BoxOffice® Pro - May 2012

EXECUTIVE
SUITE
by John Fithian
President and CEO
National
Association of
Theatre Owners
This
special
edition of
Boxoffice
Magazine comes
to you at the outset of NATO’s second annual
CinemaCon—the largest and most important
global gathering of the motion picture
exhibition industry. The members and staff of
the National Association of Theatre Owners
are thrilled to produce this exciting event.
Our annual gathering in Las Vegas offers the
opportunity for members to gather and discuss
the current issues of the day, examine the latest
in technologies and concessions offerings, see
exciting upcoming product from our partners
in distribution, and network, network, network.
In this space I hope to accomplish two
goals: to give our readers a small taste of what
CinemaCon 2012
has in store and to
briefly highlight
our assessment of
the most important
issues that will be
discussed during
the convention.
In 2011, we had a great experience at our
first CinemaCon. Indeed, we thought we might
have set the bar too high with the inaugural
excitement. We anticipated slightly lower support
for the second event—and I am pleased to
report that our assumption was very wrong. For
the 2012 show, the trade floor completely sold
out. We added additional ballroom space for
more booths and that sold out too. We wish we
could accommodate the remaining companies
on our waiting list. As for registrations, we
track those every week, and as of late March,
registrations were running neck and neck with
last year. Support from our many wonderful
sponsors continues, and our members are supplying
squadrons of volunteers.
Programming at the 2011 show also set a
strong precedent, with good studio support,
historic educational events like the directors
panel and the frame-rate demonstration, and
wonderful parties with the support of our partners,
particularly Coca-Cola. I never dreamed
that 2012 programming could be better—but
it is. For the first time in more than a decade,
all six major studios are supporting the show
Greetings from NATO President John Fithian
WELCOME TO CINEMACON 2012
For the first time in more than a decade, all
six major studios are supporting the show
with product and programming.
with product and programming. The educational
programming has expanded with great
panels and a first-ever convention demonstration
of laser cinema projection. The famous
filmmaker panel returns this year, and of course
we have a strong contingent of stars throughout
the week and during the final-night award ceremonies.
Oh—and the parties will be great too!
We made some rookie mistakes during the
2011 show, particularly with some logistical
issues in the huge Caesars hotel, casino and
Colosseum. In response to those concerns,
the CinemaCon team has hired additional
professional help to provide guidance on the
casino level of the hotel, where traffic patterns
can be a bit confusing. In addition, there will
be more signage and directional markers. We
know more what to expect in our second year
and have planned accordingly. Everyone at CinemaCon
and NATO welcomes comments and
suggestions, so please keep those coming.
Before turning to the substantive issues
of the convention, I want to thank Mitch
Neuhauser, Matt Pollock and Matt Shapiro
for their tireless efforts bringing this wonderful
event together. And of course that team
is supported by energetic volunteer NATO
members. Our member task force is led by Phil
Harris of Signature Theatres, and Bill Stembler
of the Georgia Theatre Company and also
includes support from Byron Berkley (Foothills
Entertainment), Rob Del Moro (Regal), John
McDonald (AMC) and Tim Warner (Cinemark).
The industry owes a debt of gratitude
to these active leaders.
As for the substantive issues likely to dominate
the dialogue in Vegas, there are several.
First, I want to dispel a nasty rumor propelled
by some observers in the press that the movie
exhibition business is dying. Nothing could be
further from the truth. To be certain, it is true
that domestic box office receipts were down
3.7 percent last year. Our critics blamed the
decline on home entertainment, video games,
ticket prices and a host of reasons other than
the movies themselves. But the first quarter
of 2012 has brought tremendous growth with
nothing changed other than the movies. We’ve
had a greater mix of movies with appeal to
diverse audiences, and as this column goes to
print, The Hunger Games has reaped the third
biggest opening weekend of all time behind
Harry Potter and the Deathly Hallows: Part II
and The Dark Knight—an astounding $152.5
million debut made all the more amazing as a
March release without even a sequel paving its
way. And something tells me the summer will
be strong too. Our studio partners certainly are
demonstrating their confidence in the upcoming
movie slate at CinemaCon.
At the same time, our industry enjoys an
improved environment on the once contentious
issue of release windows. During 2011, the
industry engaged in a public food fight where
some leading distributors unilaterally launched
a dangerous experiment with “premium”
video-on-demand. Exhibitors and the creative
community responded aggressively, and the
experiment failed. As we come together in Las
Vegas, I am very pleased that distributors and
exhibitors are working together again to find
ways to grow the business as partners.
And it’s that spirit of partnership that has
enabled such tremendous progress over the
past year in the transition from film to digital
technologies. As I write
this column in late
March, the industry has
installed digital technologies
in more than
27,000 domestic auditoriums—a
full two-thirds
of the total marketplace.
The international transition has exploded as
well. The broad adoption of digital cinema will
enable growth in 3D receipts, greater diversity
of movie slates and more alternative content.
It would be difficult to overstate the historical
achievement of the digital transition—exhibitors,
studios and technology companies came
together to craft uniform technical standards
and to develop shared-cost business models.
Exhibitors are improving the moviegoing
experience with other innovations such as new
large-screen formats, mobile technology applications
and premium food and drink options.
And the image on the screen will continue to
improve as our members enable higher frame
rates in time for The Hobbit this December.
Throughout the week at CinemaCon, the
creativity and innovation of our industry will
be on display in the trade booths and suites,
in the discussions of expert panelists, and on
the big screen in the Colosseum. With strong
trends at the box office and an exciting new
digital era, it is simply a wonderful time to
come together in Vegas and celebrate the magic
of moviegoing.
12 BOXOFFICE PRO MAY 2012