Teelie
Fish Food
- Joined
- Jun 21, 2011
- Messages
- 24,309
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jmc summed it up. Disney is taking more than half the revenue from the ticket sales. If they squeeze the theaters dry then the theaters go bust. Then what will they do? Theater chains were already suffering from studio strong-arming tactics. Now Disney is the strongest of them and putting ridiculous demands on them. There are fewer studios to compete to keep this kind of tactic from occuring which apparently it has been more frequently.What do you mean by this?
As far as I can tell this is a smart business decision on disney's part. They have leverage in these negotiations and are beholden to investors to meet growth projections. Disney and Star Wars shouldnt be responsible for subsidizing theater chains for periods of low attendance. Movie Theaters just arent a sustainable business, they continue to lose intrinsic value as competition increases and tech improves/cheapens. The only reason they are even in business now is because distributors are probably afraid of another anti-trust lawsuit if they launch their direct to home vod services for first run. Theater chains need to offer something unique to the consumer otherwise they will eventually be a thing of the past.
Short term thinking like this is going to hurt them long term. All this ******** excuse about investors and making money and how theaters need to innovate to stay in business... they do but there is only so much innovation to be made and I really doubt VOD services are going to cover the costs of a movie like Star Wars does compared to the money they rake in on theater tickets even with them in decline. So once theaters are a thing of the past then so are some of the studios who will not be able to afford to make these giant movies. That leaves the like of Disney, Fox and a few others who can ride out a very rocky and fast transition to VOD services.