. will join forces on a day-and-date release of Fantasia 2000, for an exclusive four-month run prior to releasing it in conventional format to conventional screens. A lot will be riding on this anticipated release. If it does well, you can expect other mainstream film producers and distributors to start adding large format films to their slates.
However, all large format theaters, whether commercial or educational still need to rely heavily on group sales, especially school groups. But commercial circuits are not accustomed to spending large dollar amounts for advertising either their theaters or their films. They are accustomed to having this support provided by their distributors. Thus, the continual marketing back-up needed for the success of large format theaters and films is often lacking in a commercial situation.
The biggest challenge is educating the theater operators that large format is a very different product. There are different economics, different expectations of the audience, different audience demographics, different booking practices, different operational tasks and different marketing methods. Convincing theater circuits that have run successful chains with hundreds or thousands of screens that a large format theater is not just another screen can be difficult at first. But after some initial faltering, many have recognized the need for special handling, and have hired someone from the large format industry to oversee this side of their business. This bodes well for the long-term success of the new theaters and the industry in general.
Perhaps the major difference is one of perspective. In an educational institution, the large format theater fills a tremendously important niche. Most of the time it attracts the majority of audiences to the institution. It is usually the greatest money-maker for the institution. It garners a great deal of goodwill and publicity. On the other hand, in a commercial circuit, the large format screen is only one among 15-30 other screens. Even if that single screen is bringing in a healthy proportion of revenue, it doesn’t represent the core business of the complex. It is different and therefore a bit suspect. It requires
special care, more marketing, more effort.
In just a year or two, it is likely that commercial large format theaters will outnumber educational ones. Most on the commercial side anticipate this as a turning point where the films will become longer and more story-driven. (Most agree that crossover films are not a long-term solution). The success or failure of commercial large format screens after the turning point is reached will be decisive.
Commercial operators are not liable to wait patiently for a return on their investment; large format must do well quickly or be replaced just as quickly. It remains to be seen where the commercial development will lead.
Terrell E. Falk is Vice President, Large Format Theaters for Cinemark USA, Inc. She can be reached at tel. 713/782-1604, tfalk@cinemark.com. |
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