Everything is Closing... But the Movies
The entertainment and the sports world all but closed down on Thursday...with one big exception: movie theaters.
Going to the websites for Regal Theatres and AMC on Friday morning, I can buy tickets to such new releases as "The Hunt" and "I Still Believe," but there is no mention of how the chains are dealing with the coronavirus pandemic.
The studios are reacting, pushing back the openings of such potential blockbusters as "Mulan" and "A Quiet Place 2," but their current product is accessible, even in theaters near two of the nation's largest coronavirus epicenters.
"As of Thursday midday, Regal Cinema's Bella Botega 11 in Redmond, Wash. — the one closest to initial domestic epicenter of Kirkland, Wash. — is open. In New Rochelle, NY, where part of the city is quarantined, Regal's 18 screen New Roc City is doing business as usual," reports Indiewire on Friday morning.
"I think theaters are preparing for all contingencies. I don't think you will see a countrywide shutdown, but there could be some closures on a local level," Wall Street film exhibition analyst Eric Handler of MKM Partners told the Hollywood Reporter. "We are still seeing an accelerated number of cases, and I don't think the worst is over."
The reasons are many — from the highly competitive marketplace to the number of screenings per day — that keep movie theaters open.
"So far, concerns about capacities and closeness seem to ones that theaters can address," the Indiewire report continues. "Since they're open seven days a week with multiple showings per day, and multiple auditoriums for top films along with reserved seating, they could adapt to separation requirements. That sets them apart from other events that might be packed in sold-out situations."
Movie theaters are one of the few entertainment options that have remained open during past national crises (like 9/11) but this is the first major health-related scare with much different public ramifications.
As of now, only official action by city, state or federal officials would close the chains. But the studios could also force the chains to close by not delivering them new product.
"If major new films don't open, older ones run out of gas (and have home viewing after 90 days, anyway). The specialized market isn't positioned to fill much of the gap. So how can they stay open?" wonders Indiewire.
And closing theaters would acerbate an industry in a down spin.
"Domestic ticket sales decreased 5 percent last year. With so much of the gross coming from top titles, which get higher film rentals, there is even less margin for profit. Real estate and physical properties have costs, whether a theater is open or not; studios can hope a new date for a movie will keep their revenues intact," concludes Indiewire.
"The major theater circuits didn't immediately respond to requests for comment on developing events," writes the Hollywood Reporter, "but insiders say cinemas across the country have increased safety measures in recent days. Some chains are also modifying sick leave to make it easier for employees to stay home if they are feeling ill."
But if you are going to a movie theater, do so quickly. In all likelihood, they will be closed soon.
"It is pretty obvious what is going to happen," Exhibitor Relations analyst Jeff Block told TheWrap on Thursday. "With everything else that is public shutting down, from sports leagues to concerts to Disneyland, it will begin to seem irresponsible for movie theaters not to do the same. This is the wya public sentiment is going and I just don't see a lot of theaters, at least in major cities like Los Angeles and New York, staying open for long after this weekend."