Hey Hollywood, I got an idea to end the longest box-office slump in 20 years!

Page 2 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

0roo0roo

No Lifer
Sep 21, 2002
64,795
84
91
Originally posted by: chuckywang
Originally posted by: Citrix
here is an idea, get the movie theaters to stop charging $9.00+ a fricken ticket. thats why i dont go. i can afford to take me, wife and 3 kids but 40 bucks for tickets is expensive.

QFT!!

naw, i'd rather they line the theaters with that cellphone signal blocking wallpaper liner thats out.

oh the anger that would prevent...
 

Calin

Diamond Member
Apr 9, 2001
3,112
0
0
Originally posted by: mordantmonkey
Originally posted by: Kenazo
I guess they figure if they lose $20million/movie on average, you have to put out 5x as many movies to make money.... :)

your horrible logic made me laugh. :p

:p
 

Calin

Diamond Member
Apr 9, 2001
3,112
0
0
Originally posted by: PanzerIV
I couldn't agree more. They b!tich and moan about piracy and this and that but they refuse to see the truth. They put out rehashed sh!t year after year. How about making an action movie with an actual decent plot and not just the biggest explosions and stunts you can pull off. The same goes for war movies like Windtalkers. Pure POS. They also excel at ruining time honored classics like Around the World in Eighty Days which was nothing like the book and only a vehicle for Jackie Chan to show off his stunts and martial arts skills.

Dear Hollywood: Get your head out of your anus and give us something worth seeing you asshats! Surprise, surprise you may see profits improve.

I like Jackie Chan - but I would liked even more a mostly true-to-the-book movie
 

0roo0roo

No Lifer
Sep 21, 2002
64,795
84
91
Originally posted by: Xionide
Originally posted by: 0roo0roo
June 21, 2005

THE SLUMP ISN'T REAL, BUT CHANGE IS...

"Ten years ago, I paid to see at least two movies in a theater every week. I've only gone to one movie in a theater this year. I was never a big VHS buyer, but my DVD collection has expanded by at least 50 titles since last December."
xxxxxx........................................xxxxxxxxxxxxxxxxxxxxxxxxxxxxx- David Poland

It's true. I don't pay for movies anymore. And I have a lot of DVDs, though I don't pay for many of them either.

After this weekend's most egregious, irresponsible box office headline yet - "Worst Box Office Slump In 20 Years" - I thought it would be a good idea to really get into the alleged DVD-driven box office slump and instead of just saying how wrong others are, look at what I think the truth to be.

The film business has had 13 straight years of improvement in the overall domestic gross for the year. The growth has ranged from the .2% registered in 2003 to the 9.8% in 2003, 9.2% in 1998 and the 9% in 2002.

Now, if you want to start down the "prices have gone up... it's not real growth" rant, that's okay with me... but you are moving the playing field. Perhaps you'll get into the "real" grosses for Gone With The Wind by adjusting for inflation... blah, diddy, blah, blah, blah. It's interesting, but it's a different discussion.

The DVD sell-through business peaked early last year. Perhaps it will reassert itself sometime, but for now, it is the motion picture DVD sell-thru business that seems to have started a slow slide. It is still massive, but last Christmas, Americans bought TV on DVD, not films.

Why isn't it reported? Because DVD numbers are not publicly reported. Why aren't they publicly reported like movie grosses? Because the industry learned its lesson well from the absurd situation with domestic box office reporting. That much information means too many opinions and too many people with details. And so, we get Top Ten charts and occasional hints about great opening week DVD numbers reported by the releasing studios and the media prints it without demanding more.

While the DVD business was hitting its current apex, Shrek 2 was becoming the second highest grossing domestic release of all time. But it was also "just" the sixth highest grossing worldwide hit in history (less than half of Titanic's number, for the record).

Eleven of the Top 20 domestic grossers of all time were released in these last five years as the DVD revolution took hold.

There have only been ten $350 million domestic grossers in history... never two in the same year... until last year... when there were three.

The stat is a little different worldwide, where DVD sell-thru is not as dominant in their culture, though piracy is more dominant. There have been seventeen $750 million worldwide grossers. There were two in 2001 (Rings 1 and Harry Potter 1) and two more in 2002 (Spider-Man, Harry Potter 2). Last year, for the first time, there were three.

So the audience disinterest in going to the movies last year was... uh... anyone... anyone?

Three of the eight highest grossing domestic releases of all time were released last year in February (Passion of the Christ), May (Shrek 2) and July (Spider-Man 2). The top two films of last year release by this date has put $740 million into the till by now. This year, the top two have been good for $530 million by this date... a different of about $210 million, which by itself makes up for all but about $90 million (or about a 2% drop from last year) of the current "slump."

It is possible that the rest of the year will not catch up with the missing muscle of last year's trip of mega-blockbusters. On the other hand...

Last Holiday season, Meet The Fockers and The Incredibles totaled $541 million... the five other Holiday films that grossed over $100 million totaled $864 million... numbers 8-14 totaled another $404 million. So that is a Top Fourteen of $1.8 billion.

The upcoming Holiday season of 2005 should be powered mostly by King Kong, Harry Potter 4, Narnia, and Fun With Dick & Jane. So looking at those four titles alone... is there anything less than $1.1 billion domestic right there? And following along are ten more titles - Chicken Little, Domino, V For Vendetta, Zathura, The Producers, Underworld: Evolution, Yours Mine & Ours, The Ringer and Spielberg's Munich movie. I'm fairly comfortable that upcoming Holiday season will make up for or even surpass the "deficit" of this last spring... where more of the "deficit" is from.

But let's say it doesn't.

The start of the shortened Home Entertainment window was really Batman in June of 1989. When the film opened with $40.5 million in one weekend, it was a record... by a significant margin. And this was followed by a late summer announcement that Batman would be available in video stores as a sell-thru (this is was still being distinguished) before Thanksgiving. The film played at over $1 million a week for 14 weeks, but there was a sense that there was more money out there if the promise of a quick video turnaround didn't exist.

Three years later, Batman Returns opened bigger ($45.7 million), setting a new record... and the film played for just seven weekend at over $1 million.

Yes, the drops were deeper and the film was not as universally embraced, but the legs had been cut in half while the total domestic box office dropped just 33%.

Batman Forever opened another $7 million bigger (not a record this time), played at over $1 million again for seven weekends. The total gross was higher than on Batman Returns. Bad lesson learned.

The fourth Bat-film opened to almost $10 million less than the third. Five weeks at $1 million-plus and out the door at $107 million.

A flop is a flop is a flop.

In the years between Batman & Robin and Batman Begins, the home entertainment market changed drastically with the rollout of DVD and the industry decision - much against the will of Blockbuster - to make the medium almost exclusively sell-thru.

In the last five years, the DVD market cannibalized video rental, but in overall dollars, added about 20% - 25% to the studio bottom line, picture to picture. After an exhibition slowdown in the early 90s, exhibitors went bankrupt, on after the other, and after being reconfigured, rebuild a large percentage of the screen counts in many markets. Bad locations were dumped... multiplexes were reconfigured for state-of-art efficiencies... ownership consolidated.

In 1993, Jurassic Park became the last big money maker in second run theatrical, generating $46 million of its $357 million domestic total after the summer (and most first run) ended twelve weeks into its run.

By the time Independence Day smashed three years later, weekend twelve was just $16 million away from the domestic total.

When The Grinch came out four years later, he was on just 303 screens in weekend twelve.

And then DVD arrived...

PART TWO: The DVD Era... Tomorrow
http://www.thehotbutton.com/today/hot.button/index.html

Are you kidding me? I am not reading all that. It's just rambling about movies that could be said in one sentence.

he did:) in the first sentence. but still, what he says is true. the industry always whines about its financial health when its never been justified by the real numbers. yet many lazy journalists fill pages by parroting industry press releases all the time. heck just last week my local mercury news had a front page thing on it. i was a bit disgusted.
 

KarenMarie

Elite Member
Sep 20, 2003
14,372
6
81
Originally posted by: NuclearNed
Just some random related thoughts:

If your screenplay writers can't come up with something original, maybe its time to get some new screenplay writers.

Movies are really dumbed down nowadays, supposedly so that the widest possible audience will want to see any given flick. Bring back the intelligence.

Get back to the story, and away from the massively overdone special effects. Watch the chariot race in Ben Hur and tell me with a straight face that today's CGI movies are more exciting.

Forget the pretty actors, and give the acting jobs to, I don't know, PEOPLE WHO CAN ACT!!!

Five :beer: s for you!!!!

:)
 

Excelsior

Lifer
May 30, 2002
19,047
18
81
Originally posted by: arod
Its that and the fact that theaters suck these days as well... older projectors, piss poor sound, uncomfortable seating (just rundown theaters) and cellphones/crying babies.

Its so much better to watch a DVD (and soon to hd HD-DVD/blueray) on my projector than it is to go to the local cinema. I probably will only see 2 flicks this summer (batman and war of the worlds). Everything else I can wait until DVD comes out.

Not just cellphones and crying babies, but retarded fvcking adults who shouldn't let themselves go out in public.
 

Excelsior

Lifer
May 30, 2002
19,047
18
81
Originally posted by: PaulNEPats
All these friggin' remakes are ridiculous. If the original is done well, DONT REMAKE IT! (Example: Charlie and the Chocolate Factory)

No joke.
 

oogabooga

Diamond Member
Jan 14, 2003
7,806
3
81
my problem is that a lot of the stuff we are seeing isn't original (i guess many can argue that stuff never is but i dont mean to that extent).

Batman begins was relatively original : but it's still well endowed in it's franchise.

Movies seems to about three different things
1) Big Action
2) Boobies
3) Pisspoor comedy.
And now they are tieing these three into remakes and prequels. I know i wanted the sequel trend to end, but this is just plain ridiculous.

I have found that watching a lot more independent smaller films have made life more bearable. The big movies for me last year wern't spiderman 2 ( though i did like it ), schreck 2, and passion. I enjoyed Eternal Sunshine, I <3 Huckabees, etcetc.
 

nageov3t

Lifer
Feb 18, 2004
42,808
83
91
indeed.

if there were enough movies worth seeing, I'd be at the theater every weekend instead of once every 2-3 months.
 

shortylickens

No Lifer
Jul 15, 2003
80,287
17,082
136
I'd like to reaffirm some of the previous posts:

My biggest problem is the price.
Why should I pay 20 bucks or more for a ticket to a place that charges 3 times what the candy and soda is worth, just to hear babies cry and cell phones ring?!?

I saw in Taiwan they were starting to put shielding up in the theaters, to keep cell signals out. Thats a step in the right direction.
 

K1052

Elite Member
Aug 21, 2003
53,466
47,928
136
Originally posted by: shortylickens
I'd like to reaffirm some of the previous posts:

My biggest problem is the price.
Why should I pay 20 bucks or more for a ticket to a place that charges 3 times what the candy and soda is worth, just to hear babies cry and cell phones ring?!?

I saw in Taiwan they were starting to put shielding up in the theaters, to keep cell signals out. Thats a step in the right direction.

Write to the film companies as the bulk of the ticket revenue goes to them, that is why concession prices are high.

Why do people think they are after DVD sales like a dog in heat? Becuase it is maximum profit for minimum effort. The profit margins are thin or non-existant for retail stores but they do it because it has been shown that when a person comes in to buy a DVD they buy a few other things as well.
 

lokiju

Lifer
May 29, 2003
18,526
5
0
My biggest gripe is the way the crowds act and around me its completely hit or miss, last weekend I saw Batman Begins and there wasn't a peep out of anyone what-so-ever (sold out theater) then there are other times when its just people yelling and screaming back and forth the whole damn time. I didn't pay $9 to see a movie just to have some group of dipsh!ts talking the whole damn time!


I think there should be more movie theaters that are 21 and older, there is one thats a 30 min drive for me so thats not always an option, but if there were more around I'd go to them every single time.

 

Excelsior

Lifer
May 30, 2002
19,047
18
81
Originally posted by: chuckywang
Originally posted by: Citrix
here is an idea, get the movie theaters to stop charging $9.00+ a fricken ticket. thats why i dont go. i can afford to take me, wife and 3 kids but 40 bucks for tickets is expensive.

QFT!!

Or stop living in an area that charges that much...wtf.
 

GagHalfrunt

Lifer
Apr 19, 2001
25,284
1,998
126
Originally posted by: eigen
more girl on girl action would help as well.


Well, it depends on which girls. Glenn Close and Kathy Bates won't generate much buzz. An Angelina Jolie and Charlize Theron scene should be good for a couple of hundred million in ticket sales.
 

Kadarin

Lifer
Nov 23, 2001
44,296
16
81
One thing that I find incredibly annoying about action movies these days is that the dialogue is very quiet, and when some action sequence starts, it gets VERY LOUD. And then goes back to quiet again. I sure as hell wish they'd stop doing that.
 

LordMorpheus

Diamond Member
Aug 14, 2002
6,871
1
0
Originally posted by: Citrix
here is an idea, get the movie theaters to stop charging $9.00+ a fricken ticket. thats why i dont go. i can afford to take me, wife and 3 kids but 40 bucks for tickets is expensive.

I get into theaters for 5 or 6 dollars . . .

In saint louis, with my school ID.
 

0roo0roo

No Lifer
Sep 21, 2002
64,795
84
91
Originally posted by: Astaroth33
One thing that I find incredibly annoying about action movies these days is that the dialogue is very quiet, and when some action sequence starts, it gets VERY LOUD. And then goes back to quiet again. I sure as hell wish they'd stop doing that.

lousy theater setup probably.
 

Soccer55

Golden Member
Jul 9, 2000
1,660
4
81
I think it's a combination of high ticket prices and crappy movies that is the real problem. If movies were only $5 or $6 a ticket instead of $9, I'd be more willing to go to a theater and see a movie that I'm mildly interested in instead of saying "I'll just wait for it to come out on DVD" or "I'll just wait until it's on HBO". For example, when I, Robot came out, I thought it looked like it would be an ok movie, but I didn't bother seeing it in the theaters. I felt like it wouldn't be worth the $9 to see it in the theaters when I thought it would only be "ok". If I really got the urge to watch it, I could just rent it or borrow it from a friend when it came out on DVD. If movies were around $5 or $6, I probably would have just gone to the theater to see I, Robot.

Instead of wasting their money and resources on the whole piracy thing, the MPAA (and RIAA too for that matter) should stop being so damn greedy, lower their prices for movie tickets (CDs), and embrace the new medium instead of trying to hunt down and prosecute people for piracy. I'd be willing to bet that if they did these things, they'd find that they'd make more money and the whole piracy thing would be less of a problem. Just my $.02

-Tom
 

0roo0roo

No Lifer
Sep 21, 2002
64,795
84
91
more goodness June 22, 2005

THE SLUMP ISN'T REAL, BUT CHANGE IS...
(Part 2)

As I was saying?.

Batman's landmark position in both video sell-thru and the shortened video release window led to another deal that changed the video rental business. Instead of a split price point for rental and sell-thru, a rental "rental" was created and the major rental storefronts were flooded with copies of every new release to deal with the "opening weekend" demand. This was followed a few week later by a furious sell-off of the used tapes at deep, deep discounts ($9.95 to as low as $2).

Meanwhile, domestic theatrical was being transformed by bankruptcies and mergers. Some competitive overbuilds were eliminated. Some dirty, beat up theaters - some movie palaces that could have been revived by a more caring system - used the bankruptcies to dump long leases and to reconfigure into the bigger, better stadium-seating multiplex world in which we now live.

The kick-off of the new era was Spider-Man, with the first $100 million opening weekend, generated by a record number of actual screens, as multiplexes expanded the number of screens within their houses (counted only once in what is still poorly tagged "screen count") to fit overwhelming first weekend demand. The "screen count" was 3615, but the print count was almost double that and the number of screens that actually showed the film was probably almost double that number in that first weekend.

As DVD continued to emerge, Blockbuster wanted there to be a similar deal to their video deal. They wanted it to remain a rental business and fought the notion of DVD sell-thru aggressively? after all, it would surely lead to their demise if it caught on. (The impact of another threat, the NetFlix business model, wasn't yet apparent.) But the studios were to smart for all that. The flood of slightly used tapes in the marketplace had dug deeply into retail video sell-thru. They weren't going to make that mistake again.

The DVD business was building, but it took a superhero, once again, to push the envelope and to define the culture of DVD. This time, it was Spider-Man? with more than a little bit of help from some hobbits.

In the fall of 2002, Lord of The Rings: Fellowship of the Rings and Spider-Man both swung into DVD before Thanksgiving. The year before, Shrek was out and, if you had children in your house, you might have already bought a DVD for Big Green and Monsters, Inc, etc. But here were two films that the teenage set HAD to have and they HAD to have the DVD because of all the supercool (read that with a French accent) additional materials, especially in the Rings discs.

As best as I can tell, that was the first year that a studio grossed more on DVD than on their domestic theatrical. Home Entertainment was no longer "just an ancillary."

The economics were simple. A normal DVD sale (Rings packages were an even bigger cash cow) generated $8 - $12 in profit for the studios (before taking out participants' shares). A video in the rental-to-sell-off market generated maybe half that much. With a market full of people who were willing to spend twice or three times the cost of a rental to own the DVD, studios could sell almost as many units as they were flooding the rental market with, almost doubling their income. In addition, there was still a rental market generating dollars. Win, win, win? cash, cash, cash.

Over at the movie theaters, things were going great guns. Spider-Man had broken through as the first $400 million domestic film since Titanic. The Lord of The Rings movies were doing landmark business. Finding Nemo and Pirates of the Caribbean were on the way.

Ah, those happy moments.

But trouble was on the way. They say that nature abhors a vacuum. Well, Hollywood abhors a cash vacuum. And with the new expanding revenues, thanks to DVD sell-thru, the extra money got spent in a hurry. Budgets expanded, top salaries grew, back-end percentages became bigger and more standard.

Charlie's Angels had been modestly profitable, thanks to DVD. But the sequel was greenlit at nearly the cost (including overruns) on the first movie. How could it miss?

Hulk lumbered into the marketplace at a cost of about $150 million.

Terminator 3: Rise of the Machines was over the $200 million mark.

Both Matrix sequels were well over $200 million apiece.

And a summer after Men In Black II went into theaters almost unable to make a profit due to the massive percentages being eaten by the talent team surrounding it, along came Bad Boys II, which was looking at about $350 million worldwide theatrical as a breakeven point, taking all ancillaries, including DVD, into consideration.

And as all of those costs increased, risk increased? and marketing costs accelerated to ever more dizzying heights. Even minor titles, meant to hit and run, started to spend big bucks in TV advertising in order to get any traction at all. And not only were movies that were, say, opening in May, throwing tens of millions into television's sweeps month, but June, July and even August movies started throwing money around in May since it was the last great opportunity to get big television audiences so awareness could be built.

In the summer of 2004, the summer of 2003 had a clear impact. The spending frenzy slowed a little. There were still a few $200 million-plus titles and a few $150 million-plus titles without major stars in them. But the machinery was working pretty well. Warner Bros.' amazing international run continued with Troy, Fox figured out how to work around the media and to go right to its audience with The Day After Tomorrow? even big films that were considered disappointments (Van Helsing, I, Robot) did over $120 million domestic and over $300 million worldwide.

The year was so good that even without a Rings movie or a Potter in the fall, Meet The Fockers' breathtaking $280 million domestic and over $500 million worldwide didn't get a whole lot of attention.

The media abhors a vacuum too.

Welcome to 2005.

Statistics are quite malleable. For instance, in the first four months of the year, there were more $50 million grosser released this year (19) than last year (17). Last year, there were only two $100 million releases in the first four months? three this year. But the $420 million from those three films this year were $70 million behind the two films of last year.

It struck me that Lord of The Rings: Return of The King must have dumped more money into early 2004 than Fockers dumped into 2005? but I was wrong. Fockers actually drew $8 million more in the year after opening ($146 million vs $138 million), so I can't manipulate that stat.

In any case, this year's Troy was Kingdom of Heaven? and the difference between the two was $86 million. This year's Shrek 2 is Madagascar? and the difference will be over $250 million.

Between the $100 million grosser of the first four months of each year and these two analogous titles, we have more than made up the "slump" at the box office? with just six movies. Flip those six titles, out of fifty-eight 1000 screen-plus titles released so far this year and there is not only a slump, there is a fairly strong improvement.

But the idea that DVD was killing theatrical sparked the imagination of both writers and audience members. Critics, ever anxious to find an excuse to write about how terrible movies are nowadays, took it on? the studios are killing theatrical by making everything too safe. People who go to the movies finally had a good reason to rant about the ticket prices and the pre-show commercials, which have become pretty unavoidable in the last two years.

In a triumph of insanity, the very reputable Marketplace on NPR, headlined the Loew's/AMC merger as having resulted from the slump at the box office. There was no mention of the bankruptcies of just a few years ago, or the effect of AMC being the first multiplex leader and now having to retool so many of their venues, or the general weakness of the Loew's chain in spite of excellent locations? now, everything is about "The Slump."

Today's "further discussion" went long and so, this is now becoming a three-parter, because The Future still hasn't been discussed. And it requires a lot of discussion. I'll set is up before I go today?.

Domestic Theatrical
International Theatrical
DVD Sell-Thru
DVD Rental
Video
PPV/VOD
Ancillaries

These are the seven areas of income production for a movie. There are other economies inside studios, especially those that own TV and cable networks, but let's leave those aside.

Video is close to going away completely, but its been absorbed by DVD, so the loss is not so painful.

Ancillaries are dumped in that category because they are a small percentage of income and tend to ride with the waves of the moment.

And then there were five?

There is certainly give and take between these five areas of revenue creation. But what has fueled the industry as it stands today is that the four fairly mature areas (PPV/VOD is not close to maturity yet) have maintained themselves and that theatrical has even grown as DVD has boomed.

But what people are humming about with all this "slump" stuff is the destruction of one or more of those four financial pillars. And what they don't seem to get is that unlike the DVD expansion, which has been wonderful for the business, the income made in the digital universe, including DVD, can not make up, financially, for the loss of a theatrical base. Moreover, if the theatrical base were to be degraded, the income levels from DVD and the other digital delivery methods would also, inevitably, be reduced. So not only would there be less income from theatrical, but the Home Entertainment revenues would be reduced. So in a business where the margins are already very low, this movement could be apocalyptic. That is, unless you want movies to become television, both literally and figuratively.

And on that happy note, more tomorrow?

PART ONE: The Video... Yesterday
PART THREE: The Future... Tomorrowhttp://www.thehotbutton.com/today/hot.button/index.html
 

Rickten

Golden Member
Apr 17, 2001
1,607
0
0
went to see batman begins today. Had some free passes so I cruise up there for my tickets and the girl says "thats 5 dollars" I'm thinking wait a minute I have free passes, oh but wait batman begins is a special movie and I have to upgrade my free passes in order to qualify for batman. WTF is going on here.

Make more movies like "Primer" where I can't actually do some thinking during the movie and there is some plot and creativity. I saw Mr. and Mrs. Smith and my boss asked me the next day what it was about and I really had to struggle to figure out the plot because it was so basic.
 

StormRider

Diamond Member
Mar 12, 2000
8,324
2
0
Originally posted by: mugs
Originally posted by: cjgallen
They'd much rather blame PIRACY.

If the movies suck so badly, why do people pirate them?

True. If movies were really crappy, no one would pirate them. Afterall, have you ever heard of anyone stealing crap from a public restroom?

No, today's movies are still pretty good. I'm still enjoying them. I enjoyed Kung Fu Hustle, Star Wars: Revenge of the Sith, and Batman Begins so far. If I wasn't so busy and tired lately, I would have watched more. I'm looking forward to seeing Fantastic 4 soon.