“The economy is the dark cloud over everything,” Dan Glickman reflects, addressing our annual state-of-the-industry conversation in broad terms. “We’re in for generally bleak economic times… I can’t tell you for how long, of course, but we’re all operating within that environment. In many respects, we’ve never dealt with something quite like this before. Both in terms of individual and economic behavior, we’re entering uncharted territory.”

This said, the chairman and chief executive officer of the Motion Picture Association of America ventures that in response, “our member companies have announced about $2 billion in a variety of cost savings, layoffs and other ways of streamlining their organizations. At the MPAA, we’ve done the same thing.”

Although he does not confirm “specific numbers” about cutbacks in-house, such as the $20 million bandied about in the media, Glickman tells Film Journal International: “We reduced our operating budget in the general range of 15 to 20 percent. Our companies have instituted significant cuts, but so have most trade associations in Washington… If you run through the thousands of trade associations [here], almost every one has taken cuts.”

Admittedly, nobody “really knows right now” what else beyond cost-cutting and counting on more well-attended theatres could be done to weather the storm. What Glickman does know is that “other parts of the business aren’t faring as well. The home-entertainment markets, DVD sales, advertising sales on the television side are all suffering as people buy fewer products.”

At least, he happily notes, movie attendance is up. “It’s a mixed bag for our industry.” With that, “in some respects, we’re probably doing somewhat better than other industries like automobiles or manufacturing in general, and certainly better than banking and financing. Nobody’s immune from the problem, even though we know that film attendance at cinemas generally bucks the trend and has done so over the last several recessions. Theatre attendance has been pretty good over the past six weeks to three months as well. Obviously, we hope that continues.”

On the red carpet during the 81st Annual Academy Awards, questions addressed to Glickman also centered around the state of the economy and how it will affect the entertainment industry. In response, Glickman was spreading cinematic cheer. “By and large, when times are tough, people still like to go to the movies. It’s a great escape, a great communal experience and,” he laughs, “much less expensive than going to a psychiatrist.”

From his personal perspective, “The red carpet was more fun this year, because the people were really enjoying the films. Slumdog Millionaire had a lot to do with this kind of positive public attitude that we observed. I thought every movie was a bit more upbeat, a bit brighter, with the acting all around superb. Those were movies that the people really liked.”

How does Glickman feel about the fact that motion pictures were eliminated from the latest economic stimulus package? And particularly since they represent one of the few genuinely American industries, not to mention the most positive and easily recognizable around the world? Looking back at 2008, he first points towards “a very good year in the United States Congress both in terms of tax incentive and anti-piracy initiative projects.” In addition to the bailout bill last year, he reviews, “we were also successful with a variety of state incentive packages. California just adopted some that we were very much involved with alongside other parts of the industry.” Referring to many other state tax and service offerings, he knows “it is good that we are now filming movies and television shows in many different places across the country. There are employment and small-business opportunities in production now in almost every state. That helps us very much politically as we fight battles to help filmed entertainment in state capitals and Washington, D.C.”



Nonetheless, he admits about January’s defeat, “We suffered a small setback in the stimulus package that had something to do with bonus depreciation.” Thankfully, Glickman shares our feeling that “this is too complicated to get into a great deal.” Regardless, he assures, “we still have to fight for our industry here all the time and every day.”

This seems a particular challenge at a time when a new government is setting new policies, Glickman concurs. “You are entirely right, we have a new administration and sometimes when times get tough, that’s when threats get the greatest.” While cuts have been effectuated across all MPAA departments, he says, “we did our best to protect the advocacy and policy function of our mission so that those folks here who either lobby or represent our companies before state, federal and international governments have the resources they need to do their jobs.”

Doing his job in the conscientious and proactive matter that we have come to expect from him, Glickman has set his agenda for ShoWest and, following at the end of April in Washington, D.C., made a tentative date for the next MPAA Symposium for policy makers, politicians, industry leaders, media and invited talent. (The very first “Business of Show Business” was extensively analyzed in FJI in April 2007.) Besides looking to get a “much better idea of films coming down the pike” in Las Vegas, he also expects to talk about “the great transformational times that we are in, about the massive national and international changes in the economy and consumer behavior.” Glickman wonders “how it all affects our business. Whether we are kind of the Rock of Gibraltar that essentially keeps people together…in times of great change, or whether people, in fact, look for us to lead the change itself. I don’t know yet, but the question is, ‘How do we in the entertainment industry cope with that?’”

While more upbeat films may fortify the business, it must also contend with technological changes. “Consumers now have a myriad of choices on how they receive their content, not only on the big screen but also on their iPods. I always joked that one of these days—in fact, we’re almost there—we’ll be able to install a little receiver inside someone’s brain and that person can close his eyes to see and listen to anything he wants to.”

How will the ongoing rush of technology impact going out the movies? “I have this theory that the more things are out there and the more ways we have to see films in different venues, the more people will actually go to see the movie in the cinema. There is some feeling that these new options are all threats to the theatre. My judgment is the more competition there is, the more likely people will want to see the real thing.”