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> There are theaters that are dedicated to playing older movies, and they apparently turn enough profit to subsist in some locations. I think that makes this a

> There are theaters that are dedicated to playing older movies, and they apparently turn enough profit to subsist in some locations. I think that makes this a top comment on HN with a profitable use case complaining that there's not enough around. Great. Now every movie theatre starts doing that. What happens to profit margins?

kbenson 5y ago
> Great. Now every movie theatre starts doing that. What happens to profit margins? Why would every movie theater need to do that? That seems like an absurd proposition. Do I really need to watch older movies in some newer giant theater designed with a special sounds system that the entire theater needs to be certified for if I'm watching a movie that wasn't scored to take advantage of it? > What happens to profit margins? I dunno. Why don't you ask the theaters that run old/indie movies either exclusively or during designated time slots once a week or so? They seem to think it's profitable, since they do it.
- kristianc 5y ago
  The OP is saying that movie theatres are economically unviable. GP said that the problem with the industry was that they limited themselves to showing latest releases. If a few can turn a profit by showing old timey films, that’s great for them and anyone who lives near them but hardly a solution to the sustainability of the movie industry as a whole.
  - kbenson 5y ago
    Whatever the article linked is about, the top level comment (and thus this thread of discussion) is about how we should shift the ratio of what movie theaters play from 99% new releases to something a bit less unbalanced. As to whether the industry is actually doomed, it's far too early to call that, IMO. I literally asked my wife last night what she thought about movie theaters now, as I was trying to decide whether taking the kids to one this weekend was worth considering. We both sorta decided "not yet" (and my own personal experience working at a movie theater when I was younger does not make me think they're the cleanest of places). Additionally, there's going to be slim pickings for good movies soon as I think the pipeline of stuff that was in production or delayed the release to now is used up, and the lack of much new production that happened for a year hits us for a year or so. Does that mean the industry is dead? Maybe if they can't hold on that long or find other revenue streams (and don't get a bailout), but I think it's a bit premature to be all that confident in any assessment.
- Spooky23 5y ago
  The problem is like any other modern business. The business consolidated and scaled up to the point that it can only survive with big blockbuster movies. They need to grow and operate at scale to survive. How do you sustain 20 theatres in a super expensive mall that charges insane rents while sending 75% of the gross back to the studio? It’s not going to happen without big movies that appeal to a broad audience that is compatible with mall foot traffic.
  - kbenson 5y ago
    It's only 75% of gross for new releases, and I ky for the first few weeks. Older movies that have much more profitable revenue shares might be one way to do so, if you can draw the people in. That might be hard to do for a 20 Plex, but there's a lot of perfectly serviceable smaller Thayers which can be repurposed in part or whole (most likely in part, as some theater chains have been doing for a long time already).

kbenson 5y ago

> Great. Now every movie theatre starts doing that. What happens to profit margins? Why would every movie theater need to do that? That seems like an absurd proposition. Do I really need to watch older movies in some newer giant theater designed with a special sounds system that the entire theater needs to be certified for if I'm watching a movie that wasn't scored to take advantage of it? > What happens to profit margins? I dunno. Why don't you ask the theaters that run old/indie movies either exclusively or during designated time slots once a week or so? They seem to think it's profitable, since they do it.

kristianc 5y ago
The OP is saying that movie theatres are economically unviable. GP said that the problem with the industry was that they limited themselves to showing latest releases. If a few can turn a profit by showing old timey films, that’s great for them and anyone who lives near them but hardly a solution to the sustainability of the movie industry as a whole.
- kbenson 5y ago
  Whatever the article linked is about, the top level comment (and thus this thread of discussion) is about how we should shift the ratio of what movie theaters play from 99% new releases to something a bit less unbalanced. As to whether the industry is actually doomed, it's far too early to call that, IMO. I literally asked my wife last night what she thought about movie theaters now, as I was trying to decide whether taking the kids to one this weekend was worth considering. We both sorta decided "not yet" (and my own personal experience working at a movie theater when I was younger does not make me think they're the cleanest of places). Additionally, there's going to be slim pickings for good movies soon as I think the pipeline of stuff that was in production or delayed the release to now is used up, and the lack of much new production that happened for a year hits us for a year or so. Does that mean the industry is dead? Maybe if they can't hold on that long or find other revenue streams (and don't get a bailout), but I think it's a bit premature to be all that confident in any assessment.
Spooky23 5y ago
The problem is like any other modern business. The business consolidated and scaled up to the point that it can only survive with big blockbuster movies. They need to grow and operate at scale to survive. How do you sustain 20 theatres in a super expensive mall that charges insane rents while sending 75% of the gross back to the studio? It’s not going to happen without big movies that appeal to a broad audience that is compatible with mall foot traffic.
- kbenson 5y ago
  It's only 75% of gross for new releases, and I ky for the first few weeks. Older movies that have much more profitable revenue shares might be one way to do so, if you can draw the people in. That might be hard to do for a 20 Plex, but there's a lot of perfectly serviceable smaller Thayers which can be repurposed in part or whole (most likely in part, as some theater chains have been doing for a long time already).