NATO's John Fithian leads off Geneva Convention with industry insights

Digital conversions are finally winding down. In the opening NATO "State of the Industry" speech at the Geneva Convention today, president John Fithian remarked that he's been in his position for over a decade, and he's never stopped talking about digital. Finally, he sees the end on the horizon. In his address, he said, "the train has left the station. Make your decision in the next ten days," which elicited nervous titters in the audience. Most integrators have a September 30th deadline to sign a contract, so it's now or never. Some single-screen theatres or smaller locations are still figuring out financing for digital--or hoping to wait around for the cheaper projectors that have not been officially announced or priced. With VPF deals often not a good fit for the smallest theatres, owners are coming up with alternative solutions, like looking for loans backed by the Small Businesss Admistration (sba.gov).

There are still growing pains for those who have converted to digital. Fithian fielded one question from a theatre owner who felt many theatres, especially smaller five- and six-plexes, were getting passed over for releases they would have received on film. Distributors just didn't want to pay the fee part of the VPF. Fithian acknowledged that there was a problem and he's been receiving a few complaints a week about the matter. In an upcoming meeting, he plans to address this issue with the studios in the presence of representatives from independent theatres. His view was that a lot of the problems stem from the complicated nature of the contracts and legalese. If VPF deals are followed correctly, this shouldn't happen.

Fithian and his co-presenters,  NATO's Patrick Corcoran and Belinda Judson, also talked about ideas coming out of NATO's strategic planning committee. One idea is a national campaign encouraging moviegoing, which they compared to the "Got Milk?" campaign. Exhibitors are at the mercy of studio marketing, which is movie-specific, so advertising emphasizing the experience of moviegoing may encourage current moviegoers to attend more frequently. Another idea is having a national discount movie day. Many chains currently have cheap tickets every Tuesday, for example, but it's not nationwide. Additionally, Canada and some countries in Latin America already have these discount days in place without negative effect on the overall market.Apparently some studio partners are enthusiastic about the idea, while others hate it. There was also talk about addressing some grievances exhibitors have with current studio marketing strategies, like trailers and standees for films that are 12-18 months away. Trailers that give away too much of the movie are another pet peeve, and with running times creeping up to two minutes and thirty seconds, the previews are just too long.

Studios have been just producers and distributors ever since the 1948 Paramount Decision. But now exhibitors want a hand in the distribution business too. NATO's position is that theatres are suffering because fewer movies are being made in the middle range--the ones that don't cost too much and don't earn too much. Open Road Films, the joint venture between AMC and Regal, is one such foray into distribution. During the Box Office panel "Programming Alternatives to Movies," this issue came up again. Although alternative content is primarily associated with programs like NCM Fathom's Met Opera programs, the tactics used to promote these one-off screenings could also help smaller independent movies find their audiences in theatres, not at home.

Yesterday, before the opening dinner and Geneva Idol competition, Warner Bros. unveiled a new Hobbit trailer, which enthused the crowd. As for the winner of the riff American Idol? Well, if one duo could have pulled off the Patrick Swayze lift while singing Dirty Dancing's "Time of My Life," maybe they would have won, but it was a smooth, memorized version of Vanilla Ice's "Ice Ice Baby" that brought the house down. The day's entertainment also yielded benefits. The golf tournament earlier in the day brought in over $5,000 for Variety The Children's Charity. The organization was originally a men's club that rallied together to help an abandoned baby found at the doorsteps of a theatre, so the combination of entertainment and charity seemed fitting. The golfers, and anyone who looks outside in between promo reels from the studio, are treated to the majestic, tree-covered hills of Lake Geneva, Wisconsin. Check back tomorrow for more highlights from "Where Hollywood Meets the Heartland."