Justice Department, Wall Street Journal, Eric Schwartz discussed on The Frame
Assemble you got a book yet but you also have to book these other things. That may not speak quite as good. And if you don't you don't get adventures. That's right and as you said about. Half of the nation Cedar screens right now are controlled by three. The operators AMC Regal and cinemark and so they are able to you know whether some of these these terms they have such a scale that that they're they're okay now it's the smaller operators and especially drive in years. Drive in theaters were very vocal whenever the decree was up for examination by the the DOJ the smaller operators. Because they don't have that scale whenever something like block booking comes around you know they're not going to be able to negotiate associate really with any leverage and the other thing to think about is that not every theater has six or a dozen or eighteen screen. Some of them are one or two screen operations so the prospect of having to show a studio product whether you want to or not can be particularly monopolizing for some of those locations. We're talking with Erik Schwartz. All the Wall Street Journal about a Justice Department review of what's known as the paramount decrees. Nothing has really been officially decided right now and I want to hear the counter argument especially the one presented by the National Association of Theatre Owners which represents exhibitors what is their argument. And why do they want these decrees decrease captain place. They want them kept in place. Because I think the the review of these decrees is coming at a particularly vulnerable time for theaters. You have studios studios that are more powerful than ever because more and more of the box office being concentrated in a smaller number of films right so the the top five movies this year so far account for some twenty seven percent of the annual box office so far this year so it's become a really top heavy uko system and that is given the studios to release those films a lot of leverage and so from the exhibit exhibitors perspective. I think that they're particularly particularly Concerned about diversity of product. Because if you do institute block booking and you do allow the major studios to fill up a lot of that screen real estate. The independent production companies are going to have a hard time squeezing their movies in. And is it possible that a major studio like universal or Warner Brothers could now go out and end. Bhai a movie theater chain. Does that make any business sense for them. They certainly could now. And even in the in the years since the decree was passed. There were some mm studios. That would buy a theater here and there right like Disney has the L. Capi Tan here in Hollywood and so on now the the prospect of a studio buying a major chain. That's a lot of real estate for a studio to have to handle. That's a lot of electricity and overhead. I'm not sure if you're someone who if you're a studio all right now if it makes the most sense but the Justice Department certainly just made it a lot easier to if you wanted to so now that the Justice Department has made this recommendation. What what happens next so right now? The Justice Department is going to file a motion in court calling for the termination of these decrees. That'll be the next step step in the process which we should be expecting this week Eric Schwartz reports on the film industry for the Wall Street Journal. Eric thanks so much for coming back on the show you bet thanks John and coming up on the frame nineteen year old filmmaker. Philip humans makes an auspicious debut with burning in pain.