More On The Movie Theater Industry

The movie theater industry is facing a big challenge from big-screen in-home TVs, DVDs, IPTV and social trends. It was explored previously here and here. A CNET story yesterday shed more light on the obstacles facing theaters. The CNET article draws a parallel between the movie industry and those issues that have fundamentally changed the music industry.

The story quotes Jeffrey Katzenberg, co-founder of DreamWorks, as saying, “movies need to recapture the magic that made it special to go to theaters as a kid.” Why is it I always worry when somebody says, “recapture the magic”...even when it is someone as distinguished as Mr. Katzenberg. It seems to me that is like trying to put the same air back in a half-deflated balloon.

What I think the movie industry needs to do is reinvent itself and re-orient its business model to an entertainment environment that is also being largely reinvented. The issues beseiging movie houses are certainly going to become more challenging in an environment that is democratizing the power that was once held by only a few in the entertainment industry. I hope for the sake of all of us who enjoy a night out at the movies, they rise to the challenge.