ROUNDTABLE: DISTRIBUTION AND EXHIBITION THE TIES THAT BIND . . year-round. a EVEN By Mitchell Goldman President/coo New Line Distribution, Inc. AS WE all say goodbye to movie audience seasonality and issue a warm vvfelcome to year-round boxoffice bliss, we might do well to look behind the proverbial curtain at some of the reasons for our current collective good fortune. Independent distributors Line Cinema have played a crucial role in strengthening boxoffice, and thus the ties that bind distribution and exhibition. While the major studios have traditionally focused a lot of their energies and product on the traditional peak periods of Summer and Christmas—independents have been a source of fresh motion picture product during the "in between" such as New periods. Independents realized that the doors of exhibtion swung open just as wide in February as in June, provided that there were appealing films to see. It has been the independents who have reacted to this need expressed by exhibition. Independents have nurtured movie-going during those off-peak periods—helping to create the "all-year" market. By filling the void, independent distribution has helped to insure a consistently profitable business for both sides. It may sound corny because the concept is so simple, but it works. Another reason independent distribution now has established a strong bond with exhibition is that the line distinguishing product from majors and independents is blurring: • In production values Yes, independents keep a close eye on expenses. But we get more for our dollars than majors who routinely allocate 20 percent or more of a film's budget to overhead. • In marketing Here the difference hardly exists. Leading independents such a New Line devote substantial advertising, promotion and publicity budgets, and utilize the same creative experts for their films as the majors. And let me assure you that in the main the independent distributors are healthy. We at New Line did not move into lavish office buildings of marble and glass on expensive real estate. We did not roll the dice on movies with negative costs of S25 million. Quite to the contrary, we are financially strong and profitable because New Line has kept to its proven business plan of producing and distributing a diverse slate of films, with an eye to the "in between" periods. In the spirit of working together, distribution and exhibition continue to thrive even as the entertainment marketplace expands to accomodate new media. It's a strategy that propelled us to the Number One position among independents for boxoffice share in 1987, and that will serve us and the exhibition community well in 1988. We're thrilled to be an important part of the independent distribution effort that is creating those increasingly-strong ties that bind . H By Alan Belkin Executive VP, Distribution Spectrafilm THE MAJOR STUDIOS are having a uniquely great year at the boxoffice. Unique, not because there are blockbuster hits, but because all the studios are stacking up big numbers. We must remember that in most years we see only a few studios hit big while the others watch picture after picture open and close. When the wealth is not so evenly spread, exhibitors will look to independents to pick up the slack. Logically, they will turn to the few independents who "behave" most like the major studios by delivering quality mainstream product and driving it to the marketplace with financial clout. Unfortunately, 1988 will see a reduction in the number of independent distributors. There is too much product and too many distributors. Some will cut back, some will merge, others will be gone. During this period of product glut, exhibitors must support those independents that are involved in production and have a strong marketing and sales organization. Spectrafilm has the staying power to be there when the dust clears as we establish ourselves to be one of two or thrc(^ that can do the job. Spectrafilm is a full-service distribution company with four branches located in Los Angeles, New York, Toronto, and Dallas We are staffed with personnel that bring a broad range of studio experience. Most importantly, we have pockets deep enough to deliver P & A expense on any given picture in a manner that allows for a Spectrafilm release to compete with any other product. Knowing who we are and who we aren't has taken Spectrafilm into the philosophy that we must work as "partners" with exhibitors. We rely on their knowledge of the marketplace to assist in decisions regarding the timing of the release, required media support, and screen selection. In turn, we deliver exhibitors what we promise, and then some! Spectrafilm is in the forefront of leading the independents back to a road show philosophy— carefully coordinated combination of advertising, promotion, and publicity. We are in the theatrical business looking for theatrical rentals That's the bottom line. SW-30 <strong>Boxoffice</strong>
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