<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=252463768261371&amp;ev=PageView&amp;noscript=1">

Todd Mundorff of Arclight Cinemas on the Industry's Future

May 1, 2020
4 min read time

As theaters and filmmakers face a new normal with the COVID-19 pandemic, the dreamer in all of us (especially those of us writing movies) is likely yearning to head back to a theater to watch a movie on a big screen with friends. Nothing beats the communal experience as the lights go down and the glow of the projector comes up.

Of course we still have a long way to go to get back to the movie theater. In the lockdown the industry has seen some big successes as many turn to entertainment for comfort; Netflix stocks have seen a 40 percent gain since mid-March. Big distributors like Universal are experimenting with VOD releases like Trolls World Tour. And as big nighttime entertainers take their talk shows to their homes, suddenly the content-making playing field is a little more even, and the gap between professionals and filmmakers with laptops seems non-existent.

President and COO of ArcLight and Pacific Cinemas Ted Mundorff recently spoke to a group online about the future of cinema. Mundorff previously served as president and CEO of Landmark Theaters after a long career in distribution.

ArcLight and Pacific Cinemas might be dark, but they are still responsible for some films in the world. Mundorff said of the venture: “The reason to partner with some of the smaller distributors on streaming services is to have a place for our customers and our guests to go and feel comfortable that we are still curating some product. We will announce something pretty soon in that area.”

Mundorff said these small curation efforts are not providing any profit.

“There isn’t a right answer or a wrong answer, there just isn’t an answer. It’s not just exhibition that has shut down, it’s production that’s shut down.”

Whether or not Universal’s Trolls online distribution strategy becomes wildly successful or loses the studio money, Mundorff is confident when we are clear from the pandemic, theatrical distribution will still be greatly needed.

“Universal already had a lot of money into the film. They had to do it to not lose money. The studios are going to realize that the theatrical they lose will not be made up in streaming.”

According to Mundorff, there is no substitute for the marketing that theatrical provides.

“You need theatrical to market the film to the next level. There’s plenty of content out there, but no one knows what to watch. You are not going to make a $250 million theatrical box office by going day and date or straight to streaming,” he said.

While many are looking at Trolls as a case study for whether a mass VOD release can provide profit, Mundorff remains steadfast in the success a theatrical distribution model can provide.

“Universal has gotten a lot of criticism about the $20 price to watch Trolls. No one is pretending that the experience at home is the same as in the theater. When the lights go down and the movie starts … it’s just not like when you’re watching at home. Being at home is just not an immersive experience,” he said.

The economic reality of owning a movie theater that is currently dark is not pretty. While other huge corporations are defaulting on their rent, it’s hard for those that love the movie theater experience to realistically imagine every theater can survive the dark days. Mundorff agrees.

“Most theaters in the U.S. are on leases, so the relationship with the landlord is going to be very important going forward. Not just with theaters, but with restaurants and everyone else who is closed and not producing rent,” he said.

“There will have to be some give and take, but I will bet there will be a lot of theaters that don’t make it through. That said, 50 percent of box office is achieved in 500 theaters. Given that number, and for the run of the engagement is usually 2,500 screens or less, at 2,500 screens you have saturated the market and will max the box office return.”

As Netflix stock soars, it’s not hard to imagine when theaters do re-open Netflix will have the dollars to get more films into theaters. Mundorff does not disagree.

“Yes, the potential is there. They have created some windows for their bigger products, but it will take some give and take on the Netflix side and on the theatrical distribution side for both parties to get what they want,” he said.

Another outstanding question is how to get audiences back. After a long period of physical distancing it might be hard for some vulnerable parties — the elderly included — to imagine sitting in a movie theater with a large group of people.

“That audience will probably be a little bit slower going back,” Mundorff said.

“They will likely be a little bit freaked out so that’s a challenge, but talking about the art houses and not just Landmark … I think art houses are in a really good position to survive because of their sizes. Theaters like that won’t need the amount of product to fill their screens.”

With the downtime of quarantine, Mundorff has had time to muse on how to continue to attract audiences. He’s been thinking on how to bring Q and As to the home on a national level as they are always a big audience draw.

“People do want to be there in person, and they always bring people to the theater,” he said.

Ultimately, Mundorff remains optimistic about the health of the business.

“There are so many ways to see a movie,” he said.

There’s also no better uniting experience in the world.

Share
Untitled Document

Final Draft 13 is here!

Use what the pros use!

BUY NOW
Final Draft 13 - More Tools. More productivity. More progress.

What’s new in Final Draft 13?

feature writing goals and productivity stats

WRITING GOALS &
PRODUCTIVITY STATS

Set goals and get valuable insights to take your work to the next level

feature typewriter

TYPEWRITER

A new typewriter-like view option improves your focus

feature emoji

EMOJI

Craft more realistic onscreen text exchanges and make your notes more emotive

And so much more, thoughtfully designed to help unleash your creativity.

LEARN MORE
computer using Final Draf

Final Draft is used by 95% of film and television productions

SEE WHY