>> It's Friday night.
And tonight, the new cinema in
London --
every film every day, viewers
can see avatar or black panther
or --
a potpourri of movies to be
seen.
The movie theaters themselves
have been slow to recover from
the pandemic with this CEO of U
entertainment says cinemas need
more blockbusters to bring back
their audiences.
Dean Richard is the CEO.
He joins me now from London, if
I look at the numbers revenue
is down 30%.
Content production, the number
of films, is down 30%.
That's where you see a
difference.
>> Absolutely, first of all
welcome from London.
This is a supply issue not a
demand issue.
We have proven that our
audiences want to come out and
see movies.
We have broken records ever
since we started to come back
in the post pandemic world.
I think you need to look back
at what happened pre-pandemic.
2019 was the third consecutive
record breaking year for box
office globally.
43 billion dollars.
There was nothing wrong with
the business when the pandemic
hit.
We got hit hard.
As we came out of the pandemic
now, last year, 2022, movies
were down 36%.
Fewer films released than they
were in 2019.
The corresponding box office
was down 30%.
>> Do you see a shift?
Obviously, there has been --
the parent company of Warner
brothers and Warner brothers
discovery --
on this battle between
streaming and theatrical
release?
Has that been resolved and now,
do you think?
>> Absolutely, categorically.
With Warner brothers's, not
just Warner brothers, all the
studios.
All the studios wanted to test
and try a new methods of
business, new models.
The pandemic gave them that
opportunity.
Every studio released one or
two major blockbusters,
universal were first out of the
blocks with trolls and Disney
with mulan and so far.
Everybody tried to without --
exception they have
acknowledged that they lost not
tens of millions but hundreds
of millions of dollars doing
that.
With Warner brothers in
particular, the CEO who came in,
his background was hulu.
He said that in that particular
year, 2021, every single film
from Warner brothers was going
to be a day and day released.
Then David came in and he is
really turning the clock back
into the slightly older model,
the tweaked model, but one that
works.
>> I was in London over
Christmas.
I did go to the cinema.
I went to one of your
competitors.
One of the cinemas.
My point is, there is a shift
in the way people want to go as
well.
A sofa, food was being served.
Is this a different way that
you can see and the ancillary
revenue to be sure but more of
a theater environment?
>> I think every company's
trialing and testing new ways
of doing business.
I don't think any industry can
be complacent.
We tried that.
We tried sofas and love seats
in 2005 to 2010.
For us, the focus is on the
experience in the auditorium.
We want you to have the very
best, most comfortable seats.
We've got leather recliner
seats.
We want you to see it in the
best possible picture with
laser projectors, the
absolutely phenomenal Dolby at
most sound.
When you have a film like
avatar, and you go see avatar
in 3D it is a different
experience a completely
different experience.
>> As we start the new year and
for what you know is in the
pipeline and coming your way,
are you encouraged?
Yes, blockbusters will fill, to
an extent.
But you need a roster to create
an entire schedule for a
company as large as yours.
Are you encouraged?
>> Yeah.
I have been in the industry for
30 years, ten years with the
studios.
I don't think there has ever
been a time where I'm more
excited about the future than I
am today.
It doesn't mean we are out of
the woods yet.
We still have a supply issue.
I mentioned we are down 36%
last year.
We are going to be down roughly
20% for films this year.
But 24, looking at the
commitment that studios have
made, the films that have been
green late, the films that were
financed, we will be looking at
a more normalized market in 24
and this is not just the big
marvel blockbuster films.
This is a full range of movies,
from the black and white
Belfast, which was
extraordinary, right on through
to avatar and everything in
between.
>> Sir, good to see you.
We need to --
from a Vue theater, the cinema
in London.