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Cloud Call Center Community Featured Article

[March 16, 2006]

Don't panic, pass the popcorn

(Las Vegas Review-Journal (KRT) Via Thomson Dialog NewsEdge) Mar. 15--A slight slip in U.S. box office sales couldn't dampen Tinseltown's enthusiasm.

Neither could the growing threats of piracy and advanced home entertainment systems.

At this year's ShoWest trade show in Las Vegas, executives painted a rosy picture of the movie industry's future, regardless of any figures or trends suggesting otherwise.

"Home entertainment is growing and will continue to do so. But I ultimately believe we will be successful because Hollywood has the ability to tell superb stories like no other medium can," Motion Picture Association of America President Dan Glickman said Tuesday at Paris Las Vegas, where he addressed attendees of the four-day trade show.

"Movies matter to people, and as a result there will always be a demand for them," Glickman added.

Despite such boffo talk, U.S. film industry revenue last year decreased 6 percent from 2004's reported $9.54 billion. As a result, domestic box office sales fell below the $9 billion threshold after topping that mark each of the three prior years.

Some suggest Hollywood is losing ground to other entertainment diversions including television, video games and the Internet.

Even die-hard movie fans have shown increased reluctance to hit the cineplex, preferring to wait a few months to catch a hit film at home on digital video disc or on-demand cable or satellite service.

But there's no reason for overpriced-popcorn vendors to panic just yet, at least according to John Fithian, president of the Washington, D.C.-based National Association of Theatre Owners.

In the first six years of this decade, U.S. theaters have sold an average of 1.5 billion tickets per year, including last year's approximately 1.4 billion. That's better than the 1.3 billion average posted in the 1990s, and also the 1.1 billion average from the 1980s, Fithian said.

"I'm befuddled by all of the media attention, with one or two years' of down admissions, saying, 'It's the death of the movie cinema business,'" Fithian said. "We heard that with videocassettes, cable and television In the long term, our business is just fine."

That doesn't mean the industry can rest on its laurels, however. The association is conducting a first-time study of what motivates consumers to go to the Cineplex and what prompts movie fans to stay home, Glickman said.

Tuesday's gathering unwittingly offered two harsh reminders of what keeps many away from theaters: the show began 25 minutes after its posted starting time, and speakers were interrupted by ringing cell phones.

One woman seated three rows behind noted Hollywood producer Jeffrey Katzenberg let her phone ring three separate times despite repeated requests to shut off the devices.

Glickman suggested industry leaders do more to promote the moviegoing experience rather than spending hundreds of millions of dollars solely to tout specific films. The former U.S. secretary of agriculture said the film industry should mirror popular campaigns such as dairy's "Got Milk?" or the cattle industry's well-known "Beef: It's what for dinner" ads.

"These campaigns were done because market sales ... were falling," Glickman said, adding that an industrywide marketing push often helps turn sales around.

Glickman said the film industry has made progress on piracy, citing last year's federal action that made camcorder recording within a theater a felony. Thirty-eight states and the District of Columbia have similar laws in effect.

"We're aggressively moving to protect the value of movies," he said.

Last year's small but controversial push to release films on DVD at the same time they hit theaters was overblown, Fithian said. Many industry leaders have committed to maintaining the tiered release approach. Last year, the industry averaged four months between theater and home introductions, he said.

Glickman urged theater operators to stress customer safety and comfort, while Fithian promised more "attacks" on rude patron behavior using usher sweeps and public service messages. Both stressed the need for compelling films to attract audiences.

Paula Wagner, who heads Cruise/Wagner Productions with business partner/actor Tom Cruise, introduced the 19 movies that last year exceeded $100 million in domestic ticket sales.

They included a mixture of sequels ("Star Wars: Episode III -- Revenge of the Sith") and remakes (Cruise's "War of the Worlds," Adam Sandler's "The Longest Yard," Jim Carrey's "Fun with Dick and Jane" and "King Kong"), adaptations of children's books ("Harry Potter and the Goblet of Fire," "Charlie and the Chocolate Factory," and "The Chronicles of Narnia: The Lion, the Witch and the Wardrobe"), and more comic book heroes on the silver screen ("Batman Begins," "Fantastic Four").

Animated films ("Chicken Little," "Madagascar," and "Robots") again resonated with audiences, as did ribald adult comedies ("Wedding Crashers," "The 40 Year Old Virgin").

Other $100 million hits included Angelina Jolie and Brad Pitt in "Mr. & Mrs. Smith," Will Smith's romantic comedy "Hitch," Vin Diesel's "The Pacifier," and the Johhny Cash biopic "Walk the Line."

Twenty-two films posted more than $100 million in domestic ticket sales in 2004.

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