Somewhere Over the Rainbow – The Death of the Multiplex?
Article by Ray Schillaci
How far away are better times with hundreds of thousands of people dying in the U.S. alone, over 30 million people on unemployment, well over half a million homeless, and a large percentage of the general public not knowing whether they’ll be able to pay their rent/mortgage, utilities? A lethal pandemic ravages the country. To top that off, companies, restaurants and small businesses are shutting down. Is there any time or affordability to be entertained?
Entertainment venues are desolate with empty promises of opening soon. Studios and their feature films display coming attractions on TVs, phones, laptops, announcing “only in theaters” this spring or summer. But, it was not too long ago that they had promised that the big opening would be Fall, then Winter of 2020. Now, multiplexes are as empty as the parking lots, sitting on pieces of real estate that continue to need payment. Could this be the death of the multiplex?
The top three movie chains announced that they have experienced over $1 billion in losses in the third quarter. How long can the bleeding continue? It is anyone’s guess. And, with some major studios launching big releases on the streaming networks, people’s fear of crowding into a movie houses, close to 40% of the public refusing to take the vaccine, and the introduction of a variant of the virus, the numbers do not fare well for theater chains or the studios. So, what does the future hold?
According to Variety, in November of last year, AMC lost over 900 million in quarterly earnings. This is after Adam Aron, CEO & President of AMC sent out a letter in June declaring the theaters safe and clean, reassuring their patrons that their theaters would “open soon.” Even going as far as offering fifteen cent tickets.
Regal Theaters have closed all 536 locations until October 9, 2021. Even though Dr. Anthony Fauci, director of the National institute of Allergy and Infectious Diseases, declared that we may return to normal by the end of 2021, providing that the coming vaccination goes well which it has not. So, expect a delayed opening from Regal if they even reopen. Interesting note, Costco was selling Regal tickets for $2.97 during the holidays with the guarantee that if they go out of business the tickets will be completely refundable.
Studios and theater chains became the Goliath against small indies. Streaming networks turned into the independent filmmakers’ saving grace. Now, Covid-19 may be the one stone hurled at this giant to bring it down, reopening the door to drive-ins and independent theaters.
Those who have opened independent movie houses in the past were devout lovers of movies, but they were nearly squeezed out of existence by the factory known as the multiplex that would ignore most indie films in favor of a blockbuster mentality no matter how bad it may be – churn out releases and limit their time in order to get more potential moneymakers through. A revolving door for the cinema going public, rarely a time given to nurse a film that needs a little love.
The major studios were to blame for this as well. Rather than creators, they became distributors minimizing the burden of responsibility of their films. A conglomerate of production companies retained the brunt of the risk, coming and going out of business, taking advantage of tax loopholes and perpetuating new production companies built of straw until their next film ended and repeated their business tactics to maximize profit line.
Some have said they have not seen such economic devastation since the great depression. But, during that period Hollywood thrived. People flocked to the theaters for an escape. This virus prevents such escapism. Although gaming, streaming, board and trading card games have thrived with people being urged to stay at home. Streaming companies are in fierce competition for subscribers with the struggling HBO Max being the most aggressive, but not necessarily being the preferable choice for viewership.
The big three, Netflix, Prime, and Disney+, already have dedicated subscribers and continue to put out original content. Still the giant remains to be Netflix with its 183 million subscribers while the Disney+ library including Marvel and Star Wars can barely boast half of that. But, if you add Hulu’s subscribers to that which Disney owns a majority of, they are in stiff competition with Amazon Prime that has 112 million subscribers.
Still, with all the competition out there and people out of work, what subscriptions will eventually be dropped? SiriusXM is dropping its subscription fees to give people another entertainment outlet through May 15th. Will others follow suit if subscriptions plummet due to people prioritizing what’s really necessary in their lives?
Looking ahead, perhaps somewhere over the rainbow, people will learn to communicate with one another better having been put through such a devastating time. Some families will be drawn closer together while others will be torn apart. There’s even the chance that a few will take up reading, increasing literacy in America while others hopelessly continue to follow TikTok and Instagram. And when this is all over, maybe, just maybe, independent theaters will pop up once more sharing the love of a big screen experience. Hopefully, by then fresher popcorn will be served by someone who cares.
Visit Ray’s blog at themonsterinmyhead.com
