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Screen industry grapples with timing issue

Why should consumers have to wait for four months after every film opens in cinemas to watch it on DVD or iTunes, BigPond Movies and Foxtel on-demand?

Distributors say the traditional gap no longer makes commercial sense for most films in an era when people expect and want to see entertainment content on multiple platforms in a reasonable time frame.

Stephen Basil-Jones, Sony Pictures Releasing Executive Vice President for Australia, New Zealand and Northern Asia, says the four-month holdback in Australia is antiquated.

He advocates the gap should be reduced on average to three months. “For some films it may be longer, shorter for others, but the average should be around 90 days, replicating the US model,” he told IF.

Basil-Jones argues that reducing the gap between cinema release and home entertainment will not damage the box-office. “I am a theatrical guy; I want to protect my business,” he said.

There have long been informal discussions between distributors and the major cinema chains over adopting more flexible release windows, so far without success. Exhibitors are adamant that the four-month gap must remain in order to protect the tens of millions of dollars invested in digital projection and new and upgraded cinemas.

“Cinema exhibitors do not want to see any contraction in the theatrical window – they do not want to risk the stability of the economic model and relationships they have with film distributors and film producers,” said Michael Hawkins, Executive Director of the National Association of Cinema Operators Australasia.

“Australian and New Zealand exhibitors lead the world in terms of quality of cinema comfort and presentation. Australian Premier Class or Gold Class cinemas are simply world-leading examples of that and the massive investments cinema exhibitors have made to the leisure past-time of movie going. It should not be forgotten that film distributors and film producers reap the reward of those investments by virtue of the share in revenue admissions yield.

“In relation to specific movies, there must be negotiations held directly by the distributor and exhibitor concerned – there may be particular competition issues at play that I can’t engage in.”

Yet the impetus for change from the distributors is becoming stronger as many films are pulled from cinema screens after four or five weeks, or even shorter runs for flops, and ancillary revenues continue to decline.

Distributors say marketing a film across proliferating media platforms is more costly than ever before, exacerbated by the life of a film being largely determined by its opening weekend results. Hence all marketing dollars are committed upfront to support the opening, with no ability to finesse the marketing campaign should the film open lower than expected.

Universal Pictures International Australasian MD Mike Baard told IF, “Distributors are finding it very tough to recoup production costs, minimum guarantees and spending on marketing and distribution when home entertainment and television revenues have diminished, and so are looking to find meaningful ways to recoup this expense of releasing films to cinemas.

“I can understand how for a certain type of release, consumers would like to be able to watch them whenever and however they choose. However there is no question that we would like consumers to choose the cinema experience which is the optimal environment to consume the type of content we create and distribute.”

Baard acknowledged that exhibitors have a lot at stake and are yet to be convinced that shortening the release windows will not hurt B.O. takings but said, “Both sides need to sit down and work out a formula that retains each other’s share and potentially grows the pie. People are watching more content than ever.”

  1. I find it odd that Michael Hawkins says the longer window in Australia is antiquated when what he is advocating is only slightly less than what is existing, it’s like he’s saying we’ll move from 1960 to 1980 ….unfortunately it’s 2012.Further, unless a movie is really, really huge it doesn’t last long on the big screen anyway.

    Maybe they need to consider thinking outside he square if they can be so brave to put it to the sisters, just because we speak English and our society, very boradly, is similar to the US, doesn’t mean our market will operate in exactly that fashion, so why is our industry still dominated by the Holywood mindset?

    How’s this for a bit of a diffrence in thought Michael, mix it up a bit more. We have digital so prints aren’t any issue anymore with regards to availability across the country. Why make the exhibitors stick to the Hollywood model of babck to back screenings. Why not keep titles on the big screen for longer and offer more choice of titles for the punters. Sure, people may still prefer to wait until its on Foxtel or DVD, but others still like going to the movies …. just beacuse these folk may be over 30 or 40 they’re still your customers. Gee, yuou even try the old double feature or play a short first. Yes, your financial accountants might whige a bit because they have to deal with more of an array of transactuions and disbursements but they don’t get called pointy heads for nothing.

  2. I think you’ll find the remarks you are referring to from this story were in fact made by Stephen Basil-Jones from Sony Pictures Releasing

  3. it has taken many years for the industry in Australia to develope cinemas of the standard that we have today with the latest digital projection and sound systems.You shorten the window of release between cinema and other forms of movie entertainment down to 3 months then in no time the release will become simultanious release with cinemas.I was around in the late 50’s and saw what happened to the 140 odd theatres in suburban Sydney. By the late 70’s most of them had disappeared due to TV. Then came the cinema complexes and a few remaining independent cinemas. The public like to go out to the movies.Don’t close them again.

  4. Brian – I think if you look at this story again you’ll find the comments you are actually discussing in your post were made by Stephen Basil-Jones from Sony and not Michael Hawkins.

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