Ketchum’s only movie theater, Merlin’s Magic Lantern, has been a presence in this town for fifty years, seeing countless movies appear on its screens and just as many patrons, both local and out-of-towners, come through its doors. New owner Bob Peterson has taken over the historic theater, breathing new life into the business born of former owner Rick Kessler’s passion for movies.
The History
It’s hard to believe there was a time in Ketchum’s history when the Magic Lantern wasn’t in operation, but until owner Rick Kessler moved here in 1972 and opened the theater three years later, in 1975, that was indeed the case. The theater, named for the 17th-century image projector, originally opened in the Odd Fellows Hall, on Washington Avenue, until the size of the growing community demanded a bigger space, and Kessler moved into the theater’s current space across the street, on Second Street. Just 25 years old when he opened the Magic Lantern, Kessler envisioned providing something he saw as essential to a community: not just a space to see movies, but a place to meet friends, a place for kids to go on a summer afternoon, a place for tourists to go in the après hours, and so much more.
And as anyone who has visited Ketchum in the last fifty years can attest, the theater encompassed all of that. It even drew enough business to warrant opening additional screening rooms in the second, downstairs theater in what was for a short time Ski Time Cinemas. There is much history wrapped up into this theater, which was one of the first in the country to serve beer and wine. Patrons would line up down the theater’s staircase in anticipation of a film opening, an annual fall film festival had a thirty-year run, and Kessler, who kept all the movie posters that came through his theater, now has a collection of 21,000 movie posters.
But over the years, the way people watched movies changed. Netflix changed the game, and soon streaming services made it more convenient just to watch movies at home. Kessler put the business up for sale, hoping that someone would come along who wanted to keep this historic spot a movie theater.
New Ownership
Luckily for Kessler and the town of Ketchum, that someone did come along—lifelong local Bob Peterson. A filmmaker and producer in LA, Peterson had no intention of purchasing a movie theater in his small hometown, until he was home in 2023 and saw Kessler’s For Sale sign up. Peterson, who, like all locals, grew up going to movies at the Magic Lantern, and himself works in the film industry, was heartbroken to think that the spot that had inspired his own love of movies may end up in the hands of someone who would tear it down.
Peterson took over ownership from Kessler in August 2024, promptly renaming it Merlin’s Magic Lantern after his dog. Peterson began investing his own time and manpower completely into the theater, working alongside those employees of the theater who decided to stay on with the change in ownership. In the short time since he’s taken over, Peterson has implemented numerous changes to a somewhat analog operation, taking it into the digital era.
His first priority was changing lighting and networking infrastructure, with Merlin’s Magic Lantern now being the first in the country to use a cutting-edge software platform from Germany that automates the scheduling and control of the auditoriums. Many improvements have been made to the projection booth, from sound processors to updated HVAC systems and a color-coded lighting system.
A major change to come to the theater is the changeover from previously being cash-only to credit card only. While a small, vocal minority have asked why Peterson wouldn’t accept cash anymore, he explains that it’s all to help run the theater better and more efficiently. “Everything I’ve been changing has really been done with the intention of automating as much as possible. The whole goal is to make the theater self-sustainable, so that nothing ever happens to it. No matter how much resources someone has, if a theater is losing money, eventually you have to close it.”
The lobby has seen a couple changes as well. In addition to accepting credit card payment and purchasing tickets at the concessions stand along with concessions (rather than at the traditional ticket booth), Peterson has installed an eight-bottle wine dispenser and a multi-beer tap and added digital screens on the walls that display the concessions menu. He has also brought in early matinee showings on weekends and plans to hopefully extend that into the weekdays in the future, and even do the occasional late-night showing for the right movie.
The Future
Going forward, Peterson has even more changes in mind, with the biggest being his re-envisoning of the ground floor of the building. Peterson purchased the whole building that the theater is housed in, which also includes an extra theater (the former screening rooms) and three retail businesses that are still in operation. Peterson isn’t kicking those businesses out, but won’t be renewing their leases, giving him the chance to convert those spaces eventually into a restaurant/bar, which Kessler had originally intended to do, and maybe even add an arcade. “If people can have dinner and a drink after the movie, it just helps get people out,” Peterson said. He also intends to keep the screening rooms but turn them into a boutique, high-end theater with lounge seating.