Regal & Dreamworks...A Winning Combination!

I want to preface this by saying this is all a matter of opinion based on the facts. The Ring Two is slated to be on 3000 screens this weekend, which means it's an enormous release on the scale of a summer blockbuster. That fact, coupled with what I know, leads to this.

Back in 1999, Regal and Dreamworks had some problems ironing out opening weekend percentages of Galaxy Quest, those little numbers that allow the distributer a certain amount of the gross compared to the exhibiters. It's usually highly in favor of the distributer, and in that case the amount was 98% to 2%. Yes, highway robbery, but you have to imagine that the distributer believes the exhibiter will make their money in concession sales. With this film, a sci-fi comedy with no guarantee to be a hit, I could see why Regal balked at the proposal. However, this trend has continued over the years, and after Rush Hour 2 (from New Line Cinema) went on to become a huge hit without Regal, you'd think that possibly the number one theatre chain in America might reconsider its tactics. I mean, after all, from what I understand, rival Carmike, which had fallen on hard times by 2001, was tremendously buoyed by its carrying of Rush Hour 2 with the absence of Regal. Exactly what Regal has to gain from flexing its muscle over these terms is really beyond me, but it has, in effect, happened again, with a surefire hit.

A few months ago, we were told to pull advertising for The Ring Two and Madagascar, surefire signs that Regal and Dreamworks' negotiations became much like the NHL's. Only a week later, we were told to put the ads back on--so I figured a truce. Now, the biggest release of 2005 is coming out this weekend, on one screen at most Regals in this area (two at Bellevue 12, go figure).

Think about the chaos this causes. I'm surprised that Regal is even carrying the picture. When everyone who wants to see it, and it will be a great many, comes walking up and there's only 400 or so seats available for a show, then you'll see scores of people getting turned down like never before.

I know Regal is number one--but they have zero capability of crippling a film's success. Rush Hour 2 grossed over $225 million domestically with a huge $67 million opening weekend. The concession count at their theatres will be crippled, not the film they've decided not to carry. You look second-rate when you can't manage to even supply a film that your customers are demanding. Taking the percentage hit may be unfair, and you do have to stand your ground once in awhile so that no one pushes you around--but this movie isn't Galaxy Quest, a title that went on to make a respectable $70 million here. The Ring Two is the closest the theatre business gets to a brand name--it's got a huge, established fan base already thirsting to see the next chapter.

OK, you say, this isn't exactly like those other instances, since Regal is carrying the film--but it's close. The number of people you turn away and leave disappointed is a damage that cannot be calculated. This business runs completely on new product breathing life into the system every weekend, and even if we serve a few thousand people this weekend with the film they want to see, we'll be turning away five times as many. Who wins? The other chains. The customers, again, lose.