Head of NATO Avers “End Of Tunnel, Beginning Of Light” for theaters; John Fithian, Charlie Rivkin talk about Biz Rebound, Piracy, Streaming on the eve of CinemaCon

CinemaCon kicks off Monday at Caesar Palace in Las Vegas, the second largest gathering of Hollywood theater and studio owners since August and post-Covid. This edition was overshadowed by the Delta Variante, the current closing of cinemas and the change of release dates. Now the image is noticeably clearer. Domestic participation in Confaf, including the entire cast of studio executives, is at a pre-pandemic level (international participation is still slightly lower in some markets). Participation in the cinema is growing and the scheduled release seems complete and fixed. NATO President and CEO John Fitian and MPA President-in-Chief Charles Rivkin asked Deadline questions about the development of the post-COVID-19 landscape and the relationship between the two sides. (Some answers are compressed and edited for clarity.)

DEADLINE: Compare the latest CinemaCon with what you expect next week. What has changed in the studio / exhibition ecosystem?

Phytiel: This fair comes at a very important and historic moment for our business. We are out with movies again, theaters closed and just now, just a few weeks ago, when the entire list of movies comes back for the rest of the year. CinemaCon shows the contents of the upcoming films, we will see directors, film studios and talents talking about it, showing in their presence that they have been fired. Many cinematic content will arrive between now and the end of the year. The young people return, the families have appeared sonic the hedgehog 2 [this weekend, Bad Guys]. This is the end of the tunnel and the beginning of the light. This is the starting point for the relaunch of the sector.

Rivkin: I think CinemaCon 2022 will once again demonstrate what we already know: that the film industry and the film industry are now grappling with one of the biggest challenges we have faced in a century. On the studio side, we are seeing a strong recovery in production. Nearly 950 films went into production last year, even breaking pre-pandemic records. We have seen a 16% increase from 2019 and 40% from 2017. Much of this recovery was the result of the strong and effective health and safety protocols that our collective industry put in place in the early months of the year. pandemic to support our workers. Be as confident and productive as possible.

DEADLINE: What gives both of you the confidence to keep going?

Phytiel: The board is quite stable. We see no further changes to the release schedule due to the pandemic. The effect of Covid was twofold: one on the consumer’s desire, the other on the product, so even after consumers were ready to go back spiderman: no way home, We have lost films due to delays in the January and February production schedule. Now the users are ready to go back and the videos are finished in the container and ready to be shown. We strive to operate the product safely. We are not like a restaurant, a local business that can deliver food upon opening. We must be open everywhere. We serve a global product that is now back.

Rivken: The theater market is recovering globally. The global box office was $ 21.3 billion last year, up 81% from 2020, while the US and Canadian box offices doubled to $ 4.5 billion during that period. While these numbers are still below pre-pandemic levels, they suggest it is still an important place for growth. I think all studios and exhibitions should be optimistic about the future. Spider-Man: No Way Home was The third highest gain of all time at the US box office. This trend continued into 2022 Batman Provides the second-highest box office in the United States since the start of the pandemic. Around the world, movies like Battle of Changjin Lake, hello mom, F9, Y there is no time for death The audience was brought to the theater a lot.

DEADLINE: Piracy. I know they will talk about it, will we have a review?

Rivkin: Piracy remains an existential threat to the creative community, period. It concerns us all: the studio, the exhibitors and the customers. But as I said in my industry speech Tuesday, the Motion Picture Association and our Global Coalition Against Piracy, Creativity and Fun Alliance (ACE), have made great strides in the fight against large-scale piracy operations. Which poses this threat. ACE is now a 24/7 service with broad global access that can deploy response teams anywhere. We’ve removed sites from around the world that offer thousands of movie and TV deals and get millions of hits per month.

And we’re making progress: In North America, for example, out of 1,400 illegal websites and streaming subscription services in 2019, our anti-piracy campaign reduced that number to 200. That number is still very high, but we’re heading for in the right correct direction. We are proud that both Amazon and Apple are members of the ACE Board of Directors, ensuring that both are integral partners in the fight against piracy.

Phytiel: There is a lot of talk about piracy, as pandemic figures show that simultaneous theatrical and home release is the worst case scenario. It is one thing for the pirates to have a video camera and try to drop it. Another thing is when a pure digital version becomes available. When pirates get their hands on a digital copy, piracy goes haywire. Both sides lose money. If you watch movies with Windows and simultaneous release, the stamina of the first in the second, third and fourth weeks is noticeably better.

DEADLINE: How about a special movie? Is it a drum that yes, theaters will continue to be important, but especially for the big franchises?

Phytiel: I think the increase will be for low budget movies like blockbusters. Blockbusters somehow worked when we got them during the pandemic. Spiderman, Connection. Mid-budget niche films that appeal to older audiences or families or registered viewers have made the job difficult. Მ But then Sonic welcomed families, The dog Y Unexplored, which isn’t a giant blockbuster, it worked. I am very excited about Damien Chazelle’s medium budget and specialty. Babylon Steven Spielberg fabelmann That A man named Otto With Tom Hanks and Olivia Wilde ‘ Don’t worry honey – Four samples of the film are planned, in which the directors are very excited to show them in theaters. The larger audience and younger children have been the most challenged, but are now more excited to return. They wanted protection and they were right to stay home, but not that they preferred it. Now his confidence is returning. with the duke Y Downton Abbey: a new era! Our focus is on movies for all shows.

In addition, cinema is born by going to the cinema. When people first arrive, they watch a lot of trailers and talk about what’s coming. Advertising in cinema is incredibly important in winning people back. We did not have this opportunity due to stops and departures, fruit periods and constant delivery of products. We are not all in the blockbuster. (Even though this is a giant year for them, Doctor Strange, Top Gun: Maverick, Jurassic Word Dominion, Thor: Love and Thunder, Black Panther: Wakanda Forever, Avatar 2)

Rivkin: The public is thirsty and appreciates telling great stories and there is a place for everyone in this industry. This is not a neither / or approach, but rather, great stories lift every boat. Every part of our collective industry matters, whether it’s watching a franchise movie on the big screen or an indie movie on Arthouse, or watching a movie at home. Every part of our ecosystem is evolving due to the incredible stories told on the screen.

DEADLINE: Can you comment on the transmission and state of relations between the WAP and NATO?

Rivkin: The relationship of the WAP with NATO has never been stronger. During the pandemic, our extended family, including MPA, NATO, studios, unions and corporations, independent filmmakers, worked hard to help us get through the worst. And we continue to work closely on a number of issues that require our collective commitment and focus, be it economic incentives, pandemic response or efforts to eliminate global piracy operations that pose a threat to our industry.

MPA is screen agnostic, but we join NATO in recognizing the vital and undeniable importance of cinemas in bringing unique cinematic experiences to audiences around the world. We believe that people should be able to enjoy great TV and movies on any screen, and we understand that there is no such thing as watching movies on the big screen. It’s important to remember that streaming and cinemas can and do thrive together. Data commissioned by NATO shows that streaming platforms do not exclude a significant number of viewers from cinemas, as those who watch movies more frequently in theaters also consume streaming content more frequently.

Phytiel: Broadcasting is a very difficult discussion. People define streaming services as cannibalism. We believe that the broadcast and the film in theory support each other and the studies prove it. The short-term problem now is that the streaming world is not about making money. They put content on streaming services because it’s Wall Street’s golden eye. He’s not making any more money. If you have a theatrical film debut and are well established and established as a brand when you join your streaming service, you will attract more attention and business. If you drop them first in the service, they are lost. People can’t find them. There are 10,000 options. What determines the film is its appearance in theaters. Even studios with their own streamers will notice.

Apple and Amazon are different, they don’t try to make money on movies. Amazon is trying to force you to buy groceries and use Prime Video.

But there are too many services. People won’t pay everyone. there will be studies [eventually go back] The business model that makes them money. Not for pre-pandemic windows, but it shouldn’t be. The good news is that studio and theater owners are talking now.