DVD sales/rentals have become passe and so has the video store - it turned into a Place of No ! A recent study by SNL Kagan (the media consulting group) on the state of the DVD industry found that "brick and mortar, mail order, and kiosk video distribution sank a collective 43.9% in 2010 vs. 2009". I believe this trend will not only continue but accelerate.
Where did the eyeballs go? They certainly haven't migrated to the cinema. According to our friends at Kagan, the eyeballs moved to the Place of Yes - the fast growing content streaming space via Netflix and video-on-demand services from TV cable, satellite, and telco operators.
The Kagan study lends credence to what I have been shouting for sometime - that in the future, movies will be delivered to viewers through a variety of distribution points simultaneously. If I'm right then cinemas need to change their business model or they too will become a Places of No! Movie exhibition needs to raise the entire bar on customer service and satisfaction and focus on what's NOT going to change in the future.
With conviction, I guarantee that 10 years from now customers will want low and valued pricing, fast and reliable service, great selection and choice. Exhibitors need to build a low cost, efficient, and value-added model to compete in the future and remain a Place of Yes.
Best and Happy Movie Going
Jim Lavorato
Thursday, May 19, 2011
Monday, May 16, 2011
MOOLA REPORT - MAY 2011
Cinema News
The $7.99 flat fee will be eliminated and/or modified to take into consideration higher fees for newer released movies, as the cost of content becomes higher for Netflix.
The other point is that Netflix could be a takeover target for a larger firm that wants to enhance their position in the media streaming space - Amazon comes to mind. With Netflix's built-in subscriber base and Amazon's need to continue to expand its domestic and overseas operations (Netflix has no overseas operations and just recently started to operate in Canada and Mexico) the fit looks good.
With a share price north of $240 Netflix is valued at about $13 billion, so it won't come cheap, but Amazon with a share price of $197 is valued at $91 billion. Netflix would be expensive but not unattainable and given Amazon's high share price it may be the best time to acquire Netflix and if not than come to some collaboration. When it comes to Netflix its not price but its accelerated revenue growth potential that matters.
Best and Happy Movie Going
Jim Lavorato
Thus far, May have been the best month of 2011 for the cinema. Fast Five, the year's best opener has now grossed over $161 million domestically, and a whopping $441 million worldwide. Rio came close with w.w. take of $429 million. Thor, scored a second week at first place domestically and has now grossed over $120 million with a w.w. take of $318 million. The hit sleeper so far was Insidious, which has now grossed over $59 million, with a price tag of only slightly over $1 million to produce. One of my 2011 sleeper hit picks was Bridemaids, which came in second on its weekend debut at $24 million.
YTD the U.S. box office at $3.1 billion still lags behind last year by slightly over $500 million or 13% with 387 million admissions. The average ticket price: $7.86. The summer movie line up looks very strong and hopefully the 13% shortfall will be made up.
Moola Entertainment Stock Chart
Share Price
1/1/11 5/15/11 % Chg.
Ballantyne Strong (BTN) $ 7.77 $ 5.87 (24.5)
Carmike Cinemas (CKEC) 7.72 6.90 (10.6)
Cinedigm Digital (CIDM) 1.68 2.15 27.9
Cinemark (CNK) 17.20 20.71 20.1
Disney (DIS) 37.51 41.52 10.7
Dolby (DLB) 66.70 48.60 (27.1)
Dreamworks (DWA) 29.26 25.58 (12.6)
Entertainment Property Trust (EPR) 46.25 47.31 2.2
IMAX (IMAX) 28.07 36.66 30.1
Netflix (NFLX) 175.70 246.52 40.3
National Cinemedia (NCMI) 19.91 16.53 (17.0)
Rentrak (RENT) 30.16 21.26 (29.5)
Regal Entertainment (RGC) 11.74 13.68 16.6
Technicolor (TCH) 3.56 5.03 41.3
Time Warner (TWX) 32.17 35.99 11.9
Not much changed within the last month, Netflix (our stock of the month, see below) and Technicolor continue to be the stellar performers. Disney and Time Warner, the big guns in the chart, have performed fairly well given that both companies have stated that not all of their operations are doing as good as planned. Nonetheless, the market believes their growth prospects and dividend payouts look good. IMAX is another stock that has performed very well, due mainly to their premium admission pricing which the public seems to accept at least for the time being.
Moola Stock of the Month: Netflix (NFLX)
Netflix has been on a tear for the last two years. In 2003 it almost went bust as it tried to convince folks that getting DVDs via the U.S. Postal Service (for a flat monthly fee) was a good thing. It took some doing and time but Netflix stuck with its strategy and wound up amassing over 23 million devotees in the process and literally put the video store out of business. Its only competition of late being RedBox, the kiosk based movie rental company, which is owned by Coinstar and coincidental was started by a former Netflix executive.
But, Netflix knew that it would have to succumb to the inevitable pressure of the digital domain and had to change its distribution model from mailbox to internet - it is now in that process. RedBox must do the same if it is to have long-term survival. Media streaming is the name of the game and Netflix wants to be the means of distribution for movies, TV shows, and other web-driven content.
Netflix stock has risen from $3/share in '03 to today's price of $242 and I see no reason why it won't go higher. Its P/E is a nosebleed 70 but its growth prospects unchartable so long as it continues to ink deals with content providers and deliver that content at reasonable rates to an end user (viewer) - and Netflix is doing just that.
Currently, Netflix's streaming service (priced at $7.99/month to the subscriber) is available for TV, game consoles, BluRay players, and Apple iPads and iPhones. In a recent press release (May 12th) Netflix announced it would be streaming movies and TV shows on five superphones that use the Google Android operating system - 4 phones made by HTC and one from Samsung, others will follow. The Android additions further enhance Netflix's dominance in the media streaming space.
My thoughts on Netflex going forward:
The $7.99 flat fee will be eliminated and/or modified to take into consideration higher fees for newer released movies, as the cost of content becomes higher for Netflix.
The other point is that Netflix could be a takeover target for a larger firm that wants to enhance their position in the media streaming space - Amazon comes to mind. With Netflix's built-in subscriber base and Amazon's need to continue to expand its domestic and overseas operations (Netflix has no overseas operations and just recently started to operate in Canada and Mexico) the fit looks good.
With a share price north of $240 Netflix is valued at about $13 billion, so it won't come cheap, but Amazon with a share price of $197 is valued at $91 billion. Netflix would be expensive but not unattainable and given Amazon's high share price it may be the best time to acquire Netflix and if not than come to some collaboration. When it comes to Netflix its not price but its accelerated revenue growth potential that matters.
Best and Happy Movie Going
Jim Lavorato
Sunday, May 15, 2011
CINEMA SCUTTLEBUTT
F/U To APRIL MOOLA REPORT
The Moola Report's featured entertainment stock for April (published on 4/20/11) was Dolby Labs (DLB). In the Report I suggested Dolby, given its built-in royalty and licensing revenue stream, was well suited for a marriage or takeover. Low and behold! In the May 2nd issue of Barron's Weekly, Kopin Tan (whose weekly The Trader has been a mainstay in Barron's for some years) scribed an analysis on Dolby. The piece ended, "If it weren't still controlled by founder Ray Dolby and his family through special voting rights, the company would be roundly talked up as a sweet takeover target - loudly and clearly." Hmmm, could Barron's be perusing The Moola?
TAKING THE "SUPER" OUT OF HERO
Will this summer's roster of films be too crowded with Superheros? Is Hollywood going too deep into the comic world and making superheros out of also-rans and second benchers that never had wide comic readership or, in some cases, no (should I say it) super powers.
Does the Green Hornet, Priest, Super 8, Trollhunter, Green Lantern, and Capitan America have boxoffice juice? Or is the summer slate too heavily loaded with hero-types. Not to mention real superheros: Thor, X-Men, Transformers, and Conan that will fill screens this Super Summer. Thor came out second best only to Fast Five (no heros in this flix, super or otherwise, just ex-cons, bad cops, and wrestlers) in B.O. draw. Not too shabby for the Nordic god, but will super fatigue manifest as the dog days of summer set in? Hopefully No! And the 18-34 male demo comes through in super attendance fashion - but you never know. Now, if I only had super physic powers -------.
Twinkle, Twinkle, Little .........
With a plus $50 million B.O. take, Insidious - a horror story about parents battling for the very soul of their comatose child - cost a mere $1 million to produce, and is, so far, 2011's sleeper hit. FilmDistrict, the movie's distributor, says word-of-mouth and good pre-release marketing were positive factors to the film's huge success. Look for a sequel.
Best and Happy Movie Going
Jim Lavorato
The Moola Report's featured entertainment stock for April (published on 4/20/11) was Dolby Labs (DLB). In the Report I suggested Dolby, given its built-in royalty and licensing revenue stream, was well suited for a marriage or takeover. Low and behold! In the May 2nd issue of Barron's Weekly, Kopin Tan (whose weekly The Trader has been a mainstay in Barron's for some years) scribed an analysis on Dolby. The piece ended, "If it weren't still controlled by founder Ray Dolby and his family through special voting rights, the company would be roundly talked up as a sweet takeover target - loudly and clearly." Hmmm, could Barron's be perusing The Moola?
TAKING THE "SUPER" OUT OF HERO
Will this summer's roster of films be too crowded with Superheros? Is Hollywood going too deep into the comic world and making superheros out of also-rans and second benchers that never had wide comic readership or, in some cases, no (should I say it) super powers.
Does the Green Hornet, Priest, Super 8, Trollhunter, Green Lantern, and Capitan America have boxoffice juice? Or is the summer slate too heavily loaded with hero-types. Not to mention real superheros: Thor, X-Men, Transformers, and Conan that will fill screens this Super Summer. Thor came out second best only to Fast Five (no heros in this flix, super or otherwise, just ex-cons, bad cops, and wrestlers) in B.O. draw. Not too shabby for the Nordic god, but will super fatigue manifest as the dog days of summer set in? Hopefully No! And the 18-34 male demo comes through in super attendance fashion - but you never know. Now, if I only had super physic powers -------.
Twinkle, Twinkle, Little .........
With a plus $50 million B.O. take, Insidious - a horror story about parents battling for the very soul of their comatose child - cost a mere $1 million to produce, and is, so far, 2011's sleeper hit. FilmDistrict, the movie's distributor, says word-of-mouth and good pre-release marketing were positive factors to the film's huge success. Look for a sequel.
Best and Happy Movie Going
Jim Lavorato
Friday, May 06, 2011
A DIRTY LITTLE (GREEN) SECRET
THE KYOTO ENVIRONMENTAL PROTOCOL IS DEAD ! Last year's eco-pow wow in Copenhagen emitted nothing but hot air. And, the carbon credits markets, aka: cap and trade, are being recycled into much smaller and much less potent entities. But Why? Why has one of the most high-minded and noble aspirations of the green movement gone brown?
The answer is Russia. Russia? What, you ask, does Russia have to do with the demise of global cap and trade? Well, it's like this.
Russia's greenhouse emissions plunged with the collapse of the USSR in 1991. Throughout the 1990s, all across Russia huge polluting factories were shuttered to the extent that by the turn of the century Russia's carbon emissions were down by 35% resulting in their amassing almost $1 trillion worth of energy credits. Now, Moscow wants to cash those credits in before there can be a global agreement on emissions going forward. This issue was the skunk at the Copenhagen eco-garden party. And, it will be taken up in Mexico City, which will host the next global eco-lovefest.
Naturally, the two most polluting countries (the U.S and China) would bear the brunt of the trillion dollar payment to Russia, which is a real agreement non-starter. The carbon credits held by Russia are due to expire in 2012 (along with the Kyoto Treaty) however, Moscow wants the credits to roll forward if Russia (the world's third worst polluter) is to sign any carbon emissions' agreement. Russia asserts that the credits are legitimate claims and this assertion has been supported by most international law scholars, green community honchos, and all of the other Kyoto signatories.
As it now stands, Russia has 5-6 gigatons of emission credits to sell -equivalent to China's total emissions for one year - and they are not the only one. The Ukraine also has a huge number of credits and is waiting to see what deal Moscow strikes before it seeks its own deal.
Obviously there is a lot of disagreement within the global eco-community as to how this problem will be settled and putting a value on Russia's $1 trillion claim. Moscow wants full payment while the U.S. and China want the credits to expire worthless.
And the beat goes on!
Best
Jim Lavorato
The answer is Russia. Russia? What, you ask, does Russia have to do with the demise of global cap and trade? Well, it's like this.
Russia's greenhouse emissions plunged with the collapse of the USSR in 1991. Throughout the 1990s, all across Russia huge polluting factories were shuttered to the extent that by the turn of the century Russia's carbon emissions were down by 35% resulting in their amassing almost $1 trillion worth of energy credits. Now, Moscow wants to cash those credits in before there can be a global agreement on emissions going forward. This issue was the skunk at the Copenhagen eco-garden party. And, it will be taken up in Mexico City, which will host the next global eco-lovefest.
Naturally, the two most polluting countries (the U.S and China) would bear the brunt of the trillion dollar payment to Russia, which is a real agreement non-starter. The carbon credits held by Russia are due to expire in 2012 (along with the Kyoto Treaty) however, Moscow wants the credits to roll forward if Russia (the world's third worst polluter) is to sign any carbon emissions' agreement. Russia asserts that the credits are legitimate claims and this assertion has been supported by most international law scholars, green community honchos, and all of the other Kyoto signatories.
As it now stands, Russia has 5-6 gigatons of emission credits to sell -equivalent to China's total emissions for one year - and they are not the only one. The Ukraine also has a huge number of credits and is waiting to see what deal Moscow strikes before it seeks its own deal.
Obviously there is a lot of disagreement within the global eco-community as to how this problem will be settled and putting a value on Russia's $1 trillion claim. Moscow wants full payment while the U.S. and China want the credits to expire worthless.
And the beat goes on!
Best
Jim Lavorato
Thursday, May 05, 2011
TO THE CINEMA ZETTABYTE IS A 4 LETTER WORD
A Zettabyte is a term for an amount of digital data. A ZB is equal to 1 billion terrabytes or 1 trillion gigabytes - it's a 1 with 21 zeros behind it - basically a shit-load of data. But why would a zettabyte be so important to the cinema? Because 2011 will mark the first year that humanity will generate more than a zettabyte of digital data and points to how much data (including movies) is being streamed to countless digital devices. In fact, at the current rate of increase, by 2020 humans will be creating 35 zettabytes of data per year.
The fact that movies will be available not only at cinema theatres or on a DVD but accessible on a slew of devices from tablets to webTV is a terrible precursor for the cinema. Those that frequent this blog know that for a long time I have been preaching that cinema exhibitors must change their business model if they want to survive in the digital world, and it is becoming increasingly evident that this will prove out to be a true prognostication.
The next generation will be more adapt at manipulating information and data at all levels. A recent study by IpsosOTX-MediaCT (the folks that study the impact of the media on people) found that children as young as 6 years of age are playing video games, using social media sites, and playing videos - and that these activities make up more than 25% of a 6-12 year old's waking life.
What this suggests is that content providers can reach a broad range of age groups through a wider range of delivery mechanisms. Additionally, and perhaps more importantly, the official guidelines for interacting with the internet is being disregarded. For example, Facebook is officially ban for children under 13, however, the OTX-MediaCT study found that over 40%
of 10-12 year olds are already on Facebook. For movies, 70% of children 10-13 are viewing PG13 films on a regular basis. What this suggests, is that heeding warning or ratings by viewers (whoever they may be) regarding content appropriateness is not relevant!
It's going to be a no-holds-barred as content providers seek best source (and most lucrative) deals for movies. The cinema theatre will become just one of many distribution points in the future.
Best and Happy Movie Going
Jim Lavorato
The fact that movies will be available not only at cinema theatres or on a DVD but accessible on a slew of devices from tablets to webTV is a terrible precursor for the cinema. Those that frequent this blog know that for a long time I have been preaching that cinema exhibitors must change their business model if they want to survive in the digital world, and it is becoming increasingly evident that this will prove out to be a true prognostication.
The next generation will be more adapt at manipulating information and data at all levels. A recent study by IpsosOTX-MediaCT (the folks that study the impact of the media on people) found that children as young as 6 years of age are playing video games, using social media sites, and playing videos - and that these activities make up more than 25% of a 6-12 year old's waking life.
What this suggests is that content providers can reach a broad range of age groups through a wider range of delivery mechanisms. Additionally, and perhaps more importantly, the official guidelines for interacting with the internet is being disregarded. For example, Facebook is officially ban for children under 13, however, the OTX-MediaCT study found that over 40%
of 10-12 year olds are already on Facebook. For movies, 70% of children 10-13 are viewing PG13 films on a regular basis. What this suggests, is that heeding warning or ratings by viewers (whoever they may be) regarding content appropriateness is not relevant!
It's going to be a no-holds-barred as content providers seek best source (and most lucrative) deals for movies. The cinema theatre will become just one of many distribution points in the future.
Best and Happy Movie Going
Jim Lavorato
Tuesday, May 03, 2011
BEST 'GREEN' BANKS
YES, YOU NEED GREEN TO GO GREEN, SO WHICH BANKS ARE THE GREENEST. According to a recently released Bloomberg study, which was very extensive (a universe of over 1000 banks) and global (the competing banks were from 49 countries) the "greenest" financial institutions were, in rank order:
Not only is this great PR for these financial institutions but it is also lucrative. Investment in clean-energy companies and projects rose 30% in 2010 to a record $243 billion. This study illustrates the need for Green to go Green and more so now that both the U.S. and European governments are scaling back on energy subsidies and tax rebates for clean projects because of fiscal and monetary constraints.
As part of the Arboreel Group - the environmental sustainability initiative for cinema exhibitors - I feel strongly that programs, such as Santander's battery recycling, can be performed by any cinema (and should be), as cinema's, like banks receive a lot of public traffic. There has been a lot of resistance by the cinema exhibitors to Arboreel, but its time has arrived and exhibs need to support the Arboreel Program
Best and Happy Movie Going
Jim Lavorato
- Banco Santander, Spain
- Goldman Sachs Group, U.S.
- UniCredit SpA, Italy
- Credit Suisse Group AG, Switzerland
- Citigroup Inc., U.S.
- Banco Bilbao Vizcaya SA, Argentina
- Royal Bank of Scotland Plc, Scotland
- Societe Generale SA, France
- HSBC Holdings Plc, Hong Kong
- BNP Paribas SA, France
Not only is this great PR for these financial institutions but it is also lucrative. Investment in clean-energy companies and projects rose 30% in 2010 to a record $243 billion. This study illustrates the need for Green to go Green and more so now that both the U.S. and European governments are scaling back on energy subsidies and tax rebates for clean projects because of fiscal and monetary constraints.
As part of the Arboreel Group - the environmental sustainability initiative for cinema exhibitors - I feel strongly that programs, such as Santander's battery recycling, can be performed by any cinema (and should be), as cinema's, like banks receive a lot of public traffic. There has been a lot of resistance by the cinema exhibitors to Arboreel, but its time has arrived and exhibs need to support the Arboreel Program
Best and Happy Movie Going
Jim Lavorato
Saturday, April 30, 2011
GREENING CINEMAS
IF YOU'VE READ THIS BLOG FOR ANY LENGTH OF TIME YOU'RE WELL AWARE that I have two parallel interests - the cinema and environmental sustainability. These two interests merged in 2009 when (with the folks at ScreenTrade) an environmental accreditation initiative specific to cinemas - the Arboreel Group - was launched.
Arboreel has taken stutter steps since its inception, as cinema exhibitors (large and small) don't seem to feel the necessity to initiate sustainable practices in their day-to-day management and operations. This is unfortunate, as cinemas are large users of energy, water, and disposable products. Money is the big roadblock, as becoming green means spending green, at least upfront,with investment recoupment in the out years. However, recoupment is getting faster and faster as energy, water, and concession products get costlier and costlier.
You don't have to be a pathfinder or early adopter to embrace sustainability. Moving to a darker shade of green for a cinema can be gradual and, for the most part, monetarily painless.
Contact the Arboreel Group at 800-448-1656 if you have an interest or for information on the Arboreel Program.
Best and Happy Movie Going
Jim Lavorato
Arboreel has taken stutter steps since its inception, as cinema exhibitors (large and small) don't seem to feel the necessity to initiate sustainable practices in their day-to-day management and operations. This is unfortunate, as cinemas are large users of energy, water, and disposable products. Money is the big roadblock, as becoming green means spending green, at least upfront,with investment recoupment in the out years. However, recoupment is getting faster and faster as energy, water, and concession products get costlier and costlier.
You don't have to be a pathfinder or early adopter to embrace sustainability. Moving to a darker shade of green for a cinema can be gradual and, for the most part, monetarily painless.
Contact the Arboreel Group at 800-448-1656 if you have an interest or for information on the Arboreel Program.
Best and Happy Movie Going
Jim Lavorato
Content Alternatives At Cinemas
THE IDEA OF HAVING CINEMAS BECOME "VIEWING VENUES" where a variety of content is exhibited is nothing new! In fact, I wrote an article on this topic over a decade ago - Theatres Become Viewing Venues, September 1999, Film Journal International.
Although the notion has been around for over 30 years (in the 1970s boxing matches were exhibited in cinemas via satellite feed) non-movie content has not caught the public's interest and , in our mind, will never be a big revenue generator. According to Screendigest the U.S. market accounts for 58% of the global in-cinema alternative market which totaled $112 million in 2010. The most screened content being the Opera followed by sporting events and live concerts.
NCM Fathom and CinemaLive are the major players offering non-movie content to cinemas. Their goal is to have cinemas go well beyond the Opera and other cultural offerings and move into areas like children's programming. For example, CinemaLive offers a Junior Series which includes productions by The Wiggles and Dorothy The Dinosaur.
Although the concept is worthy, and I am certainly a proponent of any initiative that increases a cinema's utilization, the notion of non-movie content ever becoming more than "filler" for a slow Tuesday or Wednesday evening or Saturday morning at a cinema is wishful thinking.
Having said that, for years I have harped on the downside ramifications of digitizing cinemas, as, to me, it would introduce the end of Hollywood's reign over the distribution of movies. Could it be that the giant media congloms (and owners of the studios) don't care about cinema exhibition in light of all the new avenues of distribution for movie content now evolving (PCs, tablets, smartphones, WebTV, and yet to be developed mobile devices) - and are willing to relinquish their control of "film" distribution to the digital domain and a myriad of competitors offering cinemas alternative content.
Think hard Hollywood. Don't wish for a digitized cinema world, you might just be the loser in the end.
Best and Happy Movie Going
Jim Lavorato
Although the notion has been around for over 30 years (in the 1970s boxing matches were exhibited in cinemas via satellite feed) non-movie content has not caught the public's interest and , in our mind, will never be a big revenue generator. According to Screendigest the U.S. market accounts for 58% of the global in-cinema alternative market which totaled $112 million in 2010. The most screened content being the Opera followed by sporting events and live concerts.
NCM Fathom and CinemaLive are the major players offering non-movie content to cinemas. Their goal is to have cinemas go well beyond the Opera and other cultural offerings and move into areas like children's programming. For example, CinemaLive offers a Junior Series which includes productions by The Wiggles and Dorothy The Dinosaur.
Although the concept is worthy, and I am certainly a proponent of any initiative that increases a cinema's utilization, the notion of non-movie content ever becoming more than "filler" for a slow Tuesday or Wednesday evening or Saturday morning at a cinema is wishful thinking.
Having said that, for years I have harped on the downside ramifications of digitizing cinemas, as, to me, it would introduce the end of Hollywood's reign over the distribution of movies. Could it be that the giant media congloms (and owners of the studios) don't care about cinema exhibition in light of all the new avenues of distribution for movie content now evolving (PCs, tablets, smartphones, WebTV, and yet to be developed mobile devices) - and are willing to relinquish their control of "film" distribution to the digital domain and a myriad of competitors offering cinemas alternative content.
Think hard Hollywood. Don't wish for a digitized cinema world, you might just be the loser in the end.
Best and Happy Movie Going
Jim Lavorato
Friday, April 29, 2011
You Can Fool Some Of The People ...................
As a postscript to the April Moola Report, I wanted to point out an issue many people seem to ignore or not think about - and that is the effect of a devalued Dollar.
If listening to or viewing a financial show or reading a newspaper you hear or see the great earnings being reported by the large U.S. corporations and how they are all beating their revenue and earning estimates each quarter, and their stock prices are at record levels. However, one must keep in mind that most, if not all of these large corporations be it Exxon or Coke, generated a large portion (at least 50% and in many cases much more) of their revenue and earnings from their non-U.S. operations. Therefore with the Dollar at historic lows against most other currencies when locally generated funds are converted back to cheaper U.S. Dollars presto - you get more dollars which in turn unrealistically inflates reported revenues and earnings.
Best and happy investing!
Jim Lavorato
If listening to or viewing a financial show or reading a newspaper you hear or see the great earnings being reported by the large U.S. corporations and how they are all beating their revenue and earning estimates each quarter, and their stock prices are at record levels. However, one must keep in mind that most, if not all of these large corporations be it Exxon or Coke, generated a large portion (at least 50% and in many cases much more) of their revenue and earnings from their non-U.S. operations. Therefore with the Dollar at historic lows against most other currencies when locally generated funds are converted back to cheaper U.S. Dollars presto - you get more dollars which in turn unrealistically inflates reported revenues and earnings.
Best and happy investing!
Jim Lavorato
Tuesday, April 26, 2011
CMG TREND REPORT
CMG TRENDS
Rising Falling Splat
Amazon Tune iTunes Napster
Tablets Laptops PCs
WebTV Set Top Box Tivo
Netflix RedBox Blockbusters
STATS & FACTS
Rising Falling Splat
Amazon Tune iTunes Napster
Tablets Laptops PCs
WebTV Set Top Box Tivo
Netflix RedBox Blockbusters
STATS & FACTS
- In the 4thQ of 2010 30 million Americans accessed financial services via mobile devices. Up 54% from 2009. Smartphones pushing trend.
- Disney broke ground on a $3.7 billion theme park in Shanghai last month adding to its overseas parks in Paris, Hong Kong, and Tokyo. Growth for all of the media giants will be overseas going forward.
- Google ranked number one by BrandFinance Global as most valuable brand in the world. Traditional brand leaders such as, Coke and Marlboro, will continue to lose ground against tech companies.
Monday, April 25, 2011
Digital Cinema/3D Bulletin - Issue #103
Where Is 3D and D-Cinema Going?
As in now stands, the only folks pushing D-Cinema are the equipment manufacturers and the virtual print fee advocates.
Manufacturers
The projector manufacturers (Sony, Christie, Barco, NEC) all now make a full line of projectors to accommodate various cinemas (based on size) from screening rooms to drive-ins. Sony touts their 4k resolution while the others claim easy upgrade of their 2k projectors to 4k. Either way the public could care less and 4k still doesn't get you to 35mm film's 6-8k resolution.
The server and peripheral equipment producers, including 3D (Dolby, Doremi, Real D, MasterImage, GDC, X-panD, Datasat, Panavision, and others) present nothing new but are reducing prices to entice converts.
The VPF advocates are pushing hard on converting exhibitors to digital but their is no rush for exhibitors as the studios have presented a drop dead date for the program at sometime in 2012. So, why opt for the VPF scheme now?
The exhibs still have plenty of time, the price of equipment is dropping, and you still have to line up financing to qualify.
So, as things stand right now, the D-Cinema/3D landscape is pretty much as it was 6 months ago. We'll keep you up-to-date on any changes.
Best and Happy Movie Going
Jim Lavorato
As in now stands, the only folks pushing D-Cinema are the equipment manufacturers and the virtual print fee advocates.
Manufacturers
The projector manufacturers (Sony, Christie, Barco, NEC) all now make a full line of projectors to accommodate various cinemas (based on size) from screening rooms to drive-ins. Sony touts their 4k resolution while the others claim easy upgrade of their 2k projectors to 4k. Either way the public could care less and 4k still doesn't get you to 35mm film's 6-8k resolution.
The server and peripheral equipment producers, including 3D (Dolby, Doremi, Real D, MasterImage, GDC, X-panD, Datasat, Panavision, and others) present nothing new but are reducing prices to entice converts.
The VPF advocates are pushing hard on converting exhibitors to digital but their is no rush for exhibitors as the studios have presented a drop dead date for the program at sometime in 2012. So, why opt for the VPF scheme now?
The exhibs still have plenty of time, the price of equipment is dropping, and you still have to line up financing to qualify.
So, as things stand right now, the D-Cinema/3D landscape is pretty much as it was 6 months ago. We'll keep you up-to-date on any changes.
Best and Happy Movie Going
Jim Lavorato
Wednesday, April 20, 2011
CMG Moola Report - April 2011
WITH THE U.S. BOX OFFICE DOWN OVER $600 MILLION (19.8%) YTD THE CINEMA INDUSTRY - from studio mogul to usher - is praying that the summer line-up of films (which starts in May) will produce a tsunami of back-to-the-cinema moviegoers.
YTD Box Office As of 4/15/11 Rio - which broke a string of anemic box
($ millions) office weekend tallies - is, hopefully, an omen
This Year - $2,537 of greater things to come. Hollywood has over
Last Year - $3,164 150 films scheduled for summer release and the
Decrease - $627 (19.8%) roster looks strong. Moola's favorite picks:
Thor, Bridesmaids, Pirates of the Caribbean, The Hangover II, Everything Must Go, X-Men, Green Lantern, Bad Teacher, Transformers, Captain America, Harry Potter, Crazy Stupid Love, and one or two sleepers. We've got our fingers crossed!
CMG STOCK INDEX UPDATE
Share Price
1/1/11 4/18/11 Chg.
Ballantyne Strong $7.77 $6.72 $ (1.05)
Carmike Cinemas 7.72 7.12 (0.60)
Cinedigm Digital 1.68 1.88 0.20
Disney 37.51 41.35 3.84
Dolby 66.70 44.48 (22.22)
Enter. Properties Trust 46.25 46.13 (0.12)
IMAX 28.07 30.99 2.92
Netflix 175.70 241.55 65.85
Natl' Cinemedia 19.91 17.00 (2.91)
Rentrak 30.16 22.80 (7.36)
Regal Entertainment 11.74 13.57 1.83
TimeWarner 32.17 35.59 3.42
Technicolor 3.56 4.89 1.33
Excluding Netflix and Technicolor, the stocks in the CMG index have taken a beating this year bucking the overall stock market which has been on a general uptrend with some sectors seeing double digit earnings growth and corresponding share price increases.
Netflix is the obvious anomaly in the index and points to where the cinema industry is headed. Internet streaming looms large in the future and content may again be King , as there will be many more avenues for distribution as the future unfolds. Stymied by distribution concentration over the last decade the studios have had a tough go as content distributors ruled. Now the screw is turning the other way. High speed streaming fosters a myriad of distributors and places content providers back in the driver's seat.
CGM STOCK PICK OF THE MONTH : DOLBY LABORATORY
Dolby develops and sells audio and video products specific to the entertainment industry. Its product line is vertically integrated and supports film production, television broadcast, and music production. Its competition ranges from large entities, such as Sony and NEC to smaller firms like QSC and DTS.
Its share price as been on a steady downtrend over the last 52 weeks, going from a high of just over $70 to its current trading range of $45.
Management cut its 2011 outlook recently, citing lower licensing revenues due to lower worldwide PC sales. Current estimates call for 2011 sales to reach $965 million up from 2010s $878 million level, with EPS at $2,71 vs. $2.47 last year.
Dolby's problem, which is not unlike many other tech driven companies, is in its ability (or lack thereof) to keep pace with products and collaborations in a very quickly evolving digital domain. For example, PC sales will continue to fall as smart phones and tablets act as surrogates for the once dominate PC.
Dolby's competition is changing as well. Management must contend with an ever increasing array of data streaming and content distribution companies, while addressing tightening margins as they fend off competitors while continuing product innovation. Dolby must rely on its old and trusted markets while entering new ones with a variety of new players - not an easy task.
CMG's Outlook For Dolby
Dolby will maintain a steady-state. Share price will hover in the $40-50 range until the market perceives a breakout either due to a technological edge or a strategic collaboration which drives revenues. It must concentrate on its core revenue base, but as its share price reflects, steady-state is not rewarded and it must broaden its scope as the entertainment industry transitions to a web based distribution structure. Dolby could be viewed as a valued acquisition or merger candidate given its licensing and solid, core business revenue streams.
Moola Speaks Out: Washington Needs A Wake Up Call
A napping Joe Biden during Obama's economic oratory and snoozing air traffic controllers are an unfortunate metaphor for our government's overall manama attitude to the country's economic woes.
The United States, according to the Federal Reserve, is valued at $60 trillion. The current debt totals $14.3 trillion or over 23% of the country's net worth. Unfortunately for us the debt is increasing at a rate 4X that of the economy.
Given the situation and the Government's unrealistic solutions - the
Republicans say their fix-it plan will cut the debt by $5.8 trillion in 10 years, while Obama and the Democrats say their plan would whittle the debt down by $4 trillion in 12 years - can anyone, with even a smidgen of real-world savvy, buy this nonsense ! 10 Years? 12 Years? And we would still be (at best) $8 - 9 trillion in debt.
Adhering to the Washington crowd's proposals to fix the fiscal dilemma is akin to placing our nation with an endless Sisyphean burden. The U.S. economy is currently running in sand and staying the present course will produce one of two bad things, either: inflation ( fed by easy money and spending) will run rampant; or stagflation (where prices rise without corresponding economic growth) will kick in. Either way both Wall Street and Main Street lose.
YTD Box Office As of 4/15/11 Rio - which broke a string of anemic box
($ millions) office weekend tallies - is, hopefully, an omen
This Year - $2,537 of greater things to come. Hollywood has over
Last Year - $3,164 150 films scheduled for summer release and the
Decrease - $627 (19.8%) roster looks strong. Moola's favorite picks:
Thor, Bridesmaids, Pirates of the Caribbean, The Hangover II, Everything Must Go, X-Men, Green Lantern, Bad Teacher, Transformers, Captain America, Harry Potter, Crazy Stupid Love, and one or two sleepers. We've got our fingers crossed!
CMG STOCK INDEX UPDATE
Share Price
1/1/11 4/18/11 Chg.
Ballantyne Strong $7.77 $6.72 $ (1.05)
Carmike Cinemas 7.72 7.12 (0.60)
Cinedigm Digital 1.68 1.88 0.20
Disney 37.51 41.35 3.84
Dolby 66.70 44.48 (22.22)
Enter. Properties Trust 46.25 46.13 (0.12)
IMAX 28.07 30.99 2.92
Netflix 175.70 241.55 65.85
Natl' Cinemedia 19.91 17.00 (2.91)
Rentrak 30.16 22.80 (7.36)
Regal Entertainment 11.74 13.57 1.83
TimeWarner 32.17 35.59 3.42
Technicolor 3.56 4.89 1.33
Excluding Netflix and Technicolor, the stocks in the CMG index have taken a beating this year bucking the overall stock market which has been on a general uptrend with some sectors seeing double digit earnings growth and corresponding share price increases.
Netflix is the obvious anomaly in the index and points to where the cinema industry is headed. Internet streaming looms large in the future and content may again be King , as there will be many more avenues for distribution as the future unfolds. Stymied by distribution concentration over the last decade the studios have had a tough go as content distributors ruled. Now the screw is turning the other way. High speed streaming fosters a myriad of distributors and places content providers back in the driver's seat.
CGM STOCK PICK OF THE MONTH : DOLBY LABORATORY
Dolby develops and sells audio and video products specific to the entertainment industry. Its product line is vertically integrated and supports film production, television broadcast, and music production. Its competition ranges from large entities, such as Sony and NEC to smaller firms like QSC and DTS.
Its share price as been on a steady downtrend over the last 52 weeks, going from a high of just over $70 to its current trading range of $45.
Management cut its 2011 outlook recently, citing lower licensing revenues due to lower worldwide PC sales. Current estimates call for 2011 sales to reach $965 million up from 2010s $878 million level, with EPS at $2,71 vs. $2.47 last year.
Dolby's problem, which is not unlike many other tech driven companies, is in its ability (or lack thereof) to keep pace with products and collaborations in a very quickly evolving digital domain. For example, PC sales will continue to fall as smart phones and tablets act as surrogates for the once dominate PC.
Dolby's competition is changing as well. Management must contend with an ever increasing array of data streaming and content distribution companies, while addressing tightening margins as they fend off competitors while continuing product innovation. Dolby must rely on its old and trusted markets while entering new ones with a variety of new players - not an easy task.
CMG's Outlook For Dolby
Dolby will maintain a steady-state. Share price will hover in the $40-50 range until the market perceives a breakout either due to a technological edge or a strategic collaboration which drives revenues. It must concentrate on its core revenue base, but as its share price reflects, steady-state is not rewarded and it must broaden its scope as the entertainment industry transitions to a web based distribution structure. Dolby could be viewed as a valued acquisition or merger candidate given its licensing and solid, core business revenue streams.
Moola Speaks Out: Washington Needs A Wake Up Call
A napping Joe Biden during Obama's economic oratory and snoozing air traffic controllers are an unfortunate metaphor for our government's overall manama attitude to the country's economic woes.
The United States, according to the Federal Reserve, is valued at $60 trillion. The current debt totals $14.3 trillion or over 23% of the country's net worth. Unfortunately for us the debt is increasing at a rate 4X that of the economy.
Given the situation and the Government's unrealistic solutions - the
Republicans say their fix-it plan will cut the debt by $5.8 trillion in 10 years, while Obama and the Democrats say their plan would whittle the debt down by $4 trillion in 12 years - can anyone, with even a smidgen of real-world savvy, buy this nonsense ! 10 Years? 12 Years? And we would still be (at best) $8 - 9 trillion in debt.
Adhering to the Washington crowd's proposals to fix the fiscal dilemma is akin to placing our nation with an endless Sisyphean burden. The U.S. economy is currently running in sand and staying the present course will produce one of two bad things, either: inflation ( fed by easy money and spending) will run rampant; or stagflation (where prices rise without corresponding economic growth) will kick in. Either way both Wall Street and Main Street lose.
Sunday, April 17, 2011
Diary of a Drive-In Theatre: Installment #2
In this second installment we cover the most important item for a drive-in's construction - the SCREEN!
Besides the land upon which it is located, a drive-in's screen is it's most important and expensive asset. Unlike an indoor cinema where vinyl, perforated screens are the norm, a drive-in screen is much larger (typically, at minimum, 40ft. high x 60ft. wide), much sturdier , and made of a solid material. I should note that over the last decade or so the practice of multiplexing has occurred in the drive-in community. Feeling the need and desire to increase profits by exhibiting more movies, drive-in owners - using the existing acreage footprint - have added screens. Unfortunately these added screens are invariably much too small (in many cases smaller then indoor cinema screens) to obtain the true drive-in movie experience.
Construction of the Screen Tower
Once screen size is determined (based upon acreage and the number of vehicles it can accommodate) the construction of a drive-in screen normally takes 10 days. Termed a tower, the screen should be positioned like home plate, the projection booth at the pitchers mound, and parking spots in the infield flaring out to left, center, and right fields.
First: Large holes are dug (typically 4) 6 feet deep. The main tower supports are then placed into the holes and re-enforced concrete poured in to fill the holes. It takes 10 days for the concrete to "cure".
Second: After seven days, the construction crew returns and begins building the tower frame. Made of steel, the frame is erected using pieces which were fabricated at the factory to the specifications of the predetermined screen size. Liken the frame to a very large erector set. By the time the frame is completed (about 2-3 days) the concrete is 90% cured, and it is now time to install the screen panels.
Third: A drive-in screen is normally made of aluminium panels, factory pre-painted using a highly reflective white paint. They are usually 18 inches wide and half the length of the screen height. Although there are seams where the panels meet, they are not noticeable from a distance and certainly not by the drive-in patrons. What is seen is a large, bright-white rectangle.
What's Next
Yeah, yeah, I know. You're waiting with the excitement of a child on the eve of their birthday (really, that excited ?) to know what the screen size is going to be for the drive-in upon which this diary is based. Well, after careful consideration, and the previous statement I made in the first installment that we wanted to go with the largest screen possible - the tower (at the yet to be revealed no-name drive-in) will be: 50ft. high x 70ft. wide.
The next installment will discuss what projection and sound equipment a modern day drive-in uses, you'll be surprised!
Best and Happy Movie Going!
Jim Lavorato
Besides the land upon which it is located, a drive-in's screen is it's most important and expensive asset. Unlike an indoor cinema where vinyl, perforated screens are the norm, a drive-in screen is much larger (typically, at minimum, 40ft. high x 60ft. wide), much sturdier , and made of a solid material. I should note that over the last decade or so the practice of multiplexing has occurred in the drive-in community. Feeling the need and desire to increase profits by exhibiting more movies, drive-in owners - using the existing acreage footprint - have added screens. Unfortunately these added screens are invariably much too small (in many cases smaller then indoor cinema screens) to obtain the true drive-in movie experience.
Construction of the Screen Tower
Once screen size is determined (based upon acreage and the number of vehicles it can accommodate) the construction of a drive-in screen normally takes 10 days. Termed a tower, the screen should be positioned like home plate, the projection booth at the pitchers mound, and parking spots in the infield flaring out to left, center, and right fields.
First: Large holes are dug (typically 4) 6 feet deep. The main tower supports are then placed into the holes and re-enforced concrete poured in to fill the holes. It takes 10 days for the concrete to "cure".
Second: After seven days, the construction crew returns and begins building the tower frame. Made of steel, the frame is erected using pieces which were fabricated at the factory to the specifications of the predetermined screen size. Liken the frame to a very large erector set. By the time the frame is completed (about 2-3 days) the concrete is 90% cured, and it is now time to install the screen panels.
Third: A drive-in screen is normally made of aluminium panels, factory pre-painted using a highly reflective white paint. They are usually 18 inches wide and half the length of the screen height. Although there are seams where the panels meet, they are not noticeable from a distance and certainly not by the drive-in patrons. What is seen is a large, bright-white rectangle.
What's Next
Yeah, yeah, I know. You're waiting with the excitement of a child on the eve of their birthday (really, that excited ?) to know what the screen size is going to be for the drive-in upon which this diary is based. Well, after careful consideration, and the previous statement I made in the first installment that we wanted to go with the largest screen possible - the tower (at the yet to be revealed no-name drive-in) will be: 50ft. high x 70ft. wide.
The next installment will discuss what projection and sound equipment a modern day drive-in uses, you'll be surprised!
Best and Happy Movie Going!
Jim Lavorato
Saturday, April 09, 2011
PRODUCT TRAINING SHOULD BE FREE
OVER THE LAST SEVERAL YEARS AN EXPENSIVE AND UNSAVORY TREND has emerged in the cinema industry - the charging of onerous fees by manufacturers to attend training courses on their products.
For dealers and exhibitors all manufacturers' training programs should be at the expense of the manufacturer. Because a dealer is an agent of the manufacturer. The dealer represents, promotes, sells, and pays the manufacturer for the product. And then, in most cases, installs, services, and educates the end-user on the proper operation and maintenance of the product. As for the exhibitor, the same holds true. Why should an exhibitor pay to train on a product they are purchasing.
Both Christie Digital and Barco Projection offer training courses on their D-Cinema products, costing upwards of $5,000 per person to attend. This is the exact opposite of what should be the case. The manufacturer should be paying attendees to train on their equipment - not the other way around!
This is but one more reason why using a reputable full-service dealer adds value. The dealer should be technically capable of professionally installing any product they sell and train the exhibitor on how to operate and maintain it as part of the cost of the purchase of that equipment.
If any exhibitor feels the need for training on a cinema related issue they should attend a workshop offered by Cinema Training Central (http://www.cinema-training.com/). For example, CTC offers a workshop entitled "Digital Cinema/3D - All The Options" for $395. This workshop covers all of the current D-Cinema projection and related server/software options, plus all of the 3D systems (digital and film based).
Don't be too quick to sign up for training that should rightfully be free with the purchase of major equipment. And depend on your cinema dealer for training , not the manufacturer.
Best and Happy Movie Going
Jim Lavorato
For dealers and exhibitors all manufacturers' training programs should be at the expense of the manufacturer. Because a dealer is an agent of the manufacturer. The dealer represents, promotes, sells, and pays the manufacturer for the product. And then, in most cases, installs, services, and educates the end-user on the proper operation and maintenance of the product. As for the exhibitor, the same holds true. Why should an exhibitor pay to train on a product they are purchasing.
Both Christie Digital and Barco Projection offer training courses on their D-Cinema products, costing upwards of $5,000 per person to attend. This is the exact opposite of what should be the case. The manufacturer should be paying attendees to train on their equipment - not the other way around!
This is but one more reason why using a reputable full-service dealer adds value. The dealer should be technically capable of professionally installing any product they sell and train the exhibitor on how to operate and maintain it as part of the cost of the purchase of that equipment.
If any exhibitor feels the need for training on a cinema related issue they should attend a workshop offered by Cinema Training Central (http://www.cinema-training.com/). For example, CTC offers a workshop entitled "Digital Cinema/3D - All The Options" for $395. This workshop covers all of the current D-Cinema projection and related server/software options, plus all of the 3D systems (digital and film based).
Don't be too quick to sign up for training that should rightfully be free with the purchase of major equipment. And depend on your cinema dealer for training , not the manufacturer.
Best and Happy Movie Going
Jim Lavorato
THINK TWICE BEFORE BUYING 'DIRECT'
CINEMA OWNERS/OPERATORS are under the delusion that if they 'buy direct' from a manufacturer they are getting a great deal. I noticed this - buy direct spiel - being practiced by several manufacturers on the trade show floor during the CinemaCon convention.
Let's set the record straight. Manufacturers normally sell direct to an end user at list price. Whereas, purchasing that same product through a full-service dealer would be at a discounted price. For example, a cinema dealer, which represents many different manufacturers, receives discounts which can vary from 35-65% off list price. In turn, the dealer passes a significant portion of that discount on to the cinema customer. Why? Because that full service dealer is also providing other value added services, such as installation, training, and on-going maintenance. Customers also benefit in other ways. For example, Entertainment Equipment, the company I manage, provides free extended warranties, extending any manufacturer's warranty for a full year at no cost to the customer. - a huge plus and savings when purchasing a big ticket item.
So, if you think 'buying direct' saves, think again - you'll be surprises!
Best and Happy Movie Going
Jim Lavorato
Let's set the record straight. Manufacturers normally sell direct to an end user at list price. Whereas, purchasing that same product through a full-service dealer would be at a discounted price. For example, a cinema dealer, which represents many different manufacturers, receives discounts which can vary from 35-65% off list price. In turn, the dealer passes a significant portion of that discount on to the cinema customer. Why? Because that full service dealer is also providing other value added services, such as installation, training, and on-going maintenance. Customers also benefit in other ways. For example, Entertainment Equipment, the company I manage, provides free extended warranties, extending any manufacturer's warranty for a full year at no cost to the customer. - a huge plus and savings when purchasing a big ticket item.
So, if you think 'buying direct' saves, think again - you'll be surprises!
Best and Happy Movie Going
Jim Lavorato
CinemaCon-tagion
THERE WERE HIGH EXPECTATIONS for CinemaCon (the Las Vegas cinema convention which replaced ShoWest) on its inaugural. It's debut could have easily become a CinemaCon-job but the convention proved otherwise.
Holding the fest at Caesar's Palace was a huge improvement over Bally's - the old and convention unfriendly venue where ShoWest lived for years. Caesar's is spacious, updated, and offers a variety of dining, shopping, and entertainment options. So. overall CinemaCon had an auspicious premiere. Can it be improved - yes, but it was a quantum leap from the antiquated ShoWest.
One improvement, that should be given consideration, is to have attendance for the Trade Show free of charge for all those that pre-register. This would substantially swell attendance (currently just under 5,000) and make for a more profitable and robust affair. In tandem with free admission, the Trade Show should be two full days from 10am-4pm without other event conflicts. Instead of the current two half days and one full day. This would make for a more efficient use of time by the trade show exhibitors and attendees.
Kudos to NATO (the fest's manager) for hosting a new cinema convention which will see CinemaCon-tagion in the years ahead.
Oh, what's up with those tacky orange plastic convention sway bags.?
Best and Happy Movie Going
Jim Lavorato
Holding the fest at Caesar's Palace was a huge improvement over Bally's - the old and convention unfriendly venue where ShoWest lived for years. Caesar's is spacious, updated, and offers a variety of dining, shopping, and entertainment options. So. overall CinemaCon had an auspicious premiere. Can it be improved - yes, but it was a quantum leap from the antiquated ShoWest.
One improvement, that should be given consideration, is to have attendance for the Trade Show free of charge for all those that pre-register. This would substantially swell attendance (currently just under 5,000) and make for a more profitable and robust affair. In tandem with free admission, the Trade Show should be two full days from 10am-4pm without other event conflicts. Instead of the current two half days and one full day. This would make for a more efficient use of time by the trade show exhibitors and attendees.
Kudos to NATO (the fest's manager) for hosting a new cinema convention which will see CinemaCon-tagion in the years ahead.
Oh, what's up with those tacky orange plastic convention sway bags.?
Best and Happy Movie Going
Jim Lavorato
Thursday, April 07, 2011
ANOTHER ONE BITES THE DUST
As predicted, many moons ago, the days of the DVD rental/sale are numbered. The last major video store chain, Blockbuster Video, went bust and was up for auction last Monday.
Ravaged by savvy newcomers - Netflix and RedBox, which offered consumers cheaper and easier access to DVDs, Blockbuster was devoured. In turn, as I write this , Netflix is trying to advance its mail delivery strategy by inking deals, as fast as it can, with the movie studios for internet streaming rights. Netflix management knows this will not be an easy task, as it will have to battle with the likes of Amazon, Microsoft, and Apple (to name several) in this space. RedBox will also have to provide a web-based distribution strategy if it is to survive.
The digital domain is littered with the carcasses of many former robust and profitable entities which, like Blockbuster, have come to their end. Digital technology ceaselessly progresses and the Hollywood studios should take a hard look at their current strategy of having movie theatres convert to digital projection. For if the studios lose their control of movie distribution we will begin to witness the end of Hollywood as we know it.
Best and Happy Movie Going
Jim Lavorato
Ravaged by savvy newcomers - Netflix and RedBox, which offered consumers cheaper and easier access to DVDs, Blockbuster was devoured. In turn, as I write this , Netflix is trying to advance its mail delivery strategy by inking deals, as fast as it can, with the movie studios for internet streaming rights. Netflix management knows this will not be an easy task, as it will have to battle with the likes of Amazon, Microsoft, and Apple (to name several) in this space. RedBox will also have to provide a web-based distribution strategy if it is to survive.
The digital domain is littered with the carcasses of many former robust and profitable entities which, like Blockbuster, have come to their end. Digital technology ceaselessly progresses and the Hollywood studios should take a hard look at their current strategy of having movie theatres convert to digital projection. For if the studios lose their control of movie distribution we will begin to witness the end of Hollywood as we know it.
Best and Happy Movie Going
Jim Lavorato
Saturday, April 02, 2011
BOMBS AWAY !
It seems many are feeling the financial and emotional pain inflicted by this year's dismal boxoffice gate (which actually started to freefall last holiday season). My previous post - Are We Witnessing The Collapse Of The Cinema - opened a floodgate as I was bombarded with all manner of venting from the digital domain.
It's quite apparent that many in and out of the cinema industry feel that film distributors and exhibitors are not responding to the obvious lack of interest in moviegoing by the general public. A phenomenon, I believe, due to content which is not compelling enough to motivate an expenditure north of $30 (and in some cases much more) for two admissions and concession at the local cinema.
IT'S TIME FOR A CHANGE
Many of the comments I received were thoughtful and one of the most telling can from Debbie Adams , owner of the Joylan Theatre in Springville, NY. Her comment centered around not getting access to enough product and would like to see the playing field leveled. For example, she does not know why Drive-in theatres have access to many more films , with shorter play dates, and double book all the time. Why can't the Joylan double book and have shorter runs as they play second run most of the time.
Good point.
This is but one of the situations faced by small exhibitors and there are many others. What puzzles me is if you have an distribution point for your product and customers willing to buy it why not give the retailer (exhib.) the product to sell, especially since the product (a movie) has a very finite life.
FILM BOOKING NEEDS A REVAMP
What once worked in the FILM BOOKING business doesn't anymore. The current and archaic movie booking business needs to be restructured. The whole process should be on-line, straight forward, and exhibitor friendly. I'm sure a process can be devised whereby exhibs. are given access to upcoming films and playdates in a menu driven, secured format controlled by the studios.
I know this will sound like heresy to many in the industry but a complete redo of the movie booking business is way overdue. The current process is seriously out-dated and does not provide an efficient, flexible , or best use of technology. A revamped and streamlined booking process would provide enhanced profits for both the distribs. and exhibs. Think about it.
Best and Happy Movie Going!
Jim Lavorato
It's quite apparent that many in and out of the cinema industry feel that film distributors and exhibitors are not responding to the obvious lack of interest in moviegoing by the general public. A phenomenon, I believe, due to content which is not compelling enough to motivate an expenditure north of $30 (and in some cases much more) for two admissions and concession at the local cinema.
IT'S TIME FOR A CHANGE
Many of the comments I received were thoughtful and one of the most telling can from Debbie Adams , owner of the Joylan Theatre in Springville, NY. Her comment centered around not getting access to enough product and would like to see the playing field leveled. For example, she does not know why Drive-in theatres have access to many more films , with shorter play dates, and double book all the time. Why can't the Joylan double book and have shorter runs as they play second run most of the time.
Good point.
This is but one of the situations faced by small exhibitors and there are many others. What puzzles me is if you have an distribution point for your product and customers willing to buy it why not give the retailer (exhib.) the product to sell, especially since the product (a movie) has a very finite life.
FILM BOOKING NEEDS A REVAMP
What once worked in the FILM BOOKING business doesn't anymore. The current and archaic movie booking business needs to be restructured. The whole process should be on-line, straight forward, and exhibitor friendly. I'm sure a process can be devised whereby exhibs. are given access to upcoming films and playdates in a menu driven, secured format controlled by the studios.
I know this will sound like heresy to many in the industry but a complete redo of the movie booking business is way overdue. The current process is seriously out-dated and does not provide an efficient, flexible , or best use of technology. A revamped and streamlined booking process would provide enhanced profits for both the distribs. and exhibs. Think about it.
Best and Happy Movie Going!
Jim Lavorato
Thursday, March 24, 2011
ARE WE WITNESSING THE COLLAPSE OF THE CINEMA
SINCE EARLY 2010 I'VE BEEN HARPING on the issue of boxoffice fatigue by the public. Could we now be witnessing the tipping point in boxoffice attendance. Has the price for a movie ticket and concession products reached a point where it is no longer viewed as "valued" entertainment but merely high priced same old ?
YTD the boxoffice is 20% below last year, equating to a downside figure of approximately $500 million. The question is whether this boxoffice disaster is merely a bump in the road which can be chalked up to a slate of lousy releases or are we witnessing the beginning of a structural shift taking place in the movie exhibition business?
Being so far behind 2010's results this early in the year - and last year's performance was nothing to cheer about as ticket sales were down 6% from 2009's level - it will take a string of summer blockbusters and an over-the-top holiday season for ticket sales to reset on an upward trajectory. And, unlike last year, when premium 3D admission pricing pushed the boxoffice gross slightly over 2009 results the recent roster of 3D offerings have not garnered the public's enthusiasm nor wallet opening.
At the current pace 2011 will end the year at 1.04 billion admissions, which is tandamount to a drop of over 280 million as compared to 2010 and which will be at a level not seen in over 15 years.
It's time for a revamp of the cinema exhibition business. This should be clearly evident to anyone and certainly for those, like myself, that make their living from this industry. For over a year I have been pushing the notion that all movies are not created equal and thus should not have equal pricing. There is no logical reason for boxoffice pricing to be a "one price fits all" scenario. The studios (and the exhibitors falling in lock step) should be tiering their pricing for films AT THE BOXOFFICE! And please, for the love of all that's holy, stop comparing the cost of going to the movies with that of attending a football game or broadway play (as the folks at the National Association of Theatre Owners are always postulating) this argument is specious. As is the inflation adjusted speil. If computers were priced on an inflation adjusted basis the now gigantic desk top I purchased in 1995 ( which was way less powerful then a smart phone of today) would cost over $45,000. Some products can not be inflation adjusted and movies are one of them. The trick (and it's really not a trick at all but run-of-the-mill marketing strategy) is to increase the volume of sales, ie more butts in seats at the cinema.
The current utilization rate at cinemas is about 13-15% or on average 85% of the seats are empty while a movie is being played. A concervative count puts the number of seats at cinemas in the U.S. at 9.6 million (275 seats times 35,000 screens). This means that on any given day movies are exhibited to over 8 million empty seats! It's no wonder that movie exhibition is such a marginal business. No industry could sustain this level of performance on a continuous basis. The volume of business MUST increase and the best, easiest, and most efficient way to accomplish this is by lowering the price of admission and the consequent lowering of concession pricing because the volume of business would be increasing, you know - sell more popcorn but at a lower price and make more profit.
Given the current economic situation, people (I truly believe) feel that attending a movie is too expensive and only of value with films that provide them a real out of home experience. Reducing the boxoffice admission price of the average film would increase attendance. And then it would be up to the exhibitors to lower concession pricing given the higher attendance volume. I may be naive, but this is one of the ways , and a must do, for the cinema to survive going forward.
Best and Happy Movie Going
Jim Lavorato
YTD the boxoffice is 20% below last year, equating to a downside figure of approximately $500 million. The question is whether this boxoffice disaster is merely a bump in the road which can be chalked up to a slate of lousy releases or are we witnessing the beginning of a structural shift taking place in the movie exhibition business?
Being so far behind 2010's results this early in the year - and last year's performance was nothing to cheer about as ticket sales were down 6% from 2009's level - it will take a string of summer blockbusters and an over-the-top holiday season for ticket sales to reset on an upward trajectory. And, unlike last year, when premium 3D admission pricing pushed the boxoffice gross slightly over 2009 results the recent roster of 3D offerings have not garnered the public's enthusiasm nor wallet opening.
At the current pace 2011 will end the year at 1.04 billion admissions, which is tandamount to a drop of over 280 million as compared to 2010 and which will be at a level not seen in over 15 years.
It's time for a revamp of the cinema exhibition business. This should be clearly evident to anyone and certainly for those, like myself, that make their living from this industry. For over a year I have been pushing the notion that all movies are not created equal and thus should not have equal pricing. There is no logical reason for boxoffice pricing to be a "one price fits all" scenario. The studios (and the exhibitors falling in lock step) should be tiering their pricing for films AT THE BOXOFFICE! And please, for the love of all that's holy, stop comparing the cost of going to the movies with that of attending a football game or broadway play (as the folks at the National Association of Theatre Owners are always postulating) this argument is specious. As is the inflation adjusted speil. If computers were priced on an inflation adjusted basis the now gigantic desk top I purchased in 1995 ( which was way less powerful then a smart phone of today) would cost over $45,000. Some products can not be inflation adjusted and movies are one of them. The trick (and it's really not a trick at all but run-of-the-mill marketing strategy) is to increase the volume of sales, ie more butts in seats at the cinema.
The current utilization rate at cinemas is about 13-15% or on average 85% of the seats are empty while a movie is being played. A concervative count puts the number of seats at cinemas in the U.S. at 9.6 million (275 seats times 35,000 screens). This means that on any given day movies are exhibited to over 8 million empty seats! It's no wonder that movie exhibition is such a marginal business. No industry could sustain this level of performance on a continuous basis. The volume of business MUST increase and the best, easiest, and most efficient way to accomplish this is by lowering the price of admission and the consequent lowering of concession pricing because the volume of business would be increasing, you know - sell more popcorn but at a lower price and make more profit.
Given the current economic situation, people (I truly believe) feel that attending a movie is too expensive and only of value with films that provide them a real out of home experience. Reducing the boxoffice admission price of the average film would increase attendance. And then it would be up to the exhibitors to lower concession pricing given the higher attendance volume. I may be naive, but this is one of the ways , and a must do, for the cinema to survive going forward.
Best and Happy Movie Going
Jim Lavorato
Friday, March 18, 2011
Diary of a Drive-In Theatre: Installment #1
IT'S NOT OFTEN THESE days that we get to consult on, design, and perform the build-out of a new Drive-In Theatre; however, we received a call about a month ago to do just that. One of our cinema customers, who owns several multiplex movie theatres, asked us to meet and discuss with him and a landowner the feasibility of moving forward with their idea of building a new Drive-in Theatre Since this project is still in the development stage I will wait and not divulge its name and location, at this time, other then to say that the site is located in a semi-rural area of a mid-Atlantic state with no other Drive-ins even remotely close to it.
The parcel of land upon which the Drive-in will reside is large but has a high water table and is in a floodplain which makes it unsuitable for most commercial and certainly any residental development, but will work fine for a Drive-in with the right construction.
SITE DEVELOPMENT & RECOMMENDATIONS:
As of today, all but one of the required construction permits have been obtained and as we thought through the unique issues with the property and the current state of the cinema industry, we recommend that only two large screens be constructed capable of accommodating, at least, 600 cars each. This was done because we wanted to have large screens. I know this bucks the current trend of Drive-ins having multiple but smaller screens; however, I feel patrons want to view movies on large screens and a Drive-in is no exception. Additionally, we recommended that only one screen and projection booth be constructed for this summer's opening and the other in the summer of 2012. This strategy allowed for assessing the profitability of the Drive-in and would flush out any shortcomings or potential trouble spots encountered.
To side-step the water issue we recommended that the projection booth be constructed on stilts, much like the homes located on the southeastern coast of the U.S. In this case, the stilts would be telephone poles (which are easily obtained and water sealed). Only single phase power would be used, saving money on electrical power installation and, best of all, the concession areas and restrooms would be located in large movable trailers specifically outfitted for these purposes, and which could be moved and stored off-site, eliminating the winter/spring flooding issues.
As the project moves forward I will be updating you with both narrative and photos, so keep on the look out for the next installment.
Best & Happy Movie Going
Jim Lavorato
The parcel of land upon which the Drive-in will reside is large but has a high water table and is in a floodplain which makes it unsuitable for most commercial and certainly any residental development, but will work fine for a Drive-in with the right construction.
SITE DEVELOPMENT & RECOMMENDATIONS:
As of today, all but one of the required construction permits have been obtained and as we thought through the unique issues with the property and the current state of the cinema industry, we recommend that only two large screens be constructed capable of accommodating, at least, 600 cars each. This was done because we wanted to have large screens. I know this bucks the current trend of Drive-ins having multiple but smaller screens; however, I feel patrons want to view movies on large screens and a Drive-in is no exception. Additionally, we recommended that only one screen and projection booth be constructed for this summer's opening and the other in the summer of 2012. This strategy allowed for assessing the profitability of the Drive-in and would flush out any shortcomings or potential trouble spots encountered.
To side-step the water issue we recommended that the projection booth be constructed on stilts, much like the homes located on the southeastern coast of the U.S. In this case, the stilts would be telephone poles (which are easily obtained and water sealed). Only single phase power would be used, saving money on electrical power installation and, best of all, the concession areas and restrooms would be located in large movable trailers specifically outfitted for these purposes, and which could be moved and stored off-site, eliminating the winter/spring flooding issues.
As the project moves forward I will be updating you with both narrative and photos, so keep on the look out for the next installment.
Best & Happy Movie Going
Jim Lavorato
Friday, March 11, 2011
Moola Report - March 2011
This is the premier issue of the CMG Moola Report - a monthly commentary on financial trends, technology, and events impacting the cinema industry.
A quick peruse of the Cinema Stock Index (insert) indicates that the cinema industry isn't doing so well in terms of market performance on a YTD basis. The only stellar performer being Technicolor (TCH) whose stock price has risen over 42% since January 1st. The biggest under-performer being Dolby Labs (DLB) whose share price has dropped 23% YTD. The overall performance of the CMG Cinema Index runs contary to the overall stock market which has risen slightly over 9% YTD.
Overall, we do not see any of the stocks in the CMB Stock Index as pull away performers but will for the most part be flat-line trenders. Several, such as Netflix (which has been a comet over the last 18 months) will trend down, given its meteoric rise and the current large volume of short selling on this stock.
Cinema Stock of the Month: Entertainment Properties Trust
EPR is a real estate investment trust that develops, owns, leases, and finances properties geared toward consumer entertainment venues in N. America.
As of 2/28/11, EPR's year-end, assets totalled $2.9billion of which $1.5billion was invested in 105 megaplex cinema sites - housing approx. 1,950 movie screens. In addition, to cinemas, EPR holds investments in retail centers, vineyards and wineries, ski parks, and public charter schools.
EPR's cinema tenents include: AMC Theatres, Regal Entertainment Group, Carmike Cinemas, Rave Motion Pictures, CineMagic/IMAX Theatres, Southern Theatres, Muvico, and Kerasotes Theatres.
Over the last three years EPR's revenue stream dipped from a high of $270m in '08 to $231m last year. While net income went from $102m to $58m over the same period, this performance mirrors the downturn in the commercial real estate market, which has yet to recover from the recession.
Over the last 3 years management has done of good job of de-leveraging the balance sheet and with its lock-in rate leases with the movie circuits will maintain a good stream of income and coinciding dividend payout. Dividend payouts for 2011 are anticipated to be $2.80/share , equivalent to a 5.9% yield at its current share price.
Going Forward: EPR offers a good, stable return. It currently has the opportunity to purchase properties at bargain prices, and its downside - default by leasees - is not a present threat. EPR's portfolio is skewed toward the cinema exhibition industry but has little risk regarding the ups/downs of the boxoffice and its leases all have built-in inflation escalators. My guess is EPR will, going forward, place more emphasis on non-cinema properties and holdings, particularly the charter school arena, and less on cinemas.
If you are looking for a good, steady yield EPR offers a comparable return to most other REITs and may be positioned to take better advantage of the commercial real estate market opportunites than most.
A quick peruse of the Cinema Stock Index (insert) indicates that the cinema industry isn't doing so well in terms of market performance on a YTD basis. The only stellar performer being Technicolor (TCH) whose stock price has risen over 42% since January 1st. The biggest under-performer being Dolby Labs (DLB) whose share price has dropped 23% YTD. The overall performance of the CMG Cinema Index runs contary to the overall stock market which has risen slightly over 9% YTD.
CMG STOCK INDEX
Price
3/7/11 1/1/11 % Chg. P/E Yield
Ballantyne/Strong 7.11 7.77 (8.5) NA NA
Carmike Cinemas 6.77 7.72 (12.3) 19 -
Cinedigm Digital 1.49 1.68 (11.3) - -
Disney 43.49 37.51 15.9 19 .45/1%
Dolby 51.08 66.70 (23.4) 20 -
Entertainment Properties 47.31 46.25 2.3 24 .70/5.5%
Imax 27.77 28.07 (1.1) 19 -
Netflix 198.18 175.70 12.8 67 -
National Cinemedia 18.40 19.91 (7.6) 31 .80/4.2%
Rentrak 26.28 30.16 (12.9) - -
Regal Entertainment 13.80 11.74 17.6 27 .84/6.1%
Time Warner 36.58 32.17 13.7 16 .92/2.6%
Technicolor 5.09 3.56 42.9 3 -
This month's highlighted cinema stock is Entertainment Properties Trust (EPR) one of the stocks represented in the CMG Cinema Index. EPR, a real estate investment trust (REIT), is up only 2.3% YTD but could be a big beneficiary of a rising commercial real estate market - when that market normalizes - and by an increase in the inflation rate as EPR has built-in escalators in its lease agreements. Additionally, it currently pays out a very respectable yield of 5.5% .Overall, we do not see any of the stocks in the CMB Stock Index as pull away performers but will for the most part be flat-line trenders. Several, such as Netflix (which has been a comet over the last 18 months) will trend down, given its meteoric rise and the current large volume of short selling on this stock.
Cinema Stock of the Month: Entertainment Properties Trust
EPR is a real estate investment trust that develops, owns, leases, and finances properties geared toward consumer entertainment venues in N. America.
As of 2/28/11, EPR's year-end, assets totalled $2.9billion of which $1.5billion was invested in 105 megaplex cinema sites - housing approx. 1,950 movie screens. In addition, to cinemas, EPR holds investments in retail centers, vineyards and wineries, ski parks, and public charter schools.
EPR's cinema tenents include: AMC Theatres, Regal Entertainment Group, Carmike Cinemas, Rave Motion Pictures, CineMagic/IMAX Theatres, Southern Theatres, Muvico, and Kerasotes Theatres.
Over the last three years EPR's revenue stream dipped from a high of $270m in '08 to $231m last year. While net income went from $102m to $58m over the same period, this performance mirrors the downturn in the commercial real estate market, which has yet to recover from the recession.
Over the last 3 years management has done of good job of de-leveraging the balance sheet and with its lock-in rate leases with the movie circuits will maintain a good stream of income and coinciding dividend payout. Dividend payouts for 2011 are anticipated to be $2.80/share , equivalent to a 5.9% yield at its current share price.
Going Forward: EPR offers a good, stable return. It currently has the opportunity to purchase properties at bargain prices, and its downside - default by leasees - is not a present threat. EPR's portfolio is skewed toward the cinema exhibition industry but has little risk regarding the ups/downs of the boxoffice and its leases all have built-in inflation escalators. My guess is EPR will, going forward, place more emphasis on non-cinema properties and holdings, particularly the charter school arena, and less on cinemas.
If you are looking for a good, steady yield EPR offers a comparable return to most other REITs and may be positioned to take better advantage of the commercial real estate market opportunites than most.
THE CMG TrendSETTER List
Rising Falling Splat
Yoga Kickboxing Palates
Streaming DVD rentals DVD sales
Kinect Wii Fit Guitar Hero
Lululemon Under Armor Sweats
Best & Happy Movie Going
Jim Lavorato
IMPROVING THE CINEMA EXPERIENCE
In the March 4th issue of Entertainment Weekly the mag took aim at Hollywood and listed 10 - can do now initiatives - that would help get the movies back on course and stop the hemorrhaging of boxoffice attendance (a topic that has been covered many times in this blog).
The 10 initiatives ranged from : Stop making bad 3D flix to recruiting the best writers from TV-land to write film scripts. It's a good read and although I don't endorse all 10 , the article does point out that the cinema is in trouble and needs shaking up.
I would like to add another major initiative that Hollywood and the industry as a whole should embrace (which also happens to be my personal best way to get cinema attendance to soar) and that is to offer variable pricing at the boxoffice and stop charging the same price for all movie tickets. It makes no sense to price all movies the same. Variable pricing would enhance attendance by getting more people into theatres - who are currently not motivated by high ticket pricing for films they are not completely enthusiastic about seeing. Distribs. and exhibs. would evidence enhanced sales: boxoffice and concession, due to higher attendance. It would be a grand gesture by the industry that - I predict - would be warmly embraced by the public. Think about it.
Best and Happy Movie Going
The 10 initiatives ranged from : Stop making bad 3D flix to recruiting the best writers from TV-land to write film scripts. It's a good read and although I don't endorse all 10 , the article does point out that the cinema is in trouble and needs shaking up.
I would like to add another major initiative that Hollywood and the industry as a whole should embrace (which also happens to be my personal best way to get cinema attendance to soar) and that is to offer variable pricing at the boxoffice and stop charging the same price for all movie tickets. It makes no sense to price all movies the same. Variable pricing would enhance attendance by getting more people into theatres - who are currently not motivated by high ticket pricing for films they are not completely enthusiastic about seeing. Distribs. and exhibs. would evidence enhanced sales: boxoffice and concession, due to higher attendance. It would be a grand gesture by the industry that - I predict - would be warmly embraced by the public. Think about it.
Best and Happy Movie Going
Sunday, March 06, 2011
CMG's MOOLA REPORT
The premier of the Cinema Mucho Gusto Moola Report - is tomorrow. Therefore I thought an explanation of what this monthly Report will include and why would be helpful.
In addition to thought provoking (I hope) commentary and (always dangerous) industry prognostications The Moola Report will have the following recurring items:
- The CMG 13 Cinema Stock Index/Industry Forecaster
- The TrendSetter Report
- Commentary Highlighting Current Events & Trends
Impacting the Future of the Cinema Industry.
The CMG Stock Index
The CMG Index will highlight 13 publicly traded stocks. These companies were selected as being representative of the cinema industry's on-going and (more importantly) future performance.
The 13 stocks are:
- Ballantyne Strong (BTN)
- Carmike Cinemas (CKEC)
- Cinedigm Digital (CIDM)
- Disney (DIS)
- Dolby Labs (DLB)
- Entertainment Properties Trust (EPR)
- IMAX Corp (IMAX)
- Netflix (NFLX)
- National Cinemedia (NCMI)
- Rentrak (RENT)
- Regal Entertainment (RGC)
- Time Warner (TWX)
- Technicolor (TCH)
The Trendsetter
The Trendsetter will feature rising, falling, and out of trend products, ideas, and things which will provide you an opportunity to get on or get off trends which can make you or save you Moola.
The launching of the CMG Moola Report marks a first for providing concentrated financial and forward looking reporting and analysis on the cinema industry. It will benefit those having a personal and/or financial interest in the cinema and it's success will be judged on the accuracy of the information and prognostications it provides.
I look forward to having you read and comment on the Report each month and sincerely hope it provides you useful information and data which is thought provoking and helps in your decision making.
Best
James Lavorato, President
Entertainment Equipment Corp.
In addition to thought provoking (I hope) commentary and (always dangerous) industry prognostications The Moola Report will have the following recurring items:
- The CMG 13 Cinema Stock Index/Industry Forecaster
- The TrendSetter Report
- Commentary Highlighting Current Events & Trends
Impacting the Future of the Cinema Industry.
The CMG Stock Index
The CMG Index will highlight 13 publicly traded stocks. These companies were selected as being representative of the cinema industry's on-going and (more importantly) future performance.
The 13 stocks are:
- Ballantyne Strong (BTN)
- Carmike Cinemas (CKEC)
- Cinedigm Digital (CIDM)
- Disney (DIS)
- Dolby Labs (DLB)
- Entertainment Properties Trust (EPR)
- IMAX Corp (IMAX)
- Netflix (NFLX)
- National Cinemedia (NCMI)
- Rentrak (RENT)
- Regal Entertainment (RGC)
- Time Warner (TWX)
- Technicolor (TCH)
The Trendsetter
The Trendsetter will feature rising, falling, and out of trend products, ideas, and things which will provide you an opportunity to get on or get off trends which can make you or save you Moola.
The launching of the CMG Moola Report marks a first for providing concentrated financial and forward looking reporting and analysis on the cinema industry. It will benefit those having a personal and/or financial interest in the cinema and it's success will be judged on the accuracy of the information and prognostications it provides.
I look forward to having you read and comment on the Report each month and sincerely hope it provides you useful information and data which is thought provoking and helps in your decision making.
Best
James Lavorato, President
Entertainment Equipment Corp.
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