LFexaminer

Shindler's Site: The Food Chain

by Marty Shindler

"I don’t go to the movies," explained a former associate whom I ran into at the mall recently. "When I leave work, I am all done with movies." he continued, "The execs see the movies; that’s not my job. At the end of the day, I go home."

It appeared that the years had done nothing to change this curmudgeon. His job was just a job to him. With that attitude and apparent lack of pride in the industry in which he had spent the prior twenty-plus years, he might as well have worked at the local widget factory.

How often have you heard similar comments about going to movies, museums, etc.? How do you react? I am generally astounded.

My response is usually something like "If you don’t go to the movies, my kids don’t eat!" As you can imagine, I often get quizzical looks. I am used to that. But given the importance of the food chain in our industry, every ticket sold at the box office, even at conventional neighborhood theaters, has a trickle-down effect. Some portion of that box office ultimately works its way down to the food on my table and yours.

If this seems like Economics 101, it is. It’s the theory of supply and demand. If you go to the movies, thus creating demand, the supply will increase. In order to satisfy the supply, we all get more work to do, thus increasing our incomes. That income can then buy the next movie ticket. And so the cycle continues.

But it’s not the ticket that really counts. It is the curmudgeon’s mindset that is the heart of the issue. Each of us is a link in the LF industry food chain. He seems to have forgotten that.

Entry to the chain happens all the time at every point along the network. The food chain concept should be applied in the broadest sense to those we select as vendors. Vendors who are a part of our chain provide more benefit to the whole chain.

The size of the LF food chain keeps expanding. The intertwining nature of the chain is complicated. Consider the diversity of the people who attended the LFCA conference in May. Look around while you’re at the ISTC conference next month. Think about the other trade shows you attend. How do these people and companies all relate to one another in this multi-faceted industry?

I tried estimating the size of the LF food chain recently and decided to categorize its components. No offense to anyone I may have left out. This is just my first stab at it. Feel free to e-mail me with missing categories.

Production. Producers, directors, writers, everyone above the line, below the line, and all the others involved in capturing images on film. Of course, we must include the companies who make, develop, and print the film, and all of their suppliers. And since we are talking about the food chain, it would be wrong to leave out craft service – from caterers to farmers, or rather, the other way around.

Post Production. Many of these folks are included in the below-the-line list. Beyond editors and sound designers are musicians, recording artists, narrators, and so on. Of course, my list must include the many aspects of digital production, such as 2D and 3D CGI artists, input/output or scanning/recording personnel, data wranglers, hardware manufacturers and technicians, software writers, fulfillment houses, and all the sales people who sell, and purchasers who buy, all that we use.

Distribution. The best produced and post-produced movies in the world would be for naught if they were not distributed. In addition to distribution personnel, we have to include delivery organizations that get prints where they are supposed to be on time and in one piece.

Marketing. The best produced, post-produced, and distributed movies would not be seen if they were not marketed effectively. Advertising, print, and electronic media are vital, as are public relations and promotional efforts. Trailer editors, one-sheet designers, and the rest are an integral part of the process.

Exhibitors. With all of the aforementioned people doing their jobs, exhibitors are the last link to the consumer. After all, if getting the money in at the box office will let my kids eat, there must be a box office to receive the money, to say nothing of the theater in which to show the film. In the LF industry, this includes museums, science centers, planetariums, and the steadily growing number of commercial exhibitors. And at this link of the food chain discussion, I would be remiss not to mention the concessionaires.

Service personnel. To have theaters to exhibit the movies which have been produced, distributed, and marketed, we must have architects to design and construction workers to build them.

Management and administration. Every one of the functions above has a management team and support staff that are critical to day-to-day operations. Include accounting, legal, and business affairs, as well as others who make things happen all the time, but rarely receive credit, at least on screen, for their work.

Consultants. Before the theater is built there are usually cost-justification studies, market analyses, and fund-raising campaigns, often produced by consultants. In other words, guys like me. And let’s not forget the writers and publishers who bring the news to all of us! [Thank you. –Ed.]

The list could go on and on, but this column is not intended to produce an industry directory.

From a pure management perspective, companies should regularly examine all aspects of their food chain. This practice, which many perform annually, allows them to enhance their profitability. It is a daily occurrence in many larger companies that use "just in time" control over inventory and manufacturing. It also serves to complement supply line management. The correct approach can strengthen the industry, especially since our food chain is growing at an unprecedented rate.

Look at how you approach your segment of food chain. Keep the links strong. Let’s keep our kids eating.

Marty Shindler is a management consultant who provides a business perspective to creative and technical companies. Marty can be reached at shindler@aol.com.