Small movie theaters struggle in Jakarta

Small movie theaters struggle in Jakarta

In a city where entertainments are countless, movie theaters
seem to remain the main option for weekend leisure activities.
The Jakarta Post reporters Budiman Moerdijat, Devi M. Asmarani,
Edith Hartanto, IGN Oka Budhi Yogaswara, Stevie Emilia, Dwi
Atmanta, Meidyatama Suryodiningrat and Ridwan Sijabat explore the
many challenges facing the local theaters.

JAKARTA (JP): Many moviegoers have experienced disappointment
over rushing to watch the latest movie at a theater on a Friday
night only to find the tickets are sold out.

While home entertainment is only a click-on-the-remote-
control away -- with the birth and evolution of laser discs,
video compact discs and digital video discs -- going to a theater
can be a hassle.

Long queues in front of ticket booths, even an hour before the
movies start, are a common sight on weekends.

University of Indonesia's sociologist Paulus Wirutomo said
theaters provide a balance between the need for high technology
and high (social) contact.

"People are fond of having the warm and fun surroundings of a
theater," he says.

At the same time, theaters keep updating their services with
sophisticated systems that improve the quality of both the sound
and the picture of their movies, to compete with the rapidly
progressing home entertainment varieties.

The THX system, which produces high audio and visual
qualities, can make watching films like Jurassic Park an ultimate
experience, almost as intense as riding a roller coaster.

Hollywood seems to feed on the development of audio and visual
technology, releasing more bomb-explosion and car-chase infested
films.

Let's just say that one is less likely to fall asleep during a
movie in the theater.

And with local representatives of big Hollywood film
companies, Twentieth Century Fox, Warner Brothers and the United
Pictures International, local theaters are able to get the latest
films sooner than they used to. With some playing within a month
of their release in the United States.

But are the cinemas really raking in all that much money?

Theaters may be a choice for the majority of people at the
weekends, but the rest of the week, many theaters are empty,
having less than a fourth of their seats filled. Data have shown
a continuous decrease in the number of theaters.

According to the Association of Indonesian Movie Theater
Owners, there were 3,048 screens countrywide in 1990. Within one
year, the number dramatically dropped to about 2,000. This year,
there are 1,350 screens left.

Like other industries, movie theaters have their ups and
downs. But for the last few years, the industry seems to have
been going at an even slower pace.

This decline can be attributed to several things: monopolistic
practices, the operation of private television stations and the
availability of more home entertainment systems.

Indonesia's cinema history goes way back to the 1950s, when
the business reached its peak. When color television came in
1978, the business gradually declined, and dropped considerably
during the second half of the 1980s due to the popularity of
videos and laser discs.

Meanwhile in 1984, something happened. A local tycoon,
Sudwikatmono, wrought a radical change to the face of Indonesian
cinemas when he bought Kartika Chandra, an ailing cinema in South
Jakarta.

Sudwikatmono, owner of the widely diversified Subentra Group,
divided the theater, which originally had 900 seats, into three
theaters, each with 250 seats.

The change also included the use of smaller screens and the
installment of more comfortable seats. Soon, such comforts
attracted more visitors than the original theater.

Like the film industry, the cinema business is a success story
for some and a flop for others. Only in this case, most of the
success stories come from those under the Subentra Group, which
now owns theater chains nationwide.

In 1987, Subentra opened another theater, Studio 21, in the
heart of Jakarta's commercial district. Thus began the expansive
period of the 21 theaters, each bearing the same numerical
suffix.

In 10 years, 21 theaters have sprung up in many strategically
located sites.

The Association of Indonesian Movie Theater Owners says that
out of the 106 theater buildings in Jakarta, 30 are operated by
the 21 Group.

The association's chairman, Johan Tjasmadi, said independent
movie theater owners must learn from the group's success.

"The 21 Group's key to success is that it can provide better
entertainment," said Johan, who has chaired the association for
29 years.

There were owners who once protested the 21 Group's expansion
in the movie theater business.

"But I told them that with or without 21 Group, many movie
theaters would close down if they did not start improving their
facilities," Johan said.

But all the success accomplished by the group came from its
almost monopolistic influence in the domestic film distribution
industry.

Despite the 1992 film law banning monopolistic practices, the
Subentra Group, through its subsidiaries, has managed to control
the distribution of imported films here.

Independent movie owners complain that they are often denied
good movies by the distributors. The independent theaters can
only play movies two years after they are played at the 21
cinemas, movie owners said.

Last year, city councillors expressed concern that about 59
low-class movie theaters in the city were on their last legs.
People have begun to abandon the theaters, finding easier access
through television more suitable to their tastes.

Many theater owners have already given up doing business,
selling or renting their theaters to the 21 Group. Those who seek
security in the arms of the 21 Group's management have no control
over their theaters and are only entitled to monthly rental fees.

The owner of the Viva theater in South Jakarta, who sold some
of his shares to the 21 Group in 1989, receives about Rp 9
million a month in rent fees, with a 5 percent rise every year.

Meanwhile, those who are adamant in keeping their cinemas must
watch painfully as more and more challenges threaten their
businesses.

Low-class movie theaters, which rely on playing Mandarin and
Indian films, must compete with the country's four private
television stations, which show these types of films daily.

Even the plush 21 theaters are not threat-free. New forms of
home entertainment, along with a vast and cheaper choice of
pirated films, can keep audiences at home on weekdays.

"Why bother going to the theater if people can conveniently
watch films in their homes?" an independent theater owner said
grimly. (team)