Date: 8th November 2000
Despite suffering enormous losses because of overexpansion, movie chains are continuing to develop new theaters in the Hollywood area of Los Angeles, the Wall Street Journal reported today (Wednesday), noting that all of them are being subsidized by the city.
The WSJ cited a market study by Pacific Theaters of 11 Southern California multiplexes, showing that while 140,000 people live within a three-mile radius of the average L.A. theater, theater houses in Hollywood serve 404,000 people. Jeff Skorneck of the L.A. Community redevelopment Agency told the newspaper, "Even though Hollywood is known around the world as the nucleus of the film industry, it's hugely underscreened." Pacific Theaters, which is developing a 14-screen multiplex at Sunset and Vine acknowledged that "the public-private partnership was critical. ... We wouldn't have been able to do it otherwise."
Source: Studio Briefing