Industry Numbers Shows Large Format Cinema Is Good Investment
Recreation economics consultant Harrison A. (""Buzz"") Price of Harrison Price Company termed the large format theatre business ""a genuine growth industry"" in his keynote address to 409 attendees of the annual Conference and Film Festival of the Large Format Cinema Association (LFCA) May 19-21. Areas of potential investment include theatre development, film production and distribution and hardware and software technology. A venerated entertainment consultant, Price has some 50 years' experience in recreation analysis, including the original feasibility studies for Disneyland and Disney World, and some 30 entertainment projects that incorporate specialty film. ""In the attraction/entertainment business,"" he said, ""large format theatre's annual growth rate, indicated by number of facilities, is number one - way ahead of gaming, number two."" Annual growth in terms of new theater installations: North America 1980-1990 - 10% 1990-1995 - 15% 1995-1997 - 15% 1998 - 16% 1999 (projected) - 28% Worldwide 1980-1990 - 24% 1990-1995 - 19% 1995-1997 - 12% 1998 - 13% 1999 -(projected) - 28% Large format screens installed and operating: North America 1990 - 47 1997 - 112 1998 - 130 1999 (projected) - 161 Worldwide 1990 - 86 1997 - 254 1998 - 287 1999 (projected) - 345 Price predicted that multiple installations in cities would increase, that the large format theatre market will continue to expand around the world and that the expansion will be aided by lower-cost hardware and technical innovations. He sees a strong future in the adoption of large format by commercial cinema chains, a prominent recent trend: ""Of 49 new planned screens in North America, about half are classified as entertainment. The distribution on January 1, 2000 currently discussed in the trades is entertainment 39 out of 161, or 24 percent, up from 15 percent. The remaining 76 percent is made up of the nonprofit and attraction groups, down from 86 percent."" ""The diversity of markets in this field is very healthy in terms of building a business,"" Price observed. He identified 13 ""valid and varied prospect types"" of theater venues: within the nonprofit category, Science & Natural History, Air & Space, Aquariums, Convention Centers, Botanical Gardens and Zoos (64 percent); within the attraction category, Tourist Attractions, Attraction Parks and Natural Wonders (22 percent); within the entertainment category, Malls/Multiplex and Gaming (13 percent). Even in the largest category, the nonprofits, Price indicated that all the markets are underexploited. ""There are 360 members of the Association of Science and Technology Centers and only 16 percent have large format theatres. There are 806 members of the American Association of Museums with annual budgets over $3 million. In 1998, 134 million visited North American zoos. Large format theatres are installed in five of them. U.S. aquarium operators have built four large format venues. There can be more."" Price cited additional opportunities in tourism, theme parks and shopping malls. ""Attraction parks is a live field. The tourism market is scratched but not deeply."" The term ""large format"" refers to a film exhibition medium using a giant screen and a 70mm film print, in 2D or 3D. Flat screens in large format theatres range from about 60 feet x 80 feet to 90 feet x 120 feet. Hemispherical dome screens can have diameters between 70 feet and 90 feet. Individual 70mm formats are defined by the number of perforations (""perfs"") per frame: five, eight, 10 or 15 - commonly termed as 5/70, 8/70, 10/70 and 15/70. Most large format theaters are either 8/70 or 15/70. Films may be crossprinted from one format to another. The mission of the Large Format Cinema Association (LFCA) is to promote global public awareness of large-screen entertainment formats, to provide a forum for sharing information and to foster the growth of the industry. The next annual Conference is scheduled for May 17-20, 2000 in Los Angeles. Information on joining the organization can be obtained at the LFCA Web site, http://lfca.org or by telephoning the LFCA administrative office in Stockton, California at 209 477 2726.