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talent and directors from their movies, and introductions by their most<br />
important executives.<br />
In addition to the studio presentations and the trade floor exhibits,<br />
the educational sessions offered at CinemaCon also provide great value to<br />
our attendees. This year our seminars cover a wide range of topics including<br />
theater architecture, the Chinese exhibition market, closed captioning,<br />
meeting customer expectations, concessions issues and opportunities,<br />
theater showmanship (with a panel moderated by some guy named Peter<br />
Cane), new and emerging technologies, and many more.<br />
And of course the convention would not be complete without our<br />
Big Screen Achievement Awards honoring the best talent in the movie<br />
industry and the Gala Poolside Party following the awards, generously<br />
sponsored by our great friends at The Coca-Cola Company.<br />
The strength of our convention reflects the growth of our trade association.<br />
NATO has set a new record for membership this year. The association<br />
has grown to represent the vast majority of domestic exhibitors, with<br />
582 company members operating 30,742 screens in all 50 states. Beyond<br />
the borders of the United States, though, NATO has become a truly<br />
global organization with additional members operating in 61 countries<br />
around the world. Our total global screen count now exceeds 51,000<br />
strong! Our members employ more than 200,000 people.<br />
As our membership continues to grow, we want to give our association<br />
a new look. Given the realities of the digital age, we’ve discarded our old<br />
logo with film sprocket holes! And we also believe that our new website<br />
will provide more information and greater functionality to our members<br />
and the industry generally when we roll it out in the near future.<br />
This year we are also working to give our members better tools to<br />
confront industry challenges. At CinemaCon we’re rolling out a new<br />
ratings compaign to educate America’s parents. NATO and our partners<br />
at the Motion Picture Association of America (MPAA) jointly operate<br />
the movie Classification and Rating Administration. Our voluntary<br />
system of ratings enables parents to make informed decisions about the<br />
moviegoing choices of their children. We’re debuting our new ratings<br />
education materials and public service messages that will be running<br />
in cinemas nationwide. This campaign implements a commitment we<br />
made to Vice President Biden and President Obama earlier this year.<br />
We are also announcing a new message to fight movie theft in our<br />
cinemas. The MPAA and NATO partner in our war against the theft and<br />
illegal sale of movies. Part of this important battle involves our education<br />
of cinema patrons. At CinemaCon we unveil a new and fresh campaign<br />
discouraging the recording of movies in theaters.<br />
In the end, all of the efforts of CinemaCon and NATO are designed to<br />
support one primary objective—driving movie ticket sales. The year 2012<br />
set a new record at the movie box office, taking in $10.79 billion in the<br />
United States and Canada, up 5.9 percent from 2011. Domestic admissions<br />
also experienced strong growth at 1.355 billion, up 5.5 percent from the<br />
previous year. Globally, box office receipts also set a new record with $34.7<br />
billion in 2012. International box office is up 32 percent over five years ago.<br />
The cinema industry serves an increasingly diverse audience, by age,<br />
gender, and ethnicity. The record box office, here and abroad, shows that<br />
when we meet that diversity with a broad range of movies and amenities,<br />
cutting-edge technologies and viewing options, our industry thrives. That<br />
broad range of movies is on display here at CinemaCon. As for amenities<br />
and technologies, they’re here too.<br />
The promise of digital cinema has arrived, with the conversion of<br />
more than 85 percent of domestic screens, and steadily growing penetration<br />
overseas as well. Digital cinema has enabled a better, more consistent<br />
image on our screens; a true 3D experience; and much greater diversity<br />
in alternative programming. But even as we wrap up the digital conversion,<br />
other innovations loom on the horizon, from high frame rates to<br />
immersive audio to laser light sources.<br />
All of these topics will be discussed at CinemaCon as we pack as<br />
much content as we can into four days! We are fortunate to work in such<br />
a dynamic industry. Enjoy the show!<br />
16 BoxOffice ® <strong>Pro</strong> The Business of Movies may <strong>2013</strong>