Recession, Technology, Piracy Main Concerns at Sho West

The economic recession and 3D technology were two of the big buzz topics early on at ShoWest as top studio execs on the international side gathered for the first "state of the union" meeting on March 10. "The headlines talk about the box office, but the numbers show that production costs are up," said Cripps. "While the industry is having its biggest year at the box office, there's no way to tell how much growth has been prevented due to piracy." Bolstering the idea that the movie business will be just fine, the panelists agreed that while the current economic downturn is hurting certain aspects of the industry, moviegoing is a recession-proof business that sells its product for a fraction of the cost consumers would pay to attend live events. That said, each studio is identifying its costs and handling their management differently.

"We're limiting our overhead and taking closer looks at marketing and print expenditures," said Universal Pictures Intl. prexy David Kosse. "Fewer films might get the big push they used to around the world."

Disney last year announced that it would be producing and releasing less product and will rely more on event releases. "Fewer movies, bigger stories," Marcoly reinforced.

On the other side of the coin seems to be Sony, where, Zucker said, "We have as big a slate as ever and we'll be spending more on marketing those major investments."

Beyond recession talk, 3D technology and its importance to each studio's 2008 slate and beyond took centerstage.

Over at Fox, the next "Ice Age" installment and James Cameron's "Avatar" are massive tentpole titles that will raise the studio's 3D profile. Marcoly touted the huge opening for Disney's recent "Hannah Montana" concert film and said the studio's '09 slate has five properties already slated for 3D. And Cripps reinforced how all of Par and DreamWorks films are currently, at the very least, being authored with 3D technology.

Final question of the session centered on what, if anything, poses the biggest problem in the exhibition and international arenas. Along with the traditional answers -- cultural differences, product glut, piracy -- the idea that more in-theater advertising means less time for captive audience marketing pushes was a common response.

"The eroding of trailers (isn't good for business)," said Fox Intl. co-prexy Paul Hanneman. "And while ads are good for theater owners, a light needs to be continually shined on the movie industry's product."

03/11