Cinemas have been attempting to increase revenues from incremental sources (referred to as alternative content) for years. Trying, ever so hard, to leverage their venues so as not to be solely dependent on movie admissions - to create income opportunities, fill the void created by poor theatrical releases, and to expand their market reach.
Fathom Events is the most acclaimed of the 'alternative' providers. Their 'Met Series' (Metropolitan Opera from Lincoln Center NYC) and 'Big Screen Classics' are two of their best. And there is a new Oscar 'Best Film' nominations playlist. Although revenue generation is likely to be moderate from any 'alternative' it does demonstrate a cinema's willingness and need to screen non-film content.
Cinemas can be described as, weekend businesses, so during the midweek 'alternatives' may draw admissions, filling otherwise empty seats and potentially contributing to the venue's revenue stream.
Having said that, the massive gorilla in the room of 'Alt-content' is sports programming and concerts, (as will be witnessed by the huge box-office that the upcoming Taylor Swift "ERAS Concert" will generate).
The challenge for securing sports programming has always been obtaining screening rights. Currently, the sands regarding sports programming rights seems to be slowing shifting in favor of cinemas. There are caveats, however. Rights to screening NFL or NCAA games may preclude exhibitors from screening high-value weekend movies - taking up their time slots.
Additionally, sporting event screenings may well require tailored advertisements, which are not optional for exhibitors to run. In regard to concerts, only the biggest entertainers, like Swift, would are able to draw enough viewers to their 'theater concerts' to make the process 'work' for cinemas.
Many cinemas, both independents and large circuits have reduced admissions for midweek screenings - bring in moviegoers who don't want to or can't afford regular weekend admission cost. Other revenue enhancement schemes include advanced seating and concession purchase, loyalty programs, and an expanded menu. These, although not great income generators do add incrementally to profits.
Whatever the case, cinemas must strive to 'serve-up' a varied menu of product to keep people wanting to frequent their theater.
By: Jim Lavorato, Entertainment Equipment Corp EECcinema.com
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