Posted 12:28 am Sunday, March 07, 2010
Local Cinema Fights To Keep Family Philosophy
By MELISSA CROWE
Staff Writer
Sure, some movies are scary, but for local independent theater owner Howard Charba, the industry can be just as frightening as a plot on the big screen.
Staff Writer
Sure, some movies are scary, but for local independent theater owner Howard Charba, the industry can be just as frightening as a plot on the big screen.
Charba is a businessman with a conscience, an "it's right or it's wrong" kind of guy, and as a result, sometimes finds himself fighting for justice, be it access to a particular film production, new technology or a tax deduction.
"If we don't stand up for ourselves, we'll lose it," he said. "I'm a fighter."
His business, Times Square Cinema, is a small five-screen theater that seats about 150 people per room.
For the most part, it sticks to family centered releases and avoids the horror and and gore associated with "Hollywood Smut."
But the life of the cinema owner is not easy.
Charba felt a sting when new rules were added to the Texas Franchise Tax.
Charba felt a sting when new rules were added to the Texas Franchise Tax.
"The government killed us," he said.
Under new 2008 rules, because a movie theater is not distributing "tangible personal property," it does not qualify for cost of goods sold for royalty payments made for the right to use property. It only qualifies for cost of goods sold for its concession sales, according to the Texas Comptroller's Web site.
Under new 2008 rules, because a movie theater is not distributing "tangible personal property," it does not qualify for cost of goods sold for royalty payments made for the right to use property. It only qualifies for cost of goods sold for its concession sales, according to the Texas Comptroller's Web site.
FAMILY ESTABLISHMENT: Times Square Cinema is a five-screen theater that can hold up to about 150 people per room. Owner Howard Charba wants to keep his personal “Golden Rule” at the forefront of his business and maintain a family environment. “I worry about people being able to have a good time at a good price,” Charba said.
One of the cinema's biggest expenses goes to film royalties, some of which add up to 80 percent of each ticket, and none of it is tax-deductible.
Charba worries each time his cinema has to raise prices. Currently, adult admission at his theater is $5.50, while other Tyler theaters range from $6.50 to $8.50.
"I worry about people being able to have a good time at a good price," he said, wringing the bill of his army-green baseball cap and swaying his head.
Though his Golden Rule philosophy remains strong, "You treat people the way you want to be treated," it seems business is not where it should be.
"It's hard. It's hard to make a living," he said.
There are the regulars, people who prefer Times Square Cinema's intimate setting and couples opting for "stay-cations" instead of vacations, but the majority of movie-goers "will flock to Carmike," Charba said.
By the end of March, his five screens will go digital. It is a costly investment, but something he said he has to do to keep up with the 14-screen, 3,296-capacity theater just south of him on Broadway Avenue, the same theater that declared bankruptcy at his location in 2000.
"I think it's the only way to be here long-term," Charba said.
Cliff Anderson, owner of the one-screen Raye Theatre outside of San Antonio, said the switch to digital puts independent theater owners in a difficult situation.
"It's beneficial to the studio but not as much to the exhibitor," he said.
While the studio reduces its overhead from thousands of dollars to a mere download, the digital conversion costs the theater owner about $70,000 to $100,000 per screen, he said.
Compounded with the increasing time smaller theaters must wait to get releases to the dwindling time of DVD releases that went from 12 months of waiting to now 12 weeks, Anderson said in a year or two, many small, independent cinemas will likely disappear.
Yet, Dan Gallas, a manager at Times Square Cinema, said investing in the new technology will increase the theater's buying power and improve the moving-going experience.
"Howard is very savvy with keeping everything current around here," he said. "A lot of other independent and smaller chains are struggling to do that."
Not only will the new technology allow for better quality movies, but in the long run, some perks include reducing shipping cost and easier storage.
However, "it's not all about the numbers," Charba said.
He joined the industry after noticing a "lack of service" in Tyler's movie market. Soon after finding the bankrupt and vacated theater, Charba signed a lease with Tyler Prpoerties, renovated and practically gutted it in 2002 and opened its doors in July 2003.
Seven years later, Charba boasts a business he said he is proud to own; one that focuses on the experience, service and camaraderie of the cinema.
Twice a week, he cleans the cinema's carpets and twice a month he steam-cleans the seats. The tickets are more affordable and the concessions are bigger.
"By gosh," he said, if someone wants to see a movie, "you better make it a good experience."
