The movie business faces many of the same changes that the music industry faces, though with a few twists. In the music industry debate, the music stores themselves don’t seem to have a seat at the table: we hear more about the record companies than the distribution channels. The movie business is different, where the main distribution channel is the movie theater.
The big debate in film exhibition is “closing the window” — industry-speak for releasing movies to DVD at the same time as releasing them in the theater. The studios and theaters are worried that by releasing simultaneously with DVDs (as well as pay-per-view) they will cut into ticket sales. The studios are worried because they make a lot of money from ticket sales — the success of a movie is gauged first and foremost by box office gross. The theaters are worried because they’re the ones selling the tickets.
The movie business would do well to look hard at the music industry and consider its response, especially since the music industry has taken so long to understand the changing landscape. By embracing (or at least tentatively approaching) the new ways in which media are created, distributed, and consumed, the movie busiess can drive over this hurdle without feeling so much as a bump. Just because there’s less opportunity to make money the old-fashioned way, doesn’t mean there’s no way to make money in a new-fashioned way. Indeed, theaters should seize upon this as a call to action to convert the movie-going experience: improve upon the things that make it enjoyable (comfortable seats, leg room) and eliminate the things that make it unpleasant (in a word, teenagers).
With digital media, the cost structure changes. The expense of getting a print to a movie theater and paying someone to load the enormous projectors goes to zero. (Though I lament the demise of the projectionist as much as the next guy, innovation will always create not just new jobs, but new professions.) When theaters have a larger library at their disposal, the licensing costs will also go down, making it cheaper to run the theater. With these costs becoming marginal, new doors open, leading to the Theater of the Future:
- Themed theaters: All sports, all the time. Shows major sporting events. Runs the Natural during off-nights in the World Series and Rudy in the days leading up to the Superbowl. Sells tickets in bulk, so you can bring your friends or hold a bachelor party at the Stanley Cup. Sells season tickets, so you can have front row seats to every major sporting event and throws in free screenings of sports-themed movies.
- Genre theaters: Action movies must be seen on the big screen. During the Spring lull, run movies that people love watching in the theater: Lord of the Rings, Harry Potter, Matrix, etc.
- Movies by request: Theater puts a poll on its Web site, customers vote on the movie to show that weekend. If you vote, you get a voucher for free popcorn.
- Kids only: Show kids movies before noon! A whole market untapped by the current model: theaters generally don’t show movies in the morning.
- Dual channel: DVDs come with a pass to see the movie in the theater. Sound crazy? People buy CDs even after they’ve downloaded music for free online. Why not turn it around? Give them the theater experience after they’ve dropped $30 on the DVD.
- Really big screens: No doubt closing the window will cull movie theaters. People will stop going to the bad ones. This is a good thing because it will force movie theaters to re-think what makes them competitive to the ever-increasing home theater market. Maybe we can lose the multiplexes with screens the size of laptops and go back to theaters where the screens are really, really big. In the theater of the future, Kong looks like Kong and not a chimpanzee.
- Double features: Not just for mid-20th century history books any more! Why shouldn’t the double-feature make a return, especially when you can run the original War of the Worlds before the remake?
- Theater, Interrupted: Movie Tivo?
- The Elsewhere Cinema: Instead of attaching movie theaters to malls, maybe they can be attached to other types of venues. The other major costs in a movie theater are real estate and personnel. Perhaps there are partnership opportunities that allow theater owners to realize efficiencies in both these areas.
So, some of these are bad ideas, but this is all off the top of my head, and I’m a movie fan, not a marketer in the movie industry. Imagine what someone with a real stake in this business might come up with.






