Popular Posts

Tuesday, May 31, 2011

The Weekly CineBuzz Report - 5/30/2011

GOING VERTICAL
If you liked the movie Sideways, Rex Pickett's sequel novel, Vertical, is being scripted for a movie as well.  Vertical picks up where Sideways leaves off and continues the bitter sweet antics of Miles Raymond and his buddy Jack.  Sideways has become a cult movie for wine buffs and literally gave Pinot Noir a boost in sales after its release.  I for one can't wait to go Vertical.

MEDIA STREAMING
In-Stat, a media consulting firm, is forecasting that 3.6 million stand alone media streaming players will be sold worldwide this year with  North America accounting for 80% of the total.   By 2015, In-Stat is predicting that sales of these devices will rise to 15 million.

Although impressive, to put the entire market for streaming devices in perspective, the stand alone player will be the least popular of all the devices to be used for streaming content.  SmartTVs, gaming consoles, tablets, super phones, and the integrated PC will be sold in the tens of millions.

I don't think people realize how big media streaming is going to become, and how easy it will be to access.  The devices are already here, it's now a question of how fast the various players in the streaming game can ink deals and develop appropriate compensation models (which will be some combination of user fees and ad revenue).  Read the next item on Hulu as an example of what I'm talking about.

HULU.COM KEEPS ON DANCING

Hulu - the internet based provider of TV programing and other content is inking new deals with its owners NBC (Universal), Fox (Newscorp) and ABC (Disney) to provide their content via the internet.  Hulu will continue to be an ad supported site but will introduce Hulu Plus (a subscription based premium service that will offer enhanced programming as well as the ability to stream content to tablets and superphones).

During recent negotiation's it was made clear by its media giant owners that Hulu will not have exclusivity but be one of many distribution points for their content.  Hulu, originally conceived as a way to complete with Google's YouTube in 2007, is now trying to obtain new and/or enhance fees for the programming it supplys to cable and satellite service providers, as well as, streaming services like Netflix.

CUSTOMER DISCOUNTS AT CINEMAS

Most cinemas, particularly the larger circuits, offer customer discounts on concession products through the use of a membership card - so many admissions get you so many points/accumulate points and you get a free or discount popcorn etc.  Turns out that this type of customer discount is the least liked by consumers!

According to Consumers Reports the five best and most liked consumer discounts are the following:
  1. Percentage off incentives:  Easy to understand, straight forward, and given at point of sale.
  2. Buy one/Get one (BOGO):  Volume generators, easily understood, used extensively in retail.
  3. Manufacturers' Rebated:  Old and very common type of discount, many given at point of sale.
  4. Free Delivery/Shipping:  Used extensively for on-line purchases or for big ticket items.
  5. Extended Terms/Financing: Used for big ticket items by the big box stores.
So, once again the cinemas are on the wrong side of the customer.  To get real customer loyalty scrap the membership card and go for the instant percentage off or BOGO type discount - and watch your concession sales grow.


Best and Happy Movie Going!
Jim Lavorato

No comments:

Post a Comment