Member News Category: All Members

Letter from the CEO

FOR YOUR CONSIDERATION…

I cannot start this note without thanking everyone that joined us in Vegas for CinemaCon 2024 and helped make it a special week. I enjoyed talking with so many exhibitors, vendors and distributors about the key issues facing our industry.  Since I have returned to the east coast, I have spent three successive Saturday mornings enjoying a series of Cary Grant movies (Charade, The Philadelphia Story and The Awful Truth) at my local Alamo Cinema and Drafthouse. The age range of the audiences was notable – starting with fans in their twenties all the way to people my age and older. At the end of the movie, people stayed and talked about what they saw – always with a smile on their faces. It was a terrific example of “community” that was one of our themes at CinemaCon. But it also got me thinking about a question that arose in Vegas and in the press that followed – are there too many movie screens in America? This is a question that will continue to be asked until our industry is fully recovered.  In today’s instant gratification world, many believe this as a simple “yes or no” question.  And for others it’s a simple question of addition or subtraction. We know better.  

In the past four years our industry has weathered, the loss of FOX, the ongoing global economic down-turn, two lengthy labor stoppages, and the global pandemic.  As a result, the entire cinematic industry, not just exhibition, is still in recovery. The number of films available is direct evidence of this fact. There will be a stabilization point, but we are not there yet, making this inquiry premature at best. 

Driving this conversation is the perception that the US market is saturated from a screen perspective. The truth is that when you look at the issue market by market, there are growth areas with very positive economic indicators. We are seeing people buying closed theatres, upgrading them, and successfully re-opening them. There are places across the country, including many in mid-America that have a very positive cash flow. You are also seeing some of the greatest innovation in these areas – family entertainment centers, for example – that provide consumers of all ages the experiences they want.  Despite the continuing high cost of money slowing the pace and scale of these upgrades, they will accelerate as the industry and economy return to full strength. 

Finally, as we know, there are theatres of all sizes spread across this country. They serve communities big and small, and they are all important pieces of the American cinematic experience. In many cases, a theatre in a small, rural community may provide the people in that town and surrounding towns, their only opportunity to have a shared moviegoing experience. Perhaps they won’t make as much each year as a theatre in a large city, but they add value in incalculable ways. It is incredibly important that we retain these types of theatres. That feeling of community I felt at a Cary Grant movie is one you feel everyday all across this nation. The theatre is a place for everyone. This isn’t just an accounting exercise, it’s a culture imperative.

So, to anyone searching for a yes or no answer, I’m sorry. Ultimately, the marketplace will set the number of screens as it always has. But let others speculate or rush to judgment. We should keep doing what we have always done – give fans that love movies on the big screen the best theatrical experience possible, every day, across this great nation.  

Michael O’Leary

---

CinemaCon 2024 Highlights

Thank you to everyone who came out to CinemaCon! It was a great week and we cannot wait for all the great titles coming out this year! Mark your calendars for CinemaCon 2025 March 31 – April 3.

---

Member Updates

---

NATO ACROSS THE COUNTRY

NATO UPDATES & EVENTS

Retaining and Cultivating A Customer Base

With the big summer season starting capitalize on those big movie titles movie goers are excited to see. Join NATO for a webinar  on leveraging those titles to cultivate a loyal customer base on Thursday, May 9 at 11:00 am PST/2:00 pm EST. This session will provide valuable insights from theatre owners of different sizes on how to keep people coming back to the movies on a regular basis. Sign up for the webinar here. 

Become a NATO Ambassador TODAY
If you are someone who is dedicated to NATO and the work we do together through our association, you should consider signing up to become a NATO Ambassador! All NATO Ambassadors will receive access to training materials and guidelines. NATO Ambassadors will work closely with the Director of Membership on all program initiatives. NATO Ambassadors can expect to contribute about three hours of work per month by working on various aspects of the following program goals:

• Recruitment of new members 
• Retention of current members 
• Improved onboarding of new members 
• Increased diversity of membership and volunteer pool 

Sign up to be a NATO Ambassador here!

Mental Health Tips for Theatre Operators

In case you missed it, a link to our April webinar with the Will Rogers Foundation can be found here. Looking after ourselves and our employees is better for our theaters in the long run, this webinar has helpful tips to help not only our own mental health but our employees too. May is world mental health month, feel free to share with your teams and beyond!  

State of the Industry – May
Our quarterly SOTI will be held on Thursday, May 16 at 11:00 am PST/ 2:00 pm EST. Sign up here to attend that SOTI

---

NATO IN THE NEWS

IndieWire: How to Get Young Audiences in Theaters? Show Old Movies
Speaking to press at CinemaCon, National Association of Theater Owners president Michael O’Leary said communication between theaters and distributors is trending in the right direction. Exhibitors are urging distributors to use a theater’s marketing arm to better tap into local audiences — a group that exhibitors would know better than distributors. They’re starting to listen.

“Having that type of conversation happen is a huge step forward,” O’Leary said. “They seem insignificant in the abstract, but if you do that enough times, it becomes a habit, and you start to see some lift in the market.”

READ FULL ARTICLE

Screen Daily: CinemaCon: NATO’s Michael O’Leary urges investment in theatres, MPA’s Charles Rivkin fiery on piracy

O’Leary urged investors to support exhibition and touched on what is already shaping up to be a signature theme of his tenure – support for the independent sector and lower budget cinema.

“Getting more capital into the system will benefit everyone – creatives, studios, exhibition, local communities and, most importantly, movie fans,” O’Leary told attendees at The Colosseum.

“Movies on the big screen benefit everyone. More compelling movies bring more movie fans to the theatre, which in turn increases the desire of consumers to return and see what is coming next. Everyone wins.”

The NATO president and CEO continued: “We should always support partners and marketplace decisions that increase movie production and put more movies with a clear, exclusive theatrical run and marketing support into your cinemas.

“We know that a movie that begins its journey with theatrical exclusivity is more successful in every subsequent ancillary platform.”

READ FULL ARTICLE

---

GOVERNMENT AFFAIRS

DOL Increases Compensation Threshold for Exempt Employees
On April 23, 2024, the U.S. Department of Labor published its final rule that revises the Fair Labor Standards Act (FLSA) to significantly increase the minimum salary levels to qualify for executive, administrative, and professional (EAP) and highly compensated employee (HCE) exemptions from overtime requirements. Click here for a memo that summarizes key changes adopted in the Final Rule.
 
DOJ Final Rule on Website Accessibility for State and Local Governments
The U.S. Department of Justice has issued a final rule on website accessibility for state and local governments under the ADA’s Title II, hinting at future regulations for the private sector under Title III and the Rehabilitation Act. Although currently applicable only to state and local governments, this rule is expected to influence private sector website standards, as it establishes the first comprehensive regulatory framework for web accessibility. Given the DOJ’s authority over both public and private entities under various laws, this rule likely foreshadows stricter accessibility requirements for businesses that are public accommodations or receive federal funding. Read DOJ’s fact sheet and press release.
 
FTC Announces Rule Banning Noncompetes
After the Federal Trade Commission announced a final rule prohibiting noncompete agreements last week, the U.S. Chamber of Commerce and other business groups filed a lawsuit against the agency in the U.S. District Court for the Eastern District of Texas. The lawsuit alleges that the FTC Act only allows the agency to bring cases challenging particular practices and that the agency does not have the authority to issue rules that define unfair methods of competition. Under the new rule, existing noncompetes for the vast majority of workers will no longer be enforceable after the rule’s effective date, which is 120 days from the day it is published in the Federal Register. Click here for the FTC press release.

---

The Cinema Foundation

2024 Pledges

Fulfill your 2024 pledge today – click here to donate. Your continued support enables us to strengthen the cinema industry & engage moviegoing audiences.

Stay tuned for exciting updates on this year’s industry promotional initiatives and data and research reports.

---

New Member Spotlight

Kennett Palace Theater, Kennett, MO
RGR Theatres, Window Rock, AZ
Cinema Filmtheater, Munich, Germany
Spring Theatre, Springhill, LA

---

Box Office

January 1-April 30, 2023: $2,659,967,608
January 1-April 30, 2024: $2,085,542,103
-21.6% year/year

---

Please refrain from sharing these links with non-members, vendors, distributors, the media, and outside consultants (financial or otherwise), or posting them on any public website, social media account, or message board. NATO provides these webinars, meetings, and services exclusively for NATO member company personnel.

Letter from the CEO

FOR YOUR CONSIDERATION…

I am thrilled to report that I am not writing this from an airport or a plane!

Although by the time you read this, I will be on my way to Los Angeles for an important week of meetings with the Global Cinema Federation (GCF). Chaired by Alejandro Ramirez of Cinépolis, the GCF is a collective of global cinema leaders dedicated to educating and advising policymakers, the media, and the public on the importance of global cinema. Ours is an international industry and the meetings next week with the studios and the guilds are a meaningful opportunity for NATO to support international exhibition. I also want to note that the following week, at CinemaCon, we will be holding a press conference for the international media to further promote the leadership and importance of the international exhibition community.  I am looking forward to it!

On the domestic front, I had the privilege of joining my NATO colleagues Erin Von Hoetzendorff and Todd Halstead in Dallas recently for the dual celebration of B&B Theatres 100th anniversary and the opening of their amazing new family entertainment center, the Red Oak 12.  The Bagby family pulled out all the stops at Red Oak and created a place where families and people of all ages can go and have fun. Multiple screens with something for everyone – including an auditorium with a playground where kids can play before settling in to watch a movie, as well as a theatre modelled after their first theatre, the Lyric, which opened in 1924. Beyond the movies, Red Oak boasts a restaurant, bars, an arcade, a bowling alley, an outdoor live entertainment area complete with pickleball courts!  It is no wonder the event was full of well-wishers from exhibition, the studios, and the vendor community. As a part of the 100th anniversary celebration, the Bagby kids, Bobbi, Brittany, and Brook were all promoted to Presidents at B&B. The family business is in good hands, and we look forward to their next 100 years! Congratulations.

Of course, no matter where the NATO team is these days, CinemaCon is always at the forefront of our thoughts.  Mitch, Matt and Matt have built another amazing program, and it promises to be a terrific week. The NATO and Cinema Foundation teams are working collaboratively to ensure that all NATO members enjoy their time in Vegas. We have a lot of initiatives we are excited to share with all of you, and of course, we are all looking forward to the studio presentations.  We have much to celebrate and important planning to do for the year ahead.  There is nothing like CinemaCon and I can’t wait to see you all there.

-Michael O’Leary

---

NATO Across the Country

B&B 100th Anniversary

---

Member Updates

Congratulations to our members who have opened new locations in March!

---

NATO UPDATES & EVENTS

Mental Health Tips for Theater Employees

Join NATO and the Will Rogers Motion Picture Pioneers Foundation for a webinar focused on mental health strategies for theater employees on Thursday, April 18 at 11:00 am PST/2:00 pm EST. Acknowledging the challenges inherent in interfacing with the public, the team at Will Rogers will share invaluable insights and best practices designed to foster emotional resilience and well-being. This comprehensive session will provide practical guidance for both employers seeking to cultivate supportive environments and employees navigating the demands of public interaction. Join Will Rogers as they underscore the critical importance of prioritizing mental health. Sign up for the webinar here.

Become a NATO Ambassador TODAY
If you are someone who is dedicated to NATO and the work we do together through our association, you should consider signing up to become a NATO Ambassador! All NATO Ambassadors will receive access to training materials and guidelines. NATO Ambassadors will work closely with the Director of Membership on all program initiatives. NATO Ambassadors can expect to contribute about three hours of work per month by working on various aspects of the following program goals:

• Recruitment of new members 
• Retention of current members 
• Improved onboarding of new members 
• Increased diversity of membership and volunteer pool 

Sign up to be a NATO Ambassador here!

---

GOVERNMENT AFFAIRS

Congressional Action Still Needed After Visa and Mastercard Settlement
A proposed agreement announced this week for Visa and Mastercard to temporarily reduce “swipe” fees charged to merchants does not end the need for congressional action to increase competition in the credit card market. Under the proposed settlement, Visa and Mastercard would lower swipe fees by at least four basis points for a period of three years and reduce their overall average rates by seven basis points for a period of five years. After five years, all fees could be raised to more than make up for any temporary reductions.

NATO Opposes Attempt to Delay Changes to Debit Card Swipe Fees
This month, NATO joined other industries in urging federal lawmakers to reject legislation that would delay the Federal Reserve’s proposal to reduce the regulated rate for debit card swipe fees. Under the proposed rule, the Fed would lower the amount banks can charge for debit card transactions from 21 cents to 14.4 cents per transaction.

OSHA Walk Around Rule Out
Last week, OSHA issued its final rule on the worker walkaround representative designation process. The rule allows third parties, including unions, to accompany OSHA inspectors on facility inspections, even in non-unionized workplaces. While the final rule is largely the same as the proposal, there are small changes that actually broadens who can qualify as an authorized representative. NATO is a member of the Coalition for a Democratic Workplace, which issued a statement and is planning to file an amicus brief in the eventual legal challenge to the rule.

Joint Employer Final Rule Invalidated by District Court
On March 8, the District Court for the Eastern District of Texas invalidated the NLRB’s joint employer final rule. The judge in the case said the rule was too broad and violated the NLRA. The traditional joint employer standard—requiring direct and immediate control over workers’ terms and conditions of employment—is now in effect. The NLRB will likely appeal the ruling to the US Circuit Court for the 5th Circuit.

---

CinemaCon 2024 COUNTDOWN

Schedule of NATO Events
With CinemaCon just around the corner, we want to be sure you are aware of the various committee meetings taking place at CinemaCon. Please refer to the schedule of committee meetings. While some of these meetings are limited to committee members only, others are open to all or most NATO members. A few meetings are highlighted below. If you haven’t already RSVP’d for those events, but do plan to attend, please RSVP as soon as possible! The NATO team can’t wait to see you in Vegas!

---

The Cinema Foundation

The Foundation will be well represented at CinemaCon. Don’t forget to check out the following events:

Fundamentals of Presentation Technology
The Cinema Foundation and ICTA jointly present this seminar outlining cinema presentation technology in theaters for executives, operations and non-technical positions. Offered at two different times to accommodate scheduling preferences.
Monday, April 8
10:00 am – 11:45 am OR 1:00 pm – 2:45 pm
Neopolitan Ballroom III
Pre-register here

Data: The Knowledge of Today’s Consumer is the Currency of Tomorrow
The Cinema Foundation, in partnership with USC Annenberg School Center for the Digital Future, will present a practical approach to understanding the value of consumer data, presented by Marina Kosten, Senior Fellow, USC Annenberg School Center for the Digital Future
Tuesday, April 9
7:45 – 8:30 am
Palace Ballroom III

The ICTA /ISDCF/EDCF/CF/CIT TechTalk
Tuesday, April 9
6:45 pm – 8:00 pm, followed by a reception
Emperors Ballroom
RSVP HERE to join a discussion with the cinema technology community from around the world.

We Want To Meet at CinemaCon!
We’d love to catch up and hear from you! Please sign up for a time when you can tell us how we can assist you throughout the year or just say hello. We appreciate your support!

Click this link to sign-up for a 15-minute meeting. We look forward to seeing you in person!

---

New Member Spotlight

We are very excited to welcome our newest members of NATO!

Cine Mäntsälä / StoryHill Oy, Finland

The Starlite Drive-In, Terre Haute, IN

Kino Rex / Kino Thun AG, Switzerland

Nickelodeon Cinemas, Australia

Cult Cinemas, Brazil

Filmtheaterbetriebe Manfred Ewert KG, Germany

GoggleWorks Center for the Arts (The Boscov Theater), Reading, PA

Gokulam Pavilion, India

Ak-Chin Circle Entertainment Center, Maricopa, AZ

Movietown Entertainment GmbH &Co KG, Germany

---

Box Office

January 1-March 31, 2023: $1,754,628,317
January 1-March 31, 2024: $1,645,689,904
-6.2% year/year