Traditional studios are re-committing to theatrical, with Apple and Amazon on board.
He will formally pass the baton to Michael OLeary on May 1.
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Michael and I have known each other since 2005.
GEtty Images; NATO
Were comrades in arms.
Ill handle one last round and then I will gracefully, or not step out.
If Netflix doesnt want to follow that model, thats their economic choice, says Fithian.
And were going to see that optimism in a number of ways.
One, the box office is exploding.
And almost every wide release this year is exceeding pre-release expectations, with only a couple of exceptions.
Look atSuper Mario Bros.The mid-budget films likeAirare performing well and holding.
So were coming into CinemaCon at a very strong time.
And now the movies are coming back.
So, with the slates expanding, were very proud of the growth of the industry.
Its expanding from the traditional distributors and its expanding from others like Amazon and Apple.
We just had a round of meetings in the creative community.
Producers guild, directors guild, some agencies.
The enthusiasm of filmmakers on the return of theatrical is huge.
I think the industry is in a great place.
Obviously, there are still hurdles.
But thats true of everything coming out of the pandemic.
Nobodys in the clear.
So Im looking forward to jumping in.
DEADLINE:What does CinemaCon attendance look like this year versus last?
FITHIAN:It was not back to pre-pandemic levels last year.
This year it is.
As of last week, we were tracking the same or better on registrations than in 2019.
Because they have a lot to show.
They havent had as many movies in the pipeline to show.
DEADLINE:Everyone expected many more theaters to close after Covid but that didnt happen on the scale anticipated.
Is the U.S. over-screened?
FITHIAN:People said wed lose half the theaters during the pandemic.
And that just didnt happen.
Didnt happen because theater leaders across the world worked with their governments on support.
Didnt happen because theyre smart business people that managed the situation very, very well.
And so we lost about 2,000 screens out of 40,000+ in the U.S. and Canada.
Thats a lot less than we thought we would lose.
Because that was a profitable, very profitable model.
In 2019, we had $11.4 billion in revenue in the U.S. and $42.5 billion globally.
So, if we get back to that kind of film supply, the answer is no.
We are not over-screened.
Everyones going to be stronger coming out of the pandemic.
And I think all of these companies are going to be stronger, because film supplies coming back.
FITHIAN:Well, the whole point of the pandemic funds was to sustain them through the dark times.
And times arent dark anymore.
I think were back, building back the box office numbers.
And so I think the government assistance did what it was supposed to do.
But it wasnt just the grants.
Its also really important to remember that we lobbied successfully for a lot of tax breaks.
That applied both to our big members and our small members.
We lobbied successfully on a state-by-state level for relief packages as well.
Our counterparts overseas did the same thing.
It was just supposed to tide everybody over.
And for the most part, thats what happened.
DEADLINE:Arthouse and specialty film have been slower to return.
They mostly havent been anywhere near 2019 levels.
So, literally, production stopped on a ton of midsize and smaller movies.
And thats a big delay in the pipeline.
So thats number one.
But those movies are coming back too.
OLEARY:People tell stories, want to tell them, in many different ways.
A desire in the marketplace for those types of films.
A desire in the creative community for those types of films.
And well work towards getting them back into theaters.
I know that everybody wants to kind of compare everything to 2019.
And I certainly understand that.
But I think its going to take a little bit of time to get back to that place.
But John and I are both optimistic about the return of those films.
DEADLINE:Michael, you were on the other side, the MPA, for years.
Having that well of knowledge and relationships across the aisle as it were seems like a real boon forNATO.
OLEARY:Yeah, I spent a big chunk of my professional life there.
I have a strong affinity for the MPA.
A lot of the people there are people I worked with, and some that I brought in.
So I have a good sense of how they view the world, how their members see the world.
So I hope that my experiences and relationships can help.
I expect they will.
I think we need to find areas where we can work together.
And we also need to be clear when there are disagreements and differences of opinions.
DEADLINE:What is the biggest point of disagreement right now?
FITHIAN:I dont think there are any points of disagreement between the MPA and NATO right now.
I mean, Charlie [Rivkin, MPA chief] and I have had a great partnership.
We talk regularly, we brief each other before each others respective board meetings.
Charlies very mindful of the importance of the resurgence of theatrical to his members bottom lines.
And so there really isnt any point in continuing the contention.
And I think that partnership will only grow under Michael.
Ive never worked the studio side.
Ive never worked at the MPA.
All my life, Ive been representing theater owners.
DEADLINE:No points of disagreement is a big change from last CinemaCon.
Inyour speech then you declared simultaneous release in theaters and streaming dead but it wasnt yet.
FITHIAN:Its better now.
Windows have been our number one concern for years.
During the pandemic, it was a huge battle.
A lot of studios experimented with simultaneous release, or going straight to streaming, much to our concern.
That a theatrical release with a robust window produces a much better result in the home later.
And underDavid Zaslav, its a whole new world of using theatrical to drive streaming results.
And so yeah, Ive been dealing with the windows wars for almost 30 years.
Thats why Amazon and Apple are jumping in.
DEADLINE:Not Netflix.
But you dont need everybody, right?
OLEARY:I think theres a groundswell of support for the cinematic experience.
If people choose a different path, thats certainly their choice.
Look at where the industry was 18-24 months ago, and where we are now.
Its incumbent upon us to focus on the folks that are interested in doing that.
And spend less time on people that are not.
DEADLINE:Large screen formats are doing great, concert films, bars in theaters, upgrades.
Have these been a key to bringing people back?
FITHIAN:Theres no question.
I think that youre seeing cinema owners, theater owners focusing on creating the best consumer experience.
And people are working to make that experience as exciting and as entertaining as possible.
Thats been the big change.
Its happening in all sizes of chains all across the country.
One of the great strengths of this industry is the diversity of our membership.
From arthouses up to the big circuits.
And they are all an important part of the cultural footprint that this industry has.
And theres a lot of great consumer experience being had out there by people all over the country.
Our members are innovating in so many different ways.
We did a survey recently of members plans, and the numbers for upgrades and innovation are inspiring.
Im talking about adding PLF [premium large format] screens.
Im talking about improving their sound systems.
Im talking about adding more recliner seating.
Expanding food and beverage options.
Events of the past few years have been incredibly difficult.
At the same time, weve learned a lot, the entertainment industry has learned a lot.
I think were in a good place.
The history of this industry is resilient.
I wouldnt bet against us.
DEADLINE:Are new security measures in place after the Olivia Wilde incident last year?
FITHIAN:Were not discussing them publicly.
Because whats the point of security measures then.
The Q&A has been edited for brevity and clarity.
