MARCH 2006 :: MEDIA

Change, at a Theater Near You
Cinema Chains Scramble to Make Moviegoing Less Annoying

By Kate Kelly
Staff Reporter of The Wall Street Journal

On a recent Friday night, some moviegoers at The Grove Stadium 14 in Los Angeles were in for a rude awakening: Their 7:20 p.m. screening of tearjerker "The Family Stone" in theater six was being invaded by the sound from the 7 p.m. show of "King Kong" in theater seven. Later, an emotional scene was pierced when a customer's cellphone cut in with a thumping hip-hop beat. The interruptions capped a night of moviegoing already marred by broken ticket machines and a parade of preshow commercials so long that one customer grumbled: "This is obscene."

For moviegoers, it's become an all-too-familiar scene, and some are opting to forget the theater altogether. This year, domestic movie attendance is down 7%, and industry officials blame competition from other forms of home entertainment-everything from DVDs and pay-per-view to videogames that appeal to the young men who have been a core audience for action blockbusters. With millions of new flat-screen TVs hitting living rooms this year-and an ever-shorter window between a film's theatrical release and when it appears on DVD-the temptation to stay at home is getting even more widespread. The result: Some significant hurdles for a theater industry that's already coming off a rough decade.

'We Have to Be Creative'

The big theater chains say they're aware of the industry's problems and are taking steps to make cinemas more appealing.

At the top of theaters' list now: rude behavior among audience members. Many consumers believe that the omnipresence of cellphones, hand-held email devices and rowdy children has created a carnival-like atmosphere inside theater auditoriums, making it difficult to enjoy the show. "My sofa doesn't have little badly behaved children kicking my seat and shouting at me," says Jill Davidson, a 31-year-old New York City attorney.

Exhibitors say they are studying the problem carefully. Theater ushers at AMC, one of the country's largest chains, now offer to give noisy patrons their money back if they'll simply leave the facility.

AMC officials say they have audience misconduct down to a science. "We've actually been able to track by genre and predict which films will probably have the higher incidents of guest behavior problems," says Phil Singleton, president and chief operating officer. The most problematic types of movies: action movies and those rated PG-13, which tend to have adult content but be tame enough for younger kids.

Some chains say they're considering clamping down more, increasing the number of times ushers "sweep" theaters to rein in loud audience members. A more radical tactic under consideration: jamming cellphones to thwart chatty audience members. The theater owners' trade group and its members are looking into a cellphone call-blocking service that is currently illegal under federal communications law.

Efforts also are under way to improve what movies are like on the screen via digital projection, which eventually will replace film stock that wears out with each showing and sometimes breaks. The rollout of digital cinema has been slow, but it's starting to gain momentum; the Carmike chain, for example, recently announced plans to install 2,300 digital projectors around the country over the next two years.

"We have to be creative, and attack the concerns that our patrons have raised with us," says John Fithian, president of the National Association of Theatre Owners.

Among his top concerns, in addition to curbing rude behavior and rolling out digital projection: Working with preshow-advertising companies to make in-theater commercial spots more palatable to the audience.

Theater chains say they're improving the ad spots. On New Year's Eve, for example, National CineMedia, one of the biggest providers of in-theater ads, unveiled a revamped preshow called "FirstLook"-so called because it will give moviegoers a sneak peek at behind-the-scenes footage of moviemakers, Olympic athletes and other fresh content, along with more traditional commercial spots. Cliff Marks, president of sales and marketing for National CineMedia, says that in recent years, in-theater advertising revenue has increased substantially.

Another option for moviegoers: Hit an ad-free theater, like Bridge: Cinema de Lux in Philadelphia or ArcLight Cinemas in Los Angeles. But to make up for lost ad revenue, those theaters put a premium on tickets, which cost $14 each on weekend nights at the ArcLight.

Price Cut? Not Likely.

As theaters try to make moviegoers happier, one remedy they are unlikely to pursue is a price cut. "Our ticket prices have increased over the last 10 years at a slower pace than almost anything else outside home entertainment," Mr. Fithian says. "If people want an experience with better foods, and no advertising, it's there. But the ticket prices are higher."

An average movie ticket in the U.S. these days costs $6.34, a 2% rise from last year, a price that includes discounted tickets for children and senior citizens as well as lower-priced matinees. But for many people, especially in cities, the price is much higher. And at venues with extra features-like a Walt Disney-owned theater in L.A. that offered a live organ preshow and fake snow just before screenings of "The Chronicles of Narnia"-VIP seats can cost up to $24 a pop.

Responding to complaints about rising ticket costs, exhibitors like National Amusements, which operates theaters in New England and the Midwest, offer ways to save money on tickets, such as a $7 movie-ticket sale that's currently available through various AAA offices and Costco stores. Other chains, like AMC and Regal, operate membership clubs to help customers save money on concessions and tickets. But many theater operators also point out that cost savings are what matinees were designed for.

"There are significant discounts to people during off periods," says Scott Wallace, CEO of Wallace Theaters, which operates a $1 theater in Honolulu. "But the average person wants to see the movie at 8 o'clock on Saturday night at $3, and it's not going to be there."

Consumers and even some exhibitors agree, however, that skyrocketing concession prices may deserve another look. At the Regal-owned UA Showcase 8 in Las Vegas, for instance, a medium soda costs $4.25. At Regal's Plymouth Meeting theater in Conshohocken, Pa., a large popcorn costs $6.