Member News Category: All Members

Letter from the CEO

FOR YOUR CONSIDERATION…

Once again, I find myself writing to you from an airport. This time it is LAX in beautiful Los Angeles, where I am wrapping up a good week of meetings with the studios, media, and other industry partners.  It’s always good to visit LA, but I am looking forward to a few days at home.  February was a very busy time for NATO, and with CinemaCon looming on the horizon, the pace will only accelerate. If you have not registered for CinemaCon, please do so. You won’t want to miss what Mitch and the Matts have in store for us.

February saw the launch of an exciting new program under the leadership of NATO Membership Director Erin Von Hoetzendorff, called the NATO Ambassador Program. This program will develop a core of dedicated volunteers, “Ambassadors,” that will provide support for existing and new NATO members and will identify and work with potential NATO members as well.  These individuals, drawn from across the NATO membership, will be an invaluable resource in promoting the services and opportunities that NATO provides to its members. They will be available to answer questions and share experiences they have had with you to ensure that you are getting the most out of your NATO membership. We are excited to see all the great work Erin and the NATO Ambassadors will do.

Also this month, NATO partnered with the good folks at NATO of California/Nevada for a lobbying day in Sacramento. Amanda Martin and Todd Vradenburg of NATO CA/NV led this effort which included NATO’s Todd Halstead, Art Murtha and Jeremy Leach of Cinemark, and Damon Rubio of D’Place Entertainment. During Sacramento Day, the team met with the staff of Governor Newsom, the California Chamber of Commerce, and key legislators and staff form the legislature’s Arts, Entertainment, Sports, and Tourism Committee. The meetings focused on educating members about the positive economic and cultural impact of exhibition in the Golden State. Following a day of meetings in the Capital, members of the Assembly and staff took part in a reception at the state-of-the-art Century Cinemark and XD theater located in downtown Sacramento. Attendees were able to view a slate of upcoming Warner Bros films and enjoyed a special in-person presentation by the Ticket to Ride podcast duo, Paul Dergarabedian and Mike Polydoros. These types of events are important as we work to strengthen our advocacy operation. We are already planning more outreach in California as well as similar “Capital Days” in other key states around the country. Thank you to everyone that contributed to making this day a success.

This week saw a delegation of leaders from NATO’s Independent Theatre Owners Coalition (ITOC) come to Los Angeles to meet with the heads of distribution from seven major studios. These were constructive and substantive conversations that focused on key issues like film availability, scheduling optimization, and marketing among others. Representing ITOC was Chairperson Colleen Barstow, as well as Chris Johnson, Joe Masher and John Vincent. These meetings will be the first of what NATO expects to be an ongoing dialogue between our partners in distribution and NATO independents. As noted, the conversations were positive, and I believe we can build on them in future discussions. At this point, we have identified the areas of greatest concern to independents and are working collaboratively to fashion workable solutions that benefit everyone involved. A special thank you to the ITOC delegation for a tremendous job in representing independents of all sizes in these meetings.

I am happy to report that once I get home, I will be going to see Dune II tomorrow. I am very excited to see this film and more excited that this will signal the return of more and more movies to your theatres as the year goes on.  We have had some surprising successes thus far in 2024 — most recently, One Love — but movie-goers the world over are anxious for a steady stream of compelling options to return.  I cannot wait to see Dune II, and I hope that millions of movie fans flood your theatres to see it as well.

 – Michael

NATO Across the Country

Art Murtha, Damon Rubio, Jeremy Leach, Todd Halstead, Amanda Martin, and Todd Vradenberg in Sacramento

Thank you to The Wilmette Theatre for hosting NATO at an amazing community event in support of local bands and The Woolgathering Project. Since 2013, this fantastic charity has collected and distributed over 50,000 pairs of socks to those in need. This month’s event collected nearly 1,400 more for this great cause. A big shout-out to Karen Barr and Amy Falkowski, the dynamic duo who operate the Wilmette Theatre, which is located in a charming village outside of Chicago. Through their hard work and dedication, this nonprofit cinema, founded in 1913, significantly enriches the cultural life of the community with films and live shows.

Joe Masher, John Vincent, Chris Johnson, Chris Aronson, Melanie Valera, Michael O’Leary, and Colleen Barstow at dinner during the ITOC studio visits. 

NATO UPDATES & EVENTS

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!

Fortifying the Big Screen: Cybersecurity Strategies for Movie Theater Operators
Join NATO on Thursday, March 14 at 11:00 am PST/2:00 pm EST for our monthly webinar on Cybersecurity. The movie theatre industry faces a unique set of cybersecurity challenges, with threats growing more sophisticated by the day. This webinar, designed specifically for movie theater operators, aims to shed light on the evolving landscape of cybersecurity threats that target the entertainment sector. Participants will gain insights into the specific vulnerabilities that theaters face, from box office transactions to digital film distribution and customer data protection. Sign up for the webinar here.

Calling all NATO Young Members (40 years old or younger)
There’s a virtual Young Members Community conversation about career development coming up on Thursday, March 7 at 11 am Pacific/2 pm Eastern. Join Young Members Community Chair and Vice Chair, Brock Bagby and Matt Hoopfer, as they talk to Frank Martinez, Head of Sales, Theatrical Distribution at A24 Films, about his journey from movie theater employee to studio exec. This will be meeting, not a webinar! Come prepared with your own questions for Frank and get ready for an engaging discussion.
Click here to register!

Q1 SOTI
In case you missed it, find a link to our first SOTI of the year here.

Company Logos Collection
NATO needs your help! We want to feature NATO member logos at CinemaCon, which means we’ll need a HIGH RESOLUTION .EPS or .AI file of the logo from you. We are asking all of our members to provide your company logo via dropbox, using this link. 
Before uploading, please ensure your file is named with the following format: company name_HQ city_HQ state abbreviation. For example, if I uploaded a logo for NATO, which is headquartered in Washington, DC, I would name the file NATO_Washington_DC.
If you have questions or concerns about this, please contact Erin Von Hoetzendorff at evh@natoca.com.

GOVERNMENT AFFAIRS

NATO Advocates for FTC to Exclude Movie Theatres From “Junk Fees” Rule
NATO submitted comments urging the FTC to exempt the movie theatre industry from its proposed rule on deceptive fees, highlighting that the industry’s transparent and optional convenience fees differ significantly from the “junk fees” targeted by the rule. NATO emphasizes the potential negative consequences for both the industry and consumers if included. This plea comes amidst growing bipartisan concern over hidden fees across various sectors, with proposed measures seeking to mandate all-inclusive pricing.

CinemaCon 2024 COUNTDOWN

Independent Cinema’s Spotlight Shines at Caesars Palace 

The Independent Theatre Owners Coalition (ITOC) annual meeting returns to CinemaCon in Caesars Palace on Monday, April 8, from 11:30am to 2:45pm PDT. Join us for this important gathering where operators of small business cinemas, non-profits, and art houses engage in meaningful discussions, network, share experiences, and contribute to the future of the independent movie theatre industry. We respectfully request that companies attending the ITOC meeting restrict their representatives to individuals who are actively engaged in management and operations. 

Special Note for 2024: For the first time ever, independent cinema owners and operators with more than 75 screens are invited to register for the ITOC meeting. This expansion aims to encompass a wider range of voices within the independent cinema community, enhancing our discussions and collaborative efforts.

NATO in the News

CNBC
‘Dune: Part Two’ looks to end box office drought with $80 million opening
While Warner Bros. is projecting a conservative $65 million debut for the much anticipated sci-fi sequel, box office analysts foresee a haul between $70 million and $80 million. Especially, as moviegoers are likely to gravitate toward premium large format screenings, which are pricier than regular tickets.

Bloomberg
Hollywood Is Banking on Dune: Part Two to Revive the Blockbuster Experience
“Everywhere I go, everyone’s always asking me, ‘When’s Dune opening? When’s Dune opening?’ We really need that first blockbuster to start the year, as blockbusters fuel ticket sales for other movies, and I think Dune 2 is going to be it for us,” says Bob Bagby, chairman of the National Association of Theatre Owners and chief executive officer of the 100-year-old B&B Theatres chain. B&B’s ticket presales for the sequel are the best since the Taylor Swift: The Eras Tour concert movie, released in October, Bagby says.

CinemaBlend
‘I Could Rave About This Movie Forever’: Top Movie Theater Executives Talk About Massive Impact Godzilla Minus One Had On The Industry
While the world is more than primed to see Godzilla x Kong: The New Empire absolutely crush on the 2024 movie schedule, it was quite the surprise when the Toho-produced Godzilla Minus One went on to stomp out its own path to glory. As the domestic run of the film draws to a close, it’s insane to look at the records co-writer/director Takashi Yamazaki has broken, with an estimated $104.7 million total in worldwide grosses.

That Cinderzilla story became quite a lesson for top theater executives throughout the National Association of Theatre Owners, and the recent re-release of Godzilla Minus One/Minus Color only further reinforced those ideas. As I was able to speak with several exhibitors on behalf of this variant’s limited theatrical run, it led to some exciting feedback on how this film and its massive impact on the industry. 

The Cinema Foundation

New Member Spotlight

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

Twilight Drive-In, Aldergrove, BC, Canada
Red Cinemas LLC, Greensboro, NC
Jam Jar Cinema, Whitley Bay, Tyne & Wear, United Kingdom
Multisala Odeon, Pisa, Italy
The Historic Artcraft Theatre, Franklin, IN

Box Office

January 1-February 28, 2023: $1,100,772,769
January 1-February 28, 2024: $880,511,977 -20% year/year

Letter from the CEO

FOR YOUR CONSIDERATION…

I am writing this from the airport in Omaha awaiting my flight back to DC after a fun night with the Barstows at their ACX Cinema 12+ in Elkhorn, NE. It was terrific to catch-up with Colleen, Bill and Andrea and tour their wonderful family entertainment center. Everything is state of the art at the Cinema 12+. They have 12 auditoriums, one of which houses the largest commercial screen in Nebraska (incredible), two bars, games for kids, multiple places for people to meet and relax, a great outdoor deck (for the warmer months), a terrific reception space and an amazing restaurant, Backlot Pizza and Kitchen. The food and wine at Backlot was memorable as was the chance to talk with the Barstows about their passion for this industry. Thank you, Colleen and Bill, for the invite. Everything about the ACX Cinema 12+ challenges the conventional ideas that many still hold about what going to the theatre means. It is a stunning example of exhibition responding, in a big way, to todays movie-going public. We must do a better job of highlighting the great movie showhouses that dot this nation and show Hollywood and the world what going to the movies really looks like.

Since my flight is now delayed, I am catching up this morning on the fallout from the Oscar nominations. But before turning to that, let’s go back to the start of this year’s award season and Margot Robbie’s salute to movie lovers and to the magic of the theatre. In accepting the newly created award for Cinematic and Box Office Achievement at the Golden Globes, Robbie lent her unwavering support to magic of theatrical exhibition, saying, “I would like to dedicate this to every single person on the planet who dressed up and went to the greatest place on earth, the movie theaters.” What an amazing way to start the new year! And a tip of the hat to the Golden Globes for creating an award that recognizes the people all over the world who love movies.

Speaking of people who love movies, Barbie fans everywhere are angry that Greta Gerwig was not nominated for best director. Being at the helm of a movie that had the cultural and financial impact of Barbie made this omission a surprise. A New York Times article suggested that the nominating body may, in the end, just see Barbie as a movie about a toy. Regardless of how one felt about the movie, no one can honestly say it was just about a toy. And with all due respect to Toy Story, if making a movie about a toy that grosses nearly $1.5 billion is so easy, why hasn’t anyone done it before? To be fair, this was a stacked year and there were lots of worthy candidates in all categories, but Gerwig’s omission has taken center stage. Frankly, America (and the world) loves drama, and this is certainly that! But the debate and the emotion around Gerwig’s omission is yet another reminder of just how much people love movies and how they often drive our cultural conversations.

Looking at the nominations overall, they reflect the variety of movies that were available in 2023. Blockbusters like Barbie and Oppenheimer, Killers of the Flower Moon, as well as smaller fare like The Holdovers, American Fiction, and even foreign films like Anatomy of a Fall, which I loved. It’s a clear reminder that if movie fans have compelling films to choose from, they will respond. Award season is great for exhibition, not just because people come out and take a look at the nominated films, but because they remind the world all the magical possibilities that exist at the cinema. For that reason alone, award season in Hollywood is worth celebrating.

Assuming I make it home, I am seeing The Holdovers tomorrow, and Zone of Interest the following day. I am looking forward to not being on a plane and spending a few magical hours in the greatest place on earth.

• Michael

NATO UPDATES & EVENTS

February SOTI – Register Now
Please join us for our first SOTI of the year on February 15 at 2:00 EST/ 11:00 am PST! The link to register for the SOTI can be found here.  

Small Business Tax Tips
In case you missed our webinar on best tax practices for small businesses with author Barbara Weltman, that can be found here. 

Company Logos Collection
NATO needs your help! We want to feature NATO member logos at CinemaCon, which means we’ll need a HIGH RESOLUTION .EPS or .AI file of the logo from you. We are asking all of our members to provide your company logo via dropbox, using this link. 
Before uploading, please ensure your file is named with the following format: company name_HQ city_HQ state abbreviation. For example, if I uploaded a logo for NATO, which is headquartered in Washington, DC, I would name the file NATO_Washington_DC.
If you have questions or concerns about this, please contact Erin Von Hoetzendorff at evh@natoca.com.

GOVERNMENT AFFAIRS

NATO joins effort to Block NLRB’s Joint Employer Rule NATO joined a coalition letter to Congress in support of bipartisan resolutions in the House and Senate to block the National Labor Relations Board’s flawed Joint Employer rule in Congress. The letter was spearheaded by the Coalition to Save Local Businesses, consisting of 200 state and national organizations representing businesses that would be affected by the rule, scheduled to go into effect on February 26. In January, the House passed its resolution by a strong bipartisan vote of 206-177. The Senate is expected to vote in the coming weeks. 
 
DOL Issues Independent Contractor Rule 
The DOL issued a final rule on Employee or Independent Contractor Classification Under the Fair Labor Standards Act. The new rule implements a multifactor analysis to determine whether a worker is an employee or an independent contractor. To learn more about the rule, which takes effect March 11, read the DOL’s FAQs.

House Approves Bipartisan Tax Bill
The House has decisively passed a bipartisan tax bill with a 357 to 70 vote, well beyond the required two-thirds majority. This legislation reinstates numerous business tax credits, notably those for research and development and interest expensing. The bill now advances to the Senate. For more details, click here

CinemaCon 2024 COUNTDOWN

Independent Cinema’s Spotlight Shines at Caesars Palace 

The Independent Theatre Owners Coalition (ITOC) annual meeting returns to CinemaCon in Caesars Palace on Monday, April 8, from 11:30am to 2:45pm PDT. Join us for this important gathering where operators of small business cinemas, non-profits, and art houses engage in meaningful discussions, network, share experiences, and contribute to the future of the independent movie theatre industry. We respectfully request that companies attending the ITOC meeting restrict their representatives to individuals who are actively engaged in management and operations. 

Special Note for 2024: For the first time ever, independent cinema owners and operators with more than 75 screens are invited to register for the ITOC meeting. This expansion aims to encompass a wider range of voices within the independent cinema community, enhancing our discussions and collaborative efforts.

NATO in the News

Hollywood Reporter
Art House Movies Are Having Their TikTok Moment The wrestling drama The Iron Claw has quietly grossed $31.5 million domestically at the box office since its Christmas launch, a veritable fortune for an independent film in the post-pandemic age and one of the best showings ever for distributor A24. And it isn’t the only specialty movie doing impressive business these days thanks to a powerful new ally: younger adults. For years, art house movies relied on the “elderverse,” as one indie executive puts it — i.e., moviegoers over age 35 or 40. But that relationship collapsed during the COVID-19 crisis and has yet to be fully restored. At the same time, the 18-to-34 crowd started snubbing once surefire genres like superhero fare and began venturing beyond their comfort zone. Adds Neon distribution chief Elissa Federoff: “Also, people are realizing that streaming is leveling off. There’s less good content to watch at home.”

Deadline
‘American Fiction’, ‘Poor Things’ & ‘Zone Of Interest’ To Reap Oscar Halo Effect At Box Office; Best Pics At $2.7B WW, Down From 2023

“On behalf of movie theatre owners across the United States and around the world, we celebrate the ten films nominated for Best Picture at the Academy Awards,” says NATO President & CEO Michael O’Leary today in a statement. “The diversity on display is a testament to what a great year 2023 was for people who love to watch movies on the big screen. Combined, the Best Picture nominees have brought in an incredible $2.7 billion in box office globally. This is an exciting moment for all the moviegoers around the world who are experiencing these films the way they were meant to be seen at their local theatres.”

The Cinema Foundation

National Popcorn Day
Thank you for participating in National Popcorn Day 2024! The success of this campaign once again shows the importance and reach of movie theaters’ promotional efforts in earned and social media and the value of partnerships across the industry that the Cinema Foundation can leverage on your behalf.  Some highlights of National Popcorn Day media include:
 

USA TODAY:

National Popcorn Day

TODAY.COM:

National Popcorn Day

CALIFORNIA LIVE /NBC CALIFORNIA (TV)

National Popcorn Day with Cinema Foundation’s Bryan Braunlich

GOOD DAY NEW YORK (TV)

National Popcorn Day with Fandango’s Erik Davis

Be on the lookout for more industry promotions coming soon!

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

New Member Spotlight

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

Cineplexx Kinobetriebe Gmbh, Austria, Bosnia, Croatia, Greece, Italy, Montenegro, Nord Mazedonia, Romania, Serbia, Slovenia
Cinema Centre & Holly Theatre, Beatrice, NE
Ford-Wyoming Drive In, LLC, Dearborn, MI            
The Peacock Theatre, Monticello, IN
Rooftop Cinema Club, Marina Del Rey, CA
Epix Cinemas, Bahrain
Town Hall Theater, Lowville, NY
Yerington Movie House, Yerington, NV
Xscape Theatres, New Albany, IN

Box Office

January 1-January 31, 2024: $512,549,378
January 1-January 31, 2023: $594,778,626
-13.8%