The $ 200 million tent plans to open overseas first when a spike in COVID-19 cases hits the U.S.
In recent weeks, a campaign to start releasing new Hollywood movies, even if that means launching just one title in those markets that can be safely opened, either abroad or in the U.S., has gained momentum. as it becomes an impossible day and date worldwide launch in the coronavirus era. Without a new product, the box office could remain dark until next year, dragging theaters around the world and movie studios.
Warner Bros.’ Beginning, directed by Christopher Nolan, is the first film to announce that it will pursue this radical departure from tradition. On July 20, the release of the image on August 12 was delayed due to an increase in COVID-19 cases in states like California, Florida, and Texas (and theaters can’t open in New York City yet). But the most significant announcement was Warners saying he will ignore the modern distribution playbook for tents and launch. Beginning Stepwise.
Study experts said the epic of espionage will go abroad first, where theaters have reopened in many European and Asian countries, and have begun reopening in China.
Warners doesn’t give exact dates yet, but sources elsewhere say Beginning It hopes to start opening in international markets in late August before reaching the United States in the first part of September, if only in select cities. However, they emphasize that the situation is fluid.
Just six weeks ago, it would have been unimaginable to imagine debuting with a $ 200 million store pole without the entire U.S. movie market at stake, led by Los Angeles, New York, San Francisco, and Chicago. But with the COVID-19 cases in Los Angeles and the cinemas still closed in Gotham, the thinking has changed despite the risk of piracy. Globally, a $ 200 million tent like Beginning It would open at the same time in most of the world’s territories, although China may be a wild card.
“Our normality for the foreseeable future is that some markets are open and others closed, which will continue to change over time. We can’t wait for this to change for months, so we have to get going, “says Patrick Corcoran, vice president and communications director for the National Association of Theater Owners.
Wall Street analysts support the change. “Since we believe that a perfect date may never come for studios to release movies under the traditional day-and-date model, a phased release plan would allow the studio to start monetizing the movie theatrically in a way that would not be cannibalistic in a potential box. ” revenue from the office and helps build excitement when the film opens in other markets, “says Eric Wold of R. Riley FBR, adding that China is particularly key.
In the era of modern box office success, the North American premiere of a movie has always been the anchor. Some movies, including Warners’ Aquaman and several photos of Marvel superheroes have been first released internationally one to two weeks before their national release, but that’s not the norm.
As of July 21, there are 35 states in the US where local government and health authorities have said it is okay for theaters to reopen with social distancing and intensified sanitary measures. Eight others are partially open. The rest – New York, New Jersey, Maryland, North Carolina, and South Carolina – are off limits.
Without a new product, most US circuits choose to wait to reopen until a few weeks before Beginning or Mulan (Disney currently has the last set for August 21). Sources say the country’s largest chains are now susceptible to the idea of turning on the lights where they can, rather than waiting until each location can reopen.
Internationally, cinemas in Europe and Asia have seriously begun to reopen and desperately need new rates, particularly in European territories. Theaters in Canada are also preparing to welcome customers once again. On a recent weekend, the South Korean Peninsula movie
“While in the US we think we are the center of the world, we are not. We can’t wait for everything to be perfect, ”says an executive from a Hollywood studio. Another executive adds: “Here is a real opportunity to think outside the box and not be constrained by legacy.”
Executives also say that a phased rollout could lower high marketing costs by slowly buzzing. Marketing can sometimes cost more than a movie’s budget, and it’s not uncommon for Hollywood studios to spend $ 150 million on a global opening for bigger movies.
In 2019, the North American box office reached $ 11.4 billion, while the foreign box office reached $ 30.8 billion. Many Hollywood stores can often generate 65 to 70 percent of their total gross international box office (in some cases it’s more). Nolan’s last movie, Dunkirk, grossed $ 337.2 million, representing 64.2 percent of the film’s global profits ($ 525.2 million).
A staggered display for a store pole like Beginning It can’t be compared to a platform release for an independent film, which usually opens first in New York City and Los Angeles. Nor is it equivalent to an old school roadshow release, which watched a movie for months on end. Piracy and shortened home entertainment windows have altered the landscape. But after months without revenue, studios and theater owners are ready to take a risk.
Look, this is a huge risk for Warners because they spent $ 200 million to make this movie. There are many unknowns, but the industry cannot sit still forever, ”says Eric Handler of MKM Partners. “I think there is an accumulated demand. Personally, I think going to the movies will spawn movies when people see that it is safe and does not cause an increase in cases. You can eat inside a restaurant in many states. Given health plans, it might be safer to go to a movie theater than to eat in a restaurant. “
