Popcorn
(continued)

by Edward Jay Epstein

Vanna White, the television personality then conducted a mock "Wheel of Fortune" game in which every clue referred to films coming from Sony this year, including "Godzilla" and "The Mask of Zorro." As Vanna White announced each title, actors from the film in question rushed onto the stage----among them such stars as Michelle Pfeiffer, Julia Roberts, Nicolas Cage, and Antonio Banderas. All of this was followed by excerpts from the films. A highlight of sorts came when the stage suddenly filled with dancers costumed as characters from Sony's movies.

Robert Goulet played the part of Jeff Blake and sang, to the tune of "The Impossible Dream":

This is our quest, To be king of the box--There'll be lines round the block
When that big hunk Godzilla is finally here
And you'll know what we've done for you lately
When we beat the unbeatable year.

A private meeting held after ward, in Sony's Las Vegas conference room, was far more grounded in reality. A top Sony executive immediately set the tone by observing that the presentation had cost Sony four million dollars (a gross exaggeration, it turned out) and then quipped that next year, instead of hosting the event, Sony would just send a ten-thousand-dollar check to each of the chains' film buyers.

It became apparent at this meeting that the negotiations did not concern whether a chain would show Sony films on their prescribed release dates that was taken for granted. At issue was the terms under which they were to be played and positioned against the films of competing distributors--for instance, the number of screens they would be shown on in a multiplex, the guaranteed length of each film's run, the amount of free advertising there would be in the form of trailers and lobby displays, and the division of the box-office receipts.

For example, regarding "Godzilla," the executive outlined the enormous marketing campaign, supported by worldwide licensees of three thousand "Godzilla" products, as well as promotional tie-ins with such retail partners as Taco Bell, Sprint, Swatch, Hershey's, Duracell,Kirin beer, and Kodak, which were designed to drive a huge and voracious audience of teen-age boys to their theaters. This particular audience, as he described it, was not concerned with the quality of the film, or even whether it was in focus, as long as there was action and popcorn. He joked that the theaters' potential popcorn sales should persuade them to agree to give Sony a larger opening-week cut. Joke or not, the implication was not lost on Stephenson's film buyer, although for the moment he successfully resisted Sony's suggestion. (As it turned out, the "Godzilla" campaign succeeded in "driving" people to pay seventy-four million dollars to see the poorly reviewed lizard in its opening, Memorial Day weekend.)

The next private meeting, in the hospitality suite of Twentieth Century Fox, was more relaxed. After offering Stephenson a soft drink, the Fox executive discussed the strategy for the summer season, which provides the largest audience for theaters. Indeed, of the nearly 1.4 billion tickets sold in 1997, some five hundred million were for the summer season, when, as the Fox executive put it, "Every day is a school holiday." (Another two hundred and thirty million were sold in the so-called holiday season, between Thanksgiving and New Year's.)

This summer, Fox was facing competition from a number of catastrophe films, such as "Godzilla," "Deep Impact," and "Armageddon," which early tracking polls showed were attracting the attention of large numbers of male teens. These polls I saw, which were conducted by the National Research Group, had divided respondents into five demographic "quadrants"--under twenty-five, over twenty-five, male, female, and a racial category--and asked about their awareness of, and interest in, upcoming films. On the basis of these data, along with other research supplied by the company, the major studios can avoid simultaneously competing in the same demographic categories and dividing up their opening-weekend audiences. Even in March, the Fox executive reckoned that competitors' films, particularly "Godzilla" and "Armageddon," would dominate two crucial quadrants--male and under twenty-five--in the early summer. He therefore opted to counter-program, which meant scheduling romantic comedies, such as "Hope Floats," that would appeal to the female and over-twenty-five quadrants.

Although the Fox people had an easier style than their Sony counterparts, they wanted the same limited commodity: the chain's better screens, play dates, and in- theater advertising. So did the four other distributors Stephenson met with during Sho West. By his count, in four days he watched brief excerpts from some fifty films. "They all tend to blur together," he said, and plots were never described. Instead, the accompanying pitches identified them in such jargon as "Clearasil" (coming-of-age), "genre" (teen-age horror), "romantic comedy" (love story), "ethnic" (black characters), "franchise" (the carbon-copy sequel of another film), and "catastrophe" (volcano, comet/asteroid/monster, loud sound effects). The Holy Grail was a film like "Titanic," which appealed to all five quadrants.

The last and longest meeting was with Disney's distribution arm, Buena Vista; its senior executives were eager to spend an hour or so discussing marketing plans with Stephenson. While they voiced some concern about the proximity of July's "Armageddon," in which the earth is on a fatal collision path with an asteroid, with Paramount and DreamWorks' "Deep Impact," in which the world is on a fatal collision path with a comet, they had an ingenious scheme for differentiating their product. Holding up a rectangular box, their executives explained that it contained a kit that would help theater managers to build a mock asteroid. Disney planned to distribute this package to theaters playing "Armageddon" and award prizes to theater managers who used it to create the most forbidding cosmic rock. The theme would then be amplified through such stunts as end-of-the world parties hosted by local disc jockeys.

Later, Stephenson, along with several of his top executives, toured the trade-show pavilions located in two giant tents behind Bally's, where delegates to ShoWest were somewhat greedily sampling popcorn, jelly beans, chocolates, licorice, frankfurters, nachos, and other snacks, many of which claimed innovative new flavors and aromas. Others were getting a look at the non-consumable products at the booths, such as loudspeakers, projectors, ticket rolls, cleaning equipment, marquee letters, plastic cups, and remote ticketing systems, such as MovieFone.

As we walked around, a theater executive, who was assessing different popcorn-topping oil, said that salt was the secret to financial success since it drives customers back to the concession stand for drinks--where they buy more popcorn. Stephenson stopped to try an oversized Wetzel's pretzel, which comes in flavors that include cinnamon, garlic, or pizza. According to the representative, the Wetzel's, though about three hundred calories, would appeal to diet-conscious non-popcorn-eaters, such as women who wait on the concession line with their boyfriends. This, of course, is a domain where the theater owner is in control. "We are in a very high-margin retail business," Stephenson said.

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