MrGrowsom1 --
The movie advertising business is an emerging and fast-growing
business, made possible by the consolidation of movie houses.
According to the National Association of Theater Owners, the top 2
chains have more than 26% of the screens in the U.S. -- and they're in
major metro areas, with larger audiences:
National Association of Theater Owners
"Top 10 Circuits" (June 1, 2003)
http://www.natoonline.org/statisticscircuits.htm
The leading chain (in numbers) is Regal Entertainment. It is also a
leader in pre-movie advertising, working with A.C. Nielsen to package
a product called "The 2wenty," a 20-minute advertising and shorts
package:
Washington Post
"Ads, Concerts May Provide New Revenue" (Ahrens, Dec. 30, 2003)
http://www.washingtonpost.com/wp-dyn/articles/A43003-2003Dec30.html
A good resource in discussing the cost and opportunity for Regal is
the recent third quarter earnings transcript, which describes how much
the company is spending to provide digital projection at almost 90% of
the company's 6,000 screens. Digital projection allows the company to
electronically distribute ads and other material, saving
print/distribution/production costs. The Cinemedia group is in
"other" revenues but reported more than $45 million in advertising
revenues through the first 9 months, up more than 50% from 2002:
Regal Entertainment
Third Quarter Earnings Report Transcript (Oct. 22, 2003)
http://media.corporate-ir.net/media_files/nys/rgc/transcripts/102203.pdf
AMC Entertainment is not being left-behind. Not only is it planning a
merger with Loews Cineplex but their National Cinema Network is the
advertising group for the theater chain:
AMC Entertainment
http://www.amctheatres.com/advertisewithus/index.html
Digital theaters are popular, but not widely supported by Hollywood
studios, according to a recent Reuters article:
Reuters
"Plugged In: Coming to a Theater Near You: Digital Films" (Warner, Dec. 23, 2003)
http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=4039986&pageNumber=0
But even Wall Street analysts aren't convinced about in-theatre
advertising. Smith Barney analysts Han Suk and Jill Krutick, in a
November, 2003 brief on Regal Entertainment notes that the company has
spent $70 million on revamping theaters but advertising is "still in
its early phase of implementation, the reception to digital
advertising in theaters on a larger scale by advertisers, consumers,
and movie studios is uncertain. "
Finally, as Pinkfreud mentioned, Arbitron has published the seminal
study that has interested the entire industry. Arbitron is a
competitor of A.C. Nielsen in providing advertising demographics for
industry.
Google News search:
Regal + advertising
Movies + advertising
CineMedia + advertising
Best regards,
Omnivorous-GA |
