1. Your views on the Multiplex

Positive points about the Multiplex Negative points about the Multiplex

2. The Business of the Multiplex

Develop an awareness of how the Multiplex is a serious, money making business.

Consider what it offers audiences in terms of choice.

3. Catering for…..

• 15-25 year olds core Multiplexaudience group.

• Adverts target them, film choices keep them in mind.

• The family audience is also targeted.

• Since 2008 - Rise in 25+ attending the cinema

• 15-25 switching to online entertainment.

• 7-34 year olds - 55% of the total cinema population.(UK Film Council)

Above – 1951 London 3-D

Below – contemporary audience

4. The Supermarkets for Film Viewing

Creating a BRAND IDENTITY

Why is it important to do this?

5. What brings the money in?

Showcase Cinema state that they receive 10% of the overall ticket price.

The majority of the money goes to the distributors / producers and taxes.

6. The film is not enough

• Cinemas in most cases are no longer owned by the studios.

• Cinemas make very little profit from selling tickets for films.

• Some cinemas have a percentage deal with studios.

• Distributors are also paid.

7. The Phantom Menace (1999)

• Twentieth Century Fox distributors• Lucas Film Ltd producers• In USA the studio and distributor

demanded 100% of the ticket sales in the first 2 weeks.

• Why would both the studios and cinema chains agree to this deal?

• Guaranteed success – people queued just to see the trailer.

• Make money over a long period. Long box office life.

• Most films have a good opening weekend and sales decline rapidly after that.

http://www.the-movie-times.com/thrsdir/top60dir/top60Search.mv?Star%20Wars:%20The%20Phantom%20Menace

http://www.the-movie-times.com/thrsdir/top60dir/VS.mv?Star%20Wars:%20The%20Phantom%20Menace+I%20Am%20Legend

8. The Concessions Stand

• “When you go to the movies you are really going to the candy store” www.cnn.com

• This is where the cinemas make their money.

QUESTION:

How are the concessions at the Showcase and Cineworldpresented and positioned to attract customers?

9. QUESTIONS

• Do you buy food at the cinema?

• How much money do you spend on food / drink?

• How much (on average) do you spend when you go to the cinema?

10. TRADE “SECRETS”:

• A lot of popcorn for a small quantity of kernels

• Bulky size Appears to be a good deal.

• Salt, butter, coconut oil and sugar Makes you thirsty.

11. Concentrated glucose mixture. Carbonated water.Ice.Very cheap to produce.Can be self-service to save money.

12. Come and Buy!

• Cinema buys low cost food / drink.

• Sold at a very high cost.

• No competition.

• Attractively presented.

13. Macdonaldisation of Cinema• Cheap, easy to prepare food.• Salt and sugar added creates thirst.• Smells attract customers. • Drinks are often self service (speed up queues)• If ice is included less drink is used.• Pick and Mix – high price per weight, mostly heavy sweets, bought in

bulk by cinema – very low cost.• Pressure taps, soap dispensers, automatic hand dryers, single toilet

paper sheets.• Disposable cartons.• Predict sales / attendance based on films being screened.• Multiple screens dedicated to popular films.• Ticket machines – speed up queues, fewer staff.• Staggered viewing times reduces amount of staff required –

including the projectionists.• Projectionists slightly expand the gap between the gate supporting the

film and the lamp to avoid unmanned reels burning / snagging, even though this puts a film slightly out of focus

• How many projectionists operate at the Showcase in one day?• How many screens are they operating?

Excellent business sense or cheating the customers?

• One Cinema chain executive has described the cup holder mounted on each seat as "the most important technological innovation since sound."

• The extra salt added into the buttery topping on popcorn as the "secret" to extending the popcorn-soda-popcorn cycle throughout the movie.

• Cinema owners don't benefit from movies with gripping or complex plots, since that would keep potential popcorn customers in their seats.

• "We are really in the business of people moving. The more people we move past the popcorn, the more money we make”

http://www.slate.com/id/2133612/

What do you think about these comments?

14. Watch the advertswww.hatchmarketing.com

Cinemas are paid large amounts of money to advertise (posters in foyer, trailers and adverts before main picture).

P&D £325,000 for 6 weeks big screen advert.

Toy Story 2 started at 11.30. We were 25 minutes late and still managed to catch the start.

Do you pay attention to the adverts?

15. People in the North and North East of England pay fewer visits to the cinema annually

than anywhere else in the UK.

• How might this affect what films the Multiplex cinemas in this area choose to show?

Homework Task: What about the films?

• What films are showing at the Showcase and Cineworld this week?

• What do you think about the choice of films?

• Write down some thoughts in response to this question: Do Multiplex cinemas offer us more choice?

Have your views on the Multiplex changed?

Positive points about the Multiplex Negative points about the Multiplex