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Cinemas race against piracy to keep business going

BARELY SURVIVING If there is one thing in the cinema industry -- the backbone of the national film industry -- that cannot be manipulated, it is the public's enthusiasm for visiting theaters

Ary Hermawan and Stevie Emilia (The Jakarta Post)
Jakarta
Sat, May 3, 2008

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Cinemas race against piracy to keep business going

BARELY SURVIVING

If there is one thing in the cinema industry -- the backbone of the national film industry -- that cannot be manipulated, it is the public's enthusiasm for visiting theaters.

In the United States, movies are released in cinemas long before they are available on DVD or television. By purchasing cinema tickets, theatergoers help cover the production costs of movies and give filmmakers funds to produce more films.

But widespread piracy here means movies are released in a different order.

Doddy, 29, a graduate from the University of Indonesia, said the last time he went to a cinema was about six months ago. He has completely forgotten what movie he went to see.

"It mustn't have been a good movie, because I don't remember what it was," he told The Jakarta Post.

But every two weeks he updates his DVD collection. None of his DVDs is original, he said.

From his home in Setia Budi, South Jakarta, it takes him only a few minutes to find vendors of pirated DVDs.

He prefers watching movies on his laptop, rather than in cinemas, because he finds cinemas are really only good for action movies or those that boast impressive cinematography. For all other movies, he said, DVD would do.

Piracy is a serious crime according to the law, but not, apparently, to law enforcers, given that pirated DVDs and VCDs are still openly sold in public places.

And not only in traditional markets -- pirated products are attracting middle-class visitors in upscale shopping malls as well.

Author Noorca M. Massardi, who is spokesman for the 21 group cinemas, said the cinema industry could not control people's enthusiasm for theaters.

"It is not true the dominance of the 21 group has caused small theaters to close down. It was first of all the widespread DVD piracy that hurt them badly, as now people are reluctant to go to theaters because they can watch new releases at home for far less money," he told the Post.

He played down the prevailing belief the 21 group was monopolizing the industry, saying the group itself was not immune to piracy attacks and had long suffered from declining numbers of theatergoers.

The 21 group has closed down 89 theaters since it first joined the industry in 1986. More than 90 percent of the closed theaters were put out of business in the second half of the 1990s -- when VCDs and DVDs replaced video tapes and the expensive laser disc player. The situation worsened after 2000 with the spread of piracy.

"We have closed down one or two theaters each year," Noorca said.

In order to survive, he said, film producers and theater owners usually agree to split the after-tax profit 50:50 and try to make their profits before the pirated versions of the films they are screening come out in the market.

Nevertheless, some films, such as the blockbuster Ayat-ayat Cinta (Verses of Love), are pirated and sold by street vendors before they appear in cinemas.

The good news for the cinema industry is that pirated DVDs released in the few days before and after the premier release are usually very poor quality, whereas those released about three weeks later are much better quality.

"We have to race against time with piracy," Noorca said.

When dealing with the piracy issue, the new player in the cinema industry, Blitzmegaplex, prefers to focus on movie lovers rather than trying to compete with pirated products.

Blitz's spokeswoman Wendy Soeweno said the company targeted those who are not seduced by pirated movies and who want more from a cinema than just somewhere to sit.

"A cinema is more than just a place to watch movies. It is also a place for hanging out," she said, adding Blitz had been targeting young consumers.

Nevertheless, she said she hoped the government could end piracy, without which ticket sales would increase by 30 percent.

"Fighting piracy is beyond our capacity. We are now just trying to make the best out of (this situation)," she said.

The Surya M2 theater in Mangga Dua, North Jakarta, has found its own way to survive. It offers Asian movies, especially Chinese productions, which have long been absent from local theater screens.

"We do this because we are located in a predominantly Chinese area," cinema employee Novie said.

With television stations broadcasting their programs nonstop and a lack of commitment from the government to end piracy, the future of the theater industry remains uncertain.

Yet despite this, the industry appears to be thriving.

This year alone, the 21 group has opened theaters in 28 new locations in and outside Jakarta, adding to its existing theaters in 62 locations. In total, the group has theaters in 90 locations with 379 screens.

Other cinema companies, including Blitz, which plans to open another theater in Kelapa Gading, North Jakarta, are spread across 38 locations with 126 screens.

The creativity of the filmmakers is crucial in reviving the cinema industry, because, as Noorca said, public enthusiasm cannot be manipulated.

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