In order to save money, Erin’s parks and recreation manager Graham Smith has suggested shutting down Erin Cinema for the summer.
Speaking to Erin’s committee of the whole on Feb. 29, Smith explained the proposal would provide an improved budget while allowing the theatre program to continue.
Smith believes a membership drive would involve a tremendous amount of work with little response from the community. He said the theatre already has yearly memberships that allow patrons to get into the movies at significantly lower costs. But theatre memberships generate less than $1,000 per year.
He said staff continue to try to keep costs low.
“I suggest we cut the movie program in June, July and August, which would account for 10 [weeks] of missed movies.”
Smith said such a move would eliminate advertising costs, booking fees, delivery charges, wages, repairs and movie-related costs.
He said estimated lost revenues of $3,500 to $5,000 would be offset by savings of $6,500 – resulting in an overall saving of $1,500 to $3,000.
Smith suggested local groups be contacted about sponsoring a movie a month. Those free movies would act as a draw and boost attendance and snack bar revenues.
“As well, we may get people in that don’t realize we have a cinema program here in Erin,” he said.
Smith added staff would monitor movies more closely as well as take recommendations from Larry Wheeler’s cinema report.
“This way, we bring in movies that would appeal to our main audience group. On weekends where we have poor movie choices or very limited selections, we just go black in the cinema those weekends.”
If council accepts the proposal for the coming year, it would give them a chance to think about the need to purchase new equipment in 2014-15.
Smith would need to investigate good used movie equipment to avoid a large capital expense.
If the equipment is user friendly, it might allow hiring theatre staff to run the movies instead of the projectionists and, “The savings at that point would be substantial.”
If a projectionist is still needed, it takes two hours of staff time set up and finish a movie.
Wheeler’s 2011 report said May through August featured 31 shows and movie nights, accounting for 30% of the 102 movies shown that year.
“In Erin, almost all our costs associated with showing a movie are direct costs such as the projectionist, box office staff, studio fee, distributor, booking agent, etc.,” Wheeler said in his report.
“Therefore any reduction in the service level such as a reduction in the number of movies shown will automatically result in the reduction of the loss associated with operating the program.”
The average attendance on movie nights was 18 patrons, compared to an overall average of 22. Wheeler said closing the cinema in the summer would result in a movie program running exactly the same as the town’s ice sport programs.
That would have positive effects on snack bar profits, but would result in the elimination of hours for part-time staff.
For management, it would create a summer gap that would be conducive to lengthier personal holidays. Statutory holiday pay would also be reduced as the summer shutdown could include the following long weekends: Victoria Day, Canada Day, the August civic holiday and Labour Day.
“The above evidence would suggest a reduction in the service level of the cinema program by closing in the months of May to August could lead to a one-third reduction of the projected annual loss,” Wheeler said.
Councillors made no immediate decision on the proposal.
