NATO of California/Nevada September 2005 September 2005 NATO of California/Nevada Information for the California and Nevada Motion Picture Theatre Industry CALENDAR The Real “Story”: It’s the Movies! of EVENTS & No Seismic Shift in Consumer Preferences HOLIDAYS Compels Unwise Simultaneous Release National Association of Theatre Owners President John Fithian Responds to National NATO Disney Chairman Robert Iger on the Alleged Demand for Simultaneous Release Board Meeting in Chicago Washington, D.C. (August 18, 2005) – National Association of Sept. 14 – 15 Theatre Owners (NATO) President, John Fithian, issued the follow- ing statement in response to comments by Walt Disney Chairman • Robert Iger during a conference call with Wall Street analysts on Tuesday, August 9. Sexual Harassment “Walt Disney’s Robert Iger says American consumers demand Prevention it all and demand it now. To placate this instant-everywhere appe- Training tite, Iger suggests it may be necessary to release movies in theatres, Workshop on DVDs, and everywhere, at the same time. Sept. 20 - San Jose “Mr. Iger knows better than to tell consumers – or Wall Street Sept. 22 - Los Angeles analysts – that they can have it all, everywhere, at the same time. Oct. 18 - Sacramento He knows there would be no viable movie theatre industry in that new world – at least not a theatre industry devoted to the entertain- • ment products of Hollywood. And he should know that Hollywood studios would be merely one shriveled vendor among many in that John Fithian, NATO President Daylight Saving new world of movies-as-commodities-only. Time Ends “Iger considers the slowdown in theatre box office and DVD growth a ‘wake-up call’ for Oct. 30 the industry. I’m not sure who was asleep, but it wasn’t the exhibition industry. Here’s what we know about 2005 – the movies are not as good. They’re not terrible. They’re just not as good. • And so the industry has experienced a temporary drop-off compared to 2004 – the biggest box ShowEast office year in movie history. Oct. 24 – 27 “Further, factor out last year’s big grossing specialty surprises – ‘Passion of the Christ’ and ‘Fahrenheit 911’ – and add in the fact that there are fewer wide general releases this year, and the • alleged industry ‘slump’ disappears. Fall/Winter “Just to reinforce the point that our industry cycles are driven by movie quality, it is interest- Film Product ing to note that DVD slow-down has roughly tracked the theatrical window. That is, movies that Seminars See John Fithian, continued on page 2 Nov. 3 - Northern California Nov. 9 - Southern California SEXUAL HARASSMENT PREVENTION • TRAINING WORKSHOPS! Election Day See page 2 for location and dates. Nov. 8 1 NATO of California/Nevada September 2005 John Fithian, continued from page 1 Previews have done poorly at the box office have tended to fare poorly when released on DVD. is published by the “On the other hand, DVDs that sell well benefit enormously from the advertising platform and National Association of Theatre Owners of national conversation generated by theatrical release. Does it really make good business sense California/Nevada to plunder that $25-billion-plus worldwide theatrical window without a very solid assurance that even more DVD sales will make up for the lost theatrical revenues? And if you answer that ques- 11661 San Vicente Blvd., Suite 830 Los Angeles, CA 90049-5116 tion based on number-crunching in your home entertainment division, are you really willing to Phone: 310/460-2900 bet the farm on the proposition that consumers will rush to watch even more movies at home after Fax: 310/460-2901 you’ve whacked the advertising platform of theatrical release? And have your number-crunchers E-mail: Offi[email protected] accounted for the possibility that consumers have basically bought their DVD libraries, and will www.NATOCalNev.org hereafter be increasingly conservative about their purchases? OFFICERS “It’s a product-driven industry. When the movies are really good, the industry does really Milton Moritz President & CEO well. And vice versa. New gizmos and conveniences regularly influence consumer patterns – but there is no seismic shift in the simple fact that good movies make people want to go see movies. Raymond W. Syufy Chairman Consumers are smart that way. Analysts can get that.” ▼ William F. Hertz, Sr. Vice President David Corwin Treasurer Third Location Added for Sexual Harassment Bruce Sanborn Prevention Training Workshops Secretary BOARD OF DIRECTORS Sergio Contreras NATO of California/Nevada has added a third venue for the upcoming Sexual Harass- Premiere Cinemas ment Prevention Training workshops. The interactive workshops, courtesy of the law firm David Corwin of Greenberg Traurig, will be moderated by Gregory F. Hurley and presented by Diana P. Metropolitan Theatres Scott and Lawrence Rosenfeld, and will satisfy the first requirement of the new California Nora Dashwood state law AB 1825. Pacific Theatres In California both corporate employers and individual employees and supervisors face Alan Grossberg UltraStar Cinemas personal liability for workplace harassment. With AB 1825 California has just instituted new William F. Hertz, Sr. harassment training requirements for all employers with 50 or more employees (includes Mann Theatres part-time and independent contractors). Supervisors must receive at least two hours of George Krikorian interactive training by January 2006. Krikorian Premiere Cinemas The two hour workshops will begin at 10:30AM. These workshops are open to all Greg Laemmle Laemmle Theatres supervisors, theatre as well as corporate. Attendance is free to NATO of CA/NV members; however it is by reservation only. RSVPs for the Sacramento workshop will be accepted Neal Pinsker Regal Entertainment Group until September 27th. Frank Rimkus Galaxy Theatres Bruce Sanborn Tuesday, September 20th Thursday, September 22nd The Movie Experience Century 20 Oakridge Theatre Mann’s Westwood Village Theatre Raymond W. Syufy Century Theatres 925 Blossom Hill Road, San Jose 961 Broxton Avenue, Los Angeles John Tegtmeier Tegtmeier Associates Tuesday October 18th Dick Walsh Regal Natomas 16 AMC Theatres 3561 Truxel Road, Sacramento Len Westenberg Loews Cineplex Visit http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_1801-1850/ab_1825_bill_ ❦ 20040930_chaptered.html to view the bill in its entirety. Charlene Sievers Director, Member Services 2 NATO of California/Nevada September 2005 In Defense of Theaters Help Us Set the Record Straight By Susan Wloszczyna , Reprinted from USA TODAY Industry and general news publications have, in recent What can I say? I like to do it in the dark and in the company weeks, run misguided articles critical of movie exhibitors of strangers. and the viewing environment that we provide. Watching movies, that is. In a recent Daily Variety article “Can an extreme make- Like sex, it can be done solo. But it is so much better with over save the Cineplex?” the reporter endorsed the idea that others. And, yes, size matters. “if exhibitors don’t put more equity into the experience of movie-going, they’ll lose the war with the home entertain- My preference was only reinforced at a screening of War of the ment market.” Worlds. It had less to do with the alien-provoked apocalypse that unfolded with snappy Spielbergian precision than with the privi- NATO of California/Nevada quickly responded by leged environment I was lucky enough to be immersed in. submitting a letter to the editor at Variety in order to dispel misconceptions. The letter also allowed us to reiterate the Good, fresh popcorn didn’t hurt. But as I stared at the massive positive aspects of movie-going that the article failed to ad- 32-by-70-foot screen at the Uptown Theater in Washington, D.C., dress, including relative value, upgrades in technology and a cavernous throwback to the days when theaters were rightly called comfort, the timelessness of the viewing experience, and the palaces, my senses were overcome — by the rumbling sound sys- perseverance of the industry despite changing times. tem, the towering images, the cooled air that crackled with shared tension. No one talked. No one checked his electronic device. No More recently, the Los Angeles Times issued an editorial one raced out to the bathroom. critical of NATO and theatres’ efforts to compete with home entertainment. We are currently working hard on a public We were as one, an audience fully engaged. response to this article, as well. When was the last time you felt like that while alone, clutching In the coming months, exhibitors may continue to be a a remote in your sweaty mitts, as the latest DVD release spun amid target for reporters looking to forecast trends or assign blame the distracting detritus of your media room? for less than optimal box office figures. Our response to Those silver discs are a fling, easily forgotten. Movies in the Variety article illustrates the importance of monitoring theaters are a commitment, engendering memories that can last a press coverage so that we can seize the opportunity to set lifetime. You probably can recall your first film in a theater. Can the record straight. As a part of our overall promotional you name the first DVD you watched? efforts, we must remind the public why movie-going is an Driving home from War of the Worlds, I thought about how blessed unmatched form of entertainment and how we continually I was to have seen such re-issued and restored classics as Kubrick’s are making efforts to improve the experience even further. brawny epic Spartacus and Hitchcock’s mind-bending romance Vertigo As an Association member, please forward negative at the Uptown. Yes, you can put them on your Netflix wish list or buy articles like the Variety piece to the NATO of California/ them at a discount from Amazon.