Brian Zafron: I Eat Web 2.0 for Breakfast

As I’m sure everybody reading this post has noticed, the Internet is becoming an increasingly popular place for creative folks to tell their stories. More and more money is being thrown at the Internet, from no name shmoes in North Dakota to slick-haired execs in Hollywood. But just when you think the tides are truly and definitively turning, a group of investors throw their support behind luxury movie theaters, betting that audiences will be down for paying $35.00 for a single ticket.

This week, Village Roadshow Ltd., Act III, Lambert Entertainment and the Retirement Systems of Alabama pension fund have partnered to bring the luxury cinema circuit Village Roadshow Gold Class Cinemas to the U.S. They’re planning to spend $200 million to build 50 theaters nationwide over the next five years. The first two theaters will be erected in some backwater suburbs of Chicago and Seattle, and others are planned for Fairview, Texas, near Dallas-Fort Worth, and Scottsdale, Ariz.

From what I understand, the theaters are going be pretty baller. They will include 40 reclining armchair seats with footrests, digital projection, and the capability to screen 2-D and 3-D movies, as well as a lounge and bar serving cocktails and appetizers, a concierge service, and valet parking.

Although this investment in luxury cinemas might seem counter-intuitive, in light of our economy’s looming recession, it certainly has precedent: when Hollywood encounters new and threatening mediums of entertainment, it typically responds with its own novel (and often dramatic) innovations. This dynamic is most clearly exemplified by the growth of television in the 1950s, to which Hollywood countered with mechanical chairs (think: subdued roller coaster ride) and odor effects (think: smells floating through the audience like powerful flatulence.)

The cinemas will also offer culinary offerings — made-to-order meals like sushi and quesadillas. The investors hope to attract 10 million “upscale and affluent” consumers, and each complex will typically house eight screens.

“It’s a new way to go to the movies,” said Graham Burke, managing director and CEO of Village Roadshow Ltd. “It’s… like flying first class in an airplane.”

Sounds good, Graham. Let’s hope we don’t have any turbulence.
backlink