HighBeam Research

LOCAL THEATERS BATTLE CHAINS HOBART'S ART TO BE SOLD SEPT. 15

Date: February 23, 1989 Publication: Post-Tribune (IN)

PHOTO Theater owner Edward Prusiecki strikes a familiar pose as he takes ticket of Jill Remaley of Hobart. (Photo by Don Blume)

THIS ELECTRONIC VERSION MAY DIFFER SLIGHTLY FROM THE PRINTED VERSION.

Owning a small movie theater today is a tough business. That is what 71-year-old Edward Prusiecki say. Prusiecki has owned the Art Theatre in Hobart for half a century.

He is putting the Art up for sale on Sept. 15, the date that marks 50th anniversary in the business.

Prusiecki said he isn't retiring, but plans to run another business, Art Advertising Specialties. The business markets advertising gift items.

Prusiecki said he doesn't want to close the Art, but complained that independent theater owners simply can't compete in today's market.

"The distributors favor the chains, not the little guy," Prusiecki said.

He complained that the smaller theaters don't receive movies until after a movie's revenues have dropped at the chains.

Prusiecki said the way movies are marketed today encourages people to drive to malls and shopping centers to spend more for admission and concessions.

"People have to see it now," he said. Prusiecki said movie-goers pay a premium at the chain cinemas to see a movie a few weeks before his theater gets it.

Joe Paunicka, owner of the Crown Theatre in Crown Point, agrees with Prusiecki's complaints about distributors.

"They wait until Southlake Mall plays a picture out," said Paunicka. He said independents aren't able to get movies for their theaters right away.

He said a family of four can see a movie at his theater for $8, but they might spend $15 to $20 at a chain theater.

But, said Paunicka, for some reason people continue to flock to the mall.

Paunicka and Prusiecki were partners in the Crown until he bought Prusiecki out.

Paunicka, who is retired from his job as an executive of a local financial institution, said he doesn't need to work at the Crown. He said his investment income is enough that he doesn't have to work.

But Paunicka said he enjoys running the theater, even though it brings in only a few thousand dollars a year.

"I find it comfortable meeting people here," he remarked.

The theater is part of Crown Point's history, he said.

"I think the town would only suffer if I closed it down."

George "Murph" Shauer, a co-owner of the Premier in Valparaiso, said he feels the city lost some of its history when the building was razed to make room for a bank parking lot and automatic teller machine.

The Premier, which was open for 62 years, was shuttered in 1982.

Shauer said construction of County Seat Cinema, which received Economic Development Commission money, helped put him out of business.

He said that when the Premier closed, it hurt Valparaiso's downtown. Shauer pointed out that Sears, Penney's and Lowenstine's have all closed in downtown Valparaiso. Today, the downtown is a service center of banks and law offices, not a place where people go to shop.

Shauer said the Premier was able to adapt to major changes in the entertainment industry for several decades.

When the theater opened, it showed silent pictures and hosted live vaudeville acts. But in the end, the theater could not compete with the chains, said Shauer.

Carl "Skip" Beier, owner of a former Lowell theater, the Palo, said the building still stands, but the last movie was shown in November of 1987.

He said people think nothing about driving to the malls, rather than staying in town to see a movie.

Beier also complained about movie distribution.

"We waited so long for the product, it was history by the time we got it."

Beier operated the Palo for 10 years. He bought it has a real estate investment. He said its closing was not a reflection of the local economy.

Vern Janowski and her husband, Ted, own the Town in Highland. She was less critical of movie distributors.

She said that even years ago there were first, second and third run movies.

Janowski said the release system is necessary because producers spend millions of dollars to produce and advertise movies, and cannot afford to take a chance on wasting the investment.

She said the Town often makes money on movies which bombed at the malls because the theater attracts an adult audience less interested in sex, violence and car chases.

Janowski said she tries to book quality, offbeat movies, including foreign films when she can get them.

John Hennessey, who has owned the Kennedy in the Hessville section of Hammond for more than 30 years, said his business has made a consistent profit.

He said distributors have to make practical business decisions when deciding where to show movies first.

Steve Ellman, director of exhibitor relations at Universal Studios in North Hollywood, Calif., said movie distributors do not show favoritism.

"We sell to everyone," he said. "We try to be as open handed and as even handed as we can be."

Ellman said the conflict between small operators and the large chain exists in a number of businesses, not just movies.

He pointed out a small grocery store owner may have a hard time competing with a large supermarket chain.

But, said Ellman, the owner of a small movie theater has a better chance of competing with large chains than does a small grocery store.

He said an independent grocer is hampered by a lack of economic clout. But for an independent theater owner, the economic clout is the building itself, Ellman said.

He said the closing of some independent theaters is tied to economic and social change which created urban blight and led to the construction of suburban shopping malls.

Ellman said the malls offer parking, lighting, and a safer atmosphere than exists in the downtown of some cities.

Also, he said, restaurants and other related businesses near the malls tend to draw people to the chain theaters. And, said Ellman, a lot of independent theaters continue to stay open.