Movie theater companies are now mandating digital movies be show in their theaters. With new advances in technology the industry is rushing to comply with the times and the demands of patrons. Digital cinema projectors are vital to this service, however they are not cheap and small to medium theater establishments are struggling to find the financing to procure such equipment. There are various avenues of acquiring funding. This article will establish one way in which smaller communities may maintain their theaters and their allure for visitors and much needed out-of-town dollars.
With the dawn of home entertainment and eventually Internet streaming came the slow decline of movie theater patronage. In relative motion the cost of running a theater every day of the week have gone up exponentially. Due to these facts many, if not most, theaters have opted to open only on select days of the week. In steady decline we see the enjoyed American pastime of theater experience disappear.
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According to a cinematic study by Drew Borst and Fred Krom of Goldman Sachs we are now at a 25-year low of cinema attendance. Though some developing countries are seeing a moderate rise in attendance the American market tends to rely heavily on sparked interest fads like 3-D movies and even the Imax to bring people to the silver screen. 3-D is not performing as expected because generally the price to enter such movies is higher than the already inflated cost of regular films.
It is interesting, though. Smaller communities throughout the United States that are actively engaged in downtown vitalization see the need for this centralized entertainment. A good quality movie theater or cinema can be few and far between in moderately rural areas. According to the National Association of Theaters Owners there are only about 5,500 movie theaters in the United States. Considering the size of this nation that makes the movie theater experience very spread out especially in out-of-the-way places.A cinema that is well-maintained can attract out-of-town visitors from tens of miles to put their dollars into that community. This is obviously a “win-win” situation for any one city’s businesses, the theater and also the greater city at large.
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The cost of digital cinema projectors is staggering. The cost of upgrades can easily run upwards of $150,000 depending on many factors including the number of screens that theater accommodates. This is not chump change for smaller communities and theaters. One idea for theater and community survival would be for a city government to purchase the property and lease the building to the movie theater company. Some arrangement similar to this would allow joint responsibility in funding the digital cinema equipment project. A city could take out a capital loan note to cover the cost of the equipment upgrades. The theater company could then pay that back over the life of the lease agreement with the city, after which the company would then take ownership of the equipment. Operating within the law using various means of shared funding is an excellent avenue to save a small community’s prize projects such as cinematic entertainment. Often, extremely low interest loans can be arranged.
In 2012 a deadline for theaters is in effect for conversion to digital projection. Film companies are helping to facilitate the transition in various ways. No longer will big reels of film be distributed to theaters. Instead, film entertainment will all be on disc. Many film companies are offering to reimburse theaters for these reels thus helping to offset the expense of conversion.
Taking in a movie at a theater is a great activity for couples and families. I would encourage you to patron your local theater and support their efforts to expand and improve their services. Home entertainment is fine but there will never be quite the experience as going out and catching a flick at a public cinema.
So grab a pop and some popcorn and remember - all cell phones off during the show!
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