Volume VI No. 5

Spread The Word:
The Movie Theatre Business Is Strong
by John Fithian
NATO President

In these columns I typically update our readers on where we stand as an industry, reviewing and analyzing recent events that affect the motion picture theatre business. This month I deviate from that cautious structure to look to the near future and make some predictions.

I believe that May 2006 will be a monster month at the box office. I am optimistic about the possibility of a strong summer. And I am equally confident that the media will ignore this resurgence in our business, unless we force them to take notice. If I am right about the numbers, I will need your help to spread the word.

Think back to a year ago. Beginning with the weekend of March 4-6, 2005, and ending with the weekend of July 22-24, we suffered through the infamous run of 19 down weekends in a row compared to 2004. Our industry was pilloried in the media, as story after story predicted the eminent demise of the moviegoing experience. Some pundits criticized ticket prices, rude patron behavior, and on-screen advertising as the cause. Others wrote that competing entertainment options like DVDs, video games, iPods and the Internet meant our potential patrons would not leave their houses to come to the theatre.

Few commentators would acknowledge the facts. The year 2005 represented the first box office decline in 15 years. All the issues cited in the previous paragraph did not magically appear on Jan. 1, 2005. I know that my teen sons were playing video games and surfing the Net long before that. Yet they still went to the movies more often in previous years than they did in the summer of 2005. And I have a feeling they’ll be buying more tickets in 2006 than they did in 2005.

As I write this column “Ice Age 2” has just opened with a $68 million weekend, and it isn’t even May yet. From April 1 to Labor Day 2005, only three movies opened with weekends in excess of $60 million. May 2005 had “Sith,” and very little else. May 2006 has “Mission: Impossible III,” “Poseidon,” “The Da Vinci Code,” “Over the Hedge,” and “X-Men.” The rest of the summer has, among other things, “Cars,” “Superman Returns,” “Pirates,” “Lady in the Water,” and “Miami Vice.”
If our business does grow compared to 2005, will the media acknowledge it? I doubt it. Bad news always sells better than good. That’s where you come in.

I encourage every exhibitor to join the NATO staff in a little industry public relations effort. There are great things happening at movie theatres. You are attacking rude patron behavior with public service messages, usher sweeps, and new policies. Our partners in the screen advertising companies have brought us better pre-shows by combining commercial messages with other entertaining product. Our theatre managers have designed innovative marketing and publicity campaigns. The industry is offering more options like luxury cinemas and concessions choices. And the digital cinema revolution is beginning.

We all know that movie quality is the most significant factor in the short-term cycles of our business. But the theatre experience is important, too. Simply put, if what’s wrong with the cinema experience got blamed for last summer’s slump, we should take credit this season for what’s right with our business. If your company has had success with new innovations or campaigns, send us an e-mail or give us a call. NATO would love to sing your praises. Equally important, get to your local media and do some public relations in your neighborhood. Invite local newspaper reporters to your cinema for a big opening night. Give them free passes and maybe even a tour. Explain the innovations you’ve offered. And let them experience the magic for themselves.

It’s time to stop playing defense, and go on offense. It’s time to remind our patrons why GOING OUT TO THE MOVIES is something special.