Only 16% of Hollywood Studio Revenues Derive From Theatrical Release...

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...while nearly half of Hollywood's (filmed entertainment) cash comes from DVD.

What does this say about:

1) The future of being able to go see a film at the cinema?
2) The nature of the films themselves?
3) The kinds of films that will be produced?
4) The future of the world as we know it?

Please advise. Some preliminary thoughts.

EComplex (EComplex), Tuesday, 3 May 2005 18:45 (twenty years ago)

More stoner-friendly films.

Andrew Farrell (afarrell), Tuesday, 3 May 2005 18:47 (twenty years ago)

Finally time to buy an HDTV?

slightly more subdued (kenan), Tuesday, 3 May 2005 18:47 (twenty years ago)

Still waiting on cheaper prices.

Ned Raggett (Ned), Tuesday, 3 May 2005 18:48 (twenty years ago)

Plug that blog, dude.

Andre Dawson (deangulberry), Tuesday, 3 May 2005 18:51 (twenty years ago)

the hawk abides

j blount (papa la bas), Tuesday, 3 May 2005 18:52 (twenty years ago)

But I wonder about the breakdown between something like The Incredibles versus something like Vera Drake or something else that does particularly well on DVD versus a theatrical blockbuster.

Spencer Chow (spencermfi), Tuesday, 3 May 2005 18:52 (twenty years ago)

the incredibles sold a billion dvds! seriously that's MAJOR cash right there.

s1ocki (slutsky), Tuesday, 3 May 2005 18:53 (twenty years ago)

Meanwhile, Pixar is perfecting its time travel technology to go back and change the contract to just two films.

Ned Raggett (Ned), Tuesday, 3 May 2005 18:54 (twenty years ago)

Since I sit near some noisy asshole EVERY time, I'm almost anticipating seeing all films at home someday.

Dr Morbius (Dr Morbius), Tuesday, 3 May 2005 18:55 (twenty years ago)

I think Spencer's is on to it. The Incredibles will always have a place in theaters. Smaller, more serious, adult-themed pictures probably won't be released at all. But as that happens and as marketing catches up, there may not be any particular stigma about straight-to-video releases.

But I mourn what I think may be the passing of "going to the movies." I hate to watch movies at home.

EComplex (EComplex), Tuesday, 3 May 2005 18:56 (twenty years ago)

video already killed what markets it's going to kill i think (midnight movie basically).

j blount (papa la bas), Tuesday, 3 May 2005 18:58 (twenty years ago)

guys pixar movies are MADE for dvd! direct digital transfer! etc etc. they sell HUGE. plus kids movies are always huge on video.

s1ocki (slutsky), Tuesday, 3 May 2005 18:58 (twenty years ago)

You can sit/sprawl/whatever how you like, food's cheaper, can pause it whenever you need to = bring on the home experience!

Ned Raggett (Ned), Tuesday, 3 May 2005 18:58 (twenty years ago)

I wonder how different this might be if they dropped ticket prices back down to like $5 a showing?

nickalicious (nickalicious), Tuesday, 3 May 2005 19:00 (twenty years ago)

Also, remember that 16% is nothing to sneeze at, *and* the theatrical release is a very important part of the overall marketing strategy for each title.

Spencer Chow (spencermfi), Tuesday, 3 May 2005 19:02 (twenty years ago)

spencer otm. video might be a big factor in why theaters have generally been upgraded (stadium seating, better sound) in the past few years though that trend started a bit before dvd.

j blount (papa la bas), Tuesday, 3 May 2005 19:04 (twenty years ago)

Good point.

Also, the 16% figure still *is* surprising.

Spencer Chow (spencermfi), Tuesday, 3 May 2005 19:07 (twenty years ago)

actually where i think dvds will have their largest impact is with television. it allows for more intricate plotlines (cuz these play very well on dvd), boosts the fortunes of cult shows, maybe even stresses a need for quality in some sense in that if you want to get the dvd bucks for your show you're gonna want to aim for something people will actually want to own on dvd.

j blount (papa la bas), Tuesday, 3 May 2005 19:08 (twenty years ago)

the incredibles sold a billion dvds! seriously that's MAJOR cash right there.

since there are about 6 billion people in the world i'd guess that this is... not true.

jed_ (jed), Tuesday, 3 May 2005 19:08 (twenty years ago)

i was exaggerating dude!

s1ocki (slutsky), Tuesday, 3 May 2005 19:09 (twenty years ago)

i think blount is right - dvds are the new syndication in a way

s1ocki (slutsky), Tuesday, 3 May 2005 19:09 (twenty years ago)

oh!

jed_ (jed), Tuesday, 3 May 2005 19:11 (twenty years ago)

remember too the majority of people that go to alot of movies (which isn't even the majority of people who go to movies)(which isn't the majority of people who watch movies) go to only one movie a week. whereas ALOT of people rent several movies a week and ALOT of people buy at least one dvd a month.

true fact, apropos of nothing: the last movie my father saw in the theater was footloose.

j blount (papa la bas), Tuesday, 3 May 2005 19:13 (twenty years ago)

Aw, the big screen is everything. I saw "Hidalgo" in the theater and raved about it; others saw it on DVD and said it was a dud. It was good when it was GIANT.

andy --, Tuesday, 3 May 2005 19:27 (twenty years ago)

So long as studios see a reason to be making movies, there will always be movies shown at theaters. Even if studios are only making 1% of their profits off theater releases, that is still 1% revenue that they otherwise might not be making, and they are making up for the rest in secondary sales (DVD, TV, etc). Theaters themselves aren't making money off movies anyway (they are making money from concessions, and now, ads), so as long as the HDTV/DVD industry has films to rent to them, they will have films to show.

I think the real threat to Film As We Know It is the general decline of people watching film at all. Playing video games, fidgeting around with computers, or egad going outside! But isn't the world film industry in pretty okay shape despite all the competition?

Rhodia (Rhodia), Tuesday, 3 May 2005 21:15 (twenty years ago)

Mark Cuban and someotherguywhosenameIcan'tremember is planning to release Steven Soderberg's next film simultaneously on DVD, TV, and theaters. It'll be interesting to see whether the 6? week theater protection period really has any utility.

Rhodia (Rhodia), Tuesday, 3 May 2005 21:19 (twenty years ago)

Aw, the big screen is everything. I saw "Hidalgo" in the theater and raved about it; others saw it on DVD and said it was a dud. It was good when it was GIANT.

Was this the 'Sandbisquit' movie?

M. White (Miguelito), Tuesday, 3 May 2005 21:20 (twenty years ago)

@ Spencer--yes, 16% is still $7.5 billion. That's big money. I argue repeatedly in my over-plugged blog that theatrical release is ONLY useful now as a marketing tool for the DVD release.

@ Rhodia--actually, the studios aren't making 16% of their profits from theatrical release; they're making 16% of revenues, or gross sales. On an aggregate basis, it's safe to say, they don't turn any profit at all on theatrical, since the cost of goods sold is certainly more than 16%.

@ Blount--I think DVD is continuing to kill markets. Theatrical attendance continues to fall and DVD revenue surged 10%. Theaters will start to close all over the U.S. In Western Europe, it's also mostly multiplex already. The theaters that stay open will have to upgrade to provide an experience that can't be duplicated at home. Although, the image of Ned sprawled out on his sofa eating while the DVD is on pause is of course something that the mulitplex will never best.

EComplex (EComplex), Tuesday, 3 May 2005 22:23 (twenty years ago)

Links where I have agreed completely with Spencer's comment about theatrical release being a marketing tool for the DVD release of a film:

2004 Box Office Wrap Up
http://entertainmentcomplex.blognation.us/blog/_archives/2005/1/5/232191.html
by EComplex on January 5, 2005 06:48PM (PST)
theatrical run is simply a marketing exercise for its DVD release : the source of 50% to 60% of a studio

Zombie Bambi: Fawn of the Dead!
http://entertainmentcomplex.blognation.us/blog/_archives/2004/10/14/160616.html
by EComplex on October 14, 2004 08:14PM (PDT)
theatrical release of feature films is best viewed as an elaborate marketing event supporting the DVD launch

The Summer of '04
http://entertainmentcomplex.blognation.us/blog/_archives/2004/8/31/133427.html
by EComplex on August 31, 2004 03:11PM (PDT)
Theatrical releases of, especially, German films, for example, are intended to publicize the television broadcast and DVD release of films. Exhibiting the films in theaters has become a marketing

How To Do Everything Wrong But Marketing: The White Noise Case Study
http://entertainmentcomplex.blognation.us/blog/_archives/2005/1/17/253825.html
by EComplex on January 17, 2005 10:53AM (PST)
marketing costs leaving DVD sales revenue as 100% profit, perhaps as much as $100 million, given that theatrical

Something Fishy About Ticket Sales
http://entertainmentcomplex.blognation.us/blog/_archives/2004/7/6/100952.html
by EComplex on July 6, 2004 08:26AM (PDT)
theatrical revenues account for only about 27% of the revenue generated by the average feature film. This varies, of course, from film to film. By far the largest component of studio revenues

SAG Victorious/Actors Will Not Be Forced to Endure the Onerous Burden of DVD Earnings!
http://entertainmentcomplex.blognation.us/blog/_archives/2005/1/22/272278.html
by EComplex on January 22, 2005 01:28AM (PST)
DVD companies. Their money comes from those shiny disks. And this percentage continues to increase every year. The entire theatrical release effort is increasingly a cost center rather than a revenue source

The Next to Last Picture Show?
http://entertainmentcomplex.blognation.us/blog/_archives/2005/5/3/646423.html
by EComplex on May 3, 2005 12:32PM (PDT)
theatrical run has assumed the lowly but incredibly expensive role of marketing vehicle for the DVD release

EComplex (EComplex), Tuesday, 3 May 2005 22:31 (twenty years ago)

Fred Camper to thread.

Eric von H. (Eric H.), Wednesday, 4 May 2005 00:21 (twenty years ago)

Theatrical 7.4
Pay TV 4.0

!!!

Wow, the theatrical experience is in deeper shit than I ever imagined. I'm so depressed.

Eric von H. (Eric H.), Wednesday, 4 May 2005 00:22 (twenty years ago)

this phenomenon fits into a lot of other half-formed ideas i've been mulling over, like batting away the perennial complaint of every other educated white person i know abt the dire state of the "music industry" (which is also in deep shit).

(this is of course old ground for ilmers but) the complaint is that "MY music isn't on top of the charts" ie my corner of culture is not national culture. which I have trouble with cos a "national culture" is a product of media engines to begin with.

anyway, i think numbers like this indicate the end of a unitary national popular culture at all. you can consume whatever parochial thing you're into, and a few things will try to have that reach, but the paranoid contempt abt lots of other ppl being into shit you don't like will seem really wierd and pointless. and the water-cooler conversation is on its way out as well.

g e o f f (gcannon), Wednesday, 4 May 2005 02:47 (twenty years ago)

has anyone ever blogged about this stuff?

s1ocki (slutsky), Wednesday, 4 May 2005 15:25 (twenty years ago)

G e o f f o t m.

More to take into account (tho it was touched on) is kids movies. Disney, for example, does one theatrical release for every 5 straight to vid release, so there's yr ratio right there.
As well, I'm sure that my town is not special and that most small-to-mid-sized centres only have one or two actual movie theatres anymore, and if there's two, there's usually some overlap in what they're screening. So between say, 20 screens in my town there are only ever about 12 movies playing. Meanwhile there are like 30 DVDs released every week.

I'm not so sure that the fact that Movie Theatres are only accounting for 16% of Studio Revenues speaks to the failure of the Cinemas nearly as much as it does to the success of the studios finding new revenue streams.

Huk-L, Wednesday, 4 May 2005 15:36 (twenty years ago)

People done suuure do like rewinding and skipping over stuff they perceive to be "flawed."

Eric von H. (Eric H.), Wednesday, 4 May 2005 16:02 (twenty years ago)

if we're plugging, i just did a thing for plan b arguing that the rise of dvd, the eclipse of theatrical releases, means the end of the locked-off 'film', the definitive cut (obv this process began with the "director's cut") -- this is basically another way of arguing that the tv series is the ideal, or an ideal, form for the format.

N_RQ, Thursday, 5 May 2005 08:04 (twenty years ago)

Cinemark just built and opened a new umpteenth screen enormoplex in my town and it's packed each weekend.

Me, I don't think movie theaters are gonna go away. People still like to go out.

Orenthal, Thursday, 5 May 2005 15:35 (twenty years ago)

I was talking about this with a friend who has kids last night, and he reminded me how insanely prohibitive it is for a family of four to go to the movies regularly compared to renting/buying a DVD.

Huk-L, Thursday, 5 May 2005 15:38 (twenty years ago)

And I was like, "Good, I hate it when there are kids in the theatre. Like when I saw The Incredibles, it was just stupid. There were kids everywhere!"

Huk-L, Thursday, 5 May 2005 15:38 (twenty years ago)

Would you SHUT your kids UP?!? I'm trying to watch cartoons here.

Huk-L, Thursday, 5 May 2005 15:47 (twenty years ago)

Won't downloading soon start eating into DVD revenues in the same way it has with CD revenues?

Jonathan Z. (Joanthan Z.), Thursday, 5 May 2005 15:53 (twenty years ago)

DVDs have nicer boxes.

Huk-L, Thursday, 5 May 2005 15:54 (twenty years ago)

yea ecomplex maybe in europe it's having an impact, but in the us the impact was already there - tv killed off huge numbers of theaters (although apparently the trend began before the true rise of tv, perhaps tied into studios being forced to divest from theater ownership, but apparently much more tied into some tax on theaters (?), i remember seeing on turner classics some old psa type thing by 'american movie theater owners' or some industry group urging viewers to urge their congressman to repeal some tax and how it had devestated the industry. this might be coporate bullshit - show me any industry that doesn't want to be taxed less - but something happened to drive movie attendance down in the mid to late 40s and tv's rise only sealed the deal), i'd be willing to guess that at least 90% of american movie screens are at multiplex theaters, and the theater upgrade trend began (again, just slightly) before the rise of dvds. i could see dling have some impact on the movie industry - obv a huge factor in why people go see a movie in the theater instead of waiting for video is they want to see it now, and dling circumvents the wait - but i think alot of people would still go to movies even if they could dl, rent, ppv it immediately. unlike with dling music, with dling movies instead of going to see it in the theater there are many huge aspects of the experience (more than just 'no cover art') you miss out on. for many (probably most) people the motivation for going to a movie is more social than aesthetic. the phrase 'dinner and a movie' didn't come about because horniness makes you a cineaste.

j blount (papa la bas), Thursday, 5 May 2005 16:09 (twenty years ago)

this is basically another way of arguing that the tv series is the ideal, or an ideal, form for the format.

Just take this pot of scalding hot water and throw it in my face.

Eric von H. (Eric H.), Thursday, 5 May 2005 16:51 (twenty years ago)

One think we're starting to see -- here in Texas, at least -- are lots of "movie taverns" pop up.

They're movie theaters & restaurants (with a bar) in one. The theaters have tables. You get served in the theater and eat there, while watching the movie. Maybe this will be the next step in how movie theaters evolve.

Ranch dressing, Thursday, 5 May 2005 18:02 (twenty years ago)

This just proves my theory that no motion picture released by a major studio EVER actually loses money.

Mike O. (Mike Ouderkirk), Thursday, 5 May 2005 18:13 (twenty years ago)

yeah movie taverns used to be pretty common and then disappeared for some reason (maybe the initial vcr wave?) and now they're creeping back in. i love them. the bars here in town show movies a bit too - the georgia theater, the big jamband hub in town, shows movies a couple of nights a week, and flicker, which was the elephant 6 bar for a little while, used to be primarily a silent movie theater though now unfortunately they don't show nearly as many movies as they used to.

j blount (papa la bas), Thursday, 5 May 2005 18:34 (twenty years ago)

As long as teenage guys are interested in teenage girls, and the suburbs are uneventful, I doubt theatres are in danger.

Frankly mr Shakey, Thursday, 5 May 2005 19:52 (twenty years ago)

Also, as long as ppl live in apts with no a/c, there will be need for movie theatres. When there was still a theatre downtown, I would go down on summer nights and see whatever was playing next just for a freakin' break from the heat.

Huk-L, Thursday, 5 May 2005 20:10 (twenty years ago)

@ blount

You're definitely right about the decline in attendance being an old problem. I don't have all my stats here but attendance hit its peak in the US circa 1948 when all the soldiers returned from Europe/Asia. Thereafter it started declining. By the late 60s the studios only released a tenth of the number of feature films they had in the 30s and 40s from something like 750 to 75. Hollywood really was almost over in the 60s.

The consent decree that made studios divest theaters didn't help, but demographics had more to do with it than the courts. People abandoned center cities in favor of suburbs, and by the 50s--generally speaking--people had a lot more money than they did during the depression and the war years. Other activites became viable. Then, of course TV arrived. Everything kind of hit at once.

I've got to find figures on the numbers of screens. I suspect, please someone tell me if I'm wrong--oh wait, you will--but again I suspect, currently we may have more/as many screens as before, but fewer buildings or venues. I.e., the multiplex. Even multiplexes will continue to close, IMHO in the near future. There will be fewer, but grander multiplexes. Megaultimamultigigaplexes and shit.

In Europe, the trend seems to be similar but more extreme. You have to go in to a reasonably large town to see a film. Multiplexes rule bigtime and the audience demos are like--statistically speaking--all teenaged boys

EComplex (EComplex), Friday, 6 May 2005 03:58 (twenty years ago)

that's sorta the case now - athens (where i live) is a college town and so has a large (relative to the size of the town at least) youth population ie. a large moviegoing population and it has two theaters, multiplexes but only six-eight screens each (i'm not sure exactly how many but i know they got no more than eight screens and no less than six) but outside of athens you have to drive all the way to lawrenceville, metro atlanta, to hit another movie theater - about a forty minute drive. for a little while me and my friends would do this sometimes even if the movie was showing in athens cuz the theater in lawrenceville had stadium seating and the theaters in athens didn't at the time (plus it was a cheap excuse for a road trip). in fact this past summer i did it when farenheit 9/11 opened there but (bizarrely - cuz athens is by georgia standards a pretty leftist town) didn't open here until a week later. there are several large towns in between that fifty years ago definitely would've had movie theaters. and 15 years ago athens had three multiplexes although the third one was only three screens. in fact for awhile athens was a great movie town cuz not only did you have the dollar theater and the campus theater and bars that would occasionally show a movie but the multiplexes followed a convention where if a movie showed at one multiplex the other theaters didn't book it, which sorta guaranteed that any "big" foreign or independent film out there was going to play athens, and usually get a multi-week booking.

j blount (papa la bas), Friday, 6 May 2005 06:02 (twenty years ago)

Wow. Athens is sort of the perfect case study. Which, of course, is a shame if you're there.

I live in L.A. now so the options should be unlimited. And while choices may be more extensive than most other places except maybe new york--although I doubt it, but it's been a while since I saw a movie there--you still have the cookie-cutter booking policy. Zillions of screens with the same films.

Foreign and or indy films play only at specific venues, and there's multiple booking frequently among these. Further, the foreign films that play even here are mainly festival winners, etc. The ones you'd expect, nothing surprising or particularly challenging.

When I lived in Berlin I was constantly amazed at how hard it was to find European films to see at the theaters, but I could see Charlie's Angels 2 and the Matrix films the day they opened around the world. Similar but better in France. The French make more films than the Germans and guard cultural artifacts better. In general, even Germans don't want to see German films, with occasional exceptions like Herr Lehmann or Good Bye Berlin. And in those case, the films make daily headlines proclaiming, "Look, We're Watching German Films!"

Not sure if Momus would agree with the preceeding, but that's how I saw it.

Still, I blame it all on demos. Cinema-going audiences are younger and younger and kids tend to want to see very specific kinds of films. Thank god my taste is so low-brow, or I'd have nothing to see.

EComplex (EComplex), Friday, 6 May 2005 15:14 (twenty years ago)

I live in L.A. now

Well frickin frick, dude, come out for a FAP or something!

Ned Raggett (Ned), Friday, 6 May 2005 15:46 (twenty years ago)

:-) Okay!

EComplex (EComplex), Friday, 6 May 2005 15:55 (twenty years ago)

Excellent, etc.

Ned Raggett (Ned), Friday, 6 May 2005 15:57 (twenty years ago)

fourteen years pass...

thread

Thread: If you think "Every Movie In Theaters Is A Marvel Movie" is false let me tell you a little story. I chose BODIED to get a small theatrical run of about 15 theaters. These types of deals are pretty much ineffective and just filmmaker ego driven - vanity rewards.

— Joseph Kahn (@JosephKahn) October 14, 2019

a Mets fan who gave up on everything in the mid '80s (Dr Morbius), Monday, 21 October 2019 01:21 (six years ago)

Ugh

Beware of Mr. Blecch, er...what? (James Redd and the Blecchs), Monday, 21 October 2019 01:24 (six years ago)

the Disney-Fox merger and film/TV production/exhibition hegemony in general

now let's play big lunch take little lunch (sic), Monday, 21 October 2019 02:43 (six years ago)

who cares, i don't see or enjoy marvel movies and yet i'm sure they entertain more ppl than whatever the fuck 'bodied' is so what's the problem? post your crappy student film on youtube

lumen (esby), Monday, 21 October 2019 03:23 (six years ago)

movies have been the worst art form with the least integrity my entire life, the only possible difference now is that virtually everybody seems to actually need to go see ant man or whatever nonsense they shovel out every week. good for them imo.

lumen (esby), Monday, 21 October 2019 03:35 (six years ago)

shove it

a Mets fan who gave up on everything in the mid '80s (Dr Morbius), Monday, 21 October 2019 10:22 (six years ago)

morbs otm

devvvine, Monday, 21 October 2019 10:45 (six years ago)

this is maybe esby's worst take ever

imago, Monday, 21 October 2019 11:24 (six years ago)


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