NATO/ShoWest '89 New^ Opportunities For Theatre Expansion By Don Martin One way to capture the value oriented market is to build high quality from-theground-up dollar houses offering secondrun REPRESENTATIVES OF national theatre movies at a price affordable to fami- chains will discuss new opportunities lies, a concept practiced by Cinemark Theatres and others. To attract the older, for theatre expansion in an hour-long panel at ShoWest '89. The panel more discriminating audiences, other will focus on opportunities to increase market share and profit for theatre opera- operators are experimenting with deluxe presentation houses and private "screen- tors. The recent wave of theatre construction marks the end of an era that saw theatre circuits expand primarily by rapid construction of new screens across the country. Already most major circuits are finalizing expansion efforts or are pulling back from rapid growth modes to finetune their strategic positioning within their markets. Although opportunities for expansion and increased profitability through continued construction still exists, the 1990s will offer an entirely new range of opportunities. These include building new theatres only in select, specialized locations or specific types of emerging real estate projects. Other opportunities include market expansion through special movie exhibition venues, alternative methods to increase existing market attendance, and enhancing profitability through innovative and expanded use of existing facilities. Panelists include Jay Shapiro, senior vice president for General Cinema Theatres; Lee Roy Mitchell, president of Cinemark Theatres; Donald Beck, senior vice president for Cineplex Odeon; Michael Swinney, independent consultant and formerly of Lucasfilm's Skywalker Development Company; and John P. Boom, president of Campeau Development. The panel will be moderated by Don Martin, partner in the Cinexcel Consulting Group. Panelists will discuss these opportunities in an informal discussion and will answer questions from the audience Specific topics include; Special Venue Opportunities Some circuits are adopting strategies specifically targeted for reaching new and/or expanded audiences. Recent industry studies show aging baby-boomers, the largest movie-going public, adopting new and diversified characteristics including seeking more value for their money and the desire for mc SW-10 BOXOFFICE ing rooms" while offering luxuries like valet parking, in-auditorium food service, private lounge /bar areas for more concession sales, and reserved seating at higher prices. New technologies are emerging as well — such as High Definition Television (HDTV), video presentation, expanded IMAX and other large-format auditoriums capable of playing first run movie product, and attraction-type presentation and seating from companies like Iwerks — with possible widespread applications for expanding auditorium usage. Single-Zone Theatres Site selection for new theatres has taken on a new twist in the last few years with the trend toward larger, more monopolistic theatre developments. These theatres are designed to control new or emerging film buying zones particulariy in downtown metropolitan areas or near regional retail or festival market-type developments. In these cases, theatre operators can tie up 14 or more screens in one location, discourage or limit future competition and assure themselves of future benefits as the market area expands over time. Theatre as Retail Anchor Using theatres as retail development anchors provides retail developers new options for future development. Major national developers have projects underway or in the planning stages which combine retail and entertainment in a synergistic mix that creates a powerful regional dr for customers. Likewise, local developers are using theatres as legitimate anchors i smaller centers to greatly extend the retail center's operating hours into the nighttime hours. Such anchor positions give theatre owners an opportunity to negotiate for substantially lower anchortype rental rates and rent concessions Expanded Merchandizing Perhaps one of the most exciting new developments in the theatre industn,' is that operators are beginning to expand the role of concessions and merchandizing in the theatre lobby. Given that ( oncession sales is often the major profit center for theatre operators, it is no wonder that they are beginning to look at ways to dramatically boost their sales-per-person and make better use of the theatre's sub-: stantial drawing power and underutilized lobby areas. While expanded merchandizing opportunities are just now being seen around the country, they are sure to become an increasingly important component in theatre profitability. Some examples: full service restaurants, cafes or deli's are being added within or adjacent to the lobby to capitalize on the fact that most theatre patrons combine dining out with the movie-going experience. Kiosks, push carts, and expanded concession areas offer a variety of new concession products. And cross-promotion of movie products, posters, caps, t-shirts, toys and the like are becoming increasingly available from distributors for sale in the theatre lobbv. In some select cases, theatre owners are turning toward renting or controlling adjacent retail space in strip centers by plugging in their own versions of ups( ale video arcades, video tape rentals stores or various food service concepts to trade of! of the theatre crowds they are already attracting. * Don Martin is a partner in the Au.sfinbased theatre and rcalestate cunsultir^i fr-ni. CINExccl .
. <strong>Boxoffice</strong> Means Business October VT ^SfJnO ,0028 teach decis^^^° ggg b^^ exi a,vei:ti= a'-' „ew the ;n both ^ g ali ^^^ to ^ ^s to decisi iiv T-^^;„n we r^ „,v roads'- ,^ f ar , °H£ *="' and order- ^^ sotueth^'^^.aucah . of^, • . . ,e've „e've s-^^;, .er sa«^^;, '^^^ o'^^^tehbu^^' ' reart;. -^ ^.ho.as . -- ;ro«---^^t.er...narso"----" --ror.o°4-et:" rBos°e^--^°^" Editorial Exceiience, Advertising Power See us in Booth 117A
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Does the quality of our sound leave
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TECH TUTORIAL Showmanship in Presen
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I ralybat '£ i high speed projecti
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NATIONAL NEWS -lollywood Releases 1
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lATIONAL NEWS nm David Kipen Joins
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Dept 1 TZ MIDWEST NEWS igeio? Dayto
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: 1,913-seat Vancouver Station Squa
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1 Annette Painter, AMC Home Office
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' I Reviews been dealing with the t
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II SNEAK PREVIEWS following films a
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, James . Kieter FEATURE CHART —
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Oxford, ) Clearing House RATES: 75c
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A Celebration of Innovation \ ISC i
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