Regal And Cinemark To Run Ads Closer To Feature Films Under National CineMedia Pact

[Himmel]

Deadline

Under a new agreement with major in-theater advertising firm National CineMedia, top exhibitors Regal and Cinemark will incorporate advertising just prior to the “attached” trailers before feature films.

The pact starts November 1 and will designate a single 30- or 60-second ad as a “platinum spot.” That ad will play immediately before the “attached” one or two trailers right before the feature. (Customarily, the studio distributing the feature “attaches” one or two trailers for its upcoming titles.)

Exhibitors will get a 25% cut of the revenue collected from the platinum spots, which National CineMedia CEO Tom Lesinski said “will become one of the most attractive spots in the advertising industry.”

Previously, the pre-show complement of ads had ended before the stated showtime, at which point trailers would begin to play. National CineMedia said the new agreement means its “pre-feature program” of ads will now play up to five minutes past the scheduled showtime. In other words, a showtime of 8PM can now feature on-screen ads playing until 8:05.

In a conference call with Wall Street analysts, Lesinski called the announcement “the most significant strategic announcement since the company was founded in 2003.” He said AMC, the No. 1 U.S. circuit, is in active discussions to join the initiative. He said the effect of the changes will be to create a Super Bowl-like environment for brand messages.

National CineMedia President Cliff Marks said the company was not in a position to assess whether the changes would mean fewer trailers playing before features. “That’s a question to ask exhibitors,” he said. “What we feel will be very unique will be the creative” approach of the platinum spots. The expectation, he added, is for “something special and something that consumers even look forward to. … This is a very valuable piece of real estate.”

Lesinski minimized the potential downside in his remarks to analysts. Theaters in Canada, Europe and elsewhere have long showcased advertising in a similar fashion, he reasoned. “We don’t believe it will be a significant issue for exhibitors or consumers,” he said.