Boxoffice Pro

INDUSTRY CENTURY IN EXHIBITION
advertising in the preshow, became
another buzzword of the decade. “It has
become clear over the past couple of years
that the digital cinema revolution is going
to be more gradual than first predicted
and find its footing through cinema
advertising rather than feature films,”
wrote Boxoffice Pro in February 2003.
At the time, about 20 percent of U.S.
screens had digital technology capable
of projecting the preshow. According to a
Marketing Experts International article
published in Boxoffice Pro, advertisers
spent $800 million on global cinema
advertising in 2003, with expected growth
to $1 billion in 2004 and $1.5 billion in
2005. Nascent digital cinema offered a
more efficient, cost-effective, entertaining,
and flexible avenue for advertisers to
target their consumer demographics while
boosting the revenue of exhibitors.
Digital advertising, like digital cinema,
skyrocketed in 2005. In March of that
year, Regal Cinemas and AMC combined
to form National CineMedia, with
Cinemark joining as a founding member
in July. Screenvision launched a digital
ad network and released studies that
confirmed the effectiveness of cinema
advertising among consumers. Although
preshow advertising companies touted
their innovation, Boxoffice Pro pointed
out the fears of some exhibitors who were
wary of displaying a feature film after
commercial promotions. “Exhibition
representatives take issue with the
perception that preshow programming
is unpopular … the majority of patrons
much prefer seeing a preshow rather
than a blank screen when they arrive at
theaters early,” said Kurt Hall, president
and CEO of National CineMedia in March
2006. For exhibitors, the key was to adapt
advertising to the cinematic medium in
creative, engaging ways. “What we don’t
have in our content set is … overt sales
messaging,” explained Screenvision’s
Adam Stewart in June 2006. “We’re
encouraging our partners to … respect the
audience.” New companies, like TimePlay
or Gold Pocket Wireless, ventured into
interactive preshows to provide more
entertaining content while also acquiring
information about moviegoers. The era of
big data was just beginning.
Wired World
The first revolution of the new millennium
was the digital transition. The second
was happening virtually, with rapid
developments in online ticketing,
marketing, and distribution. In June 2000,
when the magazine asked Cineplex Odeon
chairman and CEO Allen Karp about
the future of online ticketing, he was
unapologetically optimistic. “Ultimately,
explosive,” he responded. “It will take
time for consumers’ habits (last-minute,
cash-on-the-line impulse buying) to
come around, but the convenience,
guaranteed fulfillment, and the evolution
of e-commerce as part of our daily lives
should assure success.”
The e-commerce landscape
was undergoing an unprecedented
competitive surge. In April 2000, in the
wake of United Artists’ alliance with AOL
MovieFone, AMC joined with Hollywood
.com to create MovieTickets.com, an online
ticketing hub that included additional
editorial content from Hollywood.com’s
library. Later that year, Canada’s Famous
Players and National Amusements joined
the endeavor as well. In 2000, just a month
after the debut of MovieTickets.com
at ShoWest, Regal, Loews Cineplex,
Cinemark, General Cinema, Edwards,
and Century—representing a combined
12,000-plus screens across North
America—announced that they had
joined forces to co-found their own movie
ticketing website, Fandango. “Remote
ticketing has really become an extension
of our business, and it is critical for our
business that we ensure the quality of
service to all our patrons,” argued Loews
Cineplex president and CEO Lawrence
Ruisi. The announcement came within
days of CBS’s 5 percent investment in
MovieTickets.com.
Europe was also picking up on the
digital ticketing trend. In Germany, for
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