El Capitan theater hits big with stage production; Hollywood venue becomes one of nation's top-grossing houses.

Four years ago, it was a tired old theater in a tired old block along Hollywood Boulevard. Now the El Capitan Theater has become one of America's top-grossing movie houses -- at least while "The Lion King" is in town.

The El Capitan was renovated in 1991 in a joint venture between Walt Disney Co. and Pacific Theatres. Pacific now operates the theater in a special arrangement with Disney's distribution arm, Buena Vista Pictures, to show only Buena Vista releases as the flagship venue for the Disney studios.

During the winter holiday and summer season, the El Capitan also presents a live stage show -- "Disney's Magical Moments," a musical revue that incorporates popular Disney characters from Aladdin to Mickey Mouse -- before each movie screening.

Though always a popular draw since the stage show was launched in conjunction with 1991's "Rocketeer," the performance combined with "The Lion King" has out-performed anyone's expectations. The revue has been extended past its original four-week engagement to Aug. 14.

"The Lion King," which debuted at the El Capitan on June 15, grossed more than $1 million in its first 25 days at the theater. Entertainment Data, Inc., the box office tracking firm, has placed the theater among the nation's top three grossing movie houses each of the seven weekends "The Lion King" has been in release.

By contrast, a similar stage show and "The Lion King" package at New York's Radio City Music Hall only lasted its originally scheduled nine days, though the movie continued to play at other theaters.

So popular is the Los Angeles show that tickets are only sold in advance, and go for the way-above average price of $10 for adults and $6 for children.

"It's the only presentation of this type in the country," said Milton Moritz, vice president of advertising and public relations for Los Angeles-based Pacific Theatres, "and it does very well."

As do the other businesses in the neighborhood.

Jim Scharf, director of marketing for Hamburger Hamlet Restaurants Inc., said sales at the Hamburger Hamlet outlet on Hollywood Boulevard increase by up to 50 percent when movies like "The Lion King" and "Aladdin" are paired with the live performance.

"It really shows up in our sales," Scharf said, echoing the sentiments of many in adding that he would like to see Disney keep the show going year round.

But that's where a hang-up develops. "The Lion King" can't play forever, and the stage show is only a seasonal event because, Moritz said, it's heavily dependent on a children's audience and therefore not viable when school is in session.

This leaves the El Capitan competing with newer multiplexes for viewers throughout much of the year.

"It's like any theater," Moritz said. "If you've got a mediocre film, it does mediocre (business)."

Officials with Disney and Pacific Theatres declined to discuss the El Capitan's revenues.

The El Capitan, built in 1926 as a performing arts theater, was renovated by Disney and Pacific Theatres in 1991 to the tune of some $7 million. Operated by Pacific as a flagship for Disney's Buena Vista releases, it houses 1,100 seats, including a full balcony.

The idea was always to mix live shows with movies, said Terry Press, spokeswoman for Buena Vista.

"It's a real entertainment experience that you can't get elsewhere," she said.

But can the formula be duplicated by other theaters, especially in an age when older single-screen venues are having trouble competing with the more popular and powerful multiplexes?

Perhaps, said Hillsman Wright, co-founder of the Los Angeles Historic Theaters Foundation and an expert in developing new uses of older theaters.

"But it would be hard to do in a union town like this one," Wright said, noting that Disney's current show is a non-union production. Disney is also very adept at turning out such specialty performers for its theme parks, making the El Capitan show a natural extension of that process, he said.

"Disney is uniquely equipped to do this," Wright said. "Which is not to say that others still couldn't do it."

Nonetheless, Disney seems to be in no hurry to develop more theaters along the El Capitan model.

It is planning to restore the New Amsterdam theater on 42nd Street in New York, but thus far that is envisioned as a performing arts venue. In the meantime, Disney's "Beauty and the Beast" stage production continues its run at New York's Palace Theater, with plans for a Los Angeles engagement soon.

But Press said Disney has no plans to develop another movie palace, either in Los Angeles or anywhere else.