DB here:

Last week family affairs took me back to my home area, the Finger Lakes region of New York State. About ten miles from our farm lies the village of Penn Yan (short for Pennsylvania Yankees). When I was growing up there in the 1950s and 1960s, Penn Yan boasted about 3500 people—enough to support one movie theatre. That theatre, the Elmwood on Elm Street, was where I saw most of the movies I didn’t see on TV.

The Elmwood was my introduction to film. When my parents went to town, I was embedded with hundreds of other kids in Saturday afternoon matinees of Tarzan and Lone Ranger movies. On Friday nights, I might catch June Allyson, Donald O’Connor, or Martin and Lewis. When I got older I saw Lawrence of Arabia and From Russia with Love. The Elmwood showed a fair number of art films in the 1960s, including The Servant, The L-Shaped Room, and even 8 ½ (dubbed, I think).

Built in the early 1920s, the Elmwood was acquired by the Schine brothers in 1936. Some towns in our area had two or three Schine theatres. Schine Amusements penetrated Auburn, Bath, Canandaigua, Corning, Cortland, Glens Falls, Gloversville (where it all started), Hamilton, Herkimer, Lockport, Massena, Oneonta, Oswego, Perry, Rochester, Salamanca, Seneca Falls, Syracuse (four houses), Tupper, and Watertown. Clearly, they were leaving the major cities to the big boys. The firm also owned venues in Kentucky and Ohio (none in Cleveland or Cincinnati, but three in Bucyrus). By snapping up screens in the sticks, Meyer and Louie Schine wound up holding nearly a hundred screens in their prime.

Although the brothers went for the smaller markets, they didn’t forget the amenities. They contracted some of the top theatre architects, notably John Eberson, a fantasist with eclectic tastes. The Elmwood didn’t benefit much from the Schines’ largesse as far as I can tell, but it was a sturdy place, with 838 seats, or one for every four people in town.

The Elmwood passed out of the Schines’ hands and eventually closed in the early 1970s. For awhile it was an indoor tennis court. The village offices now sit on the site. (Photo: Darlene Bordwell.)

But Penn Yan still has three screens, which I discovered when my sister Diane Verma and I went to Ken Kwapis’ He’s Just Not That Into You. It’s a network narrative like Kwapis’ earlier Sexual Life, and like that (and his Sisterhood of the Traveling Pants) it has some affecting and clever moments. There’s also a nice handling of shot/ reverse-shot when characters are turned away from each other. Mainly, though, I went to see the town’s multiplex, the Lake Street Plaza Theatres.

Converted from an exercise club, the LSP houses three screens in a bare-bones design typical of many multiplexes.

A young man, whose father owned the complex, sold the tickets and ran the projectors. A young woman handled the concession stand. Both were friendly and talkative. Diane and I, two of four people in the house, left happy, although the sugar in the Dots may have helped raise our mood.

Earlier that day, Diane, my other sister Darlene, and I were driving around our childhood haunts. The towns here are hollowed out by the big-box stores and the recession. Mall parking lots are full, but the main streets are desolate and many storefronts are empty.

Yet in another lake town we came across a surprise. At first I was puzzled. How could the Geneva Theatre have been replaced by a much older and more dignified building, the Smith Opera House?

The door was ajar.

Inside Bruce Purdy, the Technical Director and professional magician, and Sharon Barnes were preparing for a children’s play. They kindly led us on an exploration of this half-hidden jewel. It may have assumed its old name, but the building has regained the delirious splendor that was the Geneva in its heyday.

The Smith Opera House was built in 1894. To its stage came Sousa, Bill Bojangles Robinson, Ellen Terry, and traveling shows mounted by Belasco. The vaudeville programs started including short films during the 1910s, and the Smith was one of thirteen venues in which Edison screened his experiments in talking pictures. The Birth of a Nation played there. Soon the theatre became a movie house, called initially the Strand. It wasn’t the only film theatre in town, and by the late 1920s it had competition. The nearby Regent had already become a picture palace, with about 1000 seats; it screened its first sound picture, John Ford’s Four Sons, in 1928 (presumably in a music-plus-effects version).

Enter, on cue, the Schines. They bought the Smith, and after playing burlesque there for some months, they decided to revamp it as a picture palace. The process took several years. The interior was stripped; opera seats were sold for a dollar each. What emerged was an “atmospheric,” with the dome displaying shifting clouds that would slowly clear to reveal twinkling stars. The architecture was a fanciful mix of Art Deco, Baroque, Art Nouveau, and Moorish influence. The premise was that you were in a courtyard under the heavens, surrounded by facades of buildings that were implausible but vaguely familiar in their exoticism.

With over 1800 seats, the Geneva Movie Theatre was advertised as the largest movie house in central New York. The first film to play there was Keaton’s Parlor, Bedroom, and Bath in March 1931. The manager, Mr. Gerald Fowler, stayed in charge until 1965.

I didn’t go to the Geneva as often as the Elmwood. Not until I got my Learner’s Permit (a life-changing event to country youth) was I able to drive to Geneva on my own. At the Geneva I saw Mary Poppins, What’s New, Pussycat?, and the CinemaScope version of How the West Was Won. I have no memories of the décor, but by all accounts it was decaying.

Like the Elmwood, the Geneva was closed in the 1970s. Today it looks spanking new. It hosts musical acts (Ani DeFranco is coming up), local and touring stage productions, and on weekends films, “mostly foreign and arthouse,” as Bruce Purdy explained. When we were there the theatre was running a package of Academy Award Best-Picture nominees.

My sisters and I first paused in the lobby, with its fine hanging lamps.

Inside, the auditorium area is of course very impressive, flanked by facades with corkscrew columns.

Along the balcony are vaguely ziggurat wall designs.

Just in case there was too much empty space, architect Victor Rigamount added some escutcheons.

In the projection booth, Bruce showed us the Brenkograph, a marvelous old gadget for projecting lantern slides in dissolving views. The Brenkograph provided the milky clouds cast onto the ceiling: light was pumped through a swirling oil mixture.

In 1946, the year before I was born, US movie attendance reached its peak of about 82 million weekly. The industry had receipts of nearly $1.6 billion. It must have looked like filmgoing would never fall off. But it did, and fast. Enjoying Peter Pan, Moby Dick, and Davy Crockett, I was living through the first major decline in the film industry. By the time I left for college in 1965, weekly US attendance had dropped to 20 million, where it would hover for nearly three decades. Hollywood’s annual box-office receipts were then $927 million (about $657 million in 1947 dollars). In the course of my eighteen years the country had lost 5,000 screens and about 50,000 theatre jobs.

I wish I could go back to see how these old theatres looked then. I wish I could photograph them, inside and out. I wish that I could return to the Elmwood in June 1954 to ask Mr. Norman Williams (unmarried) about the new screen, said to be twenty feet high and 35 feet long—redesigned, of course, for CinemaScope. He was planning to add stereophonic sound, which would, the newspaper story explains, “create the illusion that the sound travels with the movement of actors or objects across the screen.” But until the new system arrived, Mr. Williams said, only Warner Bros’ CinemaScope pictures would be run, because they didn’t require stereo. You mean movies like A Star Is Born and Rebel without a Cause? What wouldn’t I give to see those in their original form, from the front row.

Just before I left the area in 1965, I could have quizzed the managers and staff about the old days. After the war, had they suspected what was coming? What was it like to watch your livelihood shrivel year by year? I didn’t know enough to ask. I didn’t understand what had happened.

In the meantime, we haven’t lost everything. On one screen of the Lake Shore Plaza, you could have seen Watchmen on opening weekend. The projection is very good.

My general information about theatres and attendance is culled from back volumes of The Film Daily Yearbook. The Schine family entered history in another way; see here. Information about CinemaScope at the Elmwood comes from the Penn Yan Chronicle-Express of 10 June 1954, p. 1. My account of the Geneva Theatre is largely derived from two publications, The Smith Opera House (Geneva: n.d.) and Charles McNally’s The Revels in Hand: The First Century of the Smith Opera House, October 1894-October 1994 (Geneva: Finger Lakes Regional Arts Council, 1995). Both are available at the theatre; for contact information go here. The Elmwood photos come from wetlandspy. Check out Darlene’s photo page too.

For a panoramic study of American movie exhibition, see Douglas Gomery’s Shared Pleasures: A History of Movie Presentation in the United States. The first time I met Doug, he asked where I was from. I said Penn Yan. He nodded. “Okay, so you went to a Schine theatre.” The man knows his stuff.

Thanks to Bruce Purdy and Sharon Barnes for their hospitality. And thanks to Ryan Kelly for asking me to clarify the situation with Four Sons.

DB here:

One of the many penalties of watching movies on TV is the prevalence of bugs.

This is the nickname adopted by media makers for those little channel logos and watermarks that hop onto your screen. Sometimes these translucent signatures surface at intervals, to minimally satisfy FCC channel identification demands. Others let you know the movie you’re watching, or will be later.

But just as often the bugs just squat in a corner forever, teasing your eye away from the movie. Bugs are to the 2000s what editing and time-compressing were to earlier eras. “Movies, uncut,” boasts the IFC bug. But not unspoiled.

Bugs are bad enough when they are hovering in a black vacuum, made forlorn by letterboxing.

But they really jump into competition when they take up part of the image. How can you watch what actors are doing when there’s something faintly readable floating up from below?

I find it impossible not to look at a bug occasionally. In dark shots, sometimes it’s the most visible thing on the screen. Even in bright shots I stare at it. Maybe I’m hoping that it will be different this time. Yet when it changes, as it does on the Lifetime channel, I watch it more attentively, which only makes me more annoyed.

It’s like the mesmeric spell of Time Code, ticking away the movie’s life, and yours.

I’m not the first to complain. An eloquent manifesto, originally called Squash the Bugs, dates back to 2000, when the infestation was starting. Several other souls participated in the movement.

We know why bugs are swarming all over TV. Somebody better dressed than you or me is worried that we will be recording A Christmas Story or Smokey and the Bandit or Stranger in My Bed. We might even try to sell copies, or post a clip online. In principle, the bug is a badge of ownership, warning that we could be prosecuted. In practice, nobody expects to sue every user, so bugs help spread the brand. It’s like putting a designer logo on a shirt, making you a walking ad. Who wouldn’t want their bug, microscopic as it is, all over YouTube (which of course tacks on its own bug)?

But like everything else that we take for granted, bugs aren’t new. In their earlier form, they’re rather likable.

Silent but deadly

Movie bugs go back to the first years of cinema, when producers were no less worried about media piracy than they are today. Between 1895 and 1915, films circulated very freely around the world, and enterprising crooks happily duped originals and passed them off as their own productions. To block this, filmmakers tried to find ways to keep their trademarks on the film.

The obvious step was to put the trademark in the intertitles, and many companies did. Here is one for For His Son, a 1912 Griffith film from American Biograph. (What did the protagonist do for his son? He created a soft drink called Dopocoke, which turns the college boy into a hopeless addict.) Note the handsome AB insignia.

But of course a pirate could simply replace such original titles with ones of his own. The next logical step was to incorporate the trademark into the images, which couldn’t be replaced. Without the technology to create near-invisible superimpositions, the filmmakers took the obvious course.

They put the company logo into the set.

The AB circle typically appeared as a wall decoration. Biograph characters loved to furnish their surroundings to highlight this motif, preferring to put it at eye level and frame center. The logo could be found in unexpected places, like movie theatres (Those Awful Hats, 1908), and it could brighten the dreariest hovel (What Shall We Do with Our Old?, 1911).

The plaque’s popularity stretched back to Civil War days (In the Border States, 1910), and even in medieval times a king might mount the stylish AB on a brick wall (The Sealed Room, 1909).

Not to be outdone, Biograph’s competitor, the Vitagraph company, had a beautiful soaring eagle logo, which conveniently furnished a striking V graphic.

Judging from the evidence of this 1908 film, however, Vitagraph had a sideline in manufacturing safes.

The practice of building the trademark into the mise-en-scene seems to have begun in France. Georges Méliès, whose fantasy films were popular around the world, took measures to counter piracy early. You can see his Star-Film logo on the building stone in the left corner of this frame from La Danseuse microscopique (1902). Shift it to the right corner and we’d have a modern-day bug.

At the very top of this entry is a frame from Le Voyage de Gulliver à Lilliput et chez les géants (1902). There Méliès attached the Star-Film seal to the barrel sitting just left of center.

But Méliès didn’t always shove his imprimatur to the edge of the frame. In Le Tonnerre de Jupiter (1903) it sits just below the eagle that Zeus bestrides.

In the earlier Diable au convent (1899), Méliès exercised another option, simply signing his image as if it were a painting. To a large extent, it was.

Léon Gaumont had two marques, each enclosed in a chrysanthemum ring. The most famous one is a majestic Gaumont, but an alternative, ELGE (that is, LG), haunts Alice Guy’s Billet de banque (1907). First, in a café, the logo is attached to a table, and later it’s a decorative baseboard in a police station.

In Guy’s Le Frotteur (1907), Gaumont simiply stuck its logo to a chair leg.

Then there’s the Pathé Frères rooster.

Easy enough to embed that, you’d think. Just have a rooster stroll through a shot now and then—not only barnyard scenes, but ones set in a courtroom or a factory. Still, roosters are pretty accessible to any film pirate, so Pathé went the more ordinary route of weaving its logo into the set.

An insistent example comes in The Physician of the Castle (1907), possibly the source for Griffith’s The Lonely Villa (1908) and Lois Weber/ Phillips Smalley’s Suspense (1913). The plot is sort of a 1907 Panic Room. The logo is initially a plaque in the parlor of the castle, visible just behind the kneeling doctor.

An identical plaque is perched in nearly the same spot on the wall of the doctor’s own parlor, as we can tell when his family is besieged by the invading tramps.

The tramps pass through another room, where the trademark stands proudly on another wall, on screen right.

And when the wife tries to phone the husband for help, we get an insert that shows the Pathé cock nearly perched on her shoulder.

Why do I find the old bugs charming and the new ones annoying? I suppose it’s partly because the old ones were hand-crafted, not the result of keyboard twiddling. They are tangible. They are part of the scene’s space. Hard to see on DVD, the embedded marques are striking in 35mm projection, and spotting them is part of the pleasure of early film. Moreover, the filmmakers intended them to be there, or at least they accepted the need for them. But what director today is happy when the Sundance bug creeps into her compositions?

The old bugs seem to have gone extinct around 1912, but they will cling to their films. They bear witness to filmmaking of a specific time, and they anticipate problems that persist today. In tackling the threat of piracy, the old bugs seem at once naïve and intelligent. I see them as a rational solution to a hard problem, narrative consistency be damned. Today’s bugs, floating on top of the story world, seem more like corporate tattoos or graffiti. They don’t exist within the action, so you could argue that they are less disruptive. But they become a different sort of distraction, hovering halfway between the story world and the space of viewing. Bugs are spectres haunting the film.

On rare occasions, a modern add-on can be appropriate. In a Méliès film on the recent Flicker Alley set, L’Oracle de Delphes (1903), some TV agency has clapped its own digital bug into the lower right corner. It really is about beetle-size, and it dares to be a single eye looking back at you. That icon adds a touch of peculiarity not out of keeping with the Méliès aesthetic.

You can argue that this smirch on the image is a minor sacrilege. But I suspect that the Master of Montreuil would have grinned in approval.

For more on bugs, aka DOGS (Digital Onscreen Graphics), see Wikipedia. Thanks to Jason Mittell for helping me name these pests. And all hail Turner Classic Movies for keeping its bugs to a minimum.

The Sunbeam (Griffith, American Biograph, 1912).

PS 19 January 2009: “Subliminal” bugs: I had hoped to include a frame illustrating the anti-piracy stamp used on current 35mm releases, but couldn’t find one quickly. This mark consists of a tight pattern of dots resembling a character in Braille. The stamp would presumably be copied if someone shot off the screen or ran the film through a telecine. How effective these bugs are at tracing pirate copies I can’t say, but you can detect them, especially in bright scenes; I usually notice one every third reel or so, just left of the center of the frame. I’ll keep looking for a frame and try to add one to this entry.

John Powers alerted me to the fact that even Michael Snow’s Région Centrale got the bug treatment when it was telecast on Italy’s RAI 3 TV. Thanks to John for this scary example.

P.P.S. 24 January 2009: On the Internets, ask and ye shall receive. Olli Sulopuisto wrote to link me to the Wikipedia entry explaining the domino dots, known as CAPs. The entry includes an illustration. Olli also contributed to Jim Emerson‘s scanners blog, which contains good commentary on CAPs from Jim and his readers.

P.P.P.S. 29 May 2013: Can anti-piracy bugs be integrated into the movie or TV show? Yes!

The Loews Santa Monica Beach Hotel, one of the AFM venues

Kristin here-

The 2008 American Film Market started yesterday. Like the film festivals at Cannes, Toronto, and, increasingly, Berlin, the AFM is one of the major places where independent and foreign-language films get sold. Distributors from all over the world come to sell their products and to buy the films that they will release at home. It seems a good occasion to look at what effect the folding-in of New Line Cinema into a unit within Warner Bros. early this year has had on the international independent film market.

The good old days

In my book The Frodo Franchise, Chapter 9 dealt with the impact of The Lord of the Rings on the film industry. There I discuss what effects the trilogy had on New Line and its parent company Time Warner. I also analyze the rise of the fantasy genre, the technological advances, and the boost given to the depressed indie market internationally. The 26 international independent distributors that financed a substantial portion of the film’s production through presales—with commitments to all three parts, sight unseen, at very steep prices—grew dramatically as a result of its success.

In 2001, an international slump in independent and foreign-language cinema started. The causes were complex, and I detail them in the book; they included a sag in advertising, the dot-com bust, the September 11 attacks, and the American dollar’s high exchange rate. With perfect timing, The Lord of the Rings: The Fellowship of the Ring came out in December of 2001. Its theatrical and DVD earnings in 2002 poured money into the market through the 26 companies’ ability to buy new product when other distributors were still strapped for cash. By early 2004, the market had substantially recovered. Rings wasn’t the only factor aiding that recovery, but it was a major one.

That section of Chapter 9 is one of the parts of the book I’m proudest of. Most people interested in film knew something about most of the topics I covered. They were probably at least vaguely aware of the video games and other tie-in products, the highest successful internet campaign, the growth in filmmaking and tourism in New Zealand, and so on. But the fact that this massive blockbuster was an independently financed film, sold on the independent market, and highly beneficial to that market was something completely unknown except to specialists within the industry. I cottoned onto it only because there were a few references to these distributors’ unusual buying power during the coverage of the 2003 Cannes Film Festival and AFM in Variety and The Hollywood Reporter.

Beyond those brief discussions, there was really no way I could research the topic without talking to people involved. That meant interviewing some of the executives of those 26 companies and someone very expert in the international indie market. A very helpful source was Mads Nedergaard, then of SF-Film, Copenhagen, who provided marvelous information for my major case study in that chapter. For the expert, I decided upon Jonathan Wolf, then and now the Managing Director of the AFM. Luckily he agreed to be interviewed. During our conversation Jonathan remarked that he had been very struck that I understood that Rings was an independent film and that it had had a positive impact on international markets. I gather that’s why he agreed to the interview, during which he furnished me with valuable insights. Those two interviews really made that part of the chapter possible.

Despite the huge success of the trilogy, New Line continued to function as an independent, financing its films through presales of distribution rights and of licensing fees for ancillary products. It continued to sell them at events like the AFM, as well as having regular output deals with some of the same overseas companies that it had been dealing with for nearly a decade. New Line was one of the main U.S. firms supplying such distributors. Its growing success ultimately became part of what got the studio into trouble.

What had worked so well for Rings continued to work until the blockbuster fantasy trilogy that had been touted as the successor to Rings. The Golden Compass was financed in the same way, with special rights pre-sold to foreign distributors, many of them the same ones that had handled Rings. The problem was that Compass did tepid business in the U.S. but was a distinct success abroad. That money stayed with the foreign distributors.

Absorbed into Warner Bros.

The Compass problem coincided with the promotion of Jeff Bewkes as CEO of Time Warner at a time when the conglomerate’s stock price was low. The real problem was the encumbrance of AOL, but that was a problem that would take time to solve. New Line’s lack of success with its big Christmas release made it a target. Bewkes could slash the company as a signal to stockholders that he would streamline Time Warner. On February 25, he announced that New Line would be folded into Time Warner, to become a production unit specializing in the sort of genre fare that had sustained New Line for so long, such as the Nightmare on Elm Street series. It would also continue to produce the occasional major film, such as The Hobbit.

The point of absorbing New Line into Warner Bros. was largely to downsize the former by eliminating its distribution and other departments that could be handled by Warners. With Warners distributing New Line films abroad, the income would return to the studio rather than remaining with foreign distributors. Receiving financing from Warners, New Line would no longer need to finance films through presales.

For Time Warner, this made sense, but it was a blow to the overseas distributors with regular output deals with New Line. New Line and Miramax had provided steady product to these companies, which otherwise would have to compete in the open market on a film-by-film basis. With the departure of the Weinstein brothers from Miramax, that firm had dried up as a source, leaving the burden on New Line. Now New Line was disappearing as well.

What now?

In the 7 March 2008 issue of Screen International (the online version is subscription only), Mike Goodridge discussed where these distributors might be able to turn after the expiration of their New Line contracts. He pointed out, “The distribution partners had good years and bad with New Line. None were thrilled with The Long Kiss Goodnight or The Island Of Dr. Moreau but for every flop, there was a Seven or Austin Powers, a Mask or Rush Hour.” He also confirms my claims about the Rings trilogy’s impact on its international distributors: “The success of the three films for the international partners cannot be overestimated. Nor can the fact that they, more than anybody involved, took a huge risk on the trilogy. The risk paid off. The Greens at Entertainment [the U.K. distributor], the Hadidas at Metropolitan [the French distributor] and others genuinely shared in the profits of one of the box-office phenomenons of the last 20 years. It was the international buyers’ dream. Instead of losing money on studio cast-offs, they had a hefty piece of a trilogy which grossed nearly $2bn outside North America.” New Line’s disappearance as a source of hit films “brings a dramatic sea change to the complexion of the global business,” according to Goodridge. These independent firms “will be competing for an increasingly small number of tentpole pictures available to them.”

Where have these distributors turned for films? In some cases their contracts with New Line, which predate the studio’s absorption into Warner Bros., are good through 2009. That means, however, that those distributors are already looking ahead for releases after the contracts end. At Cannes this year, New Line had a much-reduced presence. Camela Galano, one of the executives who had been in the studio’s international sales wing for years, was promoted to being its president in May. She brought only Journey to the Center of the Earth. Galano told Variety, “We just won’t be selling movies … but we’ll be doing what we normally do with our outputs, which is go through the lineup, releases and materials.”

A number of firms at Cannes stepped up to fill in the void left by New Line’s withdrawal from distribution. One up-and-coming firm, QED, was selling Oliver Stone’s W, the sci-fi film District 9 (produced by Peter Jackson and due out in the U.S. next August 14), and the Milla Jovovich thriller A Perfect Getaway. Gary Michael Walters, co-president of Bold Films, commented that he saw an opportunity presented by Warners’ takeover of New Line’s foreign distribution. “We see a sweet spot in that niche of $10 million-$30 million smart but commercial pictures.” Similar rising firms include IM Global, formed by the former head of Miramax International, Stuart Ford. (See Variety‘s summary here.)

John Hazleton analyzed the impact of New Line’s withdrawal from the international market for Screen International just before Cannes (May 9, 2008 issue). Hazleton harks back to the impact of Rings and other New Line franchises:

Many sales executives, in fact, go further and suggest that by boosting the fortunes of the distributor partners with which it had ongoing output or package deals—companies including the UK’s Entertainment, France’s Metropolitan, Australia’s Villege Roadshow and Spain’s Tri Pictures—New Line effectively elevated the independent international industry as a whole. Other sellers benefited, for example, when the New Line distributors reinvested profits from The Lord of the Rings and Rush Hour movies—or from last Christmas’ The Golden Compass—in the acquisition of non-New Line films.

No wonder, then, [that] the decision by parent Warner Bros to turn New Line into a stripped-down genre label whose films will (once current deals expire) be distributed worldwide by the studio is having such an impact in the independent arena. Filling the New Line void has suddenly become a pressing need, or an enticing opportunity, for all sorts of independent players.

One such player is Hyde Park International, whose president Lisa Wilson told Hazleton, “We’re certainly seeing an uptick in interest from distributors who previously didn’t need as much product because they were secure in having the New Line output. They’ve been making more of an effort than usual to meet us before Cannes.” Another is The Film Department, selling two films under production, Law Abiding Citizen, a thriller starring Gerard Butler, and The Rebound, a Catherine Zeta-Jones vehicle.

Hazleton identifies two major independent films suppliers that are stepping into the supply gap left by New Line’s departure:

Leading the field of remaining big picture suppliers are Summit Entertainment and the combination of Lionsgate and Mandate formed when the former acquired the latter last September. Crucially, like New Line, each group now has its own North American theatrical distribution operation, giving international buyers assurance that films will get a domestic theatrical launch and allowing the co-ordination of domestic and international release dates.

Summit is new to the domestic distribution business. But it is a company with vast international experience that plans to handle 10-12 films in the $15m-$45m budget range a year. Its Cannes slate includes Terrence Malick’s drama Tree of Life, starring Brad Pitt, and it already has output deals for its own productions in France, Germany, UK and Scandinavia.

In Lionsgate, Mandate has a well-proven domestic distribution outlet that last year scored three $50m-plus box-office hits and this year has a bigger market share than any independent or studio specialty division.

As the combination’s international arm, Mandate—which will be in Cannes with titles including Whip It! featuring rising star Ellen Page, and family animation Alpha And Omega—handles around half of Lionsgate’s domestic slate plus titles from third-party producers.

New Line’s withdrawal, says Helen Lee Kim, president of Mandate International, “just puts us in a better situation, because you can count on one hand the independent companies able to bring studio-level product to the marketplace.”

Hazleton also points out that “Studio-owned sales operations Paramount Vantage and Focus Films International [a Universal subsidiary] will be another alternative source for buyers.” In general, though, the Hollywood studios’ recent retreat from art-house divisions means that they will have less to contribute to foreign distributors.

Summit and Mandate are both participating in the AFM as well. Another major firm is Relativity Media, a rapidly expanding production-distribution independent responsible for such recent films as 3:10 to Yuma, Atonement, Baby Mama, and Pineapple Express. Relativity had expanded into international sales this year at Cannes. In October it offered $150 million for Universal’s Rogue Pictures and will gain the 40-50 projects that genre division has in the works. As the AFM began, it had just signed long-term output contracts with nine foreign distributors. Finally, Relativity has, according to Variety, “partnered with sales company Mandate Intl. to oversee sales in non-output territories as well as provide worldwide servicing of the slate.”

Other sales firms at Cannes included Odd Lot and Essential, and new companies debuting at the AFM this year were FilmNation, Exclusive Film Distribution, Icon Entertainment, and WestEnd Films. Some of these companies will grow, others won’t. But gradually they will absorb the market position formerly held by New Line.

So does all this mean that the impact of New Line’s glory days is over? Not entirely. I believe that although the distribution of The Lord of the Rings has receded five years into the past and New Line has now disappeared as an independent entity, the trilogy’s impact still lingers in the international industry. Steve Bickel, president of The Film Department, commented to Screen International shortly before Cannes, “The loss of any independent or independent-spirited company is a loss to the industry. New Line provided a great service to all of us because they helped make strong companies that we’re now able to sell to.”

Ten AM on a Tuesday, and I’m at my local megaplex, Star Cinema. I’m here to not to see a movie, exactly, but to catch a phenomenon I’ve been curious about for some years.

To back up: Kristin and I have fallen a bit behind in our blogging. For one thing, the presidential election has been so exciting that we spend more time staring at cable news than ever before. (But the time hasn’t been wasted: the campaigns have given me an idea for a blog entry, which I hope to post next week.) Secondly, we’ve been going over the copy-edited version of the third edition of our textbook, Film History: An Introduction. It’s due out this spring, and we’ll have more to say about it later. If you want a preview now, check the new essay I posted elsewhere on this site. It’s called “Doing Film History,” and it’s an updated version of the introduction that appeared in earlier editions of FH.

Kristin has been laboring over an epic blog on character subjectivity. As for me, to take a break from both politics and the textbook, I headed to Star.

The youngest demographic

 The phenomenon I was interested in goes by different names, but here in Madison it’s called Baby Box Office.

Every Tuesday morning Star runs screenings for parents and their pre-schoolers. It’s billed as a chance to bring your child to see a film in a welcoming setting. The theatre is a little more illuminated than normal, the sound a little softer. Nobody will ask the kid to shush; you can even nurse your baby. Incidentally I hope that this gets babies to associate movies with oral gratification. The future needs passionate filmgoers, not to mention film students.

You can get more details from the Kerasotes chain’s website, and they’re pretty interesting. (Some theatres offer a Stroller Valet Service.) So I got curious and headed to the ‘plex.

I was surprised that five films were lined up to be screened—not Saw V and Max Payne, naturally, but a fairly wide range, including W. and a couple of animated titles. If none of the customers chooses a film, it’s not run. I asked which movie was today’s top pick, and Susan the cashier suggested The Secret Life of Bees. Buying my ticket, I met Meg and her son Connor. I asked whether she came often. With a smile, she said: “It’s been a life-saver.” She regularly meets a friend, who also has an infant, at the show.

Outside the auditorium there was a changing cot, with baby powder at the ready. Somehow, knowing it was there comforted me.

I counted twelve non-kids at the show, including a guy more or less like me (graying, maybe retired) and three young women who might have been playing hooky from high school. The show was an ordinary screening. There were local ads and video commercials. There were trailers for upcoming releases The Boy in the Striped Pajamas (Nazis with, natch, British accents), Marley and Me (a dog running in surf), The Soloist (Oscar bait), and Australia (part African Queen, part Out of Africa; I gather that She Will Fall in Love with a Man. . . and a Country).

I wish I could report that a dramatic incident, or at least an epiphany, took place during my visit. But the kids were mostly quiet. Occasionally I heard a wail or gurgle, and at one point a mother took a fretful baby out. The screening went fine. Glancing at the kids, I saw many of them staring at the screen transfixed and uncomprehending. On the basis of this experience, I’ve decided it’s better to have a squad of babies in a theatre than a few teenage boys.

As for The Secret Life of Bees: Cynics will say it’s ready for the Hallmark Channel, but I liked it. It’s what the Japanese call a “wet” film, affording many occasions for tears, in which I freely indulged. Not of much pictorial interest, it is saved, at least for me, by a robust script (tailored to Kristin’s four-part template), solid performances, and sentimental situations centering on racism, child abuse, female bonding, and raging male inadequacy. Needless to say, thanks to intensified continuity a lot of reaction shots drive home each moment. Appropriately, the mommy audience was seeing a movie about mommies; the idealistic but forlorn little heroine winds up with three, at least.

Afterwards, I talked to a pair of ladies who had brought a toddler. While he wrestled with the steering wheel on an arcade driving game, they explained that they frequently come to the shows and are glad that Star Cinema offers them the option. I then talked at length with Star’s savvy general manager, Craig Hussin, who has been part of the Madison movie scene for many years. Craig sees Baby Box Office as part of what every theatre should do—offer the patrons many options, and do it with the sort of flair that used to be called showmanship.

Mom, dad, and dollars

Susan Hansen, Meg Teter, and Connor.

There’s a broader point of interest to us as students of cinema. I think that the phenomenon is a good example of market segmentation, which David Waterman has talked informatively about in Hollywood’s Road to Riches. (1)

Obviously, people’s preferences about movies, as about anything else, differ. Some people want to see a movie the day it’s released; others are willing to wait a while. So it’s better business to charge the eager consumer more than the more cautious one. This is a form of price discrimination.

What makes the film business unusual, Waterman points out, is that it has a very wide range of price demands. Some people will pay a lot to see a film on opening night, others will pay a smidgeon to see it years later on basic cable TV, and there is a wide range of pricing options in between. Just on DVD, you can rent it new, or rent it later for less. You can buy it new, buy it discounted a few months later, or buy a used copy for still less.

In the classic studio days, the principles of market segmentation and price discrimination gave birth to a systematic strategy of distribution, discussed by historians Tino Balio and Doug Gomery (2): The run/ zone/ clearance system. A run was the period during which a film was screened in theatres. The first-run showing, usually at a well-appointed downtown cinema, gave city viewers the first chance to see the movie. The second-run shows, in neighborhood theatres and small towns, took place later, at lower ticket prices. Zones established the territory in which any title could play exclusively. Clearances were the intervals of time separating the runs, typically a matter of weeks or months.

What’s interesting is that the system is still with us. Your average Hollywood movie has its first run at a multiplex. It may get a second theatrical run at a budget theatre or campus venue. Then begins its most profitable string of runs, in the nontheatrical sector. The movie is released on various video platforms sequentially–pay per view, premium cable, airline and hotel systems, DVD, Internets, and eventually free cable. As in the old days, there are clearances between these runs; today they’re called “release windows.” You’ve probably noticed that films come to the ancillary platforms faster than they did only a few years ago. This trend toward shrinking windows is, as you’d expect, a bone of contention with distributors.

The point of the system is to extract the most money from the film. If films were only shown first-run, some people wouldn’t go at all. The price would be set too high for their level of interest. So the prices shrink over time, with broadcast or basic cable airings becoming the last link in the chain. Spreading out the opportunities to see the film allows people with different preferences and budgets to buy in at different points.

So I’m thinking that the Baby Box Office is a nice example of market segmentation. Parents with young children tend not to go to movie theatres. A night out is expensive, especially reckoning in babysitter costs, and many couples I know are just too tired to enjoy a movie at the theatre. If the parents take an infant to a show, it might squall and disturb others. So many parents just stay home. Baby Box Office goes after a niche market.

It’s shrewd policy to screen a recent release for Baby Box Office. If the film were in second-run, the screenings might seem a step down from what else the ‘plex is showing. But if parents see a first-run title, they can then gain the sense of participating in a current pop-culture event—an important motivator for first-run patrons—and they, like other first-run patrons, can spread word of mouth.

Do the costs make sense? At first glance, no. Babies get in free. Mom or Mr. Mom pays $5. If the child is three years old or more, that ticket costs $3. Not a huge amount of money in all: the 12 adults at my screening yielded only $60. But it’s a mistake to compare the takings with Friday-night box office, fattened by hordes of teens.

First, some of the theatre staff are working in the morning anyhow, preparing for the day’s shows, checking prints and projection equipment, talking with bookers on the phone, supervising cleaning, priming the concession stand. So running a few prints at that time of day isn’t a big extra expense. Tuesdays are theatres’ slowest days, so since you’re open you might as well get some people through the turnstiles. Then there’s the intangible factor of good will. Parents are likely to think well of a business that takes pains to cater to them, and they may be likely to return to that theatre when they get other chances.

As for price, five bucks is a little more than a DVD rental these days, so the off-hours screening is a bargain compared to standard ticket prices, but it preserves the integrity of the runs/ windows system. And the concession stand is open. There, where the real money is made, a parent can indulge a guilty impulse for Raisinets.

You can argue that the phenomenon is really a reaction to thinning theatre attendance, and that may indeed be part of the story. But more positively, Baby Box Office sessions seem to lie on a continuum with making a movie available on video, on iPods or phones, and on the Internets. Media moguls have long said that today’s consumers want their objects of desire, no matter how obscure, with maximum convenience. Media distribution has had to adapt itself to audiences’ schedules. Granted, theatres can’t do that as flexibly as video can. Still, Baby Box Office seems a logical effort by exhibitors to adjust to a world in which people expect entertainment to adjust itself to their lifestyles, kids and all. Kids especially.

(1) David Waterman, Hollywood’s Road to Riches (Cambridge: Harvard University Press, 2005), 9-10.

(2) Gomery explains the origins of the strategy in The Hollywood Studio System: A History (London: British Film Institute, 2005), 19-20.