1 00:00:04,600 --> 00:00:12,600 Speaker 1: But welcome to Strictly Business Varieties weekly podcasts featuring conversations 2 00:00:12,600 --> 00:00:16,160 Speaker 1: with industry leaders about the business of media and entertainment. 3 00:00:16,720 --> 00:00:21,160 Speaker 1: I'm Cynthia Littleton, co editor in chief of Variety. Today, 4 00:00:21,200 --> 00:00:25,040 Speaker 1: my guest is Ray Nut, CEO of Fathom Events. I'm 5 00:00:25,079 --> 00:00:27,440 Speaker 1: happy to have him as a guest because one aspect 6 00:00:27,480 --> 00:00:30,040 Speaker 1: of the business we haven't covered as much on Strictly 7 00:00:30,080 --> 00:00:34,080 Speaker 1: Business is exhibition. It's a sector that is in transition. 8 00:00:34,640 --> 00:00:37,440 Speaker 1: It's also in many ways still in a world of hurt. 9 00:00:37,720 --> 00:00:42,320 Speaker 1: As moviegoing recovers from the pandemic, Fathom has emerged as 10 00:00:42,320 --> 00:00:45,400 Speaker 1: a specialty distributor of content that is a little off 11 00:00:45,400 --> 00:00:48,880 Speaker 1: the beaten path for movie theaters. It has a longstanding 12 00:00:48,920 --> 00:00:51,960 Speaker 1: distribution deal with the Metropolitan Opera in New York City 13 00:00:52,200 --> 00:00:56,680 Speaker 1: for live screenings of the Met's incredible productions. Fathom is 14 00:00:56,720 --> 00:00:59,840 Speaker 1: also the distributor bringing Winnie the Pooh, Blood and Honey 15 00:01:00,120 --> 00:01:05,119 Speaker 1: to America this winter. Patiently explains the business model behind 16 00:01:05,160 --> 00:01:08,520 Speaker 1: the company that is owned by the nation's three largest 17 00:01:08,640 --> 00:01:14,000 Speaker 1: exhibition chains, AMC Entertainment, Regal and Cinemark. Ray has been 18 00:01:14,040 --> 00:01:16,640 Speaker 1: the head of Bathom since twenty seventeen, and he has 19 00:01:16,640 --> 00:01:21,000 Speaker 1: a long background in exhibition. In closing, he offers his 20 00:01:21,080 --> 00:01:24,120 Speaker 1: thoughts on what the road to health looks like for 21 00:01:24,200 --> 00:01:28,160 Speaker 1: the multiplex business. That's all coming up after the break. 22 00:01:36,560 --> 00:01:39,720 Speaker 1: Y Nut, CEO of Bathom Events, thank you so much 23 00:01:39,760 --> 00:01:42,319 Speaker 1: for joining me today. Thank you for having me. It's 24 00:01:42,319 --> 00:01:44,840 Speaker 1: great to be with you. Guys. Well, it's an interesting 25 00:01:44,880 --> 00:01:49,440 Speaker 1: time to talk about the exhibition business. There's no shortage 26 00:01:49,480 --> 00:01:54,160 Speaker 1: of transition, no shortage of opportunity, and for obvious reasons 27 00:01:54,200 --> 00:01:55,920 Speaker 1: that the world has been talking about for the last 28 00:01:55,960 --> 00:01:59,800 Speaker 1: three years, a lot of challenges in movie going, which 29 00:02:00,040 --> 00:02:03,920 Speaker 1: although I have grown up covering the television business, I 30 00:02:04,000 --> 00:02:06,640 Speaker 1: have since I was twelve years old and able to 31 00:02:06,720 --> 00:02:10,919 Speaker 1: ride my bike to my favorite movie theater. I have loved. 32 00:02:10,600 --> 00:02:14,680 Speaker 1: I truly loved the moviegoing experience. I'd like to start 33 00:02:14,800 --> 00:02:18,000 Speaker 1: just by having asking you kind of describe this sort 34 00:02:18,000 --> 00:02:21,200 Speaker 1: of size and scope of your business and what Fathom 35 00:02:21,240 --> 00:02:28,240 Speaker 1: brings to the exhibition community. Well, Fathom, Fathom is currently 36 00:02:28,280 --> 00:02:32,280 Speaker 1: an event cinema business, but to get some context from that, 37 00:02:33,720 --> 00:02:36,960 Speaker 1: you know, I spent most of my years on the 38 00:02:36,960 --> 00:02:40,000 Speaker 1: theater exhibition side of the business with United Artists Theaters 39 00:02:40,040 --> 00:02:42,839 Speaker 1: and then Regal Entertainment Group and then I came over 40 00:02:44,000 --> 00:02:46,920 Speaker 1: to Fathom about five and a half years ago. And 41 00:02:47,000 --> 00:02:49,640 Speaker 1: when I came over, it was things were known as 42 00:02:49,639 --> 00:02:55,919 Speaker 1: alternative content, and alternative content was something that over the 43 00:02:55,960 --> 00:02:57,800 Speaker 1: first couple of years in doing this job, I got 44 00:02:57,800 --> 00:03:01,920 Speaker 1: a little uncomfortable with. It just didn't didn't resonate with me. 45 00:03:01,960 --> 00:03:03,720 Speaker 1: I don't think it resonated with a lot of our 46 00:03:03,760 --> 00:03:07,200 Speaker 1: audience as well, or even the industry. So we started 47 00:03:07,200 --> 00:03:10,600 Speaker 1: to transition into what we're calling now event cinema. And 48 00:03:10,720 --> 00:03:15,360 Speaker 1: that's as technology developed, and you know, there became a 49 00:03:15,400 --> 00:03:18,280 Speaker 1: new interest and a little thing called the pandemic cap 50 00:03:18,280 --> 00:03:22,520 Speaker 1: and Whi's got people thinking much differently about content on 51 00:03:22,560 --> 00:03:25,679 Speaker 1: the screen, not just commercial product, but other content and 52 00:03:26,160 --> 00:03:31,280 Speaker 1: backups in production and everything. So so right now, you know, 53 00:03:31,320 --> 00:03:36,040 Speaker 1: the scope of the business is isn't giant, but it 54 00:03:36,240 --> 00:03:39,640 Speaker 1: is an opportunist to growing business right now, and it's 55 00:03:39,680 --> 00:03:44,520 Speaker 1: a great place to be where theater exhibitors and content 56 00:03:44,560 --> 00:03:47,920 Speaker 1: providers are coming up with new content, exhibitors are hungry 57 00:03:48,000 --> 00:03:52,520 Speaker 1: for additional content, and so you know, it's a it's 58 00:03:52,560 --> 00:03:55,080 Speaker 1: a great place to be right now. And you know, 59 00:03:55,160 --> 00:03:59,560 Speaker 1: my crew is definitely excited about the opportunities ahead of us. 60 00:04:00,160 --> 00:04:04,440 Speaker 1: You are jointly owned by AMC, Regal and Cinemark, which 61 00:04:04,520 --> 00:04:08,440 Speaker 1: is that's a big footprint in exhibition ranked there. But 62 00:04:08,520 --> 00:04:12,080 Speaker 1: you also send your events. Your special events can go 63 00:04:12,240 --> 00:04:14,640 Speaker 1: to any exhibitor that raises their hand and says, I'd 64 00:04:14,640 --> 00:04:16,320 Speaker 1: like to bring this to my theater or is it 65 00:04:16,360 --> 00:04:19,760 Speaker 1: just for that those three circuits. No, I'm glad you 66 00:04:19,760 --> 00:04:23,679 Speaker 1: brought that up, because there are misconceptions about there because 67 00:04:23,680 --> 00:04:26,360 Speaker 1: we're owned by AMC, Cinemark and Regal, that we only 68 00:04:26,400 --> 00:04:28,719 Speaker 1: distribute to them, and that's not the case at all. 69 00:04:29,680 --> 00:04:32,960 Speaker 1: We distribute to them obviously, but we distribute to ninety 70 00:04:33,000 --> 00:04:38,840 Speaker 1: seven other theater circuits domestically and theater circuits worldwide as well. 71 00:04:39,920 --> 00:04:43,880 Speaker 1: In fact, you know, when it comes to distribution, probably 72 00:04:43,960 --> 00:04:48,159 Speaker 1: our owners are you know, exercised as much discretion, if 73 00:04:48,200 --> 00:04:50,520 Speaker 1: not more, about the content that we bring to the 74 00:04:50,560 --> 00:04:54,120 Speaker 1: screen because they are the biggest and everybody's knocking on 75 00:04:54,160 --> 00:04:57,440 Speaker 1: their door to distribute content to them, including us obviously. 76 00:04:57,960 --> 00:05:01,720 Speaker 1: So it's it's it's really good. We you know, from 77 00:05:01,760 --> 00:05:04,760 Speaker 1: a technology standpoint, we have one of the most cost 78 00:05:04,800 --> 00:05:09,279 Speaker 1: effective ways to get content from our office or from 79 00:05:09,279 --> 00:05:12,880 Speaker 1: the content providers to the movie theaters, and that's through 80 00:05:12,920 --> 00:05:15,520 Speaker 1: what we call our Digital Broadcast Network. It's a satellite 81 00:05:15,520 --> 00:05:19,160 Speaker 1: based network that has eleven hundreds theaters and twenty two 82 00:05:19,240 --> 00:05:24,200 Speaker 1: hundred screens domestically, and it's very easy to get content 83 00:05:24,720 --> 00:05:26,760 Speaker 1: and efficient to get content. So a lot of our 84 00:05:26,800 --> 00:05:30,160 Speaker 1: content partners like that. But we also launched something just 85 00:05:30,400 --> 00:05:34,479 Speaker 1: last year. You know, eleven hundred theaters doesn't sound like 86 00:05:34,680 --> 00:05:38,080 Speaker 1: a lot, but it is sometimes for events cinema. But 87 00:05:38,160 --> 00:05:42,240 Speaker 1: we launched something called DCP only, and what that is 88 00:05:42,240 --> 00:05:45,480 Speaker 1: is we have the ability to now just go ahead 89 00:05:45,520 --> 00:05:50,200 Speaker 1: and do things like a regular movie, distribute content like 90 00:05:50,200 --> 00:05:53,599 Speaker 1: a regular movie to movie theaters. And so some of 91 00:05:53,640 --> 00:05:58,000 Speaker 1: our recent events like The Chosen for example, and others 92 00:05:58,080 --> 00:06:03,760 Speaker 1: that decent distribution are up to two thousand plus screens. 93 00:06:04,000 --> 00:06:07,719 Speaker 1: And what we changed is our philosophy. And we used 94 00:06:07,720 --> 00:06:10,120 Speaker 1: to anyone and we partnered with on the exhibition side 95 00:06:10,200 --> 00:06:13,680 Speaker 1: used to have to have and install that digital broadcast network. 96 00:06:14,120 --> 00:06:17,000 Speaker 1: We've eased that a little bit now and said, you 97 00:06:17,040 --> 00:06:19,159 Speaker 1: know what, if you've got a digital projector and you 98 00:06:19,200 --> 00:06:21,919 Speaker 1: can accept a DCP, then we're in business with you 99 00:06:22,000 --> 00:06:24,280 Speaker 1: if you if you want our content and we think 100 00:06:24,320 --> 00:06:28,760 Speaker 1: it's right for you as well. How do you go 101 00:06:28,839 --> 00:06:34,400 Speaker 1: about what makes for good a good Fathom event offering. 102 00:06:34,839 --> 00:06:37,719 Speaker 1: Your upcoming slate, which we'll talk about, has a quite 103 00:06:37,760 --> 00:06:40,159 Speaker 1: a range of things going on. What do you look 104 00:06:40,200 --> 00:06:44,800 Speaker 1: for to make up for the right thing for Fathom Events? Yeah, 105 00:06:45,040 --> 00:06:47,039 Speaker 1: you know, as I previously mentioned, this is one of 106 00:06:47,080 --> 00:06:51,160 Speaker 1: the things that cause me to balk a little bit 107 00:06:51,200 --> 00:06:56,120 Speaker 1: about the brand alternative content and move into events cinema 108 00:06:56,640 --> 00:06:59,800 Speaker 1: and actually talk a little bit about where we're going 109 00:06:59,839 --> 00:07:03,240 Speaker 1: in the future, because we're actually working on transitioning the 110 00:07:03,279 --> 00:07:07,040 Speaker 1: industry and our company from away from the events cinema 111 00:07:07,080 --> 00:07:12,560 Speaker 1: brand into what we're calling a specialty distribution. But what 112 00:07:12,600 --> 00:07:17,480 Speaker 1: we look for is content that has an audience, and 113 00:07:17,520 --> 00:07:19,560 Speaker 1: that's the first thing a lot of people. The reason 114 00:07:19,560 --> 00:07:22,320 Speaker 1: I was uncomfortable with alternative content because it makes it 115 00:07:22,360 --> 00:07:27,000 Speaker 1: sound like anything other thing commercial product that's out there 116 00:07:27,440 --> 00:07:29,480 Speaker 1: can be slapped up on the screen and boy, there's 117 00:07:29,480 --> 00:07:31,920 Speaker 1: going to be an audience there. But people have to 118 00:07:31,960 --> 00:07:34,480 Speaker 1: realize we started this business on a Monday through a 119 00:07:34,640 --> 00:07:37,560 Speaker 1: Thursday type of business. It's very difficult to get people 120 00:07:37,560 --> 00:07:40,559 Speaker 1: off their couching into movie theaters or you know, Monday, 121 00:07:40,600 --> 00:07:43,040 Speaker 1: it's going to be something special so there has to 122 00:07:43,120 --> 00:07:46,040 Speaker 1: be an audience out there. And I have a spectacular 123 00:07:46,120 --> 00:07:50,960 Speaker 1: team that does the research, does the programming, does the marketing, 124 00:07:51,040 --> 00:07:54,560 Speaker 1: and does all of the operations for everything. We're an 125 00:07:54,640 --> 00:07:57,320 Speaker 1: end to end solution for our content providers. But the 126 00:07:57,360 --> 00:08:00,600 Speaker 1: main thing is that you have to have that audience. 127 00:08:00,680 --> 00:08:03,400 Speaker 1: And we've done some things that people, you know, when 128 00:08:03,440 --> 00:08:05,880 Speaker 1: we announced it, they'll raise their eyebrows and say, what 129 00:08:06,040 --> 00:08:09,040 Speaker 1: in the world is that, But they find out that 130 00:08:09,080 --> 00:08:12,840 Speaker 1: we've done our research. You know recently, you know, just 131 00:08:13,280 --> 00:08:18,080 Speaker 1: February fifteenth, we opened Winnie the Pooh and um, you 132 00:08:18,120 --> 00:08:20,360 Speaker 1: know this was a horror picture. We need to pooh 133 00:08:20,520 --> 00:08:23,960 Speaker 1: blood and honey, which is I should say, winning the 134 00:08:23,960 --> 00:08:27,280 Speaker 1: poo blood and honey, don't a mil I don't think 135 00:08:27,320 --> 00:08:31,240 Speaker 1: he ever anticipated Christopher Robin having this, but it is 136 00:08:31,240 --> 00:08:36,200 Speaker 1: an interesting it's an interesting example of copyrights. Have you know, 137 00:08:36,240 --> 00:08:39,000 Speaker 1: the copyright has expired, so Winnie the Pooh is now 138 00:08:39,200 --> 00:08:42,840 Speaker 1: the new versions can be had. But so you did 139 00:08:42,880 --> 00:08:45,560 Speaker 1: your homework on that. Yeah, it's a great example of 140 00:08:45,640 --> 00:08:49,440 Speaker 1: us identifying an audience for that. We were watching you know, 141 00:08:49,559 --> 00:08:52,760 Speaker 1: socials on that and you know, when my team first 142 00:08:52,760 --> 00:08:55,600 Speaker 1: brought it to me, I was like, I don't you know, 143 00:08:55,640 --> 00:08:57,560 Speaker 1: I don't get it. And then they brought me all 144 00:08:57,559 --> 00:09:01,120 Speaker 1: the backup and the research and everything, and I so, okay, 145 00:09:01,360 --> 00:09:03,360 Speaker 1: it looks like there is an audience for it. And 146 00:09:03,440 --> 00:09:06,200 Speaker 1: you know, opening night it did at least in North 147 00:09:06,200 --> 00:09:10,200 Speaker 1: America about seven hundred and sixty thousand dollars, so you know, 148 00:09:10,480 --> 00:09:14,160 Speaker 1: on a Wednesday night, that's uh, that's that's pretty darn 149 00:09:14,240 --> 00:09:17,520 Speaker 1: good for for event cinema. So we were very happy 150 00:09:17,559 --> 00:09:18,719 Speaker 1: with that. But that gives you a little bit of 151 00:09:18,720 --> 00:09:21,920 Speaker 1: a flavor of of you know, how we go about 152 00:09:22,000 --> 00:09:24,640 Speaker 1: looking at our content. And by the way, our content 153 00:09:24,840 --> 00:09:29,000 Speaker 1: is very diverse, as you probably know, and you know 154 00:09:29,040 --> 00:09:32,800 Speaker 1: it's everything from the Metropolitan Opera to children's programming to 155 00:09:32,920 --> 00:09:37,360 Speaker 1: anime original you know, original programming. Uh. And the biggest 156 00:09:37,400 --> 00:09:40,079 Speaker 1: category that we had last year, which was huge for us, 157 00:09:40,200 --> 00:09:43,520 Speaker 1: was faith based. So um, so there's you know, you 158 00:09:43,600 --> 00:09:46,400 Speaker 1: have to do a lot of research and understand what 159 00:09:46,480 --> 00:09:49,400 Speaker 1: audience is. We'll get up off that couch I refer 160 00:09:49,520 --> 00:09:52,480 Speaker 1: to and get to the movie theater on on a 161 00:09:52,520 --> 00:09:56,200 Speaker 1: weekday or on weekends. We do get this distribution on 162 00:09:56,240 --> 00:09:59,959 Speaker 1: weekends as well. We had, uh some of the time 163 00:10:00,320 --> 00:10:05,720 Speaker 1: documentaries we had ten of the thirty top documentaries in 164 00:10:06,280 --> 00:10:09,800 Speaker 1: the industry in twenty twenty two, and you know that 165 00:10:09,920 --> 00:10:13,360 Speaker 1: was led by our number two, the number two documentary 166 00:10:13,360 --> 00:10:16,160 Speaker 1: in the industry, which was Mother Teresa. So it was 167 00:10:16,200 --> 00:10:19,160 Speaker 1: a dot on Mother Teresa. So a lot of our 168 00:10:19,240 --> 00:10:24,200 Speaker 1: faith based content, our films, we have a lot of 169 00:10:24,240 --> 00:10:27,200 Speaker 1: live content that does come with them because we have 170 00:10:27,280 --> 00:10:30,800 Speaker 1: added values. So somebody through our network will do either 171 00:10:30,920 --> 00:10:35,680 Speaker 1: prerecorded or live added content, but they're added value, i 172 00:10:35,679 --> 00:10:38,920 Speaker 1: should say. So, so you know that has been a 173 00:10:39,640 --> 00:10:41,880 Speaker 1: and we're getting into different categories as well. If you 174 00:10:41,920 --> 00:10:44,800 Speaker 1: look at the Chosen, which we've done three events with them. 175 00:10:44,840 --> 00:10:48,319 Speaker 1: Now we're getting into episodics, so we did season three 176 00:10:48,640 --> 00:10:51,560 Speaker 1: episodes one and two late last year and then we 177 00:10:51,640 --> 00:10:55,360 Speaker 1: did episodes you know, the final episode seven and eight 178 00:10:55,480 --> 00:10:58,600 Speaker 1: as well. And you know, to your point that you 179 00:10:58,640 --> 00:11:02,080 Speaker 1: were talking about maybe early about the communal experience and 180 00:11:02,160 --> 00:11:05,320 Speaker 1: that type of thing, that's a great example about something 181 00:11:05,360 --> 00:11:07,560 Speaker 1: that we sourced out there. We've been talking to these 182 00:11:07,559 --> 00:11:11,600 Speaker 1: guys for years and we knew that they wanted to 183 00:11:11,640 --> 00:11:14,160 Speaker 1: gather communally because the only place they've ever been able 184 00:11:14,200 --> 00:11:16,280 Speaker 1: to see their content is through the app that they 185 00:11:16,320 --> 00:11:20,760 Speaker 1: have so we've made that available to them in movie theaters, 186 00:11:20,840 --> 00:11:24,120 Speaker 1: and they came out in droves for not only a 187 00:11:24,200 --> 00:11:28,680 Speaker 1: Christmas movie called The Messengers in twenty twenty one, but 188 00:11:29,000 --> 00:11:34,600 Speaker 1: also the episodics that I just mentioned as well, in 189 00:11:34,640 --> 00:11:37,360 Speaker 1: the example of faith based films or a Winnie the Pooh, 190 00:11:37,360 --> 00:11:41,160 Speaker 1: Blood and Honey. What is the benefit to a film distributor, 191 00:11:41,200 --> 00:11:45,960 Speaker 1: an independent distributor to going with Fathom rather than trying 192 00:11:46,000 --> 00:11:48,839 Speaker 1: to set up an you know, an art house deal 193 00:11:49,120 --> 00:11:52,760 Speaker 1: or a regional circuit deal with a more with an 194 00:11:52,760 --> 00:11:55,360 Speaker 1: AMC or a regal or a cinema. Do you offer 195 00:11:55,400 --> 00:12:01,760 Speaker 1: them better better economic terms? The economic terms are very favorable, 196 00:12:02,440 --> 00:12:04,360 Speaker 1: But I think one of the biggest things they come 197 00:12:04,360 --> 00:12:08,240 Speaker 1: to us for is distribution. And they know that, you know, 198 00:12:08,480 --> 00:12:11,520 Speaker 1: per my previous comment about who we distribute to, not 199 00:12:11,559 --> 00:12:14,160 Speaker 1: only our owners but others out there. They know they're 200 00:12:14,160 --> 00:12:17,800 Speaker 1: going to get good distribution through Fathom, and they're going 201 00:12:17,800 --> 00:12:21,959 Speaker 1: to get a marketing partner as well. And with that marketing, 202 00:12:22,160 --> 00:12:24,560 Speaker 1: you know, comes things like you know, they'd have to 203 00:12:24,640 --> 00:12:28,680 Speaker 1: pay for trailering, you know, if they go to traditional route. 204 00:12:29,080 --> 00:12:34,640 Speaker 1: Our economic deal and our comprehensive deal involves dedicated trailering 205 00:12:34,720 --> 00:12:37,320 Speaker 1: that we have as a deal with our owners out 206 00:12:37,360 --> 00:12:41,000 Speaker 1: there as well. So so there's marketing assets that they 207 00:12:41,080 --> 00:12:44,880 Speaker 1: get get access to, certain things that we have access 208 00:12:44,920 --> 00:12:47,800 Speaker 1: to with our owners. Maybe that's the loyalty programs that 209 00:12:47,840 --> 00:12:51,600 Speaker 1: are out there. So a lot of its distribution, a 210 00:12:51,600 --> 00:12:54,160 Speaker 1: lot of its marketing, and again it's an end to 211 00:12:54,280 --> 00:12:58,040 Speaker 1: end solution. A lot of our content providers they just 212 00:12:58,360 --> 00:13:00,440 Speaker 1: you know, they don't want to, you know, go through 213 00:13:00,679 --> 00:13:03,880 Speaker 1: everything that there is to go through a traditional distribution 214 00:13:04,520 --> 00:13:07,800 Speaker 1: and it's a very turnkey approach with us. So that's 215 00:13:07,840 --> 00:13:10,560 Speaker 1: what a lot of the content partners do. And there's 216 00:13:10,559 --> 00:13:12,959 Speaker 1: a lot of content partners that are coming to us 217 00:13:13,080 --> 00:13:16,719 Speaker 1: that that have done traditional distribution as well. I mean 218 00:13:16,760 --> 00:13:20,480 Speaker 1: we did Life Mark with the Kendrick brothers. You know. 219 00:13:20,600 --> 00:13:23,520 Speaker 1: Fireproof is what they've done in the past amongst other movies, 220 00:13:23,600 --> 00:13:27,520 Speaker 1: thirty to sixty million dollar movies and Fireproof did about 221 00:13:27,559 --> 00:13:30,840 Speaker 1: five and a half million dollars with us. That was 222 00:13:31,200 --> 00:13:33,600 Speaker 1: a picture with Kirk Cameron, who we've worked with in 223 00:13:33,640 --> 00:13:37,680 Speaker 1: the past to do live events with us. So it's 224 00:13:37,760 --> 00:13:40,319 Speaker 1: it's just a it's we try to make it very 225 00:13:40,440 --> 00:13:44,560 Speaker 1: very easy for the content providers to get their content 226 00:13:44,640 --> 00:13:48,600 Speaker 1: on screen and distribute it. Is the box office split? 227 00:13:48,760 --> 00:13:51,439 Speaker 1: Is it about comfortable to what it would be through 228 00:13:51,480 --> 00:13:56,640 Speaker 1: a more traditional exhibition. Um, you know what our content 229 00:13:56,760 --> 00:14:01,839 Speaker 1: Our economic model is based on a rev share off 230 00:14:01,840 --> 00:14:06,080 Speaker 1: the tickets, and it's very unusual. We don't pay a 231 00:14:06,200 --> 00:14:09,880 Speaker 1: dime to acquire content. We basically license content for a 232 00:14:09,960 --> 00:14:14,080 Speaker 1: period of time and then there's a piece of the 233 00:14:14,240 --> 00:14:17,560 Speaker 1: box office that automatically comes off the top and goes 234 00:14:17,600 --> 00:14:22,800 Speaker 1: to our theater owners or theater affiliates, and it's all equals, 235 00:14:22,800 --> 00:14:25,640 Speaker 1: so it doesn't matter whether it's our owners or affiliates. 236 00:14:26,200 --> 00:14:29,520 Speaker 1: And that percentage is a little bit less on weekdays 237 00:14:29,640 --> 00:14:31,800 Speaker 1: because of the opportunity costs, and it's a little bit 238 00:14:31,840 --> 00:14:35,440 Speaker 1: more on weekends because the opportunity costs of getting that 239 00:14:35,520 --> 00:14:37,720 Speaker 1: screen on the weekend is a little bit more. And 240 00:14:37,760 --> 00:14:41,880 Speaker 1: then generally after that we would depends who. It depends 241 00:14:41,920 --> 00:14:43,960 Speaker 1: on who brings what to the table in terms of 242 00:14:43,960 --> 00:14:48,720 Speaker 1: a marketing plan, but generally it's fifty fifty after a 243 00:14:49,320 --> 00:14:54,680 Speaker 1: there's a contribution to our theater operators. And so the 244 00:14:54,720 --> 00:14:58,920 Speaker 1: reason it's set up that way is that everybody's got 245 00:14:59,640 --> 00:15:02,600 Speaker 1: a dog going to haunt that that way and everybody 246 00:15:02,720 --> 00:15:05,800 Speaker 1: has an incentive to bring what they have to the 247 00:15:05,840 --> 00:15:09,600 Speaker 1: table to make that film as successful as possible. Exhibition, 248 00:15:09,760 --> 00:15:13,240 Speaker 1: Fathom Content, and any of the marketing partners that might 249 00:15:13,280 --> 00:15:15,880 Speaker 1: be brought on as well to handle the P and A. 250 00:15:16,080 --> 00:15:20,480 Speaker 1: So so yeah, it's it's it's a very different model, 251 00:15:20,680 --> 00:15:24,840 Speaker 1: and in many cases it's it's much more favorable to 252 00:15:24,880 --> 00:15:28,760 Speaker 1: the content provider than they could get if they went direct. Well, 253 00:15:28,800 --> 00:15:31,600 Speaker 1: as you're talking about independent productions, that you know, a 254 00:15:31,760 --> 00:15:35,200 Speaker 1: turnkey solution to P and A, which is so such 255 00:15:35,240 --> 00:15:38,960 Speaker 1: a big part and important to get right and expensive 256 00:15:39,040 --> 00:15:41,280 Speaker 1: part of the movie making after you've spent all the 257 00:15:41,320 --> 00:15:43,880 Speaker 1: money to make the movie. So I can see I 258 00:15:43,880 --> 00:15:46,800 Speaker 1: can see the appeal of that, especially to independent Talk 259 00:15:46,840 --> 00:15:49,080 Speaker 1: a little bit more about the focus on Monday through 260 00:15:49,120 --> 00:15:52,600 Speaker 1: Thursday and why that matters to exhibitors. It sounds like, 261 00:15:53,400 --> 00:15:56,200 Speaker 1: you know, getting people in there, any anything that will 262 00:15:56,200 --> 00:15:59,240 Speaker 1: get people in there at a time when the room 263 00:15:59,280 --> 00:16:01,960 Speaker 1: is usually is going to be a good thing for 264 00:16:02,000 --> 00:16:06,040 Speaker 1: an exhibitor. It is. And you know, coming from exhibition, 265 00:16:06,200 --> 00:16:09,240 Speaker 1: and I'll speak maybe not in current times, but in 266 00:16:09,400 --> 00:16:13,160 Speaker 1: times you know, way prior to the pandemic. You know, 267 00:16:13,240 --> 00:16:16,400 Speaker 1: these theaters are all least for the most part, for 268 00:16:16,520 --> 00:16:19,320 Speaker 1: most of them, you know, probably ninety five theaters at 269 00:16:19,400 --> 00:16:22,760 Speaker 1: least are least out there. So there's a tenant landlord issue, 270 00:16:22,840 --> 00:16:27,040 Speaker 1: and they're paying rent. These theater operators are doesn't matter 271 00:16:27,080 --> 00:16:30,280 Speaker 1: whether it's Monday or a Friday night, they're paying. They're 272 00:16:30,280 --> 00:16:33,360 Speaker 1: paying the same rent. And I can tell you that, 273 00:16:34,080 --> 00:16:36,280 Speaker 1: you know, way back in the day, we actually had 274 00:16:36,320 --> 00:16:38,560 Speaker 1: discussions about does it even make sense to leave the 275 00:16:38,640 --> 00:16:42,200 Speaker 1: theater open Monday through Thursday, that's how quiet they are. 276 00:16:43,320 --> 00:16:45,480 Speaker 1: And you know, obviously the answer to that is the 277 00:16:45,600 --> 00:16:49,440 Speaker 1: least prohibited and you couldn't do that, but if you could, 278 00:16:49,680 --> 00:16:52,960 Speaker 1: it would make financial sense to do so, because you're 279 00:16:52,960 --> 00:16:54,920 Speaker 1: doing most of your business Friday, Saturday and Sunday, no 280 00:16:54,960 --> 00:16:59,640 Speaker 1: big secret. So I think starting the business, you know, 281 00:16:59,720 --> 00:17:03,920 Speaker 1: you're ago, you know, Alternative Content and starting the Fathom business. 282 00:17:04,080 --> 00:17:08,040 Speaker 1: That was actually a business that was purchased by amc 283 00:17:08,160 --> 00:17:13,479 Speaker 1: reegoing Cinemmark back in twenty thirteen from National Cinemedia. Now 284 00:17:13,560 --> 00:17:16,800 Speaker 1: National Cinemedia has made people know as the leading cinema 285 00:17:17,119 --> 00:17:20,439 Speaker 1: advertising operator out there. A company that I helped found 286 00:17:20,800 --> 00:17:24,560 Speaker 1: as well, and it was a step child. You know, 287 00:17:24,600 --> 00:17:29,879 Speaker 1: Alternative Content was a stepchild to advertising in theaters because 288 00:17:29,920 --> 00:17:32,560 Speaker 1: most of the revenue was coming from advertising at that time. 289 00:17:33,160 --> 00:17:37,000 Speaker 1: And so you know, the theater owners now amc reegoing Cinemark, 290 00:17:37,160 --> 00:17:41,400 Speaker 1: found it in their best interests to separate this business, 291 00:17:41,480 --> 00:17:45,440 Speaker 1: focus on itself, and then make it something more than 292 00:17:45,480 --> 00:17:48,760 Speaker 1: that Monday through Thursday business. And that's literally what it 293 00:17:48,880 --> 00:17:50,879 Speaker 1: has become. I can tell you it was probably a 294 00:17:50,960 --> 00:17:57,120 Speaker 1: thirty million dollar business when the Three Circuits bought the company. 295 00:17:57,840 --> 00:18:01,720 Speaker 1: When I joined in two thousand seventeen, that jumped to 296 00:18:01,920 --> 00:18:05,600 Speaker 1: fifty five million dollars, and then by two nineteen we 297 00:18:05,720 --> 00:18:09,719 Speaker 1: grew to eighty million dollars before the pandemic. And just 298 00:18:09,760 --> 00:18:13,240 Speaker 1: to give you some context, in two thousand and twenty two, 299 00:18:14,480 --> 00:18:18,280 Speaker 1: our company was eighty six percent of two thousand nineteen numbers, 300 00:18:18,320 --> 00:18:21,639 Speaker 1: where there's you know, the general industry was sixty six percent, 301 00:18:21,680 --> 00:18:24,120 Speaker 1: give or take of two thousand nineteen. So it gives 302 00:18:24,119 --> 00:18:27,240 Speaker 1: you a little context about the growth opportunities that I 303 00:18:27,320 --> 00:18:30,879 Speaker 1: talked about before with the Gun Cinema. I can't do 304 00:18:30,920 --> 00:18:33,560 Speaker 1: the Keger in my head, but I know it's good. 305 00:18:35,320 --> 00:18:39,360 Speaker 1: That's pretty impressive. And in terms of like, is there 306 00:18:39,400 --> 00:18:42,439 Speaker 1: a sweet spot for the time of day that you 307 00:18:42,560 --> 00:18:44,919 Speaker 1: have an event is in my understanding, it's kind of 308 00:18:44,960 --> 00:18:49,760 Speaker 1: earlier than an usual evening evening sweet spot for a 309 00:18:49,960 --> 00:18:53,600 Speaker 1: for a more traditional film. Yeah, we're usually taking up 310 00:18:53,640 --> 00:18:55,960 Speaker 1: maybe you know, one show time a day or a 311 00:18:56,000 --> 00:18:59,480 Speaker 1: traditional run during the days, maybe five show times on average, 312 00:18:59,520 --> 00:19:02,320 Speaker 1: that type of thing. And it depends, it really depends 313 00:19:02,359 --> 00:19:05,800 Speaker 1: on the type of content. If it's children's programming, we're 314 00:19:05,800 --> 00:19:08,840 Speaker 1: probably going to be looking at a Saturday or Sunday morning. 315 00:19:08,920 --> 00:19:11,240 Speaker 1: You know, we're trying to get in there where it's 316 00:19:11,280 --> 00:19:14,160 Speaker 1: between nap time with the kids, depending on the age 317 00:19:14,280 --> 00:19:16,480 Speaker 1: or we're you know. So these are the kind of 318 00:19:16,520 --> 00:19:21,119 Speaker 1: things that my team goes through in terms of recommending 319 00:19:21,160 --> 00:19:25,200 Speaker 1: optimal distribution times with play age and showtimes, and they're 320 00:19:25,320 --> 00:19:28,359 Speaker 1: very very good at it. So, you know, there's that, 321 00:19:28,520 --> 00:19:30,640 Speaker 1: and on the other end of the spectrum, maybe there's 322 00:19:30,640 --> 00:19:34,280 Speaker 1: the Metropolitan Opera, so that comes you know, we do 323 00:19:34,320 --> 00:19:36,600 Speaker 1: about twelve events a year and that comes out of 324 00:19:37,960 --> 00:19:42,280 Speaker 1: comes out of the Met in New York Live, and 325 00:19:42,359 --> 00:19:46,520 Speaker 1: that's a matinee on a Saturday. So that at the 326 00:19:46,560 --> 00:19:49,280 Speaker 1: average age of a Met goer is about seventy three 327 00:19:49,359 --> 00:19:51,480 Speaker 1: years old. So a little bit a little bit on 328 00:19:51,520 --> 00:19:54,200 Speaker 1: the other end of the spectrum from the kids, and 329 00:19:54,960 --> 00:19:58,320 Speaker 1: then we repeat it with a matinee and a evening 330 00:19:58,359 --> 00:20:01,400 Speaker 1: show the following the Wednesday as an encore to give 331 00:20:02,200 --> 00:20:04,760 Speaker 1: that audience an opportunity to get to the movie theater 332 00:20:04,800 --> 00:20:10,439 Speaker 1: as well. So it really given how diverse our businesses 333 00:20:10,480 --> 00:20:13,280 Speaker 1: and our content is. Um, you know we need to 334 00:20:13,320 --> 00:20:17,640 Speaker 1: pooh for example, you'll you'll probably be running or exhibition 335 00:20:17,680 --> 00:20:19,960 Speaker 1: will be running maybe seven and a ten o'clock show, 336 00:20:20,160 --> 00:20:22,360 Speaker 1: It doesn't matter what night, you know, that type of thing. 337 00:20:22,440 --> 00:20:25,760 Speaker 1: So it's it's really all over the place, but it's 338 00:20:26,040 --> 00:20:29,000 Speaker 1: very focused and targeted at when can we create a 339 00:20:29,000 --> 00:20:31,120 Speaker 1: convenient time for that customer to get to the movie 340 00:20:31,160 --> 00:20:34,360 Speaker 1: theater Having been to that, I have had the good 341 00:20:34,359 --> 00:20:37,760 Speaker 1: fortune to have gone to a Metropolitan Opera production, and 342 00:20:37,800 --> 00:20:42,919 Speaker 1: I think it's it's wonderful that through this distribution, this 343 00:20:43,119 --> 00:20:45,840 Speaker 1: long standing distribution arrangement, I know that the MET is 344 00:20:45,840 --> 00:20:49,399 Speaker 1: one of your long standing partners, that people can see 345 00:20:49,480 --> 00:20:55,000 Speaker 1: the amazing spectacle and talent that is on display in 346 00:20:55,040 --> 00:20:57,959 Speaker 1: these operas. It is it is I think you know, 347 00:20:58,000 --> 00:21:00,439 Speaker 1: any anybody the MET will tell you that it is 348 00:21:00,480 --> 00:21:04,320 Speaker 1: an older audience and sadly seems like it's fading, and 349 00:21:04,880 --> 00:21:08,080 Speaker 1: hopefully this is a way to make it available to 350 00:21:08,119 --> 00:21:10,600 Speaker 1: people that would never be able to get to Lincoln 351 00:21:10,640 --> 00:21:16,040 Speaker 1: Center and see the the incredible spectacle that is just 352 00:21:16,160 --> 00:21:19,199 Speaker 1: that is just this this art form that is you know, 353 00:21:19,359 --> 00:21:22,800 Speaker 1: that that really needs that needs the boost of having 354 00:21:23,240 --> 00:21:26,000 Speaker 1: more people than can get to Manhattan and Los Angeles 355 00:21:26,080 --> 00:21:29,159 Speaker 1: and Paris and Rome to be able to hear this 356 00:21:29,320 --> 00:21:33,560 Speaker 1: incredible music, the beauty of the Met when that's I mean, 357 00:21:33,560 --> 00:21:36,480 Speaker 1: it's been You're right, it's been a long, long term relationship. 358 00:21:36,640 --> 00:21:40,680 Speaker 1: We have a great, great relationship with them, and it 359 00:21:40,760 --> 00:21:44,160 Speaker 1: was an ingenious idea that would predates my time at 360 00:21:44,200 --> 00:21:48,200 Speaker 1: Fathom to actually take that live out of Lincoln Center 361 00:21:48,240 --> 00:21:50,800 Speaker 1: and bring it not only to the United States but 362 00:21:50,880 --> 00:21:54,080 Speaker 1: all over the world. And I think the one thing 363 00:21:54,119 --> 00:21:56,600 Speaker 1: that really impressed me when I first became familiar with 364 00:21:56,640 --> 00:21:59,320 Speaker 1: the Met and the relationship and the programming of it 365 00:21:59,400 --> 00:22:02,520 Speaker 1: was was kind of like you said that if you're 366 00:22:02,520 --> 00:22:06,040 Speaker 1: sitting in that movie theater, you're actually seeing something that 367 00:22:06,119 --> 00:22:08,360 Speaker 1: you cannot see. If you're sitting in that seat at 368 00:22:08,359 --> 00:22:13,160 Speaker 1: the mat, you're seeing something in backstage. You're seeing costume changes, 369 00:22:13,200 --> 00:22:18,600 Speaker 1: you're seeing some backgrounds, you know, stories about the actors 370 00:22:18,760 --> 00:22:22,840 Speaker 1: or whatever, and it really is fascinating and will grab 371 00:22:22,880 --> 00:22:26,560 Speaker 1: your attention in movie theaters. And that's also something about 372 00:22:26,600 --> 00:22:30,320 Speaker 1: Fathom in general. Every single one of our events, whether 373 00:22:30,359 --> 00:22:34,000 Speaker 1: it's a classic movie or the mat or whatever, has 374 00:22:35,359 --> 00:22:38,760 Speaker 1: added value content. Like I said before, for example, for 375 00:22:38,880 --> 00:22:42,359 Speaker 1: some of our classic movies, now we just hired Leonard 376 00:22:42,400 --> 00:22:46,439 Speaker 1: Malton to give a four or five minute introduction to 377 00:22:46,480 --> 00:22:49,240 Speaker 1: every single one of those. We have Casablanca coming up 378 00:22:49,320 --> 00:22:52,560 Speaker 1: and I just saw, I just saw his intro to that, 379 00:22:52,680 --> 00:22:56,320 Speaker 1: and he did an absolute fabulous job. So you know, 380 00:22:56,400 --> 00:22:59,600 Speaker 1: one of the renowned critics that is still left out there. 381 00:22:59,640 --> 00:23:01,879 Speaker 1: He just that he's a super super guy into the 382 00:23:01,920 --> 00:23:05,119 Speaker 1: super job for us. So it brings that added value 383 00:23:05,160 --> 00:23:07,720 Speaker 1: to the audience. And by the way, we command a 384 00:23:07,760 --> 00:23:10,240 Speaker 1: little bit higher ticket price at the box office as 385 00:23:10,240 --> 00:23:15,119 Speaker 1: well because of that added value. So that all plays 386 00:23:15,160 --> 00:23:19,560 Speaker 1: into the model with Fathom with classic movies. I did 387 00:23:19,560 --> 00:23:22,640 Speaker 1: see Casablanca was on your on your upcoming slate. What, 388 00:23:23,480 --> 00:23:25,800 Speaker 1: of course there are many classic movies. Is there something 389 00:23:25,840 --> 00:23:29,760 Speaker 1: that makes a classic movie that really work for a 390 00:23:29,840 --> 00:23:34,239 Speaker 1: Fathom Events presentation? Yeah, the first The first thing is 391 00:23:34,720 --> 00:23:37,600 Speaker 1: an anniversary title. So it's it's it's got to be 392 00:23:37,640 --> 00:23:45,000 Speaker 1: an anniversary. You love anniversary's. We love anniversaries, and I mean, 393 00:23:45,080 --> 00:23:47,359 Speaker 1: you know, we look at things like every five years. 394 00:23:47,359 --> 00:23:49,320 Speaker 1: So we do have a slate that says, Okay, this 395 00:23:49,359 --> 00:23:52,400 Speaker 1: one's coming out, that one's coming up. But the as 396 00:23:52,440 --> 00:23:55,679 Speaker 1: I always say, the classics are what reminds me of 397 00:23:55,680 --> 00:23:57,960 Speaker 1: how old I'm getting when I see a rain Man 398 00:23:58,040 --> 00:24:01,600 Speaker 1: that we're going to do later this year, or National 399 00:24:01,680 --> 00:24:05,320 Speaker 1: Lamp Run's vacation or something that just doesn't really seem 400 00:24:05,359 --> 00:24:07,560 Speaker 1: like it should be a classic, but it actually is. 401 00:24:07,600 --> 00:24:11,600 Speaker 1: We're all getting older, so so you know, the classics 402 00:24:11,600 --> 00:24:14,640 Speaker 1: have been a great, great source of entertainment for our audience. 403 00:24:14,800 --> 00:24:18,520 Speaker 1: Is a great source of revenue actually, and we've got 404 00:24:18,640 --> 00:24:21,479 Speaker 1: such a great partnership with all the studios. But the 405 00:24:21,520 --> 00:24:25,760 Speaker 1: reason for the getting back to the anniversary typically you'll 406 00:24:25,800 --> 00:24:30,159 Speaker 1: get home Entertainment division of the studios to participate with 407 00:24:30,200 --> 00:24:33,600 Speaker 1: the marketing or whether that's PR or you know, whatever 408 00:24:33,640 --> 00:24:36,920 Speaker 1: it is social and they may be releasing a blue 409 00:24:37,000 --> 00:24:39,360 Speaker 1: Raid do you know, whatever it might be as part 410 00:24:39,359 --> 00:24:42,520 Speaker 1: of the anniversary, so we'll help them with that advertising 411 00:24:42,520 --> 00:24:46,919 Speaker 1: in our movie theaters as well. So great mutual relationship. Yeah, 412 00:24:46,960 --> 00:24:49,040 Speaker 1: and for the studios, you know, to be able to 413 00:24:49,119 --> 00:24:52,199 Speaker 1: dust off a you know, custom blanca and get it, 414 00:24:52,280 --> 00:24:54,760 Speaker 1: you know, get it, put it out on it, give 415 00:24:54,760 --> 00:24:56,919 Speaker 1: it another run. It's I think some of these are 416 00:24:56,960 --> 00:24:59,879 Speaker 1: some of the most amortized movies of all time. But 417 00:25:00,320 --> 00:25:02,600 Speaker 1: but also I mean, you know, it's a chance to 418 00:25:02,640 --> 00:25:04,920 Speaker 1: see them on a big screen. I was fortunate that 419 00:25:04,960 --> 00:25:07,920 Speaker 1: I did grow up. There was a wonderful revival house 420 00:25:08,320 --> 00:25:10,600 Speaker 1: in South Pasadena where I grew up, and I just 421 00:25:10,640 --> 00:25:13,000 Speaker 1: got to see so many great movies. And there's just 422 00:25:13,080 --> 00:25:16,960 Speaker 1: no there's no replacement for seeing it on that big 423 00:25:17,040 --> 00:25:22,680 Speaker 1: silver screen. It's it's it's it's interesting because we did. 424 00:25:22,760 --> 00:25:27,560 Speaker 1: It's a wonderful life and this past holiday season great 425 00:25:27,600 --> 00:25:30,080 Speaker 1: movie obviously, but you could, you know, here's the thing. 426 00:25:30,200 --> 00:25:33,399 Speaker 1: You could see that as all your listeners knowing, you know, 427 00:25:33,920 --> 00:25:36,960 Speaker 1: you could see that on TV starting the day after Thanksgiving, 428 00:25:37,000 --> 00:25:39,840 Speaker 1: if not Thanksgiving, and running all the way through Christmas, 429 00:25:40,480 --> 00:25:44,919 Speaker 1: and and on Prime Network too, right, So it people 430 00:25:45,119 --> 00:25:47,280 Speaker 1: came out to the movie theaters to see it, and 431 00:25:47,359 --> 00:25:49,200 Speaker 1: I have my doubts, and I'm like, but it just 432 00:25:49,560 --> 00:25:52,639 Speaker 1: tells you what a great, great movie that is, and 433 00:25:52,760 --> 00:25:55,600 Speaker 1: how people want to take their grandkids to that or 434 00:25:55,720 --> 00:25:58,040 Speaker 1: whomever you know, their family members and just make it 435 00:25:58,640 --> 00:26:01,080 Speaker 1: a communal outing at the movie movie theaters. So it's 436 00:26:01,119 --> 00:26:03,959 Speaker 1: a great example of the classic movie that you can 437 00:26:04,000 --> 00:26:05,880 Speaker 1: see on that little box at home if you want, 438 00:26:06,000 --> 00:26:10,440 Speaker 1: but people wanted to actually see it at movie theaters Somewhere. 439 00:26:10,560 --> 00:26:18,600 Speaker 1: Frank Capra is smiling over that. Don't go anywhere. We'll 440 00:26:18,640 --> 00:26:22,320 Speaker 1: be right back with more from Ray Nuts, CEO of 441 00:26:22,440 --> 00:26:33,399 Speaker 1: Fathom Events. And we're back with more from Fathom Events 442 00:26:33,480 --> 00:26:39,000 Speaker 1: CEO Ray Nuts. You mentioned you get good trailer support 443 00:26:39,160 --> 00:26:42,040 Speaker 1: from your parent companies, which is a very big footprint 444 00:26:42,080 --> 00:26:44,840 Speaker 1: and obviously a huge boost. But are there other things 445 00:26:44,880 --> 00:26:46,639 Speaker 1: that you do. Do you use social media? How do 446 00:26:46,680 --> 00:26:49,800 Speaker 1: you get the word out with your target audiences, which 447 00:26:49,880 --> 00:26:55,399 Speaker 1: sometimes are not the most artment moviegoers. Yeah, I mean 448 00:26:55,520 --> 00:26:58,840 Speaker 1: we have a great, great marketing department. There's we rely 449 00:26:58,920 --> 00:27:00,920 Speaker 1: a lot on social and I know a lot of 450 00:27:00,960 --> 00:27:03,479 Speaker 1: people just talk about social, but our social is very, 451 00:27:03,640 --> 00:27:07,520 Speaker 1: very targeted to that audience. Uh. In terms of the trailer, 452 00:27:08,840 --> 00:27:10,920 Speaker 1: it's great. You know, I've mentioned winning the pool a 453 00:27:10,960 --> 00:27:13,720 Speaker 1: couple of times, but you know, we were fortunate enough. 454 00:27:13,840 --> 00:27:17,920 Speaker 1: We try to program content so it gets the eyeballs 455 00:27:17,960 --> 00:27:20,920 Speaker 1: that it needs as well. So we were trailering in 456 00:27:21,000 --> 00:27:23,600 Speaker 1: front of Knock at the Cabin for two weeks prior 457 00:27:23,680 --> 00:27:26,320 Speaker 1: to winning the Pooh coming out, so you know the 458 00:27:26,400 --> 00:27:31,200 Speaker 1: audience that we need. UM. So there's that. We also 459 00:27:31,359 --> 00:27:34,440 Speaker 1: rely on our content partners to bring a solid marketing 460 00:27:34,520 --> 00:27:38,080 Speaker 1: plan to the table and that's all negotiated in advance 461 00:27:38,160 --> 00:27:43,320 Speaker 1: of us accept that are licensing and distributing content to 462 00:27:43,400 --> 00:27:46,639 Speaker 1: the theaters. So if there's if there is a solid 463 00:27:46,720 --> 00:27:50,200 Speaker 1: marketing plan, we obviously are interested in it. But I 464 00:27:50,320 --> 00:27:52,960 Speaker 1: will tell you there's we do about one hundred and 465 00:27:53,000 --> 00:27:55,160 Speaker 1: seventeen while last year we did one hundred and seventeen 466 00:27:55,200 --> 00:27:59,280 Speaker 1: events during the year UM, and we look at about 467 00:27:59,320 --> 00:28:01,520 Speaker 1: three thousand pieces of content. So it gives a little 468 00:28:01,560 --> 00:28:05,280 Speaker 1: perspective on how many you know, things that we look at. UM. 469 00:28:05,520 --> 00:28:08,760 Speaker 1: And I sort of look at at Fathom as kind 470 00:28:08,800 --> 00:28:12,440 Speaker 1: of kind of servicing this middle window that's really not 471 00:28:12,560 --> 00:28:15,320 Speaker 1: competitive with anything at the end of the day. UM, 472 00:28:15,640 --> 00:28:19,000 Speaker 1: it's you know, there's content that that is worthy of 473 00:28:19,560 --> 00:28:22,840 Speaker 1: product production that goes to the major studios and so forth. 474 00:28:22,920 --> 00:28:25,760 Speaker 1: Although I will say Fatom is the temph largest distributor 475 00:28:26,200 --> 00:28:29,679 Speaker 1: in North America right now behind all of those guys Disney, 476 00:28:29,760 --> 00:28:32,760 Speaker 1: Warner Brothers and so forth. Um. And then on the 477 00:28:32,840 --> 00:28:35,520 Speaker 1: other end of the spectrum is content that you know, 478 00:28:35,680 --> 00:28:37,960 Speaker 1: we look at and it just doesn't meant for the 479 00:28:38,040 --> 00:28:40,479 Speaker 1: big screen. So we reject that and it probably never 480 00:28:40,640 --> 00:28:42,920 Speaker 1: does get get to hit the big screen. For the 481 00:28:43,000 --> 00:28:45,880 Speaker 1: most part, we service that thing right in the middle. 482 00:28:46,440 --> 00:28:50,280 Speaker 1: And um, and it's a it's it's not competitive, it's 483 00:28:50,320 --> 00:28:53,960 Speaker 1: an incremental window. And it's a way for content partners 484 00:28:54,040 --> 00:28:58,920 Speaker 1: to certainly um, you know, monetize in a different window 485 00:28:58,960 --> 00:29:04,880 Speaker 1: and an incremental incremental window um their content with Fathom, right. 486 00:29:04,960 --> 00:29:06,960 Speaker 1: I know that before coming to Fathom, you have a 487 00:29:07,000 --> 00:29:09,680 Speaker 1: long a long history, a long track record of working 488 00:29:09,760 --> 00:29:15,000 Speaker 1: in exhibition and film the film distribution area. What, um, 489 00:29:15,240 --> 00:29:17,200 Speaker 1: you know, what what do you think in the big picture? 490 00:29:17,240 --> 00:29:19,000 Speaker 1: I know this, we could talk for another hour about this, 491 00:29:19,160 --> 00:29:21,880 Speaker 1: but in the in the big picture, what do you 492 00:29:22,040 --> 00:29:24,440 Speaker 1: think is going to be? What are what's the road 493 00:29:24,600 --> 00:29:29,760 Speaker 1: back to you know, real health for traditional exhibition. I 494 00:29:30,040 --> 00:29:32,840 Speaker 1: just loved if you have any thoughts about what the 495 00:29:32,920 --> 00:29:35,400 Speaker 1: marketplace needs to do, because one thing I know is 496 00:29:35,480 --> 00:29:38,640 Speaker 1: that even before the pandemic, there was there was some 497 00:29:38,800 --> 00:29:41,120 Speaker 1: pain in them in the sector. It was, there were 498 00:29:41,240 --> 00:29:43,560 Speaker 1: there were some there were some problems that were kind 499 00:29:43,560 --> 00:29:45,520 Speaker 1: of coming to the bore, and then of course the 500 00:29:45,600 --> 00:29:48,200 Speaker 1: pandemic just was the wallop that you know, nobody really 501 00:29:48,240 --> 00:29:52,840 Speaker 1: saw coming, but would love your perspective on the larger inhibition. Yeah. 502 00:29:53,680 --> 00:29:56,920 Speaker 1: I had spent thirty to thirty five years on the 503 00:29:57,760 --> 00:30:01,440 Speaker 1: theater exhibition side of the business with United Artists Theaters 504 00:30:01,520 --> 00:30:04,080 Speaker 1: and then a Regal Entertainment Group before coming over here 505 00:30:04,120 --> 00:30:07,760 Speaker 1: to Fathom five and a half years ago. And I've 506 00:30:07,840 --> 00:30:11,360 Speaker 1: seen in those years many many changes in this industry. 507 00:30:12,120 --> 00:30:15,120 Speaker 1: I also come from the cable television background, so it 508 00:30:15,360 --> 00:30:19,320 Speaker 1: was you know, VCRs and then cable television that was 509 00:30:19,360 --> 00:30:22,160 Speaker 1: going to put theaters out of business and that didn't happen, 510 00:30:22,200 --> 00:30:25,160 Speaker 1: and it was windows and that has had an impact 511 00:30:25,240 --> 00:30:28,080 Speaker 1: on the theatrical business. But it hasn't put the theaters 512 00:30:28,120 --> 00:30:32,200 Speaker 1: out of business either. You know, theaters obviously went through 513 00:30:32,240 --> 00:30:35,160 Speaker 1: a very difficult time, as did Fathom during the pandemic. 514 00:30:35,840 --> 00:30:39,400 Speaker 1: So coming out of there we had a Fathom, we 515 00:30:39,560 --> 00:30:42,960 Speaker 1: had an acronym called Hope. You know, it was the 516 00:30:43,720 --> 00:30:45,480 Speaker 1: you know, I started this right at the beginning of 517 00:30:45,560 --> 00:30:47,800 Speaker 1: the pandemic. I said, I don't know where this thing's going, 518 00:30:47,840 --> 00:30:50,320 Speaker 1: none of us with faces before, but it's the health 519 00:30:50,360 --> 00:30:55,040 Speaker 1: of our organization. We need to remain optimistic, we need 520 00:30:55,080 --> 00:30:57,280 Speaker 1: to be persistent in what we're doing, and then we 521 00:30:57,360 --> 00:31:00,480 Speaker 1: need to excel coming out of the pandemic. And certainly 522 00:31:00,600 --> 00:31:04,440 Speaker 1: in that excel period right now. I've been very fortunate 523 00:31:04,600 --> 00:31:08,120 Speaker 1: enough in my career to maybe be at the right 524 00:31:08,200 --> 00:31:10,880 Speaker 1: place at the right time. I formed four or five 525 00:31:11,000 --> 00:31:15,440 Speaker 1: joint ventures with theater operators. Fathom was one of them. 526 00:31:15,640 --> 00:31:19,640 Speaker 1: NCM was one of them. DCIP financing the technology to 527 00:31:19,760 --> 00:31:24,440 Speaker 1: put into movie theaters DCDC, which actually you know, put 528 00:31:24,880 --> 00:31:29,760 Speaker 1: a network into theaters. And so you know, I look 529 00:31:29,800 --> 00:31:33,520 Speaker 1: at Fathom as being in the right place at the 530 00:31:33,680 --> 00:31:36,720 Speaker 1: right time right now. In terms of the biggest the 531 00:31:36,880 --> 00:31:41,680 Speaker 1: bigger picture with the industry, there's there's no smoking gun 532 00:31:41,960 --> 00:31:45,000 Speaker 1: that is, in my opinion at least that's going to 533 00:31:46,320 --> 00:31:50,040 Speaker 1: quote say the industry or move it forward. It's people 534 00:31:50,400 --> 00:31:54,840 Speaker 1: with vision that entails many different things, and I'll just 535 00:31:55,000 --> 00:31:57,920 Speaker 1: relate it to distribution of content because that's what I'm 536 00:31:57,960 --> 00:32:03,080 Speaker 1: in right now. You know, people recognize, you know, when 537 00:32:03,160 --> 00:32:06,680 Speaker 1: Fathom finishes eighty six percent of twenty nineteen the industry 538 00:32:06,760 --> 00:32:10,200 Speaker 1: sixty six percent. That should send a message that this 539 00:32:10,640 --> 00:32:13,280 Speaker 1: is viable in terms of the future of the business. 540 00:32:13,360 --> 00:32:15,160 Speaker 1: Not Is it the holy grail that's going to say 541 00:32:15,240 --> 00:32:18,240 Speaker 1: the industry. Absolutely not. I'm not going to ever pretend 542 00:32:18,320 --> 00:32:20,760 Speaker 1: that that's going to be the case. I hope I 543 00:32:20,840 --> 00:32:24,840 Speaker 1: eat my words. But anyway that that that probably won't happen. 544 00:32:25,280 --> 00:32:29,400 Speaker 1: Will it be a vital factor of many different factors 545 00:32:29,560 --> 00:32:34,200 Speaker 1: in the industry. Absolutely, And so I think I think 546 00:32:34,360 --> 00:32:40,720 Speaker 1: the industry has some visionaries that have done some things 547 00:32:40,760 --> 00:32:42,840 Speaker 1: in the past, have learned some things in the past, 548 00:32:43,440 --> 00:32:45,640 Speaker 1: have been humbled. You know, we've all been humbled by 549 00:32:45,680 --> 00:32:49,480 Speaker 1: the pandemic obviously in the past. And I think that 550 00:32:50,120 --> 00:32:53,800 Speaker 1: those folks with the greatest vision of a little here, 551 00:32:53,960 --> 00:32:56,520 Speaker 1: a little there, and a little over here will will 552 00:32:56,800 --> 00:33:01,560 Speaker 1: really help the industry grow and becomes something that, you know, 553 00:33:01,640 --> 00:33:03,720 Speaker 1: whatever the next phase is. But I can tell you 554 00:33:03,880 --> 00:33:07,280 Speaker 1: that the kind of content that Adam is distributing, we 555 00:33:07,400 --> 00:33:18,040 Speaker 1: will play a significant part of that moving forward. Thanks 556 00:33:18,080 --> 00:33:20,640 Speaker 1: for listening. Be sure to leave us a review at 557 00:33:20,640 --> 00:33:24,320 Speaker 1: Apple Podcasts. We love to hear from listeners. Please go 558 00:33:24,400 --> 00:33:26,920 Speaker 1: to Variety dot com and sign up for the free 559 00:33:27,360 --> 00:33:30,680 Speaker 1: weekly Strictly Business newsletter, and don't forget to tune in 560 00:33:30,800 --> 00:33:33,640 Speaker 1: next week for another episode of Strictly Business.