07-24-86 Packet (no Agenda) - Laserfiche WebLink

Home Browse Search

July 15, 1986 latISMADOIRMAieSt5 Domino's Pizza has grown from 380 stores ABC-TV has shot 20% of its tv movies in and $98 million in sales (1980) to 2,900 Canada over the past 2 years, saving $2 Illstores and $1.5 billion in sales last million in the process. Canada now at- ear. Others are jumping on the home de- tracts one-fourth of "made-for-tv" busi- livery bandwagon: Kentucky Fried Chicken ness with theatrical film business also and Pizza Hut have gone beyond test pro- growing. Costs are a reason: a film grams to franchises in place, mostly in that would cost $1.5 million in Manhat- the South. Some combine videocassettes tan would cost $200,000 in Canada for with the food. About $30 billion a year one independent producer, Cannon Group. of restaurant/fast food is eaten outside Most work is in Toronto area, now 3rd the restaurant, according to CDR/CREST behind LA and NY, with production at Enterprises, surveying arm of the Natl $130 million a year (half from U.S. ) , Restaurant Assn. plus another $110 million for commer- * * * * * * * * cials. As the numbers of non-drinkers grow, bars are becoming more innovative and Who's going to reach "4th network" status responsive to the social custom. Chica- first, Rupert Murdoch or Ted Turner? Or go's Ritz-Carlton has 6 non-alcoholic will either of them... .Murdoch has Fox drinks, plus several cocktails with low Broadcasting (a.k.a. Metromedia) which alcohol content. Example: "The Wimble- cost $1.5 billion for 6 stations, plus don" combines strawberries and lemon another $500 million for 20th Century juice; the "Lonely Bull" is consomme, Fox production and library. The 6 tv tomato juice and seasonings. stations in NY, LA, Chicago, Dallas, DC and Houston reach 22% of U.S. households, * * * * * * * * but 70% coverage is needed to attract People Express lost a lot of money this sponsors. year on its acquisition/sale of Frontier, but the innovator that rocked an indus- June's box office finally broke the jinx try is expected to survive. Low fares of '86 which has seen b.o. run behind are expected to survive, too. In 1978, last year. Comedies caught on with a when the airline industry deregulated, more adult audience, as teen pix and ac- there were 382 billion "seat miles, " and tion films ("Cobra" and "Raw Deal") dip- •now there are 547 seat miles, up 43%. * * * * * * * * ped sharply. Month was best in 2 years, Variety reported. TV - MOVIES - VCR First half also saw big jump in feature film production, up 36% over last year with 72 by major studios comparing to 52 Movie studios and communications compan- last year, and independent films total- ies are vying for movie theaters to show- caseing 125 compared to 92 in 1985. films that will turn into big bucks as cassettes for the home market (Bus Cable's growth has slowed, but the 36.5 Week 7/14) . Distribution impacts prof- million subscribers currently should be its, and theater chains are expanding at at 46.5 million by 1990, up 27%. Where a wild rate, despite admissions drop. less than half of cable homes had 30 or Estimates put expansion at 1,500 new more channels 3 years ago, now 2/3 of screens this year, plus buyouts such as homes have greater viewing as older sys- acquisition of Plitt's 600 screens by tems are rebuilt and high-capacity sys- Cineplex Odeon of Canada, owned 50% by MCA. Prime movie-going audience (10-19 tems come on line. Four years ago, 5 year olds) has reduced theater trips by more tvvhrs had access to 15 million or 20%--and tripled its cassette viewing. homes; now 7 have access to 25 million or more, and 15 basic cable pro- * * * * * * * *1 grammers have access to 15 million. Im- What will John Kluge do with his $2.5 Portant in these statistics is a sales billion? He sold Metromedia, plus other pitch to advertisers. Cable programs businesses--is he now aiming at CBS? He have a 14% tv viewing share a week. signed a clause in the Metromedia sale * * * * * * * * to Murdoch that he would not "compete," but some kind of deal is a certainty. Kluge began his media/entertainment ca- •reer 27 years ago and has owned music publishing companies and the Harlem Globetrotters, advertising companies and the Ice Capades. Kluge had hoped to es- tablish a "fourth network." Now Ti?? * * * * * * * *