'There will be no more cinemas': Operators lobby government for survival

By Robert Moran  January 4, 2021 — 11.45pm   
https://www.smh.com.au/culture/movies/there-will-be-no-more-cinemas-operators-lobby-government-for-survival-20210104-p56ro4.html


When movie studio Warner Bros last month announced it would be releasing all of 
its major 2021 movies in the US direct to its streaming service HBO Max on the 
same day as in theatres, cinema operators around the world shuddered.

For an industry already ravaged by the theatre closures and social distancing 
necessitated by the ongoing pandemic, as well as limited content due to 
Hollywood’s COVID-delayed release slate, the studio’s spurning of the 
industry’s traditional theatrical release window was another alarming 
development.

“It’s never been this difficult. Cinemas cannot survive if [movies] are going 
to streaming day and date with the cinemas. It’s a disaster waiting to happen,” 
Mr Mustaca said.

“They’re blaming COVID but it’s not COVID. It’s actually a movement to do away 
with theatres,” he adds of the studios’ efforts to promote their own streaming 
services. “We have a three-month window agreed to by the distributors and the 
exhibitors, but they’re not respecting even the three months.”

In Australia, the theatrical release window in which a movie is made available 
exclusively to cinemas – once an astounding nine months in the days of Dances 
With Wolves and Dead Poets Society – is 90 days. But Netflix’s push into the 
film world over 18 months ago, with major releases such as The Irishman and 
Marriage Story, poked cracks into the longstanding agreement when it convinced 
local cinemas to accept a three-week exclusivity window.

For local cinema operators, Warner Bros’ announcement that it will eschew the 
barrier altogether marks the culmination of months of writing on the wall.

Sam Mustaca, Roy’s son and chief executive of United Cinemas, said “without the 
exclusivity window, we won’t survive". “The theatrical window is the only thing 
that keeps cinemas alive in Australia, and pretty much the world. We’re very 
upset about what’s happening with the studios; they’re making decisions in the 
US that are affecting us here.”

The pair have taken their concerns to the government, lobbying Federal Minister 
for Communications Paul Fletcher to legislate a minimum theatrical release 
window to protect local cinemas. Similar legislation was recently passed in 
countries such as France and Turkey to help protect their hefty homegrown film 
industries.

“It needs to be looked at fully by the government because we will lose the 
cinema industry,” Roy said. “Without a window, there will be no cinemas in the 
future.”

The elder Mustaca is no stranger to government lobbying. In 1989, he 
successfully pressured the ACCC to allow independent cinemas equal access to 
major new movie releases when megaplexes were still monopolising such titles 
for up to eight weeks. But, so far, Mr Fletcher’s response has been tepid.

“He understands our concerns but his take on the world is, ‘Well if you’re a 
dying industry because the film companies have taken the product away from you, 
there’s no point me doing anything about it,’” said Sam.

“But why should 15,000 jobs in this country go down the toilet because of one 
politician that doesn’t want to pull his finger out?”

A spokesperson for the Deputy Prime Minister Michael McCormack, who is acting 
for the communications minister, said while the government “values the 
independent cinema sector, which is an important part of the Australian screen 
ecosystem”, it “has no current plans to legislate in this area”.

Despite the concerns posed by a lack of traditional exclusivity, others in the 
industry are sceptical that government legislation is the answer.

“The threat is that movies just won’t come to Australia. Studios will say, 
‘Well, we’re just not going to release in Australia when a movie’s frozen there 
for however many months,’” said Scott Seddon, president of Independent Cinemas 
Australia.

“As far as legislating windows, it’s something that I fear would do as much 
damage as assistance.”

But after enduring the past industry challenges of VHS, DVD and Foxtel, Mustaca 
said "this is the big battle, to protect the exclusive theatrical window".

“I think if the government doesn’t intervene within the next three to six 
months and cinemas start to close in this country, they’ll see it differently.”

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