The announcement by the Showroom Cinema in Sheffield that they have been denied ‘on date’ bookings for films distributed by Artificial Eye/Curzon Film World is an example of a trade practice known as barring. This practice and the associated practice of alignment were in operation in the UK up to the arrival of the multiplex and the demise of the ‘circuit cinema’ – the single, double or tripled traditional cinema – in the early 1990s.
Alignment refers to vertical integration in the film industry and the practice of a distributor favouring its own chain of cinemas over those of a competitor. In the 1950s and 1960s in the UK the duopoly of Rank (Odeon) and ABPC (ABC) meant that in many locations there were two circuit cinemas competing for audiences. Each of the distributors not only favoured their own films in their own cinemas but also made deals with the Hollywood studios, aligning a Hollywood studio with their chain. Thus ABC cinemas showed Warner Brothers and MGM and the other studios went with Odeon.
Barring was the practice whereby a distributor simply refused to allow one of its films to be shown in a rival’s cinema. Barring orders specified a radius of x miles around one of their cinemas inside which the film couldn’t be shown by a competitor.
These practices have been looked at by UK industry regulators (e.g. the Monopolies and Mergers Commission, Office of Fair Trading etc.) on several occasions in the 1960s, 1980s and 1990s. The EU is also concerned about the effects of such practices. In the main however, the advent of the multiplex from the 1990s onwards has meant that ‘alignment’ is no longer an issue and all multiplexes have the same access to the same mainstream films because barring is not possible without alignment. But the state of play in the specialised film market is rather different.
The specialised film market is difficult to describe (the definition comes from the UK Film Council and now the BFI) but lets assume it means all those films that are not likely to show across the mainstream multiplex market. They might appear on some multiplex screens but mostly will be seen in ‘independent’ cinemas. This sector is now changing and becoming dominated by three companies: Picturehouse, Curzon and Everyman. These three chains are all growing – opening/acquiring new cinemas, often ‘artplexes’ with 2, 3, 4, or more screens. Curzon is the biggest distributor of specialised films but Picturehouse also has a form of control over bookings for films by smaller cinemas. Curzon and Picturehouse effectively control the market for specialised films. If their bookers don’t like your film, you have little chance of distributing it in the UK. Neither of them seem interested in Chinese, Japanese and South Korean films for instance – or Indian art films or independents.
The victims of the potential oligopoly control of this market are the public sector cinemas – those operating as charitable trusts and dependent on public funding. These are the cinemas once known as ‘Regional Film Theatres’. Once these cinemas were abandoned by the BFI in terms of a booking service (i.e. negotiating booking s of films with distributors) they had to choose either to book films directly themselves (very difficult), use the new service set up by the Independent Cinema Office (ICO) or go to groups like City Screen (Picturehouse) who would deal with the other distributors. This made the independents more likely to follow the main distributors and to shift towards more commercial policies as the market got tougher and as other forms of public funding began to dry up. So, over the last ten to 15 years the programming policies of specialised cinemas has changed. The changes were signalled for me by the decision of Tyneside Cinema in Newcastle (booking service through City Screen) to show Sex and the City 2 in 2010, a decision which I understand divided the staff at the time. Now I am hardly surprised any more when I see a trailer for Star Wars at a Picturehouse cinema or the new Avengers movie showing at a Curzon or Everyman.
Keith in his recent posting is justified in complaining when the distributors (and their associated cinemas) get public support for these new programmes. There are three specific forms of support. The BFI puts money into the development and production of British films as part of cultural policy (as do European funds such as EU MEDIA) – with the aim that these be seen by diverse audiences. Similarly, certain foreign language films are supported in distribution to increase the diversity of the film offer. Finally, European funding goes to cinemas which show European films as part of the Europa Cinemas network (which includes the Showroom in Sheffield, Pictureville/Cubby Broccoli in Bradford – now operated by Picturehouse – and the Hyde Park in Leeds. The barring applied to the Showroom by Curzon, illustrated in Keith’s post, goes against the reasoning behind this cultural support. It restricts access to films showing in the bigger cinemas at Showroom. It also penalises a cinema which is at the centre of the BFI’s Audience Development programme as the centre of Film Hub North.
The BFI’s response to Curzon’s actions was in my opinion pretty feeble. The BFI is the nominated agency of British public policy in relation to distribution and exhibition as part of UK film culture. It should be making more robust statements or putting pressure on Curzon to desist this practice. Barring and alignment are not good for audiences, publicly-funded cinemas or UK film culture generally.
Another aspect that should not be overlooked is the issue of terms. Distributors are looking for higher returns now than they were 5 years ago. It is common for terms of 60+% of box office in the first week and even 40-45% on foreign language titles. These higher terms can sustain long into the run to weeks 5, 6 and beyond of release. Traditionally, the independents would look to pay 35% on a first run and opening date. With the markets for foreign language films tightening, the options for distributors to recoup their investment is getting harder. With independents often refusing to pay 40/45% on the opening week then the decision can be made not on barring but on terms. I have no knowledge if this was the case with Curzon. Also with Curzon investing in a film like Force Majeure, bringing a foreign language title into the UK, they are looking to maximise their sales, which is why they have invested (with public money) into online sales, in the absence of any TV sales or cinemas that will show their films – as we know there are many titles that don’t make it out of London. Also they receive 100% of the box office into the same company, thus maximising the income for the title and making it viable to distribute. Screening at Showroom would only give them 35% of the box office income and on a lower ticket price.
I am not supporting the action of Curzon, just pointing out that it is not as simple as it first appears. In reality, this ‘barring’ isn’t the problem, it is a symptom of the problem that it is virtually impossible to distribute foreign language titles in the UK without losing money, even with BFI P&A support, an unsustainable model for commercial companies. The model of market intervention to create diverse cinema through subsidising ‘regional film theatres’ is broken and the potential for diverse cinema is narrowing all the time as we see most cinemas playing a programme of fully commercial American movies, where once there were top European titles.