CINEMA BUZZ Weekly Report - 20 March 2013

European Cinema Retail Group

Least we forget about our cinema mates across the pond, the Intl' Union of Cinemas (a European trade group for cinema exhibitors) recently launched the 'European Cinema Retail Group' whose goal is to assist European exhibitors optimize their retail operations.  As far as I know, there is no equivalent body in the U.S. so the ECRG is unique.

As we all know, concessions and retail are the profit generators for all cinemas, as such the ECRG's goal is ' to understand what works best for each cinema and to meet the demands of ever more connected, informed, and increasingly price-sensitive cinemagoers'.  The group plans to accomplish this by rethinking concession portion sizes, enhancing staff sales skills to increase per cap spending, and reassessing the menus to accommodate changing food tastes.

As marketers, cinema managers must address all of the 'touch points' in the cinema going experience and turn their retail operations into a more personalized and fun experience. This is true no matter which nation or geographic area of the world .  The Intl' Union of Cinemas wants to formalize that process and monitor it on behalf of their members. This is worthy and very appropriate, as admission prices - for the time being - have been pushed to the limit, particularly in Europe given its current financial situation.  Carry-on!

Hollywood Examines The 4K Issue

Earlier this month the Hollywood Post Alliance held its annual Tech Retreat and hosted the best minds in entertainment technology.  At this year's retreat, 4k resolution took center stage after UltraHigh Definition TV was promoted as the next visual coming.

Test results on viewer perceptions of various content was presented by the European Broadcast Union. Participants to the tests were asked to rate viewings bad, poor, fair, good, or excellent.  Between HiDef (1k or less) presentations using 720p, 1080i, and 1080p image lines there was no conclusion on perceptual difference. However, there was a "statistically relevant, but very small" perceived improvement of native 4k content when it was presented on a UltraHigh Def TVs.  So the results of the test regarding 4k was that its slightly better than what the folks are now viewing in their living rooms.

Currently, the only 4k content is being produced by Sony Pictures and they are heavily into 4k because their sister company is manufacturing the only 4k production cameras.
Production in 4k is a different and much more expensive undertaking for the studios, but the major problem is displaying the content.  First, most cinemas can't exhibit 4k films without upgrades to their existing d-cinema projection systems and two, most folks don't own (and have no incentive to own) an UltraHigh Def TV.

So, for the time being, 4k is backburnered - at least until UHTVs become prevalent and moviegoers clamour for higher resolution films (which isn't going to happen).

Customer Service - Who Are The Worst

When consulting or training I always talk about customer service and how important it is for any business, but particularly for small businesses.  I give examples of what I term Mildly Hostel Business Practices (whose things businesses do, that although small, eventually lead customers to seek others to do business with).  Bad customer service is seen in large companies as well and in recent survey by Advertising Age, these companies ranked as those with the worst customer service (listed in best to worst order): Walgreens, TJX Corp. (TJMaxx & Marshalls), The Gap, SuperValue, Sears, CVS, Safeway Supermarkets, Netflix, and worst Walmart.

Too Much of a Good Thing?

Amazon, Microsoft and Google all have TV networks.  Each also have production studios and all are vying - along with Hollywood and others, like on-line streamer Netflix - for the attention span of very fickled viewers. 

The rivalry between these waring parties (which was predicted in this blog 4 years ago) is now in full swing and it's game on.  The tech giants have two advantages over their competition: first, virtually unlimited funds, and second, access to instant feedback from viewers and the flexibility to change their programming as needed.
Additionally, they intend to produce high-quality, Hollywood professional- level content and can well afford to pay the for the best story-lines, scripts, writers, actors, and directors.

But is too much of a good thing - Good? Yes, there will be many more choices for viewers but how much time can they devote to viewing?  TV Guide, Inc. conducted research and found that viewers find organizing and managing their current viewing choices 'stressful'  Nonetheless, there is a war raging for eyeballs and it is going to be fierce - and both the cinema and TV industries will be impacted.

It is said that "content is king" but in the future it will be "captivating content" that is king, and it's anybody's guess as to which media or tech company will produce it.

Best and Happy Movie Going!
Jim Lavorato
Comments Welcomed