With the Removal of an Historic Court Ruling...

According to the Wall Street Journal, the Justice Department is moving to completely wipe out the Paramount consent decrees, a ruling which, for the past 70 years, has regulated how movie studios distribute films to movie theaters. If those decrees are indeed overturned (and it looks like they will be), it could have devastating consequences to the theater industry as we know it, and the entire movie landscape could shift as a result. Here’s what this means in practical terms.

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This is something that has kind of gone under the radar. The DOJ has indicated they plan on getting rid of the Paramount Consent decrees. The Paramount Consent decrees stem from lawsuits filed against the major movie studios in the 1930s by the DOJ in an attempt to curtail their control over the entire industry.

In short, they essentially created a fair environment when it comes to movies that are shown in theaters and limits the control the studios have over these theaters.

The DOJ's reasoning behind this decision is that the movie industry has changed and that this decree is no longer needed. They believe that by abolishing it, it will create a more consumer friendly environment. And in some cases that may be true. It could allow movies like The Irishman to have an actual theatrical release.

On the other hand though it could lead to a lot more bad than good. For example, I think we can all agree that Disney probably already has too much control of the movie industry. Now imagine that they could purchase a major theater chain like AMC. That would pretty much kill every other studio if AMC only showed exclusively Disney movies.

Even if such a move wasn't allowed to go through, it would still spell disaster for smaller studios. By removing the decrees it would allow the major studios to demand that a theater show one of their smaller movies in order to get their blockbuster. This then takes up a screen that could be devoted to an indie movie like the critical darling Parasite.

Then there's the pressure it puts on small theaters. We already see ridiculous demands being made by Disney for theaters to show Rise of Skywalker. The current deal is that Disney gets 65% of ticket sales and theaters are required to screen the film for at least four weeks. If they don't show it for four weeks then Disney gets 70% of ticket sales. This means that a theater in a small town may be forced to keep screening the film for weeks after everyone has already seen it. By getting rid of the decrees it will allow even more ridiculous demands to be made.

Despite what the DOJ claims, this is definitely not a pro-consumer move. It primarily helps the major studios while hurting the smaller guys, both studios and theaters. But at this point I think that's to be expected.

a reply to: Xcalibur254

Doesn't matter to me either way. I don't pay for movies anymore. Hollywood is Pedoland and should be shut down and wiped out. The only decent movies they put out anymore anyways are 80's remakes. Producers don't have ideas or creativity unless it's about zombies or locking people in a room while they get killed because they don't wanna dig their own eyes out to find a key. The only good movies come from producers from the 80's and before.

If it didn’t cost half a paycheck to take a family to a movie, people might actually get worked up over this.

a reply to: LSU2018

So because you don't go to movies you have no problem with a move that encourages monopolies and disenfranchises the consumer?

a reply to: Shamrock6

What theaters are you going to? I pay at most $10 for a ticket and get a full restaurant experience at my seat.

a reply to: Shamrock6

I'd like to open a Drive-In and show the best movies from the 70's and 80's. A little more modernized so you could bluetooth to your car stereo or listen to a speaker beside your car, with a button to push (like Sonic) to order food and drink from your vehicle.

originally posted by: Xcalibur254
a reply to: Shamrock6

What theaters are you going to? I pay at most $10 for a ticket and get a full restaurant experience at my seat.

Enjoy it. Every theater I've ever been to charges close to $10 for a soda. And that's across multiple states, rural or urban.

originally posted by: Xcalibur254
a reply to: LSU2018

So because you don't go to movies you have no problem with a move that encourages monopolies and disenfranchises the consumer?

Not really. They don't make very good movies anymore, plus you can't miss what you never have. So while I could miss a few great movies, we'll never know because we'll never have them.

You can still find pretty good matinee deals. I rarely go to the movies now. Nothing has been released that is worth the headache imho.

Also, because TVs are so nice nowadays, I can recreate a good movie experience in my home. Why bother with the crowds when I can watch pretty much any movie in 4k on a gargantuan TV in my living room? All the popcorn and drinks I want for free. Most of these movies are released within months of being in the theaters anyway.

The theaters have been gouging customers for far too long anyway. Let them go out of business for all I care. From what I read, the Studios and Theaters need to work out some agreements. Basically, they're both greedy and the Studios have more leverage because the theaters make money off playing the studio's product.

originally posted by: Middleoftheroad
The theaters have been gouging customers for far too long anyway. Let them go out of business for all I care. From what I read, the Studios and Theaters need to work out some agreements. Basically, they're both greedy and the Studios have more leverage because the theaters make money off playing the studio's product.

Movie theaters are a pretty low margin business. They really don't make any money on the movies. All the profit is in the concession stands, which is why the prices are so high.

originally posted by: jjkenobi

originally posted by: Xcalibur254
a reply to: Shamrock6

What theaters are you going to? I pay at most $10 for a ticket and get a full restaurant experience at my seat.

Enjoy it. Every theater I've ever been to charges close to $10 for a soda. And that's across multiple states, rural or urban.

5 bucks here for a 1L bottle of water.

a reply to: Edumakated

Fair enough, but still don't care. If it isn't a working business model, then let it fail.

While unrelated, this reminds me of the laws in place that prevent a car manufacturer from selling vehicles directly. Those laws were put in place to protect local car dealerships. That's great except now it prevents a new company like Tesla that doesn't have a dealer network from selling vehicles. A lot of people would be fine buying a Tesla online and having it delivered to them.

I don't know the movie theater statistics but I see that as a changing line of business. Just like brick and mortar stores, do we really have to get our entertainment from a brick and mortar theater? I get a lot of entertainment out of YouTube and Netflix and can watch at my leisure. If I want a beer to go with it, I just grab one from the fridge. I can get a couple of six packs for the price a theater charges for one drink.

originally posted by: Middleoftheroad
a reply to: Edumakated

Fair enough, but still don't care. If it isn't a working business model, then let it fail.

It is a dying model. A few theaters have figured out how to enhance service by offering full service restaurants and better seating. However, small theaters that don't have the capital, space, and demographics for the upscale theater experience will probably die out.

The studios are killing the business with their short sightedness/greed.

I think the new trend will be B and C list actors making straight to TV/streaming stuff on Prime, Netflix, etc. The production costs are a lot cheaper.

We've seen a similar trajectory with the music business.

originally posted by: Middleoftheroad
a reply to: Edumakated

Fair enough, but still don't care. If it isn't a working business model, then let it fail.

It is a dying model. A few theaters have figured out how to enhance service by offering full service restaurants and better seating. However, small theaters that don't have the capital, space, and demographics for the upscale theater experience will probably die out.

The studios are killing the business with their short sightedness/greed.

I think the new trend will be B and C list actors making straight to TV/streaming stuff on Prime, Netflix, etc. The production costs are a lot cheaper.

We've seen a similar trajectory with the music business.

a reply to: Xcalibur254

People still go to the theater? I havent been to the movies in 20 years.

a reply to: Edumakated

I think the new trend will be B and C list actors making straight to TV/streaming stuff on Prime, Netflix, etc. The production costs are a lot cheaper.

We're already seeing that though. And they're still struggling to hold on to their share of the market. Meanwhile Disney is spending $15 million on each episode of The Mandalorian.

The more power companies like Disney are able to take over the traditional model, the more money they'll be able to spend in the emerging model, the more power they'll be able to take over the emerging model.

As long as we keep catering to the big corporations, the easier it makes it for them to muscle out the actual innovators.

It's really sad how many people are blase to this move while at the same time demanding the government do something to curtail companies like Google.

originally posted by: Xcalibur254
a reply to: Edumakated

I think the new trend will be B and C list actors making straight to TV/streaming stuff on Prime, Netflix, etc. The production costs are a lot cheaper.

We're already seeing that though. And they're still struggling to hold on to their share of the market. Meanwhile Disney is spending $15 million on each episode of The Mandalorian.

The more power companies like Disney are able to take over the traditional model, the more money they'll be able to spend in the emerging model, the more power they'll be able to take over the emerging model.

As long as we keep catering to the big corporations, the easier it makes it for them to muscle out the actual innovators.

It's really sad how many people are blase to this move while at the same time demanding the government do something to curtail companies like Google.

Quality will rise to the top. The issue is when you allow lawyers or government to block competitors.

A lot of businesses use politicians to create laws, etc to erect barriers to competition. Often times, consumers don't even know about these laws. They usually get exposed when technology or other developments expose the laws...

Think Uber for taxis. Tesla for car dealers. Napster and streaming music.

originally posted by: buckwhizzle

originally posted by: jjkenobi

originally posted by: Xcalibur254
a reply to: Shamrock6

What theaters are you going to? I pay at most $10 for a ticket and get a full restaurant experience at my seat.

Enjoy it. Every theater I've ever been to charges close to $10 for a soda. And that's across multiple states, rural or urban.

5 bucks here for a 1L bottle of water.

Just happen to have my last ticket stub sitting in front of me from when my wife and I were still dating. Insidious 2. Ticket was $10.00 and I don't remember the popcorn and soda, but they're usually around $7.50 for the large and $10 or $12 for the popcorn if memory serves.


Gotta look hard, it's from September 2013.