Shindler's Site: At the Crossroads - Moving Beyond

By Marty Shindler

Two years ago, as the industry prepared for the Large Format Cinema Association’s annual conference, my column, "At the Crossroads," discussed where the industry was heading. I said:

And concluded:

Last year’s column, "At the Crossroads – Still" concluded with:

In this, my third installment of "At the Crossroads," I am pleased to say that the LF industry has moved beyond the crossroads, and not just in isolated instances.

The rapid change of the last few years brought future shock to many, but it has also brought a new sense of reality. Our naiveté is gone. The LF industry, which once considered itself invulnerable and its products evergreen, has recognized its limitations.

The coming years will present new challenges and changes, such as:

Divided markets. The institutional and commercial sectors have continued to split apart. This was inevitable, especially in relation to film distribution, as the commercial sector applied its standard film lease terms, rather than using the traditional structures the LF world has developed over three decades.

The new business model, which some are calling the Disney model, gives the producer a larger share of the box office – up to 50% – in return for free prints and greater marketing support, locally and nationally. Although most veteran LF producers and distributors seem to be sticking with the traditional LF lease deals – distributor takes roughly 20% of the gate, and the theater pays for the print and all local marketing – institutional theaters and producers could benefit by trying variations that approach the Disney model. The recent reductions in print costs can only help that process along.

Product. Films are becoming more distinct as the markets split. Haunted Castle broke ground last year as the first purely commercial film in the modern LF era. Whether you liked it or not, whether you saw it or not, it had an impact on the industry. This year will see more strictly commercial titles, an important factor for the viability of commercial theaters.

Treasure Planet and the re-purposing of Apollo 13 are bold and exciting moves. Their success or failure will have powerful effects on the future path of the LF industry. Disney’s original LF production – Ultimate X and The Young Black Stallion, for instance – makes an important statement. The combination of repurposed and original product may create the critical mass needed to keep the commercial sector afloat.

Of course producers will continue to make films for the institutional market, the nucleus around which the industry grew and evolved. And there will be the occasional crossover films like Everest, T-Rex and Mysteries of Egypt that appeal to both segments.

Theater growth. As reported in LFX’s special theater issue (February 2002), theater growth has declined, but has not stopped entirely. Potential LF clients, commercial and non-profit, must now consider formats, lease/purchase options, and many other factors, some of which are not directly related to the LF business.

Theater growth will in part depend on whether the respective sectors see an adequate flow of product suitable for their audiences. But it’s not just a matter of quantity: quality, content, and popularity are obviously important. If the films put people in seats, the theaters’ most basic goal has been met. We are already seeing record levels of production, but will they be sustained?

Competition. Competition is good for everyone. It forces us to stretch further, and in theory makes for better product and services all around. Getting screen time has become difficult, but the competition provides the audiences, the ultimate customer, with more choices.

Ancillary markets. Although still a severely underutilized area, the LF industry has begun to take the ancillary markets more seriously, recognizing that they can represent an important source of revenue. Of particular note, Michael Jordan to the Max was recently listed by Video Store Magazine as the number-two sports video in 2001.

Many on the institutional side are beginning to understand that there is more to LF than the theatrical experience. DVDs that include the film and educational materials are the wave of the future. Reaching a larger audience through video sales and rentals is another way to promote lifelong learning.

Communications. Although there will continue to be disagreement about where the industry should go, even among people in the same segments, we must continue to open new channels of communication. Forums such as LFCA, GSTA and LF Examiner represent opportunities to be heard and share information and opinions.

It has been said that to travel hopefully is better than to arrive. The journey continues.

Copyright 2002 by Cinergetics, LLC. All rights reserved. Used by permission