A Connecticut State Senator introduced legislation this week that could threaten a crucial revenue stream for movie theatres. Democratic State Senator Martin Looney, who represents the New Haven area proposed a bill to require movie theatres to publish the start time of the trailers versus the start time of the actual film.
The rationale for the new law was to stop what Looney describes as “an abuse of people’s time.” He explains, “If they want to get there early and watch the promos, they can. But if they just want to see the feature, they ought to be able to get there just in time for that.”
While the proposal may seem benign at first, it could drive down revenues that movie theatres earn from advertisers whose promotions are featured in the pre-show period leading up to the feature. At most locations, advertising plays in the time leading up to the published showtime, when trailers for upcoming movies begin.
If theatres are forced to play trailers before the listed showtime, the advertising pre-show would be moved even further back from showtime, limiting the motivation of advertisers to spend money on these placements. The result could be a significant reduction in ad income for the theatre.
Exhibitors are already facing a challenging economic puzzle to operate a successful business, and a significant reduction in their revenues would result in more locations raising ticket prices, or closing their doors permanently, which would also have a knock-on effect on the local economy of their towns. Theatre staff would be laid off, landlords would lose anchor tenants at special-purpose locations that are often challenging to replace.
Peter H. Gistelinck, Executive Director of the Avon Theatre in Stamford, Connecticut, explained that the proposed law would “greatly challenge” the ability to keep his theatre open due to a likely reduction in revenues from cinema advertising. Theatre owners who would like to contact Connecticut State Senator Looney to explain their circumstances are encouraged to do so.