JOHN YI/YH York Square claims that Showcase owns a monopoly on first-run films.

York Square to sue 14 movie theatre companies

If ever there was a case of legal David and Goliath, this would be it. New Haven's only downtown movie theater, the three-screen York Square Cinemas, is taking on the country's biggest national movie companies. The owners of York Cinemas sent a letter to 14 major movie companies earlier this week, demanding an end to what they called "discriminatory legal behavior." "[The movie companies] are making determined, deliberate decisions, and they know exactly who they're hurting—the people of downtown and of York Cinemas," York Square Cinemas manager Peter Spodick said. A formal complaint will be issued within the next few days, and if the companies do not respond by Fri., Oct. 1, York Square Cinemas plans to file an official complaint with the civil rights division of the U.S. Justice Department.

According to Spodick, the many theaters that once spotted downtown New Haven went bankrupt and closed over the past few decades because major motion picture companies repeatedly refused to sell them the rights to blockbuster films."It's like the greedy child starving his little brother," he said. Instead, these movie companies have dealt only with Showcase Cinemas, a mega-movie enterprise that currently boasts 25 screens and 11,000 seats scattered throughout New Haven's suburbs.

"There is a direct correlation between the rise of Showcase and the necessary resulting demise of downtown New Haven," Spodick explained. Yale history professor Edith MacMullen agreed: "It's like a double whammy. Not only are people not going to movies, but they're not doing anything else usually associated with downtown either."

Two months ago, York Square Cinemas threatened Universal Pictures with legal action if the company would not sell them the rights to any of their films. According to Spodick, a Universal representative responded aggressively, telling Spodick that they would "do everything we can" to close down York Square if the theater filed suit."[The movie companies] are not going to give an inch," Spodick predicted. "They haven't given an inch in 20 years. We have no other option but to fight." A spokesperson for Universal said the company wouldn't comment on pending litigation.

Accusing the motion picture companies of denying New Haven citizens their right to free choice in moviegoing, York Square Cinemas holds the companies in violation of the Connecticut Unfair Trade Practices Act and is invoking the support of the Consumer Protection Agency and the Office of the State Attorney General.

The complaint also accuses the movie companies of violating the Americans With Disabilities Act, which prohibits discrimination against the physically disabled, including senior citizens. Citing the lack of bus service to suburban neighborhoods, Spodick said, "[Senior citizens] are not going to be driving out on the turnpike to see a movie, and why should they? Why should they be totally bereft of choice, with no alternatives?" York Square Cinemas is also appealing to the National Association for the Advancement of Colored Peoples for support with the charge of racial discrimination under U.S. Code Title VIII, a set of civil rights law designed to protect minorities.

Behind the flurry of legal paperwork is York Square's contention that Showcase Cinemas holds a damaging monopoly over the local movie industry. Sumner Redstone, owner of Showcase, also owns Blockbuster Video, Paramount Pictures, The Movie Channel, MTV, Simon & Schuster Publishers, Nickelodeon, Viacom and Cable Television Systems. York Square alleges that this setup enables Redstone to profit from first-run films long after they've left the big screen. On Wed., Sept. 8, Redstone made national headlines when he purchased CBS for $37 billion. According to Spodick, such a concentration of market share is clearly an advantage for Showcase over smaller cinemas in the eyes of movie companies looking to distribute their merchandise. "We are the little guys, and they feel like they can push us around," he said.

York Square Cinemas first tried legal action a year ago, filing a complaint with the antitrust division of the U.S. Justice Department alleging that Showcase was guilty of conspiring to restrain free trade. That complaint languished, as did efforts to enlist Mayor John DeStefano, Jr.'s help. According to Spodick, DeStefano's response to his request for help last year was, "What can I do?" The mayor could not be reached for comment at press time. Spodick decided that an antitrust suit would take too long and be too costly, so York Square's newest complaint does not mention Showcase Cinemas or the issue of trusts.

Spodick argued that the debut weekend of Star Wars: The Phantom Menace was typical of his disadvantaged situation. Lucasfilm refused to sell the film to York Square. As New Haven residents made a mass exodus to the suburbs to view the much anticipated hit, York Cinemas was showing the absolute last run of Shakespeare in Love, which had come out on Thanksgiving the previous year. "We only ran Shakespeare in Love for one week," Spodick said. "It won the Oscar for Best Picture, and we only showed it for a week. Everyone had already seen it." Adding to York Square Cinemas' frustration, this week Lucasfilm offered to sell them The Phantom Menace. "It doesn't matter anymore," Spodick said. "It's old news."

York Square had one glimmer of hope this summer when Artisan Pictures let them show The Blair Witch Project, making it the first film in 20 years to play simultaneously at York Square and Showcase. In its opening week at York Square and the Showcase Cinemas in Milford, The Blair Witch Project set house records for both competing theaters. According to Spodick, this proves "York Square isn't hurting Showcase."

Although he complained about paying the bills, saying that "York Square could easily close down; it has been losing money for 50 years," Spodick acknowledged that competition is legal. He said, "Mr. Showcase is entitled to be greedy. He's entitled to be powerful and to charge the highest price. However, the movie companies do not have to go along with it."

There is some consolation for Spodick. York Square Cinemas enjoys overwhelming support from Yalies and moviegoers who prefer sophisticated films. Grace So, CC '02, said she prefers the "more provocative and challenging" artsy films shown at York Square to huge blockbusters. "When a good blockbuster movie comes out, I can either go home and watch it on vacation or expect to see it at York Square in a few months," So said.

Yet the fact remains that a faction of devoted Yale film buffs do not constitute a lucrative market. "Why should New Haven residents have to wait months to see a first-run film?" Spodick asked rhetorically. "It doesn't make any sense." And other movie-goers are less than pleased with the lack of movie choices in New Haven. "I feel completely inconvenienced by the lack of first-run films in New Haven," Stephanie Schmid, TC '02, said. "It's one of my biggest pet peeves about the Broadway district and Yale in general." Schmid said she has only been to York Square once, but has traveled to Showcase Cinemas in North Haven via a cab or a friend's car four times. She added, "Blockbuster [Video] completely eclipses York Square as far as my tastes are concerned."

Yale Law School professor Ian Ayres, TD '81, LAW '86, who specializes in antitrust law, said of York Square Cinemas' complaint, "Arguing that failing to distribute movies to cities with a large proportion of minorities and the disabled constitutes discrimination under civil rights laws is certainly a very novel and worthwhile argument to pursue."

"Whether they win or not, I don't know, but it's certainly worth doing," said Richard Delamarter, GRD '89, a visiting lecturer on antitrust law and economics. "With a lot of the mergers happening in the entertainment industry, like at CBS, the fear is that there will be a loss of diversity. It's certainly in the interests of New Haven that York Square's case go forward." Delamarter thinks it is a "long shot" that York Cinemas' case will set a significant precedent. "[Spodick] is in it as much for the interests of his business as to set a precedent," he said. "What's more likely is that it won't go to a full trial, but that they will be able to get a side deal. After all, New Haven is a small market."

York Square Cinemas also plans to ask Yale to intervene on behalf of the interests of its students. Pending the movie companies' response to the formal complaint, the case will likely end up in court. "I think we'll win," Spodick said.

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