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You just can’t beat the magic of the movies! Audiences may be dwindling during a streaming boom, but the former Disney chief insists there’s still life in the movie theater industry
Some of us may have trouble remembering the last time we went to the movies.
But despite the billions poured into streaming by the likes of Netflix and Amazon, one of the world’s biggest movie moguls says the final curtain has not yet fallen on the embattled film industry.
Michael Eisner, a titan of the American media scene who was Disney CEO for 20 years, says there is still a place for movie theaters, even though we can watch thousands of movies at home for a fraction of the price.
Hollywood legend: Former Disney boss Michael Eisner says movie theaters still have room, even though we can watch thousands of movies at home for a fraction of the price
“Your kids won’t want to date while you’re in the other room,” he says.
“They’ll want to take a date to the movies.
‘Movies in cinemas are cheap entertainment. So concerts aren’t going away and the movies aren’t going away. After a while, cocooning will drive you crazy. You have to leave the house.’
Few fit the description of the famous CEO better than Eisner.
Over 21 years as Disney’s boss, he became almost as well known in the American media scene as Walt himself.
He enjoyed friendships with star directors such as George Lucas and Steven Spielberg.
The 80-year-old joined Disney in 1984 from Paramount, where he had released groundbreaking films such as Saturday Night Fever, Beverly Hills Cop and Raiders Of The Lost Ark, the first Indiana Jones film.
Cinemas have struggled since reopening after the pandemic due to a lack of blockbuster hits and the cost of living.
Vue, Europe’s largest private cinema operator, refinanced its operations last year and agreed with shareholders to reduce debt to stay afloat.
Cineworld entered bankruptcy protection measures last year and is now desperate for buyers.
By contrast, streaming services are reeling, with more than two-thirds of UK households signing up, according to media regulator Ofcom.
It may sound like the last act for movie theaters, but Eisner still hopes for a happy ending.
Big hit: Eisner helped launch the Indiana Jones movies starring Harrison Ford (pictured)
“It’s on a ventilator, but not gone,” he says. Cinemas will [continue to] are influenced by contemporary technology, but the movie experience in a common room is not going away.
“When television came along, everyone thought radio would follow the path of the dinosaur and they all thought movies would fall off a cliff in the cinema.
“In the 1930s, 80 million Americans went to the movies once a week and then there were only 135 million people in the US. Today, it’s still big business, making its way into the age of streaming. But the movie business is still there.’
Today, Eisner is a philanthropist and the owner of a private company called Tornante, which has stakes in companies from charity platform Omaze to League One football club Portsmouth.
He has a significant equity interest in Disney, which he describes as “a broad economic interest” in the company.
Eisner says he is a friend and supporter of current Disney CEO Bob Iger, who returned to the company last November after a stock slump.
The share price fell 50 percent between February 2021 and September 2022 under Iger’s predecessor Bob Chapek. This caught the attention of activist investor Nelson Peltz, who launched a campaign to win a seat on Disney’s board.
Iger announced sweeping restructuring plans, including cutting 7,000 jobs, deflecting pressure from critics for now.
There have also been calls to sell or spin off Disney’s ESPN sports network, whose advertising slump had weighed on the stock.
According to Eisner, this makes little sense because consumers benefit from the scaling up of media companies.
He adds: ‘Giving audiences what they expect in their entertainment and finding the talent to do it requires great economic resources. The big companies therefore have a much better chance than a small company.’