Digital conversion endangers rural theaters; Colorado using grants, fundraising to help owners

More and more multiplexes seem to be opening, some featuring 20 or more screens, IMAX capability, stadium seating, and concession stands that offer restaurant-quality goods.  Most rural theaters can't compete with all that, but still hold a charm that harkens back to the old days when going to the movies was an event and the theater was an important local gathering place. But as we have noted before, the future of rural theaters is in jeopardy. (Kickstarter photo: The Rogers City Theater in Rogers City, Mich., has started a campaign to raise money to convert to digital)

"By the end of this year, an industry-mandated conversion to digital projectors will make it nearly impossible for many small, one or two-screen theaters in isolated towns across America to continue to operate," Stephanie Garlock reports for The Atlantic Cities. Digital-only benefits movie studios, because "the picture is generally clearer, and, more significantly, the financial and logistical costs of distribution are radically lower. A single copy of a 35mm feature film costs studios upwards of $1,500, while copies on digital hard drives run at about a tenth of that, with prices falling fast. Eventually, satellite transmission could make getting first-run films to theaters across the globe virtually hassle-free."

But the cost to theater owners is great, coming in at an estimated $50,000 per screen, Garlock writes. And if theaters don't convert, they won't get any first-run features, limiting them to small, independent films and older movies. As many as 20 percent of theaters, many of them in rural areas, are in danger of closing, because they can't afford to convert to digital. (Read more)

Colorado has a plan to save its rural theaters. State grants have awarded $200,000 to help save 13 rural theaters -- many of which only have one screen -- and officials hope a fundraising campaign will give the owners enough to pay for the rest of the conversions, Bente Birkeland reports for public radio station KUNC.

"It’s unusual for the state to give out grants to this type of mom and pop business, but government officials say it's not just about the theaters. It’s about preserving rural downtowns and the communities themselves," Birkleand reports. Jeff Kraft, state director of business funding and incentives, told her, “We’re able to use some of our incentive funds to make an existing business go over a onetime transition obstacle. All of them are really central to having a vital downtown experience in their communities. And they help make it more attractive to workers and business.” (Birkeland photo: The Sands in Brush, Colo., received a $20,000 grant, but needs another $30,000 to convert to digital)

Downtown Colorado Inc., "a statewide non-profit focusing on building vibrant commercial areas, is also helping theater owners who aren’t used to fundraising," with a campaign called Save Our Screens, Birkeland writes. The idea is to "engage theater owners in regular conference calls to address issues and questions, and develop training for fundraising, technology, and ownership models," according to Downtown Colorado. The group is also using case studies, by "collecting stories of theaters that have converted to identify best practices." According to Downtown Colorado, 58 percent of the state's theaters have converted to digital, 13 percent are in the process of converting, 26 percent have not converted, and 3 percent of theaters have closed. (Read more)