Most Colorado movie theaters remain closed but preparing for impacts of industry changes

COLORADO SPRINGS, Colo. (KRDO) -- When a new blockbuster movie is coming out, are you a traditionalist who will watch it at a theater?

Or are you part of the new generation that would rather watch it at home via one of the many online streaming services?

It's a decision that more customers will face, and part of a trend that is already changing how movies are released -- and may ultimately have significant impacts on the theater industry.

On Christmas Day, Warner Brothers Pictures will release WW84, the second movie featuring the comic book heroine Wonder Woman. But the movie also will be simultaneously released on the HBO Max streaming service for the first month of release.

Warner Bros. is believed to be the first major studio to do such a release of a new film. But for now, the trend is somewhat moot because most theaters remain closed due to health restrictions tied to the COVID-19 pandemic.

Only two theaters are known to be open in Colorado: 4 Mile Cinema in Cañon City and Gold Hill Theaters in Woodland Park. Both will be open on Christmas Day and will show WW84.

They are allowed to open because they are in communities designated "level orange" on the COVID-19 dial, at lesser risk than the "level red" in many other communities.

"Movie theaters really have only a couple of weeks to make the biggest bang for their buck when they get these new movies," said Linda Epperson, who runs the family-owned independent theater. "And now with (studios) going to streaming or DVD sooner, it's now even that much more desperate for us. It's a knife in our heart, basically. But we're curious to see how it works out."

Once more theaters reopen, the questions are: Will other studios follow Warner's example? And if so, will it mean the beginning of the end for movie theaters?

Christopher Bell, an associate professor of media studies at the University of Colorado-Colorado Springs, answers both questions.

"I think the other studios intend to do what Warner's doing , regardless of whether they've publicly announced it," he said. "I don't think this trend spells the beginning of the end for the theater industry. But I think we'll see a clearer line between making movies that are meant for the big screen at theaters, and those that are more appropriate for streaming at home."

Agreeing with Bell is Tom Massman, a former Hollywood actor, stuntman, writer and producer who is now a producer at KRDO NewsChannel 13.

"If somebody can stream at home with what they pay for one ticket, I don't see that being sustainable any more," he said. "I think (theaters) are going to have to reduce the ticket prices. They're going to have to come up with some creative marketing and ways to bring people into the seats."

Epperson said theater owners would be willing to consider lowering ticket prices if the studios agreed to take less than the current 60% of ticket sales.

The theater industry is already struggling because of the pandemic. The National Association of Theatre Owners recently conducted a Save Your Cinema campaign, asking customers to write to congress and ask for more financial assistance.

This week's approval of a new economic stimulus package for the industry is believed to offer funding for small theater chains and independent movie houses but none for major theater chains.

The trend began in April, early in the pandemic, when Universal Pictures released Trolls World Tour, a sequel to the 2016 movie Trolls. Trolls World Tour had a limited theatrical release but was largely released in the On Demand format.

The movie did so well in On Demand viewings that Universal officials reportedly said they made more money in the first week of release than they would have made in a month at theaters. It also led the studio to consider doing more simultaneous releases of films.

That idea was opposed by many theater chains, especially AMC Theatres and Regal Cinemas, who said they would not show any Universal movies in protest. Theater chains also were unhappy that Universal made the simultaneous release decision without consulting them first.

In July, AMC and Universal reached an agreement that shortened the time a new release could be streamed from 90 days to 17 days, and that AMC would receive an unspecified percentage of future On Demand sales.

Reportedly, some of the cast from Trolls World Tour weren't told about the movie's simultaneous release on On Demand, and were trying to obtain the actors' bonuses they would have received if the movie had done well as an exclusive theatrical release.

Brendon Herbeck, a local movie buff, explained why streaming new releases is so appealing to a growing number of people.

"My family and I rented Trolls World Tour," he said. "I think it was $20 or $25 and we got it for three days. My kids watched it all three days. That's a lot cheaper than taking them to see the movie three times, buying tickets and buying popcorn and other snacks for them at the theater."

In recent years, the theater industry has expanded food and drink options, installed luxury seating, built larger screens and even offered question and answer sessions with movie directors and actors -- all in an effort to compete with home entertainment options.

Yet Bell and Massman agree that theaters will have to do even more to compete with streaming.

"The question is can they and will they?" he said.

The pandemic has now had an adverse impact on the summer and holiday seasons -- the most profitable of the year in the movie and theater industries.