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Movie Theater Owners: We Need a Bailout, Too | Movie Theater Owners: We Need a Bailout, Too |
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LOS ANGELES — With movie theaters across the country shutting their doors and furloughing the majority of their hourly workers, the National Association of Theater Owners asked Congress and the Trump administration on Wednesday for relief measures meant to help multiplexes stay solvent until business can resume. | LOS ANGELES — With movie theaters across the country shutting their doors and furloughing the majority of their hourly workers, the National Association of Theater Owners asked Congress and the Trump administration on Wednesday for relief measures meant to help multiplexes stay solvent until business can resume. |
In an effort to combat the spread of the coronavirus, the top 10 theater chains in the United States have shut down or are in the process of closing. Once the planned shutdown is complete, 89 percent of screens across the country will be dark. | In an effort to combat the spread of the coronavirus, the top 10 theater chains in the United States have shut down or are in the process of closing. Once the planned shutdown is complete, 89 percent of screens across the country will be dark. |
The National Association of Theater Owners, a trade group representing more than 33,000 screens in 50 states, asked the federal government for loan guarantees to help the industry through a time when strangers cannot gather in the dark to see the latest films. The association has also asked for tax benefits to help theater owners pay their workers and make up for their losses. | The National Association of Theater Owners, a trade group representing more than 33,000 screens in 50 states, asked the federal government for loan guarantees to help the industry through a time when strangers cannot gather in the dark to see the latest films. The association has also asked for tax benefits to help theater owners pay their workers and make up for their losses. |
“The Trump administration is considering loan guarantees and other benefits for the airline industry, which is composed of huge corporations and salaried workers,” said John Fithian, the organization’s chief executive. “We would ask that they also consider the movie theater industry, an important part of the cultural fabric for our country, and our 150,000 employees who are hourly workers.” | “The Trump administration is considering loan guarantees and other benefits for the airline industry, which is composed of huge corporations and salaried workers,” said John Fithian, the organization’s chief executive. “We would ask that they also consider the movie theater industry, an important part of the cultural fabric for our country, and our 150,000 employees who are hourly workers.” |
The National Association of Theater Owners also said it would draw $1 million from its reserves for movie theater employees put out of work because of the coronavirus-related shutdown. The movie studios are expected to contribute to the fund. | The National Association of Theater Owners also said it would draw $1 million from its reserves for movie theater employees put out of work because of the coronavirus-related shutdown. The movie studios are expected to contribute to the fund. |
Rolando Rodriguez, the chief executive of Marcus Theaters, a 91-theater chain based in Milwaukee, said federal aid was “critical.” | Rolando Rodriguez, the chief executive of Marcus Theaters, a 91-theater chain based in Milwaukee, said federal aid was “critical.” |
“We are doing everything we can to help our employees through this difficult period," he said, “but with zero revenue coming into our theaters, we need Congress to provide loan guarantees so our lenders will continue to extend credit to us, assistance for mortgage and rent payments, and to suspend collection of payroll tax so we can continue to pay salaries.” | “We are doing everything we can to help our employees through this difficult period," he said, “but with zero revenue coming into our theaters, we need Congress to provide loan guarantees so our lenders will continue to extend credit to us, assistance for mortgage and rent payments, and to suspend collection of payroll tax so we can continue to pay salaries.” |
The Walt Disney Company, Sony Pictures, Universal Pictures and other Hollywood studios have postponed theatrical releases through May. “Black Widow,” a likely blockbuster starring Scarlett Johansson from Disney’s Marvel Entertainment, was the latest casualty. On Tuesday, Disney announced that it had pushed back the film’s May 1 release date indefinitely. | The Walt Disney Company, Sony Pictures, Universal Pictures and other Hollywood studios have postponed theatrical releases through May. “Black Widow,” a likely blockbuster starring Scarlett Johansson from Disney’s Marvel Entertainment, was the latest casualty. On Tuesday, Disney announced that it had pushed back the film’s May 1 release date indefinitely. |
Other companies have decided to make current and recently released movies available for downloading or streaming well ahead of schedule. Sony said Wednesday that “Bloodshot,” an action movie starring Vin Diesel that opened in theaters on Friday, will be available for digital downloading on March 24 for $20. And Universal announced this week that it would allow three movies recently in theaters to become available for home viewing at $20 for a 48-hour rental period. | Other companies have decided to make current and recently released movies available for downloading or streaming well ahead of schedule. Sony said Wednesday that “Bloodshot,” an action movie starring Vin Diesel that opened in theaters on Friday, will be available for digital downloading on March 24 for $20. And Universal announced this week that it would allow three movies recently in theaters to become available for home viewing at $20 for a 48-hour rental period. |
Universal also changed its release plan for a family film, “Trolls World Tour,” announcing that it will be made available for in-home rental on April 10, the day it is scheduled to start playing in theaters that remained open. | Universal also changed its release plan for a family film, “Trolls World Tour,” announcing that it will be made available for in-home rental on April 10, the day it is scheduled to start playing in theaters that remained open. |
The moves left Hollywood wondering whether the traditional release model — which requires movies to play exclusively in theaters for close to 90 days — would ever return. | The moves left Hollywood wondering whether the traditional release model — which requires movies to play exclusively in theaters for close to 90 days — would ever return. |
Mr. Fithian, the head of the theater owners’ group, said he believed the traditional exclusivity period would survive the shutdown. | Mr. Fithian, the head of the theater owners’ group, said he believed the traditional exclusivity period would survive the shutdown. |
“In almost all of our conversations with our studio partners, it’s been about postponing the theatrical release because of a pandemic,” he said. “It has not been about changing the business model, with one exception: Universal and ‘Trolls.’” | “In almost all of our conversations with our studio partners, it’s been about postponing the theatrical release because of a pandemic,” he said. “It has not been about changing the business model, with one exception: Universal and ‘Trolls.’” |
Mr. Fithian added that the nationwide shutdown was likely to scuttle Universal’s plan of making “Trolls World Tour” available in theaters and living rooms simultaneously. | Mr. Fithian added that the nationwide shutdown was likely to scuttle Universal’s plan of making “Trolls World Tour” available in theaters and living rooms simultaneously. |
“It’s highly unlikely that any theaters in North America or Europe will be open on April 10,” he said, “so Universal is essentially going straight to the home with what was a theatrical movie.” | “It’s highly unlikely that any theaters in North America or Europe will be open on April 10,” he said, “so Universal is essentially going straight to the home with what was a theatrical movie.” |
The theater business is separate from the filmmaking business. Generally speaking, theater owners and Hollywood studios split box office revenue 50-50 in the United States, although studios like Disney have been able to keep up to 65 percent of sales for behemoths like “Star Wars: The Last Jedi.” Theaters make most of their money on concessions, revenue they don’t share. | The theater business is separate from the filmmaking business. Generally speaking, theater owners and Hollywood studios split box office revenue 50-50 in the United States, although studios like Disney have been able to keep up to 65 percent of sales for behemoths like “Star Wars: The Last Jedi.” Theaters make most of their money on concessions, revenue they don’t share. |
As of July, there were roughly 5,548 indoor movie theaters in the United States, with a total of 40,616 screens, according to the National Association of Theater Owners. | As of July, there were roughly 5,548 indoor movie theaters in the United States, with a total of 40,616 screens, according to the National Association of Theater Owners. |
The three biggest companies have their headquarters far from Hollywood. AMC Entertainment, the largest, with 634 locations, is based in Leawood, Kan. Regal Theaters, the second-largest chain, operates out of Knoxville, Tenn. Cinemark is in Plano, Texas. Beyond the three majors are smaller “circuits,” like Marcus Theaters. | The three biggest companies have their headquarters far from Hollywood. AMC Entertainment, the largest, with 634 locations, is based in Leawood, Kan. Regal Theaters, the second-largest chain, operates out of Knoxville, Tenn. Cinemark is in Plano, Texas. Beyond the three majors are smaller “circuits,” like Marcus Theaters. |
Of the roughly 600 members of the association, about 400 operate fewer than 10 screens. Roughly 90 members run single-screen theaters, spots like the 74-year-old Roxy in Choteau, Mont. | Of the roughly 600 members of the association, about 400 operate fewer than 10 screens. Roughly 90 members run single-screen theaters, spots like the 74-year-old Roxy in Choteau, Mont. |
While some movie houses have sticky floors and tattered seats, the multiplex companies have spent hundreds of millions of dollars over the last decade to make moviegoing more attractive — and to stave off increasingly popular streaming services like Netflix, which offer the comfort of watching new films at home. | While some movie houses have sticky floors and tattered seats, the multiplex companies have spent hundreds of millions of dollars over the last decade to make moviegoing more attractive — and to stave off increasingly popular streaming services like Netflix, which offer the comfort of watching new films at home. |
AMC has installed advanced Dolby sound and projection systems, extra-wide screens and La-Z-Boy-style seats. The chain has also started serving alcohol and has offered expanded food menus in hundreds of its theaters. | AMC has installed advanced Dolby sound and projection systems, extra-wide screens and La-Z-Boy-style seats. The chain has also started serving alcohol and has offered expanded food menus in hundreds of its theaters. |
Starting in 2016, AMC acquired the Carmike chain in the United States and added Odeon in Britain and the Nordic Theater Group in Northern Europe. As a result, even before the spread of the coronavirus, the company had significant debt — roughly $4.8 billion, up from $1.8 billion in 2014. | Starting in 2016, AMC acquired the Carmike chain in the United States and added Odeon in Britain and the Nordic Theater Group in Northern Europe. As a result, even before the spread of the coronavirus, the company had significant debt — roughly $4.8 billion, up from $1.8 billion in 2014. |
Thomas E. Rothman, the chairman of Sony Pictures, predicted that the appetite for moviegoing would be stronger than ever, once the pandemic passed. | Thomas E. Rothman, the chairman of Sony Pictures, predicted that the appetite for moviegoing would be stronger than ever, once the pandemic passed. |
“People will want to get out and share communal experiences,” he said. “We will remember how much we love to be all together.” | “People will want to get out and share communal experiences,” he said. “We will remember how much we love to be all together.” |