I don’t see streaming as a competition
The boss of one of the UK’s biggest cinema chains says he doesn’t see streaming and home entertainment services as competition.
Tim Richards, founder and CEO of Vue International, says movie studios have tried to “circumvent” movie theaters during the pandemic but have lost “hundreds of millions of dollars” as a result.
“I think the studios have definitely learned that we’re in one little ecosystem, and we all need each other,” he told the BBC. Bigg Boss Interview Podcast.
Rival movie theater chains have a constructive relationship, too, he says: “We’re fairly open about best business practices. We want to get the message out that movie theaters are a great place to have a good time.”
Richards spoke about the turmoil the film industry has seen in the past five years.
Vue went from having its best year ever in 2019, to being “effectively closed for almost two years” during the COVID-19 pandemic, to facing actors and writers strikes that… Shutting down production for about another year.
While Richards was trying to figure out how to prevent Vue from collapsing, or from having to lay off any of its employees, streaming services like Netflix Saw subscriber numbers explode.
“I had one focus: save the company and save all of our 10,000 employees,” he says.
“When you have a mission like this, failure is not really an option, because the consequences are so dire.”
Even as cinemas begin to reopen, industry figures have wondered whether the model of film release has changed forever. I watched movies like Marvel’s Black Widow Minimal theatrical performances As streaming platforms tried to push their original productions.
Recently, titles like K-Pop Demon Hunters and The Thursday Murder Club are only being shown for a few weeks in cinemas, despite proving that they are. It is very popular.
But Richards is unfazed. Vue has returned to pre-pandemic trading levels this year and expects next summer to be its biggest ever for the company.
He stresses that there will always be an appetite for the big screen: “During the pandemic, there was an increase in subscription services because people didn’t have a choice…but that didn’t last.”
“I’ve never considered What’s Happening at Home a competitor… Our biggest and most frequent customers are Netflix subscribers or Disney Plus subscribers. People who love movies love movies in all formats.”
He says the Hollywood strikes were also a supply issue, not a demand issue. “We haven’t had a demand problem at all.”
Richards clearly knows the film ecosystem inside out. Before founding Vue (then known as Spean Bridge Cinemas) in 1999, he was a senior executive at Warner Brothers, where he ran the studio’s cinema chain, Warner Village. Spean Bridge purchased Warner Village’s 36 movie theaters in 2003, and the Vue brand was born.
“The headline in the Times business section was: Unknown Bit Player Buys Warner Brothers,” he recalls with a laugh.
Due to continuing cost of living pressures, many parts of the entertainment industry are seeing a slowdown in revenues as people cut back on discretionary spending.
In addition to this, there are higher operational costs: an increase in the minimum wage and higher national insurance contributions for employers.
“We have done our best not to pass these costs on to our customers,” Richards said. “And we didn’t. We took a small hit as a result of that, but we’re hoping that the volume that we saw as a result of that will follow.”
However, he says, the entertainment industry “has come under pressure… and in some cases been attacked.”
He believes that the government’s decisions “have hurt the people it is trying to help.”
What is the message from the industry ahead of the next budget? “Please don’t touch [us] once again.”
While Richards doesn’t believe streamers are preying on his customers, he says he’s concerned about “someone turning right and going to an amusement park or a football game or something.”
But it’s not about teenagers and young people sitting at home instead of going out: “They are much more social than previous generations, and that shows in our presence in a lot of our films.”
What is his favorite movie?
He answers diplomatically: “I see a lot – A a lot – Movies every week.
“But I look at the movie like Battle after battle. When I see a movie like this, I have hope for the future because it’s a great movie. Original IP, original story, incredibly well done.”