Before competition from tablets and Netflix streaming, the arrangement worked well. Studios made movies people wanted to see, and unless fans were comfortable waiting a year to see a film, they went to the multiplex. Once AMC, Regal or some other company gets patrons in the door, they have other ways to make money. Although the divvying up of profits can get tricky, generally speaking, box-office returns are split evenly between studios and theaters. Cinemas, meanwhile, get all the cash that comes from pre-show ads and concessions, which explains why a small soda feels like a large investment.
“Historically, it was just popcorn, candy and hot dogs,” said Sam Craig, director of the entertainment, media and technology program at New York University’s Stern School of Business. “And that ended up being very profitable. But so once you’ve done that, how do you take it to the next level?”
There is more urgency than ever to decode that puzzle given a collision of factors.
“First of all, the time between theatrical release and a film being available on video has shrunk,” Craig said. “At one point you’d have to wait nine months or a year, and now it’s, give or take, around four months.”
Some studios are even experimenting with simultaneously releasing movies in theaters and OnDemand. And there are more ways than ever to view a film, and most of them don’t involve shelling out $12 to sit next to a stranger who may or may not take a phone call during the feature presentation.
“As a consumer, you know that in the life cycle of movies that every movie is going to come out on DVD or Blu-ray . . . or it’s going to be on pay cable or you can get it through Netflix and you’ve got your Roku box there or it’s on Crackle or it’s on Hulu or whatever,” Greenberg said. “If you know all these things, then you judge a movie based on the necessity of having to see it immediately.”
Given mediocre ticket sales in recent years, that need appears to be waning, with a few exceptions. When it comes to monster franchises that spawn superfans — the “Harry Potters” and “Hunger Games” — there may always be filmgoers camped out in front of theaters 24 hours before showtime. And the desire to join a conversation about Oscar winners may bump “Argo” up people’s to-see lists. But fans appear willing to wait a few months for the vast majority of movies.
So it may be time once again for movie theaters to innovate.
The question is if amenities are enough to boost attendance. The renovations at AMC Courthouse reduced capacity by 50 to 70 percent in each of the eight auditoriums, according to Ryan Noonan, AMC’s director of public relations. And so far prices haven’t jumped. In fact, $6 tickets for matinees before noon may be among the lowest in the region.
The arrival of assigned seating seems to signal a potential for tiered pricing, having patrons pay more for the best seats in the house. And yet: “There are no plans now, or on the horizon, to charge for different seating in the same auditorium,” Noonan said. “We believe these amenities give every guest a great seat in each auditorium.”
Along with the recliner concept, AMC is testing a dine-in movie with tray tables, meaning “dinner and a movie” under one roof.
Successful innovations should more fully immerse the audience in the film, according to Greenberg, not distract from what’s happening onscreen. Cushy seating could go either way, according to one of AMC Courthouse’s newest fans, Alyssa Apolonio. The Silver Spring resident’s trip to see “The Perks of Being a Wallflower” was a praiseworthy event that she documented on Yelp with pictures and accolades.
There is only one problem.
“I’m not sure I really needed a La-Z-Boy,” she said. “I was thinking, if I’m tired, I’m going to pass out during the movie.”