Movie business up as economy swings down
Within a few days one can see and feel an
earthquake, witness a monumental fire, watch two
airplanes collide, see a few murders and an assortment
of other tragedies.
Each of these scenes is shown several times daily
on movie screens in a three-block area of downtown
Lincoln. This recent outbreak of catastrophe movies
coincided with the Christmas holiday, usually the
busiest week for theater owners.
"Traditionally, film companies always release
some fine products at Christmas time," said Mike
Gaughan, district manager of Cooper-Highland
Theatres, which operates the Plaza Four and
Cooper-Lincoln theaters.
The movie business seems to be experiencing an
increase in attendance year-round. Gaughan said this
was because of the downswing of the economy and
because of the movies that recently have been
released.
Good year for theaters
"Basically the movie business is having its best
year in the last 10 to 11 years. Attendance is up and
net gross is up considerably," he said.
In times of double-digit inflation, moviegoing is a
much cheaper form of entertainment than a steak
dinner or live theater, Gaughan said. He said he also
likes to think people are becoming less entranced
with television.
Gaughan said the film company takes most of
every box office dollar. Lincoln movie prices have
risen accordingly about 75 cents in the past five
years, he said.
Gaughan said theater owners have been caught in
the middle of rising prices.
Concession stand important
"The thing that keeps you going is the concession
stand. Without the concession stand many theaters
would be in trouble. We would rather have people
come and buy a box of popcorn than stay away
because of price increases," he said.
Cooper-Highland Theatres sets a standard price for
a movie and discounts two groups, according to
Gaughan. Young children who usually have no
income and senior citizens often on a fixed income"
are given reduced ticket prices, he said.
The idea of a student rate has been tried
unsuccessfully, he continued. About nine years ago
high school students were offered a special rate with
the purchase of a 51 ID card, which also served as
admission to a movie.
"We didn't even sell enough cards to pay for the
printing," Gaughan said.
Lower matinee rates
The Douglas 3 Theatres do not offer special
student rates but do have lower afternoon rates.
"It's sad that more college students don't come to
shows in the afternoon. You can't beat the $1.50
price," Mike Mclaughlin, assistant manager of the
Douglas 3, said.
But moviegoers in Lincoln can gain a little relief
by comparing local movie prices to those in larger
cities. In Chicago and New York you can expect to
pay between $3 and $5 for a movie, and in Houston,
movie prices are about $4. Even Omahans may pay
up to $3.50 for some movies.
Gaughan said the differences in prices are caused
by differing advertising rates, costs of hiring employes
and city tax rates.
An exception to the standard movie price is the
"four-wall deal," in which a movie company rents the
theater for a flat fee and takes all ticket profits. A
recent four-wall deal in Lincoln was The Trial of Billy
Jack.
Most moviegoers under 35
The largest movie audiences come from the
under-35 year-old population, but for a movie to be
successful it must appeal to all age groups, Gaughan
said.
Movies such as American Graffiti and The Sting,
whicn ran 44 and 52 weeks respectively, are recent
examples of movies with widespread appeal,
Mclaughlin said.
He said many film companies require a mandatory
showing period for a movie.
"After keeping a film for so long, the split in
percentage profits becomes different and the theater
begins to make more money. We sometimes have to
keep films here that long to make up the front
money," he said.
Another reason for movies being shown for
extended time periods is that often there are no good
movies to pick up and the theater must hold a good
movie- to avoid a monetary loss on a poor release,
Mclaughlin said.
More, smaller theaters help
The recent trend toward more and smaller theaters
often helps to relieve the losses that can be suffered
from poor movies,' because the theater doesn't
depend on just one movie to attract audiences.
"If a movie is a loser and if the theater is big,
you're really stuck," Mclaughlin said.
The Plaza Four Theatres occupy about the same
amount of space as the old Nebraska Theatre,
Gaughan said, which allows theater owners to "spread
out the element of risk."
"The theater owner can extend himself more.
American Graffiti and The Sting would never have
run so long in a bigger theater, Gaughan said.
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page riin2teen
monday, january 13, 1975