Australian Media Enterprises – Cinema & Film Industry (Village Roadshow)

One particular media enterprise in Australia which faces major challenges is the cinema and film production company, Village Roadshow. The Village enterprise has a longstanding history in Australia and was one of the very first drive-in cinemas in the country back in 1954 (Screen Australia). Although having an almost cultural significance to many Australians, there are challenges. The first being the new ways for people to watch content, which may affect the number of people visiting our cinemas. Another challenge is the seemingly constant identity crisis which Village faces, meaning the lack of Australian content being distributed. Lastly, since the rise of Hollywood, the film industry has become more globalised and the funding of Australian films have been cut. Although the film industry in Australia is brings in a large income and more specifically, Village Cinemas being one of the largest cinema companies in the country, appropriate measures need to be taken in order to ensure their survival against these challenges and pressures. This essay will discuss the history of the Australian film landscape as well as Village Roadshow, more specially focussing on Village Cinemas, address the challenges with depth and offer ways which the organisation and industry can overcome these.

The Australian film industry can be dated back to 1906, with the world’s first ever feature length film The Story of the Kelly Gang which was filmed in and around Melbourne (Cubis, S 2019). After this feature film was made, a number of productions followed, igniting the fire of the Australian film industry. From 1906 to 1911, Australia was the most successful producer of feature films worldwide (Screen Australia). Australian producers had easy access to cinema screens and overseas film supplies were irregular. Fast-forward to 1983, the Australian film industry began to change from government investment funding of productions to private investor funding (ABS, 2012). The Australian Film Commission was established in 1975 to provide development funding and equity investment for film and television, support and advice to filmmakers and assist in the distribution and exhibition of Australian programs (ABS, 2012). Today, Screen Australia is the Federal Government’s key funding body which replaced the original Film Commission.

Village Roadshow operates under the Village Entertainment brand which is inclusive of its cinemas, theme parks, film distribution and production. Village Roadshow and its strategic partners operate over 700 screens across 74 locations throughout Australia and worldwide (Village Roadshow, 2017). Village Cinemas is one of Australia’s largest cinema operators which has screens across all states of the country. Since establishing one of the first drive-in cinemas in Australia, Village Roadshow has expanded not only its number of cinemas but the entertainment and cinema experience. It was one of the first companies to develop and make stadium seating a standard fixture in all cinemas and was also the first major Australian cinema exhibitor to convert all screens to digital format (Village Roadshow, 2017).

‘Entertainment destinations’ is central to Village Roadshow’s strategy with a heavy emphasis on being a destination of choice through a varied range of experiences complemented by high quality traditional cinemas. Village operates luxury cinema venues called Gold Class Cinemas which incorporate recliner chairs, personalised service and state of the art projection and sound services. The company also took the concept to the USA and owns an investment in exclusive cinema venues under the name ‘iPic’ (Village Roadshow, 2017). Vpremium offers customers a cinema experience between traditional and Gold Class by serving hot food and alcoholic beverages, Vmax cinemas are equipped with extra-large screens and VJunior is designed for kids aged 3-10 years and features play areas and activities (Village Roadshow, 2017).

Since the birth of Netflix in Australia in 2015, the subscription video on demand (SVOD) service has brought about a new way for Australian’s to watch content. Before Netflix, people went to the movies, rented VHS tapes or DVDs and watched whatever was on live TV (Morgan, B 2019). Now, Australian’s can watch what they want, wherever they want, which ultimately may see the end of cinema. David Cronenberg, 75 year old Canadian director of films Crash, The Fly, Naked Lunch, Rabid and The Brood believes that cinema as we know it, is indeed, dying. Due to the rise of Netflix and the internet, he believes that cinema is “dissolving, the big screen is shattering into a million small screens” (Macnab, G 2018). The director declares that he does not go to the cinema anymore and although filmmaking isn’t dead, the cinema is no longer “the cathedral that you go to where you commune with many other people”. Not only does the SVOD service affect the cinema industry by making numerous movies available with the click of a button, Netflix has also made the move into creating their own content. After the release of its first series, House of Cards in 2013, there is now a plethora on Netflix Original films and series (Williams, C 2018). With an estimated budget of around $6 US billion, the expansion of the SVOD has grown rapidly.

The lack of Australian content being distributed is another challenge which the film industry in Australia faces. Exporting Aussie films to the overseas markets has proven to be very difficult and since the late 1990s, there has been a reduction in the number as well as size of Australian films to overseas markets (Padula, M 2007). The profitability of Australian films have been deeply affected as a result of this. Breath, a Village Roadshow film was the third highest top grossing Australian film in 2018 with a box office of $4,633,230 (Screen Australia, 2018). However when you compare this to the third highest top grossing film in the world, Bohemian Rhapsody, there is a huge box office difference, almost $38,000. The Australian film industry contributes to more than $3 billion to the economy a year but with an increasingly globalised landscape, it is proving hard to survive. US blockbusters are the prominent films which are distributed worldwide, thanks to the rise of Hollywood. The campaign “Make it Australian” consisting of performers, producers, writers, directors and crew members to ensure Australian stories are told on Australian screens.

Australians want to see Australian written stories but it is becoming increasingly hard due to being sorely deprived early in the supply chain. Australia produces more feature film now than ever before with an average of 35 this decade, 41 in the year 2016 but more than a third have to be independently distributed (Dow, S 2018). Cuts in government funding over the last 4/5 years took away $51.1 million from Screen Australia’s budget (Groves, D 2018). The pressure of this funding cut not only affects operating costs but also production funding levels, an ongoing fight since the coalition party came into power in 2013. With these financial stresses, it is harder for Australian films to be made at the highest of quality and calibre which ultimately affects how distributors and cinemas choose their films. Australia has tried hard to attract Hollywood stars and further large foreign productions to be filmed in Australia, for example Thor: Ragnarok and a Ridley Scott film which attracted $142 into the Australian economy (Wu, A n.d). Although these are economy boosters, they are not long-term and do not help the industry grow to its full capability. Australia finds it extremely hard to compete with the Hollywood film industry.

With video streaming coming in at roughly $10 a month and the average Village Cinema ticket $23 for an adult ticket, it is questionable whether spending the money to go to the cinema is worth it. However many people believe that it is the experience that you are paying for. General manager at Cinema Nova in Carlton believes that cinema is ‘‘an immersive experience that is difficult or impossible to recreate at home, plus it’s an opportunity to engage with friends and strangers over a shared experience’’ (Barnes, A 2018). Furthermore, cinema is one of the very few places we go and won’t be interrupted by our phones, the same cannot be said while watching Netflix at home. “Cinema has faced down the advent of television, video stores, and now streaming; it will survive. There’s no better way to watch a film ” owner and operator of Thornbury Picture House, Gus Berger argues (Barnes, A 2018).

There is evidence that Australians are still attending cinemas today. According to a Ray Morgan conducted research survey in 2017, 72% of people had been to a cinema in the last 12 months. This number has actually increased each year since 2005 when the attendance was only 69% (Screen Australia, 2017). Annually, about 11 million people visit a Village Cinema in Victoria and Tasmania (Barnes, A 2018). Blockbuster movies are not actually allowed to be streamed on Netflix until roughly two years after they have been shown in theatre (Stenovec, T 2014). Cinemas have the advantage of showing blockbuster hits which obviously Netflix cannot which therefore brings people in for the cinema experience. General Manager of sales and marketing at Village Entertainment, states that the chain’s biggest drawcard is still their showcasing of blockbusters along with the heightened experience that cinema technology can offer (Barnes, A 2018).

Whilst the film industry is still surviving amidst the rise of Netflix and other external pressures, there are still some necessary considerations which organisations such as Village Cinemas should remember in order to survive. Netflix is based on a ‘binge’ model of making content available to watch all in one sitting however, the cinema industry is much different to this. Villages creation of the ‘entertainment destination’ is what has given it a competitive advantage as they offer exceptional experiences paired with traditional cinema. This is the kind of experience that Netflix in the loungeroom cannot offer. The cinema business should not be about selling tickets to a movie, it should be bout selling the popcorn says Verhoeven (2015).

In order for Village Cinemas have worked so hard to achieve, their ‘entertainment destination’, they need to maintain going to the movies as an exciting outing and something that people want to spend their money on. Evolving to peoples tastes will be essential and more incorporated food and beverages to make the ultimate experience and keep the charm and romance alive. Even though Village Cinemas are a traditional cinema, looking to independent cinemas for inspiration could prove useful. The Golden Age Cinema in Sydney, a small theatre incorporates a stylish bar which doubles as a cabaret performance space as well as sophisticated, mid-century modern decor and gourmet food encourage people to arrive early or stay after the final credits (Di Rosso, J 2015).

This essay has discussed the film industry in Australia and the origins and development of Village Cinemas. Challenges which face the film industry of Australia and the cinemas have been identified as new ways for people to watch film, arguments for both its negative and neutral impact on the film industry and Village Cinemas were discussed. The lack of Australian film content being distributed is another challenge and lastly, the globalisation of the film industry resulting in funding cuts for Australian films. In conclusion, while there are factors which present themselves to Village and the Australian film industry, if appropriate measures are taken, they can still survive. In order to Village Cinemas to continue throughout the hardship, they need to maintain what they have worked so hard to achieve, the theatre ‘experience’, for it to continue to be a favourite entertainment source for Australians.

References

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