Apr 1, 2006 12:00 PM

Just Say No to Direct-to-Video

In January, director Steven Soderbergh and billionaire producer Mark Cuban tried to release the film Bubble on DVD the same week it hit the big screen. Most theater chains froze them out. Industry insiders say the simultaneous availability of first-run tickets and movie rentals could put cineplexes out of business. Wired asked Peter Brown, CEO […]

In January, director Steven Soderbergh and billionaire producer Mark Cuban tried to release the film Bubble on DVD the same week it hit the big screen. Most theater chains froze them out. Industry insiders say the simultaneous availability of first-run tickets and movie rentals could put cineplexes out of business. Wired asked Peter Brown, CEO of AMC Entertainment, what's so scary about a little competition. - Lucas Graves

Wired: Why deny theatergoers the chance to see Bubble?

Brown: We want to put up on the large screen a product made with that format in mind. Bubble, and some of these other direct-to-video titles, are simply not. We want to serve steak, not hamburger.

Shouldn't the audience decide what's steak and what's hamburger?

Direct-to-video is nothing new. And 99.9épercent of the time you don't get the same quality of manufacturing.

Seriously, who cares? Isn't the point of going to the movies just getting out?

Yes. We're in the out-of-home entertainment business, and when you make the decision to go out, we want to take care of you. That includes showing you the best product that we have.

Isn't the real problem that my local AMC charges $10.75 for a movie ticket?

Compare that to football games, baseball games, or the symphony - movie theaters are hands down the best value. The downturn you saw in 2005 was a quality issue. People read reviews, and there's a direct correlation with the box office numbers.

Yet in surveys people complain not about the movies but about megaplexes. Boutique theaters are booming.

Over 250 million consumers buy our product - that says something. Ultimately, if consumers don't like a product, they don't buy it. We offer entertainment for the masses.