LFexaminer

Shindler's Site: At the Crossroads - Still
By Marty Shindler

A year ago, as the industry prepared for the annual LFCA Conference, this column described the LF industry at a crossroads. I discussed why it was important that the industry "rethink where we are going, what has really worked, and what has not."

A year later, it appears that we are still at the same crossroads. There are many similarities between this year and last. Let's take a look at some of them.

Growth. As was the case last year, the industry continues to experience growing pains from several years of rapid expansion, both in theaters and in film production. Data in the LF Examiner 2001 Large-Format Bookings Yearbook, published last month, suggests that the sharp increases in new screens seen in prior years may be leveling off. Perhaps now some of the shock has been absorbed and we will be able to move forward in a less traumatic fashion.

Although slowing, the rise in both institutional and commercial theaters has moved the industry closer to reaching a critical mass. Achieving profitability for producers is vital to the long-term viability of the LF industry. This year's film crop represents the most diverse slate in recent memory. The principle of the survival of the fittest will prevail.

Reporting. Last year, the Academy of Motion Picture Arts and Sciences® recognized The Old Man and the Sea with an Oscar®, the LF world's first win. Unfortunately, the award does not seem to have created an upsurge in bookings for the film.

This year, Dolphins garnered an Academy Award® nomination. While Dolphins is almost certainly doing better at the box office than OMATS, neither reports its box office results, the one commonly available barometer of commercial success. Timely reporting of such data is important to the growth of the industry, but too few distributors are willing to disclose this information. This must change if the growth and maturation of the industry is to continue.

Commercial films. The success of Fantasia/2000 opened a lot of eyes to the possibilities of a different form of family entertainment in the LF industry. Disney's use of a more conventional film leasing model and its substantial marketing effort contributed to the film's high grosses. Many believe that the film changed the LF landscape forever.

Some institutional exhibitors who were concerned that F2K was not consistent with their mission statements, but exhibited the picture anyway, have been pleased. Some who did not book it heard the ringing of cash registers and believe they missed an opportunity. Still others have concluded that not running it was the right choice, preferring to stay with the tried and true.

Many did not take the film because of Disney's requirement of giving the film 100% of their schedule. Although the proposed terms for Beauty and the Beast have not been disclosed yet, I suspect that Disney heard the industry's objections to the F2K deal and will be more flexible next time.

Venues that took F2K saw many new faces in their auditoriums. The question is whether and how often those new customers have returned. For many members of the public, seeing Beauty and the Beast next January may be their first return visit. This is not acceptable. It is vital to get customers to come to LF theaters several times a year, not just for big event films.

Digital. The popularity of the digital seminar at last year's LFCA Conference proved that interest in the use of digital techniques for LF production is high. This year's seminar on digital image acquisition, manipulation, and presentation will certainly be a success. But the question of how quickly the LF or conventional industries will adopt these technologies is the subject of much debate. It would be pointless to speculate at this time.

As is the case with many rapidly growing sectors, the LF industry will continue to have its share of ups and downs. However, we have seen how dramatic those changes can be, and if we are wise we will learn how to use them to our advantage. This wisdom will permit the industry to move forward with confidence and success.

Marty Shindler is CEO of The Shindler Perspective, Inc. an organization specializing in providing a business perspective to creative, technology and emerging companies. Marty may be reached at Marty@iShindler.com.