Goodbye consent decrees

[Brooski]

Justice Department to Terminate Longstanding Legal Rules for Movie Distribution

The ruling largely prohibited the studios from owning the theaters where their movies played, as well as from requiring theaters to play either several of their movies or none at all, an all-or-nothing deal known as “block booking.” And it stopped certain industry practices that limited when and how films could be shown in particular areas.

After the ruling, each studio entered into a decree with the Justice Department memorializing the new rules. The movie-theater industry flourished and expanded in the decades that followed.

The Justice Department won’t seek to nix all the rules right away; it is seeking a two-year sunset period for parts of the decrees that address block booking and certain movie licensing practices for theaters in a specific geographic circuit.

Mr. Delrahim said the decrees were no longer needed because the conspiracy among movie-industry giants from the 1940s no longer exists. If modern practices arise in the movie industry that harm consumers, “antitrust enforcers remain ready to act,” he said.

[rhamorim]

@Brooski

“antitrust enforcers remain ready to act,” he said.

That’s naive to say the least.

[stusser]

I mean, who cares? Watching movies in theaters is on its way out. This mattered in 1945, it doesn’t today.

[Wallapuctus]

Disney to acquire AMC theaters any minute now…

[DarthMasta]

Scorsese unable to have his movies shown in non streaming venues in 3…2…1…

[Wallapuctus]

@stusser

I mean, who cares? Watching movies in theaters is on its way out.

Didn’t Joker just make a billion dollars selling movie tickets? People still go to theaters…

[stusser]

There’s still money in it for now, but most of the revenue comes from streaming these days. Subscription services alone like Netflix and Hulu beat box office sales, and they don’t include people buying or renting movies on Amazon and Google Play and iTunes and whatnot.

Don’t get me wrong, it’s still real money and there will be a battle over it. But I don’t see why I, personally, would care.

[CraigM]

Huh, how about that. Honestly how much impact will this have? Because I believe things like block booking do occur, though maybe not formally. I know that 15 years ago when I worked at an independent theater we had some scuffle with a distributor over some movie, and so didn’t carry some blockbuster.

Of course that was all second hand information from a long time ago, so who knows!

[Brooski]

So far this year, more than 27% of the box-office grosses in the U.S. and Canada have been generated by the five-highest grossing movies, according to Box Office Mojo. Four of those movies were released by Walt DisneyCo. , which currently holds a commanding market share over the industry but wasn’t a party to the Paramount decree because it wasn’t a juggernaut back then.

Interesting.

[Brooski]

@stusser

But I don’t see why I, personally, would care.

I’m sure you don’t. Which is fine and understandable. But I suspect there are people who do care, still. For example, I will care, if this means that local indie theaters will have a harder time surviving, since most of the theaters around me here in Portland are independently owned, and I generally am not interested in seeing the usual blockbuster films, and I am doubly not interested in watching any kind of movies at home.

The DOJ’s decision is a particular blow to the nation’s dwindling number of independent theaters and smaller studios trying to squeeze movies into a release calendar increasingly dominated by big-budget franchise titles.

Smaller operators have complained in recent years about not being able to afford the onerous distribution terms required by studios to show their biggest blockbusters—terms that major chains can stomach but mom-and-pop operations cannot. In extreme cases, up to 70% of ticket sales on a major release can flow back to the studio.

The termination of the decrees could speed up a consolidation happening across the industry as independent chains throw in the towel. About half of the nation’s roughly 40,000 movie screens are controlled by the top three exhibitors: AMC Entertainment Holdings Inc.,Regal Entertainment Group and Cinemark Holdings Inc.

When the Justice Department in 2018 invited theaters and studios to comment on the pending decision, no major studio weighed in. Instead, the comments were mostly left to small exhibitors and drive-in theaters, which cited a top-heavy box office as one concern.

Since blockbusters like “Avengers: Endgame” or “The Lion King” are too lucrative for most theaters to pass up, those same titles could be used as leverage by studios if the decree disappears and block booking allowed, the National Association of Theatre Owners argued in comments submitted to the DOJ.

“If exhibitors were forced to book out the vast majority of their screens on major studio films for most of the year, this would leave little to no room for important films from smaller studios,” NATO argued.

En passant, I am glad that NATO has finally found a military mission it can get behind.

[malkav11]

Naive? No. They know full well that’s bullshit. It’s why they’re doing it.

[rhamorim]

That’s my impression too, which is why I said “naive to say the least”. To say the most, it’s part of the plan. ;)

[Mark_Asher]

@Wallapuctus

Didn’t Joker just make a billion dollars selling movie tickets? People still go to theaters…

Going to the movies is a social experience, and it’s also a nice dating experience. Watching the movie at home on your 50 inch TV isn’t the same. There’s a market for going to the movies. People like to get out of the house.

[Nesrie]

Yep, and for my varying groups often entails a meal before or after too. As long as we have options, I don’t think I care either way but… there’s only one good mainstream theater here, and it had better not fill up on the screens with movies from jut one source.

[Mark_Asher]

@Brooski

I’m sure you don’t. Which is fine and understandable. But I suspect there are people who do care, still. For example, I will care, if this means that local indie theaters will have a harder time surviving, since most of the theaters around me here in Portland are independently owned, and I generally am not interested in seeing the usual blockbuster films, and I am doubly not interested in watching any kind of movies at home.

I’m in this camp too. More often than not we go to an arthouse cinema to watch a movie. The only way we see any blockbuster movies at the theater is to take advantage of the $5 Tuesdays we have here and just feel like getting out to see something. That’s how we saw Aquaman. I haven’t seen any Marvel movies at the theater that I recall other than Guardians. I watch them on TV if I watch them at all.

So do indie theaters also book some of the blockbuster movies to sell tickets, and rely on that income to supplement the arthouse stuff they show? If the studios force them to use more screens for the big tent stuff and that squeezes them out of showing indie stuff, that’s a bad thing.

[Soren_Hoglund]

@CraigM

Huh, how about that. Honestly how much impact will this have? Because I believe things like block booking do occur, though maybe not formally. I know that 15 years ago when I worked at an independent theater we had some scuffle with a distributor over some movie, and so didn’t carry some blockbuster.

Block booking still happens even if it’s technically illegal. It’ll get way worse now though. The ultimate effect will probably by that independent cinemas will be taken out behind the woodshed and shot, followed shortly by independent film production.

[divedivedive]

The thread title confuses me, mainly because where I live (Seattle) our local police force is operating under a consent decree from the Department of Justice. So I guess we’re not saying goodbye to all the consent decrees just yet.

[Brooski]

And if the forum category had been called, “Police,” you would be correct!

[divedivedive]

Touche, mon frere.

[Telefrog]

Booyah!

Netflix Film (NetflixFilm)

Although technically, the decree never applied to Netflix.