Cinemagoers Are Back but Theatrical Biz Still Faces Challenges, Say Indie Distributors in Zurich

As a seasoned movie lover who has witnessed the ebb and flow of this captivating industry for decades, I must say that the recent developments discussed at the Zurich Film Festival have filled me with renewed hope. The resilience and creativity showcased by industry leaders such as Rebecca Kearey, Tom Quinn, Stefanie Fahrion, and Nathanaël Karmitz are truly inspiring.

As a movie enthusiast, I’m thrilled to report that there’s a renewed sense of optimism in the film industry, particularly at the Zurich Film Festival. Cinema-goers are gradually returning, and it’s evident that business is picking up. The international theatrical sector, battered by the pandemic and two Hollywood strikes, seems to be recovering steadily.

At the Zurich Summit industry forum, a discussion took place that focused on the disruption and current status within the sector. Participating in this conversation were Rebecca Kearey, who heads international and business operations at Searchlight Pictures, Neon CEO Tom Quinn, Stefanie Fahrion, head of distribution and sales at Film4, and Nathanaël Karmitz, chairman of MK2.

As I sat down to pen my latest movie review, I couldn’t help but notice that the film industry seems to be showing some promising signs of recovery, much like Kearey suggests. The lights may not be as bright, and the crowds not as dense as they once were, but there’s a definite sense that things are picking up again.

The stresses remain significant and have persisted over time, but I believe that resilience and ingenuity will ultimately prevail, outweighing some of the strain.

Movie enthusiasts remain active and continue to visit cinemas, she asserted. “It might take a while to bring some of them back, but we believe that we’re gradually winning them over in the long run.

The aftermath of the COVID-19 pandemic and subsequent labor actions put the industry in a deep hole, she noted. However, signs of recovery have been evident for about a year now.

Autumn marked the start of what I believed to be our business recovery, with some outstanding award-winning films hitting the screens and exceeding audience expectations. It feels like we’ve started to emerge from a difficult period. We might not have completely climbed out yet, but we’re definitely on our way up.

Kearey additionally highlighted the distinct preferences among global viewers, emphasizing the role of local movies in maintaining the vitality of regional film industries.

Quinn concurred, stating: “To clearly demonstrate that relying solely on domestic box office figures might not be the best approach, consider this: In the year 2023, the average movie gross was approximately $15 million per film, with the highest mark in the past 24 years being $19 million. The rest of those years saw box office revenue typically fluctuate between $16 million and $17 million.

2018 marked the highest box office total of approximately $11.8 billion, distributed among 993 films. In contrast, last year saw a total box office revenue of $8.9 billion from just 591 movies. Considering there were 41% fewer movies, the decrease in overall earnings was only 25%. To me, this suggests that it’s not such a grim picture after all.

Quin emphasized that independent films have been doing exceptionally well this summer, providing evidence by highlighting the impressive box office numbers. For instance, Sony Classics’ “Wicked Little Letters” was their top-grossing film since 2018, while Magnolia Pictures saw similar success with “Thelma,” earning $9 million. IFC Films also had a significant triumph with “Late Night With Devil,” raking in an impressive $10 million since its release in 2014. This suggests that the film market is experiencing a revival.

As a cinephile, I’m thrilled to share that our most monumental box office hit was none other than ‘Longlegs,’ raking in an impressive $74 million. Yet, it wasn’t just ‘Longlegs’ that stole the show, ‘Immaculate’ also left its mark with a whopping $15 million under its belt!

From a British viewpoint, Fahrion also shared an upbeat forecast. She pointed out that award-winning films seemed to encounter less difficulty in the U.K. following the pandemic, and there’s been an increase in young viewers attending cinemas.

In a case like ‘The Zone of Interest,’ young people below 25 years old were invited to Q&A sessions after watching the film. This suggests that the typical adult-focused awards audience is evolving and blending with younger generations who are rediscovering or just starting to appreciate the pleasure of going to movie theaters.

Fahrion pointed out that new films such as “Aftersun” and “Kneecap,” both first-time releases, have garnered substantial box office income in the U.K. This suggests a blend of younger viewers with niche audiences, which gives us reason to be hopeful at Film4 too.

In my role at MK2, a company involved in film production, distribution, and cinema operations across France and Spain, I must admit it’s been a bit more challenging lately.

For quite some time now, our operations have faced significant challenges due to the nature of our business model. We operate on a fixed-cost basis, meaning expenses remain constant regardless of the volume of work. Additionally, we provide services based on offers rather than demand, which adds complexity. To top it off, our inventory of movies has been limited, further complicating matters.

Nevertheless, our company encounters diverse scenarios, he noted. One such instance is the thriving success of independent films and cinemas. We observe a consistent audience, eager cinema-goers, who are present and ready to attend screenings.

Simultaneously, it’s a worldwide market, and the global cinema industry is grappling with an immense task of completely overhauling itself, as Karmitz stated. “It’s always the same cycle every twenty years. It moves from single-screen theaters to multiplexes, then to lavish cinemas offering additional amenities.

During times of significant change when substantial funding is required for theater operations, it can be quite challenging, as he pointed out.

It seems clear to me that people are returning, movies are making a comeback, even though things aren’t exactly as they were before. However, it’s becoming increasingly apparent that this trend is real and undeniable. What’s more, I notice that the younger generation remains eager for these experiences, despite the numerous cautions about them over the past decade.

There’s a strong demand from moviegoers, but there’s also a significant requirement for renovation and financial commitment in theaters, which presents a difficulty, he noted.

2024-10-07 21:17

Cinemagoers Are Back but Theatrical Biz Still Faces Challenges, Say Indie Distributors in Zurich

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