More views of - or before - Cambridge Film Festival 2013
(Click here to go directly to the Festival web-site)
31 August
If you've never heard of the MMC*, you might wonder what the Competition Commission does ?
Do they police the occasions when you came up for a brilliant new name for Frosties, but didn't win, or that holiday in Honolulu that they keep ringing me about ?
Well, this probably won't help : Imagine a town, Townchester, with a big branch of Tesco a few streets away from one side of the river, and an equally big branch of Asda in the same position on the other side. Imagine Asda decided that they thought that people were more interested in carpet, and devoted half of their floor-space to that instead of their normal range of goods.
So what has happened to competition in Townchester ? Asda, for whatever business or other reason, has effectively given Tesco a massive advantage, and could make its so very low prices creep up, because it knows that customers can less easily find all that they need at Asda.
But does the Competition Commission have anything to say about this ? I understand not, and it would take Asda to decide to sell up to Tesco altogether before, as I gather, The Office of Fair Trading might refer the matter to the Commission.
Does this make any sense ? In both cases, a market position lessens competition, but, unless I am quite wrong, the Commission won't oblige Asda to compete fully with Tesco, any more than it will, if Asda does as I say with 70% of its floor area, encourage Lidl or who knows what other supermarket retailer in to keep Tesco in check.
And does it nap ? A very big Sainsbury's has now opened in Bicester, but I am reliably informed (by a friend who lives there) that the competitive playing-field before then saw no fewer than seven, yes seven, Tesco branches in this one town.
Anyway, apply this 'thinking' to the business of cinemas, of projecting films for public exhibition, and Festival Central is threatened because Cineworld, which had a cinema already, now owns both : the Commission, from the lofty height of its great wisdom, records that there are membership schemes and a diversity between the type of films shown at each.
It records that state of affairs, but decides, I am told (by @MovieEvangelist), to take no account of it, irrespective of the fact that one largely could not see almost all of the films shown at Festival Central at Cineworld. It focuses (again, @MovieEvangelist informs me) on odd assumptions about what people would do if prices rose 5%, but has no wit to think that, if the cost of seeing films did increase that much, one would not, as it surmises, go to another cinema where one could not see the films that one chooses to view, but just not watch quite so many films - if the price of beer goes up, do I just consume as much, if my income has not kept pace, or have slightly fewer pints ?
It's obvious, but seemingly not to the Competition Commission. And membership : one pays a fee for membership at Festival Central, but then gets three free tickets, 10% of food and drink, and up to £2.00 off the price of almost all other tickets, all applicable across Picturehouse cinemas. One can just discount that, when Cambridge Vue, I gather, does not have such a scheme ? Cineworld has an unlimited subscription (@MovieEvangelist says), allowing the holder to see any number of films for a monthly payment - can that, too, just be ignored, if one wants to talk about ticket-prices ?
Whose interests, then, is the Commission protecting ? The one-off visitor to Cambridge who wants to see a film ? If the visitor likes world or independent cinema, and is a member at The Belmont, in Aberdeen, he or she can use those free tickets, or get something up to £2.00 off, plus the 10% discount, so why compare the straight price of, say, a matinee ticket at the Vue with that ?
Regarding supermarkets without their loyalty cards, discount vouchers, and three-for-two offers - would looking at the ordinary prices, without being able to cash in points on meals, holidays, probably cinema tickets, make sense ?
In the Commission's world, there is the possibility of the lessening of its arcane notion of competition, and it seems not to care that the consequence of believing that action probably must be taken, i.e. requiring Cineworld to sell one of the Cambridge cinemas, runs the risk of three cinemas showing pretty much the same films**.
If that is the desired outcome, then it is the desert that we have of multi-channel t.v., with no variety within the large number of channels, save that each one is a different channel, in terms of the quality and worth of content. Making big players bid to screen prestigious sporting fixtures just meant that the winners passed on the cost of their winning bid to the public - pay £Z to subscribe, or you don't see these events.
The public had these events more easily and less inexpensively available before. They have just had them sold back at the high price of subscribing, say, to Mr Murdoch's services.
Only beneficiaries ? : Mr Murdoch, the shareholders of his companies, the staff who encrypt and broadcast the events, allow the subscriber, both physically and by checking that he or she continues to pay, to watch, and the manufacturers of the technology that the subscriber needs, and their staff and shareholders.
What price a film festival ? Oh, a fanciful notion of competition has to be explored to protect the public from seeing the latest Woody Allen, world premieres, twenty documentaries (when Cambridge is not even primarily a documentary film festival)...
Thanks, and make me have to spend at least £13 on a Travelcard to London and then to have to pay the high admission fees of London Film Festival's screenings !
End-notes
* The Monopolies and Mergers Commission, replaced by the CC on 1 April 1999 (from memory).
** Of course, that is pure competition, rather than having this arthouse muck screened ! (Almost in the same way that Nineteen Eighty-Four has three massive powers vying for it.)
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Unless stated otherwise, all films reviewed were screened at Festival Central (Arts Picturehouse, Cambridge)
Showing posts with label Competition Commission. Show all posts
Showing posts with label Competition Commission. Show all posts
Friday, 30 August 2013
Friday, 23 August 2013
Gibberish comes to a home of academic excellence and parades as talking about 'competition'
More views of - or before - Cambridge Film Festival 2013
(Click here to go directly to the Festival web-site)
24 August
The following quotations are taken from the Provisional Findings Report of the Competition Commission, dated 20 August and called Cineworld / City Screen Merger Inquiry : Completed acquisition by Cineworld Group plc of City Screen Limited
In Cambridge, Picturehouse operates a three-screen cinema. There is a nine-screen Cineworld cinema and an eight-screen Vue cinema within less than 5 minutes’ drive-time. (para. 6.77)
Yes, that's all very well - you can be outside the Arts Picturehouse in a car and, from there, drive to Vue's premises, except that you cannot park immediately outside either of them. Being able to do that journey in less than five minutes ? Well, you would have to be very lucky with two major traffic-light-controlled junctions and two pelican crossings, and then you would be outside a cinema, momentarily, on a road where you cannot even stop.
Talking, then, of '20- and 30-minute drive-time isochrones' is then sheer nonsense - I might be able to drive to some prime location in London very quickly, but, if I cannot actually benefit from being there in and with a car, I would obviously not choose to drive there. One might do better, say, to compare being able to shop at Tesco in Royston (and park there) and then, within that timescale, getting to Morrison's in the town and being able to park - notional drive-times that have no element of practicability to them are meaningless. (I say that because when The Co-operative wanted to buy Somerfield stores, they either did not, or could not, buy what became the Morrison's.)
The report is not even consistent internally about what it means by 'travel', and so the following paragraph reads :
The parties’ survey showed that 81 per cent of Picturehouse Cambridge customers had travelled 30 minutes or less to the cinema from their home. This is consistent with our own survey, which also gave a result of 81 per cent. (para. 6.78)
This does not mean what it says, because the report is fixed on the idea of driving, as the subsequent text makes clear, but driving alone, not driving plus walking, or driving plus a parking-fee plus a smaller amount of walking. These factors might make, say, someone living in Stapleford more likely to cycle than even to get behind the wheel of a car - door-to-door transport at only the cost of effort, and with no extra time or cost, but still the journey-time.
This next paragraph beggars belief - you ask the people who would stand to benefit (by buying up one of the readymade sites) how they view Cambridge, and expect them to tell you the truth about their business plans, not playing down anything :
In addition, Curzon told us that although the demographics of Cambridge were attractive, there was too much competition under the control of Cineworld and it preferred to look at areas where there were more opportunities. Odeon considered Cambridge an attractive area, but the centre of Cambridge already had three cinemas, and it was not clear that there was enough demand to support another cinema. In addition, the city centre was tight and opportunities to enter consequently limited. Odeon [snip]. It was unlikely that Odeon would be able to open a cinema in the area in the next two to three years. If an opportunity arose, likely timescales for development were the next five to ten years. We therefore considered that timely entry in the Cambridge area was unlikely. We considered that competitive constraints on the parties would be weakened following the transaction and, on balance, that other factors at play in the Cambridge area would not defeat the lessening of competition. (para. 6.84)
So they play down how they can compete to encourage you to tell Cineworld to sell one of the cinemas, and then they just buy it. No matter whether the people who frequent these cinemas would want the films that Curzon or Odeon would show - they just get the chance to take over, because that's 'competition', even if it is a disservice to the present clientele.
Still, as long as someone watches some films or other, it doesn't matter much...
Or is that approach / logic more like that phrase of cutting off your nose to spite your face ?
And this little phrase was reported, and then ignored :
The parties also told us that demand in Cambridge could support another multiplex. (para. 6.83)
Are they trying to be clever, by saying that other chains might be drawn in, or not. It just hangs in the air - if they are right, then all the more reason for someone to gobble up whatever Cineworld is compelled to sell, because they can get rid of this home of the film festival and unprofitable arthouse rubbish, and put on solid blockbusters from noon to night !
And then there was something about surveying people and what they would do in the event of some percentage price-rise : if I wanted to watch, not the latest Batman caper, but, say, Samsara (2011), or Kosmos (2010), would I find either at Cambridge Vue or Cineworld ?
Rubbish in, rubbish out, in terms of asking a meaningful question ?
If you want to Tweet, Tweet away here
Unless stated otherwise, all films reviewed were screened at Festival Central (Arts Picturehouse, Cambridge)
(Click here to go directly to the Festival web-site)
24 August
The following quotations are taken from the Provisional Findings Report of the Competition Commission, dated 20 August and called Cineworld / City Screen Merger Inquiry : Completed acquisition by Cineworld Group plc of City Screen Limited
In Cambridge, Picturehouse operates a three-screen cinema. There is a nine-screen Cineworld cinema and an eight-screen Vue cinema within less than 5 minutes’ drive-time. (para. 6.77)
Yes, that's all very well - you can be outside the Arts Picturehouse in a car and, from there, drive to Vue's premises, except that you cannot park immediately outside either of them. Being able to do that journey in less than five minutes ? Well, you would have to be very lucky with two major traffic-light-controlled junctions and two pelican crossings, and then you would be outside a cinema, momentarily, on a road where you cannot even stop.
Talking, then, of '20- and 30-minute drive-time isochrones' is then sheer nonsense - I might be able to drive to some prime location in London very quickly, but, if I cannot actually benefit from being there in and with a car, I would obviously not choose to drive there. One might do better, say, to compare being able to shop at Tesco in Royston (and park there) and then, within that timescale, getting to Morrison's in the town and being able to park - notional drive-times that have no element of practicability to them are meaningless. (I say that because when The Co-operative wanted to buy Somerfield stores, they either did not, or could not, buy what became the Morrison's.)
The report is not even consistent internally about what it means by 'travel', and so the following paragraph reads :
The parties’ survey showed that 81 per cent of Picturehouse Cambridge customers had travelled 30 minutes or less to the cinema from their home. This is consistent with our own survey, which also gave a result of 81 per cent. (para. 6.78)
This does not mean what it says, because the report is fixed on the idea of driving, as the subsequent text makes clear, but driving alone, not driving plus walking, or driving plus a parking-fee plus a smaller amount of walking. These factors might make, say, someone living in Stapleford more likely to cycle than even to get behind the wheel of a car - door-to-door transport at only the cost of effort, and with no extra time or cost, but still the journey-time.
This next paragraph beggars belief - you ask the people who would stand to benefit (by buying up one of the readymade sites) how they view Cambridge, and expect them to tell you the truth about their business plans, not playing down anything :
In addition, Curzon told us that although the demographics of Cambridge were attractive, there was too much competition under the control of Cineworld and it preferred to look at areas where there were more opportunities. Odeon considered Cambridge an attractive area, but the centre of Cambridge already had three cinemas, and it was not clear that there was enough demand to support another cinema. In addition, the city centre was tight and opportunities to enter consequently limited. Odeon [snip]. It was unlikely that Odeon would be able to open a cinema in the area in the next two to three years. If an opportunity arose, likely timescales for development were the next five to ten years. We therefore considered that timely entry in the Cambridge area was unlikely. We considered that competitive constraints on the parties would be weakened following the transaction and, on balance, that other factors at play in the Cambridge area would not defeat the lessening of competition. (para. 6.84)
So they play down how they can compete to encourage you to tell Cineworld to sell one of the cinemas, and then they just buy it. No matter whether the people who frequent these cinemas would want the films that Curzon or Odeon would show - they just get the chance to take over, because that's 'competition', even if it is a disservice to the present clientele.
Still, as long as someone watches some films or other, it doesn't matter much...
Or is that approach / logic more like that phrase of cutting off your nose to spite your face ?
And this little phrase was reported, and then ignored :
The parties also told us that demand in Cambridge could support another multiplex. (para. 6.83)
Are they trying to be clever, by saying that other chains might be drawn in, or not. It just hangs in the air - if they are right, then all the more reason for someone to gobble up whatever Cineworld is compelled to sell, because they can get rid of this home of the film festival and unprofitable arthouse rubbish, and put on solid blockbusters from noon to night !
And then there was something about surveying people and what they would do in the event of some percentage price-rise : if I wanted to watch, not the latest Batman caper, but, say, Samsara (2011), or Kosmos (2010), would I find either at Cambridge Vue or Cineworld ?
Rubbish in, rubbish out, in terms of asking a meaningful question ?
If you want to Tweet, Tweet away here
Unless stated otherwise, all films reviewed were screened at Festival Central (Arts Picturehouse, Cambridge)
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