CineBuzz REPORT - 14 December 2012

HIGHLIGHTS OF THIS WEEK'S REPORT

- Cathay Cineplexes/Tops In Cinema Marketing
- GDC Teams Up With Chinese Partner
- NEC Takes 'TOP' Projector Honors, Also Latest On Small Venue NC-900
- 'UltraViolet' - To Triple Number Of  'Digital Locker'  Users In 2013

NOTE To CMG Readers: Sorry for the pause in posting. As of late, business and personal committents distracted me from CMG, but I am back and ready for a holiday blitz. Thanks for your patience.

Cathay: Bests All Exhibitors In Marketing Their Theatres

Cathay Cineplexes, a mid-sized cinema chain based in Singapore has, far and away, the best cinema promotions.  Their promotions are relevant, thoughtful, cater to their cinema customers desires, while bringing in new moviegoers to their venues.  Entertainment Equipment, the company I manage, has been a consultant to Cathay in the past - providing training on a variety of management and technical issues.

After getting to know Cathay and how they manage, I was awe struck by their dedication to marketing and promotion.  For example, their latest promotion (see insert) states, "Watch Films At Cathay Cineplexes and Win Your Exclusive Backstage Pass To Europe".  Well, straight away your interest is aroused.  What are they taking about?  Exclusive Backstage Pass? Europe? You must read on!  The tag line (which is terrific)  states: "You Have One Life, One Shot - Make It Count".

This is great promotion and enticement. It sells tickets but also, and more importantly, cements the connection with their customers, while offering something their competition doesn't.  All cinemas should take note of Cathay's promotions and begin to market as they do.


GDC Gets New Cinema Partner

Huayi Brothers Media Group, one of China's leading private film production companies, reported that it had acquired  a 9 percent stake in digital cinema equipment and solution provider GDC Technology Ltd for $20.92 million - which  effectively values GDC at slightly over $232 million. The Huayi Group, known for its quality film productions, entered the cinema exhibition business in 2010 and currently has 12 cinemas in China.

"In recent years, the number of cinemas (in China) has increased rapidly, intensifying competition in that sector.  Huayi Brothers, as a latecomer to the movie exhibition business, increases it potential to develop better than its cinema rivals with GDC's technological support" states, Cai Ling, a Chinese cultural industry consultant.

According to the latest statistics, there are 11,835 movie screens in China, 90% of which are digital.  Of that total, 8,565 are equipped for 3D playback.  This compares to about 40,000 movie screens in the U.S.

Most U.S. exhibitors know GDC as a producer/seller of DCI complient digital cinema servers and as a VPF integrator. GDC is a portfolio company of the venture capital and investment firm the Carlyle Group.


NEC 'TOPS' In Digital Projectors

Every year, Pacific Media Associates, a worldwide consulting firm on digital projection and products, compiles and reports a list of the 'Top Digital Projector Brands'. Pacific Media uses sell-through data from dealers and project integrators, and customer response analysis to compile its list. This year, NEC won top honors with its NP-PA550W High End projector and its NP-V260X mainstream digital projector.

NEC was cited as having the best performing digital projectors vs. all other manufacturers.  That record of achievement is passed on to its line of digital cinema projectors - where the top performing, least problematic, projectors have been the NECs.

In other NEC news, the new NC-900C small venue digital cinema projector - for cinemas with screens up to 24ft. wide - may be a winner.  The NC-900 comes complete with a lens and lamp. Early next year, the package will also include an integrated media server.  The NC-900s offer High Frame Rate capability, and have the ability to run 3D features and alternative content.  "NEC is committed to having large and small screened cinemas convert to digital cinema technology," said Jim Reisteter, General Manager of Digital Cinema Solutions for NEC.  "Our NC-900C projector gives venues with small screens, the ability to delight their patrons with pristine images and a meaningful theatre experience."

UltraViolet Finally Gets Traction

I have discussed UltraViolet in several prior posts.  To refresh, UV is an alliance of leading entertainment and technology companies, retailers, and internet providers (www.uvvu.com  that provide a vehicle for consumers to collect, access, and enjoy movies and TV shows in the cloud via on-line stores, video apps, and mobile and other devices.  The media is stored in each consumer's 'individual digital locker' for on-demand playback and use.

UltraViolet was conceived and brought to life over three years ago but without much success, as the marketing of UV was dismal, now it has gotten its stride. Consumer awareness has now reached 50% and over 7 million users have subscribed.  "Awareness has really risen over the past year", says Lexine Wong, SVP for worldwide marketing at Sony Home Entertainment.  "The industry remains united in marketing UV, for example, all DVD and Blu-Ray releases carry stickers which explain
UltraViolet's cloud-based digital storage lockers and how they work. This has been a great marketing tool. Additionally, for example, Sony Pictures Gift Store offers 500 UltraViolet enabled digital titles to gift during this holiday season." Wong further says she expects expanded marketing efforts involving the movie studios and retail partners to be forthcoming.

The UltraViolet alliance is forecasting to have over 21 million  U.S. subscribers by year-end 2013, and expects this growth trend to be as robust in the international market.

UltraViolet is the future for home entertainment and media collecting and viewing on larger and better home TV and sound systems.  Movie exhibitors - take note - your cinema presentations need to have the WOW factor to compete against this trend. So, when converting to digital cinema don't go the least expensive, smallest, or just-get-by purchase.  Think of the future and who your competition will be, and as the sun will rise tomorrow, the exclusive theatrical window for movie releases will eventually close.

Best and Happy Movie Going!
Jim Lavorato
Comments Welcomed