From Reuters: Consumer spending on filmed entertainment will rise to $111.2 billion in 2012 from $85.9 billion last year, driven by Asia-Pacific growth and digital upgrades in homes and theaters, according to a report released on Wednesday.

The PricewaterhouseCoopers Global Entertainment and Media Outlook: 2008-2012 said box office spending would increase at a 6.1 percent compound rate yearly to $36.9 billion by 2012, outpacing home video spending, which will grow at a compound annual rate of 4.9 percent. Box office revenue will grow on 3D and digital upgrades and rising screen numbers outside North America, the report said.

 

Read more

Turns out the $9.6 billion that moviegoers spent at the domestic box office wasn’t the only record set in 2007. According to the Cinema Advertising Council, its members’ revenues reached $539.9 million—an 18.5-percent increase, year-over-year. That’s a couple hundred million more than the top-grossing movie of ’07, Spider-Man 3, earned at U.S. theatres.

“We’re obviously very pleased with the growth,” says CAC President and Chairman Stu Ballatt, who is also senior vice president for marketing and research at Screenvision. “These numbers were in line with the expectation that we would continue to deliver double-digit growth as an industry. And 18.5 percent solidly puts cinema advertising second only to the internet in terms of advertising revenue growth.

“Last year, growth was about 15 percent. So I was really pleased to see that uptick, year-over-year,” Ballatt says. “Not simply maintaining double-digit growth, but also increasing it a bit was a pleasant surprise.”

Ballatt attributed the continuing growth of both onscreen and offscreen advertising—which accounted for $494.6 million and $45.3 million, respectively—to advertisers using cinema as a “sustaining media.”

“It’s not what it was four or five years ago, when people would buy one flight in cinema all year, for a big tentpole event, but nothing the balance of the year. Advertisers are using cinema much more frequently and consistently as part of their overall media mix. So while cinema doesn’t have a traditional ‘upfront’ like television, advertisers are buying cinema in an upfront nature. They’re buying several flights—three, four, five, 10 flights over the course of one planning cycle, and they’re committing to that spending six or nine months in advance,” Ballatt says. “They are making an upfront commitment to cinema because the inventory is finite, there isn’t that much of it. You can’t really expand it at any great level, because you can’t ever—and won’t ever—displace the film itself. So in order to take advantage of the GRPs [Gross Rating Points] that are available there, people are making upfront commitments and they’re doing so for multiple time periods or multiple flights.”

Cliff Marks, president of sales and chief marketing officer for National CineMedia, says the advantages of cinema advertising are manifold. “It is completely engaging, you have the ability to use sight, sound and motion, you have the ability to talk to niche audiences and target and—for a lot of categories—advertisers like the fact that we sell 70 percent of our tickets between Friday and Sunday. That’s when people are out, that’s when people are shopping, that’s when people are looking for new cars, that’s when people are in malls, that’s when they’re more likely to use their credit cards. There’s lots and lots of advantages there, but the cinema medium is a very powerful medium, because the research shows that the recall and the engagement of those ads are stronger than any other media known to man.”

Asked how the current state of the U.S. economy might impact 2008 cinema-advertising expenditures, Ballatt expresses sentiments similar to those shared by many in the exhibition industry.

“In a soft economy—whether it’s an actual, qualified recession or it isn’t—I think advertisers will view cinema as a stable environment. And I think, at that level, theatregoing does pan out to be somewhat recession proof. In fact, in previous recessions, cinemagoing in terms of box office ticket sales has maintained, and sometimes has actually even increased, because people love moviegoing, and movie going is a low-cost, high-value entertainment opportunity. So we would expect that we wouldn’t see significant, if any, erosion, in terms of expectations of admissions. And that means that advertisers can rely on cinema being able to provide the GRPs that they bought,” Ballatt says. “So I would expect that advertisers will continue to use cinema in a greater way.”

But Marks, himself a past president and chairman of the CAC, cautions that “no media outlet is recession proof. … While it’s hard to project what will happen in the future, clearly, any business that relies on marketers and the economy to some depth is vulnerable to a recession.”

For expanded coverage of cinema advertising, including additional insights from Stu Ballatt and Cliff Marks, read the August issue of Boxoffice Magazine.

 

Read more

The number-one movie of the weekend, The Incredible Hulk, dominated not only at the box office but also in the percentage of tickets sold online. MovieTickets.com reports that on opening day (June 13), nearly half (46 percent) of all tickets sold via the internet ticketing service were for Hulk. The movie continued to show its muscle in online ticketing on Saturday, June 14, representing nearly 40 percent of all tickets sold at MovieTickets.com. As of Noon ET today, the movie has again taken the top spot in number of tickets sold, coming in at 32 percent.

Also, according to MovieTickets.com exit poll data garnered from 1,555 moviegoers who saw Hulk, an overwhelming 85 percent rated the move as "excellent" or "very good." Further, the movie appeared to be equally enjoyed across the board, with a uniform number of males and females under and over 25 years old rating it as "excellent" or "very good."

 

Read more

MORRISTOWN, N.J., June 12, 2008 /PRNewswire-FirstCall via COMTEX/ -- Access Integrated Technologies, Inc. reported a 72% increase in revenues, to a record $81 million for the fiscal 2008 year ended March 31, 2008, versus the year-ago period. The Company posted an Adjusted EBITDA* of $30.3 million or $1.19 per share, and a net loss of $35.7 million or $1.39 per share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, debt refinancing, impairment of intangible assets and stock-based compensation aggregating $44.4 million or $1.74 per share.

The Company reported a 26% increase in revenues versus the year-ago period to a record $21.9 million for the fiscal 2008 fourth quarter ended March 31, 2008. In the quarter, the Company posted an Adjusted EBITDA of $8.9 million or $0.34 per share, and a net loss of $11.2 million or $0.43 per share. The net loss includes non-cash expenses for depreciation, amortization of intangible assets, non-cash interest, impairment of intangible assets and stock-based compensation aggregating $14.5 million or $0.55 per share.

Bud Mayo, Chief Executive Officer of AccessIT, stated, "Fiscal 2008 was a year of great achievement for AccessIT. Among the many accomplishments in our Media Services Segment, we completed our Phase 1 digital cinema deployment of more than 3,700 screens, announced our Phase 2 deployment of an additional 10,000 screens and, in connection with our Phase 2 rollout, we have already entered into definitive agreements with four of the six major studios up to provide content and to pay VPFs. We also executed our first live satellite-delivered event with Disney/ESPN as our partner, expanded our satellite network to 254 multiplex sites covering 109 markets, and signed our first international agreement with Doremi Labs Inc. to provide our Theatre Command Center(TM) software and Library Management Server(TM) to customers internationally. In the Content and Entertainment segment, we signed an exclusive agreement with the San Francisco Opera to bring their performances to theatres throughout the world, and expanded our popular music and Kidtoons offerings. The Advertising and Creative Services unit has been through a major shift and we hope will be able to provide incremental national advertising to all of its screens during fiscal 2009. On the financing side, effective August 1, 2008, we have reduced the interest rate on $200 million of our outstanding GE debt by 2.5 percent to 7.3 percent, and continue to make progress on our refinancing efforts for our Phase 1 debt facility as well as preparations for the financing of Phase 2."

* Adjusted EBITDA is defined by the Company to be earnings before interest, taxes, depreciation and amortization, other income (expense), net, stock-based compensation and non-recurring items. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of its fundamental business activities. A reconciliation of Adjusted EBITDA to Generally Accepted Accounting Principles ("GAAP") net income is included in the table attached to this release. Adjusted EBITDA is a measure of cash flow typically used by many investors, but is not a measure of earnings as defined under GAAP, and may be defined differently by others.

 

Read more

Christie Digital Systems USA, Inc., a global leader in Digital Cinema, was selected by Warren Theatres as the exclusive DLP Cinema provider for its spectacular new 14-screen multiplex in Moore, Oklahoma. The Moore Warren Theatre, the most expensive in the history of the state, is also one of the largest, with luxury accommodations and screens up to 80 feet wide and four stories tall.

The company's first all digital multiplex, the Moore Warren features Christie's acclaimed CP2000 series projectors, selected by more than 80% of all global installations; a sophisticated sound system that meets the highest standards in film audio; and the latest in 3D cinema technology. A special VIP section offers extra wide seats and food service is available. The décor reflects the ultimate in elegance, with terrazzo flooring, marble counter tops, and waterfall curtains.

"We built our reputation on providing the highest quality and consistently best service in the industry. The citizens of Oklahoma City and Moore expect nothing less from us," said Bill Menke, the corporate vice president of Construction, Development and Technology for Warren Theatres. "We selected Christie DLP Cinema projectors because they produce the most brilliant picture on the screen, greatly enhancing the movie viewing experience. Christie projectors also allow us to show concerts, corporate and sporting events - even host massive X-Box competitions on the big screen."

Warren Theatres, known for taking its cues from the past while looking into the future, installed eight Christie CP2000-ZX and six Christie CP2000-SB projectors to deliver stunning, razor-sharp images on the screens in the Moore Warren Theatre.

"With its all-digital screens, Moore Warren represents the future of cinema entertainment," observed Craig Sholders, vice president of Entertainment Solutions, Christie. "Warren Theatres' decision to go with Christie DLP Cinema projectors exclusively reflects the enormous confidence they have in Christie products to meet the high standards they have set. We look forward to working with Warren to bring the excitement of the Digital Cinema revolution to moviegoers everywhere."

 

Read more

Subscribe to Articles Feed