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Boxoffice Pro - April 2020

Boxoffice Pro is the official publication of the National Association of Theatre Owners.

Boxoffice Pro is the official publication of the National Association of Theatre Owners.

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INDUSTRY INDIE INFLUENCES INFLUENCERS<br />

“They had never done cinema before. We<br />

introduced them to the space—and they<br />

were exclusive with Spotlight,” says Sakin.<br />

“That’s when we felt we had arrived, that<br />

we were actually making a difference in<br />

the marketplace.”<br />

Spotlight’s biggest evolution among<br />

its exhibitor partners developed during<br />

the company’s early years. “We started to<br />

see these really high-end theaters start<br />

opening up in the United States, where<br />

you could screen commercial films but in a<br />

high-end environment to continue reaching<br />

a luxury audience,” says Sakin. “It was<br />

the ideal model to expand our horizons.”<br />

Sakin remembers taking a road trip to<br />

San Diego to see one of Cinépolis’s first U.S.<br />

locations. Mexico’s leading circuit opened<br />

its first U.S. cinema in 2011, strategically<br />

opting to enter the market with luxury<br />

theaters. “We were blown away,” he says.<br />

“This was full waiter service at your seat,<br />

reclining chairs, sushi, and martinis—at a<br />

ticket price that wasn’t ridiculously high.<br />

We knew right there and then, this is our<br />

market. This aligned naturally with the<br />

brands we were signing to Spotlight Cinema<br />

Networks. We knew that if we could get on<br />

the ground floor with luxury theaters, we<br />

could enhance [them] and grow with them.”<br />

It took some convincing. Although<br />

well versed in cinema advertising through<br />

its global circuit, the Mexican chain<br />

originally opted to forgo ads on its screens<br />

in the United States. Spotlight appealed<br />

to them by linking their art house connections<br />

with the luxury-cinema model;<br />

both overlapped in terms of consumer<br />

demographics. Cinépolis Luxury Cinemas<br />

signed on to Spotlight Cinema Networks,<br />

and the company went on to sign additional<br />

exhibitors, including Silverspot Cinema<br />

and CinéBistro, that featured upscale<br />

auditoriums at a time when the concept<br />

was just beginning to take off in the U.S.<br />

“At that point, I don’t think any of us could<br />

foresee how much that space would grow<br />

in the ensuing years,” says Sakin.<br />

Today, Spotlight Cinema Networks<br />

boasts an exhibitor community of nearly<br />

1,200 screens—an early, and self-admittedly<br />

arbitrary, benchmark of 1,000 screens<br />

was set by Rakfeldt and Sakin when they<br />

launched the company in 2010. The<br />

growth over the past decade is founded on<br />

a strong feeling of trust among Spotlight<br />

and its partners. “It’s fundamental to our<br />

success,” says Rakfeldt. “The art house<br />

community and luxury sector care deeply<br />

about their brands. We have to care about<br />

that just as much as they do in order to<br />

maintain their trust. Our cinema advertising<br />

model has been the same from the<br />

very beginning: every exhibitor sees and<br />

approves every ad.”<br />

“That level of trust has to exist with<br />

both our brand and exhibitor partners.<br />

We need to be extremely selective about<br />

what appears on our screens,” says Sakin.<br />

“Everything we do is with the exhibitor’s<br />

seal of approval. I think that’s what<br />

opened the door into the luxury space; no<br />

one else was willing to do that. We take<br />

a big risk because we could potentially<br />

sell to an advertiser that gets rejected by<br />

all our exhibitors. There are advertisers<br />

that would love to be on our screens<br />

because they want to be in the world of<br />

independent film and luxury cinemas.<br />

They see our smaller commercial loads,<br />

knowing their share of voice would be<br />

larger. But if they’re not upscale enough,<br />

or if the creative isn’t up to the standard,<br />

that doesn’t work for us or our exhibitors.<br />

That’s why we have to be diligent about<br />

anything we bring to the screen.”<br />

Rather than defining itself exclusively<br />

by cinema advertising, Spotlight has<br />

grown to become a vertically integrated<br />

partner of art house and luxury cinemas<br />

in a number of different sectors. In 2017,<br />

the company announced it would start<br />

its own event-cinema division, CineLife<br />

Entertainment, which has already<br />

made significant strides in the market.<br />

That same year, the company acquired<br />

Storming Images, a digital distribution<br />

firm with a focus on trailer, pre-show,<br />

and DCP delivery. Storming operates<br />

independently and works with three other<br />

cinema advertising companies. “Spotlight<br />

is our B2B ad sales entity and Storming is<br />

our foray into digital delivery distribution.<br />

We’re also building a B2C brand through<br />

CineLife through our mobile app and<br />

our event-cinema division, CineLife<br />

Entertainment. Our ambition is to make<br />

CineLife a household name in the next 10<br />

years,” says Sakin.<br />

To achieve that, Rakfeldt offers a<br />

succinct summary of the company’s focus<br />

as it enters its second decade: “The media<br />

landscape changes quickly and we must be<br />

innovative, flexible, and entrepreneurial<br />

to stay ahead of the game to drive results<br />

for our exhibition, advertising, media, and<br />

content partners.<br />

64<br />

<strong>April</strong> <strong>2020</strong>

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