Morning Keynote Address

“Destination Entertainment vs DotCom”

PAUL GLANTZ

Co-Founder and Chairman

Emagine Entertainment, Inc

Troy, MI

1973 2013

Books Books DVDs / Blu-ray

Newspapers Newspapers Netflix

Movies Movies Streaming Video

6 Channels of Television 256+ Channels of Television PC & Console Video Games

Arcade Internet / iPad Hand Held Video Games

On Demand Television Angry Birds? Farmville?

Pay-Per-View Films

Low Cost to Moderately Priced Entertainment Options

Success in Destination Retailing

• Creating a compelling value proposition• Giving guests a reason to leave their homes to

be entertained• The bottom line: We’re Not Selling Movies and

Popcorn• We have to provide our guests with a Great

Entertainment Experience!

What Have We Done to Coax Guests Out of their Family Room?

• Physical Plant Innovations – It All Started about 16 Years Ago– Stadium Seating (Star was the Innovator in the Detroit

Market with Star Southfield)– Digital Projection– Expanded Row Spacing– Luxury Seating (and the bar continues to be raised in this

area)

What Have We Done to Coax Guests Out of their Family Room?

• Physical Plant Innovations – It All Started about 16 Years Ago (continued)– Spectacular Sound Systems– 3D– Large Format Auditoriums (floor to ceiling screens)– Continuous and Ongoing Capital Improvements to “Keep it

Fresh”

What Have We Done to Coax Guests Out of their Family Room?

• Amenities– Scores of Beverage Offerings including a Full Bar– Expanded Food Offerings including:

• Fresh Made Pizza• Oven Fresh Sandwiches• Olive Oil Popcorn• Fried Foods• Real Nachos

What Have We Done to Coax Guests Out of their Family Room?

• Amenities– Convenience

• Telephone and On-Line Ticket Purchasing• Electronic Ticketing Kiosks• Designated Seating Options

– Pronounced Attention to Cleanliness– Valet Parking– Loyalty Club– Tough Ushering

Industry Challenges: “It Ain’t as Easy as it Looks”

• Regulatory Costs including the ADA & Obamacare• Constant Pressure to Increase the Minimum Wage• Ever-Escalating Capital Investment Requirements• Confiscatory Property Taxes• Increasing Film Royalties

The Bar Keeps Going Up

“We Either Raise It on Ourselves or Our Competitors Will Beat Us Over the Head

with it!”

What’s Up Next for the Industry?

• Continued Emphasis on Comfort and Amenities

• Enhanced Guest Service

What’s Up Next for Emagine?