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Movie theaters explore renting out their space to survive COVID

(BUSINESS NEWS) Movie theaters are getting creative by renting out private auditoriums to the public in hopes of outlasting the pandemic.

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Movie theaters glowing externally, open for rentals, but is it enough?

A lot of sectors are hanging on by a thread due to the Coronavirus pandemic. Festivals and events have either been postponed, canceled, or gone virtual. Broadway remains in the dark and isn’t set to open until Summer 2021. Hollywood is in a disarray, which has delayed filming schedules and movie release dates. As a result, movie theaters are struggling. And to stay afloat, they’re taking a more creative approach to bring in revenue.

AMC Cinemark, the largest theater chain in the U.S., is letting people rent out private theaters. Small groups of 20 people or less can rent out auditoriums to watch a movie or host a small celebration. Starting at $99 plus tax, this offer is currently available at around 600 locations nationwide.

According to a Variety article, the program was in beta for four weeks. During that time, the company received 110,000 inquiries. This number was four times higher than the total amount of private rentals AMC had the year before. While this is good news for AMC, will it be enough?

“I don’t think it’s going to be much from a cash flow perspective, but it’s certainly you know getting people back to coming to the theaters, which is what we need,” said Managing Director, Equity Analyst at Macquarie Securities Chad Beynon in an interview.

While private auditorium rentals may have eased some moviegoers’ minds and nudged them to come back and visit, what will, ultimately, hold back AMC and other theaters is available content. So far, 44 movies have been pushed back from 2020 to 2021. “Theaters are open. They’re waiting for the content,” Beyon said. “They’re just, you know, sitting and praying that there won’t be more delays.”

And, besides delays, another problem hurting movie theaters is the way the movie distribution model has begun changing. For instance, Mulan went straight to Disney Plus and never made it to the theaters. So, will other movie companies do the same?

Beyon said that about half of a studio’s earnings are gained during a movie’s theatrical release. For big companies like Disney, he doesn’t think direct-to-consumer will be permanent for them. However, this distribution model change could become more long-term for smaller mid-market movies that generate around $30 to $100 million.

So, are there any movie theaters that might stand a chance? Well, IMAX might. Although the company does rely a lot on blockbusters, it also does great with local content around the world. Also, it is viewed as a premium brand so people are willing to pay for it. “If they’re going to get out of their house, sit in one of these auditoriums, they want to see it in the best format, and that’s what IMAX offers,” Beyon said. But, not everyone is IMAX.

AMC has about $400 million in cash right now, and they are burning around $100 million each month. Beyon suggests AMC trim down its portfolio if it wants to stand a chance. “I think it’s going to be near impossible for them [AMC] to last without doing something else,” Beyon said. Blockbusters generate about $100 million domestically and account for about 60% of box office sales. With content being delayed or pushed straight to streaming services, private rentals might be creative, but not be sufficient for theaters like AMC to survive.

Veronica Garcia has a Bachelor of Journalism and Bachelor of Science in Radio/TV/Film from The University of Texas at Austin. When she’s not writing, she’s in the kitchen trying to attempt every Nailed It! dessert, or on the hunt trying to find the latest Funko Pop! to add to her collection.

Business News

MIT report reveals serious flaws in US unemployment system

(BUSINESS NEWS) In the wake of COVID-19, the US unemployment system is floundering to cover all who need the aid but it comes with serious flaws.

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Stressed couple discussing options during unemployment in dimly lit room.

Last week alone, nearly 1 million Americans filed for unemployment benefits. Now that it’s urgently needed, this safety net is full of holes, leaving many Americans in freefall.

A newspaper from the Massachusetts Institute of Technology has highlighted several of the critical weaknesses in our country’s unemployment social safety net.

The report outlines how benefits fall short in three major ways: Duration, eligibility, and payment amounts.

The historical purpose of the benefits system was to replace half of lost wages for 6 months while they looked for another job. (The MIT paper even suggests that a more appropriate “replacement rate” would be higher than that.)

As of 2018, unemployment payments only cover Americans for one-third of their lost wages on average.

The income caps for these benefits have stayed fixed while wages have increased over time. That’s bad enough without considering that wages haven’t nearly kept up with worker productivity in the US, meaning those caps haven’t kept up with the real worth of those workers at all.

Compared to other developed nations, the US has lagged behind in public benefits since well before the pandemic.

In 2014, the Organization for Economic Co-operation and Development compared the duration of unemployment payments around the world. Out of 34 developed countries, the US ranked 33rd— offering less than every country on the list but Hungary.

To quote the research brief for the paper: “Even aside from changes driven by technology and trade, employers’ increasing reliance on contract workers and on-demand scheduling rather than on permanent employees who work predictable schedules has added to the precariousness of many workers’ jobs.”

And those economically vulnerable groups who need the support most are more likely to have jobs that aren’t covered under federal unemployment eligibility.

This includes gig workers (thanks to prop 22), part time workers, and the self employed: People often work these jobs due to constraints like parenthood or disability.

The CARES Act, which passed in April, temporarily allowed certain groups who would usually be ineligible, like the self employed (who are poised to grow in numbers as the job shortage persists) to collect unemployment benefits.

But CARES and HEROES are going to end in December, taking the extensions to unemployment, the eviction moratorium and the COVID sick leave requirements with them.

And instead of extending them, Congress may soon be looking to cannibalize those programs and their unused funds for another round of corporate stimulus spending.

But if the coronavirus relief acts are allowed to expire, nearly 14 million Americans will lose the aid that they provide.

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Business News

Tis the season for employment scams – here’s what to look out for

(BUSINESS NEWS) Fueled even further by COVID unemployment numbers, seasonal employment scams are back on the menu. Here’s how you can avoid them.

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A serious man considers a clipboard in potential employment scams.

With the sheer amount of desperation people are feeling these days, it’s only fitting that employment scams would see a resurgence this holiday season. Thanks to the Better Business Bureau, there are some clear warning signs that can help you spot and avoid seasonal scams this year.

The typical crux of any employment scam revolves around a prospective employee’s willingness to pay for something upfront, be it training or some other kind of quasi-justifiable item (e.g., a uniform). However, other iterations of the scam actually involve an “employer” overpaying for something at the onset—albeit with a fake check—and then asking the recipient to wire “back” the extra money.

Either way, these scams can leave you jobless and with less money than you initially had, so here are some things for which you should watch out.

Firstly, employers shouldn’t ever charge you before hiring you. Some industries do require employees to make small purchases on their own dime (i.e., the aforementioned uniform), but payroll will usually deduct the cost of these materials from the employee’s first paycheck—not require payment upfront.

As a general rule, it’s probably best to avoid companies that charge you at all. Aramark, for example, is known for requiring employees to buy company clothes—and they’re no peach to work with. But desperate times may warrant an exception in this regard.

It’s also to your benefit to avoid postings that boast an “interview-free” experience. Put simply, no one is hiring sans an interview unless it’s nepotism or a scam. If you aren’t related to the poster, that doesn’t leave much up for interpretation. Similarly, advertising a large sum of money for disproportionately low amounts of work is a pretty big warning sign–again, in this economy, people aren’t shelling out for packing or wrapping jobs.

Finally, watch out for jobs that ask for a work sample before hiring. While this is common for internships, most entry-level positions aren’t going to require you to complete a project for free before determining whether or not you’re good for the job. At best, this is a tactic to get free work from you; at worst, your application information can be stolen.

It’s sad to think that people would stoop to the level of scamming others amidst the dumpster fire of a year it’s been, but if you avoid these red flags, you should be able to keep yourself safe during this holiday season.

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Business News

DMCA and Twitch streaming, aka a mess of copyright

(BUSINESS NEWS) As live-streaming is booming in popularity, DMCA claims are becoming an existential problem for Twitch. And it’s streamers who bear the burden.

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Twitch streamer in front of gaming PC, likely to face DMCA claims.

Last month hundreds of content creators on the streaming platform Twitch received DMCA takedown notices from their host at the same time, telling them that content on their channel was potentially in violation of copyright law.

Twitch has since summed up the incident in their own words on their blog. Typically, DMCA notices are supposed to provide the recipient with information about their options for submitting a counter-claim or seeking retraction. But, as the post admits, “the only option provided [to streamers] was a mass deletion tool for [their] clips, [and] we only gave [them] three days notice to use this tool.”

If they didn’t, they would risk losing their channel (and in many cases, their full time income.)

The videos in question could span thousands of hours of content, which could not realistically be deleted in the time allowed.

 

No Title

So, what you’re saying is all potentially copywritten music clips/VODS on my channel have already been identified and deleted, so I don’t need to delete anything right now?I need clarification because I don’t have the time to go through 4 years of clips.

Twitch has pretty much looked the other way from the unlicensed use of music on its user channels throughout its history. That’s generated more than a little resentment from groups like the Recording Industry Association of America in the past, and as the site only continues to grow, a massive wave of pressure from the labels has forced the site’s hand

The music industry wants Twitch to arrange for their streamers to use audio under the terms that websites like YouTube use. That includes a diligent Content ID system.

But instead, Twitch has built an in-house solution to this whole mess: Soundtrack, which offers a “rights-cleared music” from “independent artists.”

A spokesperson from Twitch supplied this statement to The Verge: “The music from Soundtrack is put into live streams and does not end up in VODs, and therefore we and our partners agree that sync licenses are not needed for Soundtrack.”

(The music industry doesn’t see it that way though.)

Not only that, but streamers still have a lot of questions about the new expectations on the site. In one case, a streamer had to completely stop their feed because their video was picking up music from an unrelated source.

Someone can even be flagged for playing a game that uses copyrighted music on-stream. Even playing a Star Wars game that makes use of the movie’s copyrighted soundtrack is a risky move. (After all, nobody wants to take any chances with Disney’s infamously aggressive legal team.)

In their apology, they expressed a desire to explore “potential approaches to additional licenses,” but said that “the current constructs for licenses that the record labels have with other services […] make less sense for Twitch.”

Securing a given song’s licensing rights is a pretty implausible task for a young streamer, since major copyright holders don’t generally negotiate on small-scale terms. Twitch, on the other hand, has been owned by Amazon since 2014. Amazon just happens to already be one of the biggest copyright holders in the world, and obtaining the rights to the songs that are in high demand shouldn’t be a prohibitive issue for one of their companies.

But ultimately this debacle isn’t solely their fault. The DMCA is an old law— old enough to drink, even. The people who wrote it could not have possibly accounted for the rapidly expanding new media industry. Under pressures like these, something has to give.

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