Effects of Coronavirus (COVID-19) On Entertainment & Tourism Industry

[OLSinFLA]

Out of curiosity, is the antitrust law still in place that keeps movie producers from owning theater chains?

No. If you're talking about the Paramount decree, it only prohibited specific companies from owning theaters. Smaller exhibitor at the time, including Disney, were excluded. And some already did or do own theaters anyways (Disney, fo course. Universal did for a period). But even if the decree is relaxed, certain things, such as block booking (where in order to get film A you must book films B and C) and set clearence (such as when studios collaberate to schedule films) will not be allowed. Blind bidding has been allowed (where the theaters bid to open a film, before seeing any of it, by posting a minumum amount) but only once a film has been complete. (Due to opening in a large number of theaters, this is rarely used. But I remember when "The Empire Strikes Back" opened in Florida, for example, a theater had to put $1,000,000 upfront, guarentee a minimum of 8 weeks, and have a 70mm projection system. This gave exclusive to the theatre for 4 weeks. As a result TESB opened in just 3 theaters in Florida - one in Orlando, and two in Miami)

 

[Grabnar]

No. If you're talking about the Paramount decree, it only prohibited specific companies from owning theaters. Smaller exhibitor at the time, including Disney, were excluded. And some already did or do own theaters anyways (Disney, fo course. Universal did for a period). But even if the decree is relaxed, certain things, such as block booking (where in order to get film A you must book films B and C) and set clearence (such as when studios collaberate to schedule films) will not be allowed. Blind bidding has been allowed (where the theaters bid to open a film, before seeing any of it, by posting a minumum amount) but only once a film has been complete. (Due to opening in a large number of theaters, this is rarely used. But I remember when "The Empire Strikes Back" opened in Florida, for example, a theater had to put $1,000,000 upfront, guarentee a minimum of 8 weeks, and have a 70mm projection system. This gave exclusive to the theatre for 4 weeks. As a result TESB opened in just 3 theaters in Florida - one in Orlando, and two in Miami)

Just wanted to add this: Federal Judge Gives Greenlight To Termination Of Paramount Consent Decrees August 2020 started the 2 year sunset phase out.

Movie theaters are going to look very interesting in a few years.

 

[OhHaiInternet95]

Gotta agree with Rev here. Movie theaters were already on the decline, they're not coming back from this.

 

[RevFreako]

Gotta agree with Rev here. Movie theaters were already on the decline, they're not coming back from this.

I'm gonna print and frame this post.

 

[Nick]

I'm gonna print and frame this post.

The person who thinks the Orlando theme parks are in danger of closing thinks movie theaters won't reopen after this. Not exactly surprising

I'm not saying that some companies won't go out of business. I think they will and it's to be expected. And if we do get to the point of a reopen, there won't be as many theaters, there just won't. But all of those theaters will just be sitting there across America, waiting for a new company to maybe purchase AMC branding rights or something and reopen under new management. Covid has thrown a huge wrench, but I would almost be willing to bet money that something replaces AMC and Regal if they were to close. We're talking about a multi-billion dollar business in normal times, so I think you'll likely have a few big companies or maybe a group of wealthy people that takes a chance.

If it fails at that point, then consider theaters dead.

 

[Grabnar]

I think it's more likely they'll get bought by some larger corporations and we'll see the return of the conditions that lead to the creation of the Paramount decrees but we've undergone so much regulatory and judicial capture that any anti-consumer conditions will just stand unchallenged. We're well on our way to Blade Runner or an Outer Worlds style future

 

[shiekra38]

I think it's more likely they'll get bought by some larger corporations and we'll see the return of the conditions that lead to the creation of the Paramount decrees but we've undergone so much regulatory and judicial capture that any anti-consumer conditions will just stand unchallenged. We're well on our way to Blade Runner or an Outer Worlds style future

Billy Idol was right

 

[Lucky Planet]

I think it's more likely they'll get bought by some larger corporations and we'll see the return of the conditions that lead to the creation of the Paramount decrees but we've undergone so much regulatory and judicial capture that any anti-consumer conditions will just stand unchallenged. We're well on our way to Blade Runner or an Outer Worlds style future

Bingo
eventually theaters could be bought out by studios or get a gov bail out or something, people love the movies too much

 

[Scott W.]

I think it's more likely they'll get bought by some larger corporations and we'll see the return of the conditions that lead to the creation of the Paramount decrees but we've undergone so much regulatory and judicial capture that any anti-consumer conditions will just stand unchallenged. We're well on our way to Blade Runner or an Outer Worlds style future

That’s exactly what’s going to happen. We’re living in a new world. Successful businesses are being killed because of COVID, once the COVID problem is solved, the business will be completely viable again.

Right now, the businesses with the most cash are going to survive and then they’ll have the market to themselves and be able to buy up assets dirt cheap.

 

[Lucky Planet]

That’s exactly what’s going to happen. We’re living in a new world. Successful businesses are being killed because of COVID, once the COVID problem is solved, the business will be completely viable again.

Right now, the businesses with the most cash are going to survive and then they’ll have the market to themselves and be able to buy up assets dirt cheap.

imagine walmart and Amazon owning all the theaters

 

[Scott W.]

imagine walmart and Amazon owning all the theaters

I'd say it's highly likely that Amazon will own a theatre company by the time this is over.

I'm sure they were interested in buying up JC Penny stores to use as warehouses in populated areas, theatres could work as well.

 

[Nick]

imagine walmart and Amazon owning all the theaters

This seems likely. Wal-Mart owns part of Tik-Tok now so anything is possible. I think a company like Amazon/Wal-Mart is actually perfect for the theatrical business in a way as they already run brick and mortar stores and deal with a lot of front line employees. Plus, they can integrate their brand into the theater.

For example, If i'm Amazon, I buyout AMC or Regal and then rip out an entire auditorium in every venue and replace it with a mix of Amazon and Whole foods products, possibly with an exterior entrance, seperate from the theater itself. Prime members would obviously get some benefits, possibly like the Prime Pay (is that what it was/is called) where you just grab whatever you want and the AI knows how much to charge to your account at exit, which would be a big improvement on waiting in long lines. They could build an app where you just sign-in with you amazon account for the theater to make the ticket buying process easy.

There could also be launch day showings of Prime exclusives. Watching The Boys with an audience would be a treat.

 

[Stryker]

"Regal Cinemas might be closing all 543 of its theaters in the United States as early as this week due to continued revenue losses from the coronavirus pandemic."

Movie theaters will have a hard time recovering any time soon.

 

[Scott W.]

This seems likely. Wal-Mart owns part of Tik-Tok now so anything is possible. I think a company like Amazon/Wal-Mart is actually perfect for the theatrical business in a way as they already run brick and mortar stores and deal with a lot of front line employees. Plus, they can integrate their brand into the theater.

For example, If i'm Amazon, I buyout AMC or Regal and then rip out an entire auditorium in every venue and replace it with a mix of Amazon and Whole foods products, possibly with an exterior entrance, seperate from the theater itself. Prime members would obviously get some benefits, possibly like the Prime Pay (is that what it was/is called) where you just grab whatever you want and the AI knows how much to charge to your account at exit, which would be a big improvement on waiting in long lines. They could build an app where you just sign-in with you amazon account for the theater to make the ticket buying process easy.

There could also be launch day showings of Prime exclusives. Watching The Boys with an audience would be a treat.

That's spot on.

Showing their own content as a loss leader to get people through the door knowing that they will probably buy popcorn or drinks and then do a food shop after it.

 

[Lucky Planet]

i laugh because i imagine a theater inside walmart by the sports section lol

 

[Mad Dog]

i laugh because i imagine a theater inside walmart by the sports section lol

or...next to the Deli section....pass me the ham sandwich please.... ....

 

[Lucky Planet]

or...next to the Deli section....pass me the ham sandwich please.... ....

mmm...they could even advertise all the movie merch and food tie ins right outside, would be huge

 

[Mad Dog]

mmm...they could even advertise all the movie merch and food tie ins right outside, would be huge

View attachment 13326

I'll have a ham sandwich.....and a Wonder Woman...to go.....

 

[GAcoaster]

I'll have a ham sandwich.....and a Wonder Woman...to go.....

Don't you mean "to Gadot"?

 

[OhHaiInternet95]

Don't you mean "to Gadot"?

My opinion of her has dropped substantially since she put out that "Imagine" video.