The Case for Library Titles to Bring Ancillary Revenue to Theaters
Luxury home entertainment tech company Kaleidescape — which develops and sells high-tech movie players and servers that deliver studio-approved high-quality content to homes — revealed this week that it’s expanding into the cinema business.
In doing so, it aims to make library titles more accessible in theaters and open up more revenue opportunities for both content owners and exhibitors. Per the plan, Kaleidescape would sell the hardware and supply the prepped content, while content owners and exhibitors would negotiate their deal directly.
Data suggests classic rereleases could bring welcome ancillary revenue to studios and theaters, which would offer these titles during off-peak hours.
The results of a 2022 Cinema Foundation survey suggests there’s interest in this model. Per the findings, 64% of respondents said they were interested in theatrical presentations of films from cinema’s Golden Age (i.e., 1939’s “The Wizard of Oz”) , 66% in films from the ’70s, 69% in movies from the ’80s and 73% in film from the ’90s. More than 50% of respondents who described themselves as “non-active” theatergoers were interested in films from each of these periods, as did those considered “frequent” moviegoers.
A unique touchpoint is the 2023 rerelease of Jonathan Demme’s Talking Heads concert movie “Stop Making Sense,” which outperformed its initial run. The music doc made $5.4 million worldwide when it opened in 1984 and $6.9 million when it was reissued by A24 last fall, also spawning sold-out Imax shows and a star-packed tribute album.
A recent example suggests that creative tie-ins with current films could be good business. The September 2022 rerelease of James Cameron’s 2009 blockbuster “Avatar” — presented as anticipation was growing for that December’s release of sequel “Avatar: The Way of Water” — made $76 million, according to Box Office Mojo. (“Avatar” remains the highest-grossing movie of all time, with a total of $2.9 billion worldwide.)
Cameron also had success with the 25th-anniversary release of “Titanic” in 2023, which generated $70 million. Other recent reissues include Francis Ford Coppola’s “The Godfather,” whose 2022 rerelease generated $4.2 million, and Steven Spielberg’s “Jaws,” which made $6.4 million during its own 2022 run.
As for Kaleidescape, the company is starting a pilot program for its new service with Alamo, Brenden, B&B Theatres, Cinema West, Classic Cinemas, Epic, Megaplex and Star Cinema Grill. COO Priscilla Morgan reports that Kaleidescape has signed its first major studio content provider, though she declines to name the studio.
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