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IMAX CEO: Movies cannot skip theatrical releases and make up for it financially via streaming

IMAX CEO on skipping theatrical releases: ‘The debate is over’​

"The debate is over," IMAX CEO Richard Gelfond told Yahoo Finance Live in a new interview. "The argument that you can skip a theatrical window and make up for it on streaming just isn't true. The theatrical window is more essential than ever to get the streaming revenue."
Gelfond referenced deep direct-to-consumer losses from streaming-facing media companies like Disney (DIS), which reported disappointing earnings this week amid unfavorable macroeconomic conditions and high content costs.
Disney+, Hulu, and ESPN+ lost a combined $1.5 billion in Q4 after losing $1.1 billion in the third quarter.
Gelfond argued that the "facts are uncontroversial" when it comes to the benefits of releasing a film in the theater first, citing "Top Gun: Maverick" as a prime example: The Tom Cruise-led sequel, which debuted nearly three years after originally intended, went on to gross a whopping $1.5 billion globally and eventually became the number one digital release of all time on OTT streaming platforms.
"So that $1.5 billion not only didn't distract from the streaming revenue — it added to it," Gelfond said, underscoring that "almost every streamer has now said they recognize the need for theatrical release."
 
Using Top Gun: Maverick is a bad, bad example. That is an exceptional movie in a 30-month span of mediocrity, peppered with wokeness that has alienated many movie goers. In particular, the segment that would typically see non-action dramas without superheroes is attending few or no movies.

Many older people are avoiding theaters. I chatted online with a friend in the industry and mentioned that when we drove by, on our regular route, the new-in-2018 multiplex with recliners and a wine bar, that there seemed to be vastly fewer cars parked. He said that it was not just our theater. It was daytime functions all over, senior days, and all predominantly adult features.

He said that the effects of the pandemic are still very strong, with many people continuing to avoid places with concentrations of people. And he, with some apprehension, admitted that there are too many movies that have sacrificed entertainment value and big draw casts for woke statements. One comment, "there are a lot of people who accept gay relationships, but they still don't want to see them in bed or making out."

It's very possible that the movie industry has problems that are much more complex than not releasing to theaters first. The include weak releases, excess focus on social issues, the ongoing pandemic and... likely a big one... families are under terrible budget pressure now and many have allocated their entertainment budget to streaming subscriptions and don't have money for a movie that costs, per person, more than a monthly subscription to Netflix.

The final thought was, "if this is all true, if there is a major increase in COVID this winter, it will get worse.
 
peppered with wokeness that has alienated many movie goers.

And he, with some apprehension, admitted that there are too many movies that have sacrificed entertainment value and big draw casts for woke statements. One comment, "there are a lot of people who accept gay relationships, but they still don't want to see them in bed or making out."
With an incredibly deep amount of respect, David, your references to "wokeness" sound similar to FL's governor, who's made a habit of using a term like "woke", which was once a positive thing that implied people were standing up and fighting against injustices or wrongs, and they've instead twisted the term to imply a negative. Some are now using it to condemn any forward thinking action on social issues and to imply it's "radicalism". I personally have respect for you and think you're above that. Regarding LGBT movie characters, the same was said about the TV sitcom Will & Grace more than 20 years ago as they dared show a few gay guys functioning quite normally in everyday society - because how dare they? In the end, that show ran for something like 8 seasons, then was revived in 2017 and ran for 3 more, so someone was watching and appreciating it..But I digress.

Regarding the issue with low theater attendance, I've personally been to a few movies since covid. If it's an anticipated release, the theaters are full in the days after it's first released. I've also been to a few live theater performance in houses that seat more than 1,000 and they've been full so in my neck of the woods and in the larger cities I've traveled to at least, Covid doesn't seem to play a major part. IMO the 3 big points affecting people going to movies are: 1) Financial - Especially families with children. Everything from basic necessities like gasoline and groceries to insurance costs are rising, so families have far less "disposable income" to spend on things like going to the theater at $14 or more per ticket. 2) Larger and better TVs and sound systems for homes, and nearly unlimited content on streaming platforms has made "going to the movies" much less attractive. We bought a large TV in later 2019 that came with a few months of Netflix for free. We never had the time or interest to activate it. That changed during the pandemic. Throughout covid we found so many places for good content that we enjoy, that we've rarely even considered going to the movies since. 3) Movies, in general, just aren't that great and few are worth spending the $$ to see them in theaters IMO. We normally always take our seats before the previews start, and after each of the previews in the 20 minute barrage of them is shown, we usually whisper yes or no to indicate if we'd want to see it when released. It's been a long time since there was a group of really solid, quality movies that we really got excited about seeing....And if there happens to be an action movie we'd like to see, once we read the description, few have any really fresh plot lines or ideas. How many times can you repeat the plot line of "Old guy is retiring from the mafia/government hitman/police department/FBI, and on his last assignment/day, his wife/child/work partner is killed/taken hostage, causing them to spend the next 1 hour and 45 minutes of the movie avenging/rescuing, which includes multiple chases, shootouts and predictable "gotcha" moments.
 
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With an incredibly deep amount of respect, David, your references to "wokeness" sound similar to FL's governor, who's made a habit of using a term like "woke", which was once a positive thing that implied people were standing up and fighting against injustices or wrongs, and they've instead twisted the term to imply a negative. Some are now using it to condemn any forward thinking action on social issues and to imply it's "radicalism". I personally have respect for you and think you're above that. Regarding LGBT movie characters, the same was said about the TV sitcom Will & Grace more than 20 years ago as they dared show a few gay guys functioning quite normally in everyday society - because how dare they? In the end, that show ran for something like 8 seasons, then was revived in 2017 and ran for 3 more, so someone was watching and appreciating it..But I digress.
For whatever reasons, "woke" has taken on a distinct negative quality when seemingly contrived situations are inserted or created just to show diverse racial, sexual and social groups delightfully intermingling in scenarios where they seem totally un-natural.

A friend who is Hispanic and in the business told me to roll the final credits to Top Gun: Maverick and, excluding the crew in India, count the Hispanics on the cast and crew. Remembering that Los Angles and its metro are approaching 50% Hispanic in ages under 60, the percentage of obviously Hispanic surnames is less than 4%. Adding in perhaps 1% more for Hispanics who do not have Spanish / Iberian surnames like Hadad or Rosenfeld or Fujimori, that is still a percentage that is many, many times under that of the metro area itself. Oh, and my friend said, "you will note that the Hispanics are mostly listed under "catering" and "grounds keeping" categories.
Regarding the issue with low theater attendance, I've personally been to a few movies since covid. If it's an anticipated release, the theaters are full in the days after it's first released. I've also been to a few live theater performance in houses that seat more than 1,000 and they've been full so in my neck of the woods and in the larger cities I've traveled to at least, Covid doesn't seem to play a major part.
I wonder if this is regional. The theater management friend I chatted with is involved only in the Southwest. However, he believes the most dramatic factor is cost, not COVID.
IMO the 3 big points affecting people going to movies are: 1) Financial - 2) Larger and better TVs and sound systems for homes, and nearly unlimited content on streaming platforms 3) Movies, in general, just aren't that great and few are worth spending the $$ to see them in theaters IMO.
I condensed your 3 points to the headline. And I agree with all of them.

In lower income families, budgets were adjusted to make a larger TV possible during the pandemic, particularly when coupled with historically low interest rates even for high-risk credit cards. Those families will think twice or three times before going to the movies where a family of 5 can easily spend $100 on tickets and a snack.

Among Spanish dominant Hispanic households, moving to a big screen TV has the advantage of making lots of Spanish language content available either with movies and shows from Spain and Latin America , American content subtitled in Spanish or English language content dubbed in Spanish. Since that group is now over 10% of U.S. population, that is a significant audience that is being lost to theaters.

And I agree on both the cost of movie theater attendance and the quality of new releases. We used to have a membership plan that made going to just two or three movies a month a big saving, and we generally saw around 6 theatricals a month. We did not renew the membership plan, and have no desire to return to a theater again. In chatting with neighbors... all of whom are either fully or partially retired, we found them to have similar changes in their theatrical attendance. Obviously, my "sample size" is small, but the comments from friends in the business indicated a real problem.
 
My reasons for foregoing a trip to the local movie house are anecdotal:

1. Too expensive for value received (inotherwords, current movies are generally crap).
2. Too irritating with other patrons talking on their phones and/or flashing their phone screens in my face.
3. My home theater has better sound and an available rest room should I need a break from my 64 oz frosty brewskis - and I don't miss any of the movie.
4. I don't have to drive anywhere, try to find a parking place among hordes of street people or worry about my ride being vandalized.
5. I don't have to sit through mounds of irritating commercials or previews of movies I have no intention of watching.
6. I don't have to put up with audio that is way too loud (or soft).

The last movie I attended was San Andreas (2015) years ago and then only to witness a modern movie in 3D/Dolby etc. It was underwhelming and story line was very predictable.

I really doubt I will ever attend another movie in a dedicated theater again.
 
My last movie that I watched in a theater was Star Wars: The Rise of Skywalker in 2019, so my going to theaters ended even before Covid. My daughter has gone to some theatrical movies in recent months, but for me there isn't anything I've seen that I can't wait until it becomes available on DVD or streaming.
 
Regarding the issue with low theater attendance, I've personally been to a few movies since covid. If it's an anticipated release, the theaters are full in the days after it's first released. I've also been to a few live theater performance in houses that seat more than 1,000 and they've been full so in my neck of the woods and in the larger cities I've traveled to at least,

It's all about the content. Live Nation reports that attendance at concerts is at record highs. They've added more festivals, more shows, and can't meet the demand. People want to get out of the house and socialize with other people.


I was at a sporting event last night and the place was packed.
 
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We took the grandkids to the new Minions movie at the theater this summer, and went with family and friends to another this summer. All in all though, we're much less regular than we might have been. We love the local drive-in though.
 
Depends on where they live, and the kinds of theaters available. Have you ever been to an IMAX theater? You can't duplicate that experience at home.
IMAX is where we viewed "San Andreas" 7 years ago specifically for the SFX. Although the experience was worthwhile it wasn't a movie worth ever seeing again (or the first time according to my wifey).

I still find plenty of 'ancient' movies to watch on the diginets - when we had actual actors and actresses instead of the current supply of "15 minutes of fame" graduates. Granted, there were some real potboilers back then too but not near as many as today.

And I am comfortably at home with black and white movies as well. It is also very interesting to see the popular stars (when I was growing up) in their first screen efforts.

And original stories? Don't get me started!

My 30-something daughter and her boyfriend go to movies a lot but when I ask how she enjoyed them overwhelmingly she says "wasn't worth it". I don't understand why she still goes.
 
My 30-something daughter and her boyfriend go to movies a lot but when I ask how she enjoyed them overwhelmingly she says "wasn't worth it". I don't understand why she still goes.

Maybe to get out of the house and be together with her boyfriend. The movie is secondary.
 
Depends on where they live, and the kinds of theaters available. Have you ever been to an IMAX theater? You can't duplicate that experience at home.
We had two, but one closed about four years ago. It's fun for some kinds of movies, agreed. But there is a reason generally the films are done in IMAX format are action and wide-open-spaces ones that show off the technology.

Our entire market has gone to reserved seat recliner style standard projection models. Two multi-screen theaters with conventional seating have closed in the predominantly Hispanic areas.
 
We had two, but one closed about four years ago. It's fun for some kinds of movies, agreed. But there is a reason generally the films are done in IMAX format are action and wide-open-spaces ones that show off the technology.

Our entire market has gone to reserved seat recliner style standard projection models. Two multi-screen theaters with conventional seating have closed in the predominantly Hispanic areas.
Regal's HQ is here in Knoxville, TN and we gave them plenty of corporate welfare so they could build a new HQ
 
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