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By Steve Mason

June 22, 2006

You sank my battleship!

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Steve Mason is a Los Angeles-based talk show host for 710 ESPN Radio. He has previously hosted the nationally-syndicated "The Late, Late Radio Show with Tom Snyder & Steve Mason" for CBS Radio and worked the last five Olympic Games for NBC and Westwood One Radio Network. He is also President of Flagship Theatres which owns the University Village Theatres near downtown Los Angeles (www.FlagshipMovies.com) and Cinemas Palme d'Or in Palm Desert, California (www.ThePalme.com).

Al Gore's An Inconvenient Truth (Paramount Classics), Robert Altman's A Prairie Home Companion and the documentary about New York Times crossword guru Will Shortz Wordplay (IFC Films) are the equivalent of summer blockbusters for specialty distributors. But, a hardly-noticed dynamic involving major theatre chains may be changing the world of art film forever. In fact, specialty distributors like Paramount Classics, Picturehouse and IFC may be sowing the seeds of their own demise even as we speak.

Three of the largest theatre chains – Regal Cinemas, AMC and Century Theatres – have launched programs that they say will improve the economics for art film. Regal calls its program "Cinema Art", Century has cleverly gone with "CineArts", and AMC has created "AMC Select". The idea is the same for each company. At their big popcorn multiplexes, they will offer some arthouse titles.

On the surface, it sounds like a great deal for indie filmmakers, specialty distributors and art film enthusiasts. You can see An Inconvenient Truth at the same megaplex where you go to see Nacho Libre. How can that be a bad thing?

It is a potential disaster for all.

I own a ten-screen multiplex in Palm Desert, California called Cinemas Palme d'Or. We offer traditional arthouse fare along with some high-end commercial film product. Century Theatres owns a 15-screen popcorn multiplex a few miles away, and they hold a "clearance" over us. That means they can block us from opening any film by playing it themselves.

My company's situation is not unique. There are many areas around the country where Regal, AMC and Century multiplexes compete with independent operators who specialize in art film.

In the case of Paramount Classics, An Inconvenient Truth will be potentially be the most successful film in the company's history. After the weekend of June 16th, it has generated an impressive $6.5 million. This is a Pirates of the Caribbean-like number for a little eco-doc from the former VP.

Arthouses like mine have supported lots of small, challenging titles from Paramount Classics in the last few years. Schultze Gets the Blues is a charming, quirky German comedy from the spring of '05 (domestic box office: $595,000). Apres Vous is a fun little French farce from last summer (domestic box office: $830,000). Asylum is a dark psychological drama from last September (domestic box office: $375,000). And Ask the Dust is Robert Towne's film noir yarn from this past spring (domestic box office: $743,000). These are terrific little films, but it's difficult to make any money playing them.




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Now, along comes Al Gore and his hip PowerPoint presentation. Do the little indie arthouse guys reap the benefits of playing this Paramount Classics "blockbuster"? The answer has generally been, "No." The Regals and AMCs and Centurys of the world have jumped into the arthouse pool and have snapped up An Inconvenient Truth for their so-called art programs. The independent arthouse exhibitors – who support Paramount Classics when the grosses aren't so frothy – have been, in many cases, deprived of one of the summer's major arthouse hits.

Paramount Classics says that this is a big movie, and they want to play it in the highest-grossing locations possible. But, the popcorn multiplexes don't do the sort of on-the-ground marketing that indies specialize in. And, will An Inconvenient Truth stay onscreen when Warner Bros wants additional screens for Superman Returns on June 28th and Buena Vista demands an extra screen or two of Pirates of the Caribbean: Dead Man's Chest on July 7th? Al Gore won't be able to compete with the man of steel and Johnny Depp's hamming.

So, in the end, one of the most provocative films of 2006 gets fewer weeks onscreen and a lesser gross when it plays as part of Regal's Cinema Art, Century's CineArts and AMC's Select. The picture gets two to four weeks at the big popcorn multiplex as opposed to six to eight weeks (or longer) at the local arthouse.

Long term, this strategy will effectively shut down many indie arthouses in the next few years. Large theatre chains make de facto circuit deals on the most commercial art films leaving the most challenging titles to the independent exhibitors. In any market where the arthouse shuts down, the consumer loses. Not only is the best art film on screen for fewer weeks, but filmgoers also pay the generally higher ticket prices. And, with lower-priced competitors gone, there is no price restraint on the big guys. Regal, Century and AMC can charge as much as they want. Where else are you going to see a movie?

But the greatest loss in the marketplace is that there won't be anyone to play Schultze Gets the Blues, Apres Vous, Asylum and Ask the Dust. These are unique and special movies, and should be seen, but they're not moneymakers. With the indie arthouses gone in many towns, there won't be a venue for them. The megaplexes won't play them because they only have room for hits.

So when Picturehouse sells A Prairie Home Companion to Century CineArts or IFC Films sells Wordplay to Regal Cinema Arts or ThinkFilm sells Strangers With Candy to AMC Select, they are giving in to a destructive and even predatory large chain booking practice. Ultimately, they will be forced to dramatically reduce the number of the films they release because there just won't be anyone to play them.


     


 
 

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