Cineplex Entertainment
and Christie Projectors
Professional Sales PreCall Report
Submitted by: Laura Piedade &
Erica Thorpe
Instructor: Keith Barnwell
Course: SALE 53143 - Professional
Sales & Communication Techniques
Submitted: November 2, 2012
Memo
_____________________________________________________________
DATE:
November 2, 2012
TO:
Keith Barnwell, Sales Manager
FROM:
Laura Piedade, Sales Associate and Erica Thorpe, Sales Associate
SUBJECT: Potential Prospect for Christie Projectors: Cineplex Entertainment
_____________________________________________________________
With technology constantly changing, it is crucial that businesses keep up
with today’s current technology. This is especially true when it comes to the
movie theatre industry. It is evident that Cineplex Entertainment needs to
update their existing 35-mm film projectors to digital projectors in order to
overcome factors affecting their overall profits.
We are requesting your review and approval for the following report which
discusses in detail the conversion to digital projectors and how Cineplex
Entertainment can benefit from this switch. This research has been
conducted with the intention of determining if Cineplex Entertainment is a
potential buyer of Christie Projectors.
Our research has found that piracy is proving to be very challenging for the
motion picture industry. Increasing amounts of profits are being lost due to
this trend. Cinemas need to find ways to stay relevant and attract people to
viewing films in theatre settings rather than through other forms of
technology. The transition to digital projectors is just one of many ways that
Cineplex can remain a key player in the market.
Our research shows that our Christie Projector model CP4230 4K DLP is what
fits Cineplex Entertainment’s needs and would be the best fit for this
company. Although all Christie projectors would work in a theatre
environment, this model is ideal for their needs because it surpasses the
competition in all key specifications that is important to Cineplex.
Any feedback may be sent to the Sales Associates in charge of the Cineplex
Entertainment account. Kindly forward emails to
lpiedade@christieprojectors.com or ethorpe@christieprojectors.com.
1
2
Macro Environment
According to the Motion Picture Association of America (MPAA), the age gap
between those who choose to see a film at the movie theatre and those who
are choosing to watch movies via technology such as online streaming is
growing. The MPAA also found that:
•
Those aged 12-24 make up 22% of moviegoers and 30% of tickets
sold.
•
There was a slight increase in the 60+ group compared to last year;
they represent 13% of moviegoers.
•
In 2011, most age groups went to the movies less frequently than in
2010; the largest decline was seen in the 12-17 year old age group
(See appendix A)
*Note that surveying is conducted in the U.S. only, so the results assume a similar
demographic composition of U.S./Canada combined population as U.S. alone.
Business/Economic Factors
The conversion from 35-mm film to digital projection is currently ongoing. As
of March 31, 69% of the roughly 40,000 theatres in the U.S. and Canada
have converted to digital projectors and screens, according to IHS Screen
Digest. It is estimated that by the end of the year, that number will be closer
to 85%. 1 This change is proving to be very costly for cinemas across North
America. Movie theatres, including drive-ins, will need to buy projectors that
cost approximately $70,000 to $80,000 each. The cost for projectors with 3D capabilities is over $80,000.2
The switch to digital projection may cause the closure of many small
theatres, especially drive-ins who are already seeing lower turnouts every
year. There are several factors that influence drive-ins not being able to
afford the switch to digital projectors:
1
•
It is a seasonal industry that is losing its ability to compete; Canada’s
weather doesn’t support this type of industry.
•
They cannot survive off of box office revenues alone; they need
revenue from concessions as well but this is not successful as many
moviegoers bring their own snacks.
•
Most drive-ins offer double-feature showings of films that exhibitors
must rent from the movie studios at a cost of 60% or more of ticket
prices.
•
People are not as willing to accommodate factors such as poor quality
sound, foggy windows, and bugs; there are more attractive
alternatives that are available today such as air conditioned cinemas,
streaming movies online, etc.
•
The rise in the value of real estate.2
Despite the steady decline in overall movie theatre attendance, cinemas see
an increase during slow economic times. During the recent economic
downturn, attendance increased 16%. 3 A similar trend occurred in 1982
when unemployment increased sharply past 10%; theatre attendance
increased by 10.1% and then fell nearly 12% in 1985 when the economy
became stronger. 4 When people are going through tough times, they want
to escape and going to see a movie is just one way to accomplish this.
Legal/Political Factors
The movie theatre industry has seen drastic changes in recent years. Piracy
has made it much easier for people to watch their favourite television shows
and movies in the comfort of their home for little to no cost. Movie theatres
are also competing against technology such as online streaming from
companies like Netflix and home on-demand movie rentals from companies
like Rogers and Bell. Netflix users watched 1 billion hours of movies and
television in June alone.3 It is very hard to entice people to leave their
2
homes and pay money to see a movie at a theatre when there are less
expensive and more convenient ways of watching the same entertainment.
Due to the continuing battle with pirated movies downloaded over the
Internet, movie theatres and media companies are fighting to change
Canada’s digital copyright and licensing laws in order to protect jobs in the
entertainment industry. Currently, movie providers such as Netflix are
exempt from fees that are faced by telecoms and broadcasters in Canada for
Canadian content. Netflix is not required to follow rules that require
distributors and broadcasters to fund Canadian content and programming. 5
Overall funding for Canadian content will be reduced as viewers bypass
distributors which pay a percentage of their revenues for creation of
Canadian content and head straight to places like Netflix.5 Netflix claims that
it should be exempt as it is a distributor not a producer of content.
Technological Factors
In the past several years, there has been an increase in 3-D technology.
Eleven of the top 25 grossing films in 2011 were made in 3-D.3 It seems that
the younger age group tends to be interested in this format of movie
compared to other age groups. The typical moviegoer over 25 years old
attended one 3-D movie in 2011, compared to two for moviegoers under 25
years old. 6 Of those who attended a 3-D movie in 2011, 47% were under
the age of 17, according to the MPAA.3 Since this age group has grown up
with computers and technology, they are more likely to want to download
content instead of paying for it. (Refer to Appendix A)
3-D technology may be what the motion picture industry needs to draw the
younger age group away from their computers and downloading and into the
cinemas. Even though the 3-D trend has caused a slight increase in
moviegoers, film-industry observers say audiences are refusing to pay more
3
for badly converted 3-D titles.1 Despite this, 3-D technology is what gives
cinemas a competitive edge over online streaming services such as Netflix.
Dolby Laboratories Inc. will be testing its Atmos audio system which allows
sound to be focused through specific speakers placed around a theatre,
including the ceiling. Current systems deliver sound from groups of speakers
placed on walls.1 This new system allows viewers to feel like they are in the
movie. In addition, IMAX Corp. has created an early prototype of a digital
projection system that uses lasers instead of bulbs to project images onto
screens, casting a brighter light.1 The projectors won't be ready for the
market until late 2013.
Social/Environmental Issues
Piracy has become a socially acceptable form of theft making it the most
challenging problem faced by the movie industry. The MPAA estimates that
of the $10 billion revenue worldwide per year the motion picture industry
makes, more than $3 billion is lost due to piracy. 7 Movie theatres are part
of this and therefore are greatly affected by piracy. Pirated movies are
available even before films are released in theatres, cutting into box office
revenues.7 Many also turn to pirating a film due to product availability. They
do not want to wait months after the cinema release of a film, so they turn
to purchasing or downloading a pirated copy. Most films are released on DVD
around three months after initial cinema screening. However, they have
started to shorten the time gap between theatre and home viewing to fight
piracy 8.
Many movie theatres are creating and maintaining their own pages on social
media websites such as Facebook and Twitter. This is encouraging the public
to view new films at their local cinema and is another way for them to
interact with their favourite theatre. Theatres have the opportunity to
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engage their customers by posting links, contests, coupons and film related
material to entice people to go to the theatre and watch a film.
Regional tastes have an influence on whether a film will do better in one
area compared to another area. This has much to do with differing tastes in
the plots of films. For example, The Smurfs did much better in Quebec
compared to other regions in Canada. 9 The difference in tastes is especially
noticeable between Canada and the U.S. Movies such as The Help did much
better in the U.S. than in Canada due to cultural differences within the
content of the film.
Current Trends
Box office revenues have steadily declined since 2002. MPAA data shows
that the number of tickets sold in the U.S. and Canada slumped 19% to 1.3
billion last year from 2002 (4). Because of this, cinema operators are trying
to lure back moviegoers with new advances in cinema and theatre
technology. They are especially trying to entice younger audiences from
their home television screens, video games, and Internet streaming services
to movie theatres. The predicted future of the industry to accomplish this
objective includes:
•
Faster projection rates to improve clarity.
•
New immersive surround-sound audio systems.
•
Laser 3-D projectors.
•
Paperless ticketing.
•
Gourmet in-theatre dining.
•
Vibrating motion-simulator seats.1
A number of cinemas are showing more than just movies. An emerging
trend is theatres having show times for events such as WWE wrestling,
sporting events such as Wimbledon and the Olympics, opera shows, etc. This
5
diversity is a new source of revenue, potentially new customers, and offers
the ability to use theatres to generate revenue during times that would not
typically see customers. For example, Wimbledon was being screened during
the morning hours due to the time difference. Furthermore, the 2010 Winter
Olympics was shown live and in high definition in 64 Cineplex theatres
across Canada. 10
Movie theatres such as Cineplex are also providing legal online movie
downloads.5 They offer movies to buy and rent on their online store website,
Cineplex Store. It is clear that the major trend for movies and entertainment
nowadays is to get them online. Movie theatres are trying to compete with
services such as Netflix, Rogers on Demand, ITunes, and illegal downloading
by offering their own downloading services.
A study published by Sandvine Corp. indicates that Canadians have a
growing appetite for the convenience of digital movie downloads.5 This is
evidence of how movie theatres must adapt to such changes. They are able
to differentiate themselves from the competition because they not only
provide a service to download movies but customers can buy their movie
tickets and concessions ahead of time on the same website. It will not only
entice them to purchase movies for download but it also makes the idea of
going to see a movie at the theatre appealing.
Home theatre projectors are becoming very popular because of the ability to
watch entertainment in the comfort of one’s home. This may be keeping
movie enthusiasts away from the cinema. Many people are realizing that
even though the initial price may be costly, it is worth being able to watch
movies in a comfortable area of one’s home without having to deal with
overpriced concessions, pricey movie tickets, and noisy moviegoers. Film
industry observers say audiences are becoming more intolerant of chatty
6
and text messaging teenagers who treat movie theatres like their living
rooms.1
A good home theatre projector with an LCD projector and a 16:9 widescreen aspect ratio, costs less than $2000. Despite being a huge investment,
prices are comparable to flat-screen televisions. Therefore, many are willing
to make the switch for something even better that provides a bigger screen
and excellent quality picture. There is however a downside; the projector
bulbs can cost between $300 to $500 each and last for 1500 to 6000 hours
before they begin to dim and must be replaced. 11
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Knowledge of Christie Digital
History & Reputation
Christie is a visual technological company which has specialized in the
projection of motion pictures since 1929, and professional projection
systems since 1979. Christie manufactures, as well as sells, visual display
technologies for a variety of purposes including cinema theatres, large
audience environments, control rooms, business presentations, training
facilities, 3-D and virtual reality simulation, educational organizations, and
government institutions. In addition to manufacturing and selling projectors,
Christie also is established as a leading innovator in the development of new
projection technology. This is proven by their ownership of twelve patents as
well as being the first in the industry for the following:
•
First projection manufacturer to receive two Academy Awards for
Scientific and Technical Achievement for cinema projectors.
•
First licensee of DLP (Digital Light Processing) cinema technology, the
first digital cinema technology to be adapted by the Hollywood
community.
•
First digital 3-D 3-chip projectors, the Christie Mirage Series.
•
First to offer specialized digital projection products for virtual reality,
simulation and control rooms.
•
First to manufacture HD 3-D projector.
The engineering and manufacturing departments are headquartered in
Kitchener, Ontario while the worldwide head office is located in Cypress,
California. Christie is acknowledged as being a leader in the projection
industry internationally by the fact that they have installed over 100,000
8
projection systems worldwide. Some of the organizations which rely on
Christie projectors include:
•
AMC Theatres.
•
Microsoft.
•
Pixar Animation Studios.
•
Sony Picture Studios.
•
Paramount Parks’ Star Trek Borg Invasion 4-D.
•
Toronto Stock Exchange (TSX).
•
AT&T Global Network Operations Center.
Source: http://www.christiedigital.com/en-us/about-christie/Pages/default.aspx
Policies & Procedures
Christie offers exhibitors the ability to customize their payment methods
according to their needs. Furthermore, Christie’s VPF (Virtual Print Fee)
program provides exhibitors who have difficulty affording the equipment the
ability to receive payments from Hollywood film producers for each digital
film they book. (See appendix B)
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Knowledge of Product/Service
Technical Features and their Benefits & Advantages
Christie digital projectors have a strong reputation for image quality, ease of
use, and efficiency, which stem from the following technical specifications:
•
Projectors now include a stand-by mode which reduces power
consumption when the unit is not in operation resulting in cost savings
due to reduced electricity requirements.
•
Christie model CP2220 gets a larger light output by using 3kW lamps
as opposed to competing products that require the more expensive
4kW lamps resulting in cost savings.
o Light output is one of the most significant specifications of a
projector as it establishes the largest size of a screen the
projector can support, as well as the amount of ambient light the
image can tolerate without being perceived as “washed out”.
•
Digital projectors allow for the ability to send films via satellite and
download onto a hard drive, rather than sending films via couriers to
every theatre location.
•
Digital projectors allow for the ability to screen live events such as
hockey games, the Olympics, Wimbledon, WWE Wrestling events,
opera shows, etc.
•
Christie’s digital projectors operate with an intuitive-based system
which facilitates operational efficiency through the following benefits:
o Ease of operation which creates less of a burden for staff, and
requires less intensive training.
o Highly automated allowing for films to run on time as scheduled
resulting in satisfied moviegoers.
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•
Christie projectors use 4DColor technology (an innovation of Christie’s)
which means that their projectors use 4LCD projection instead of the
traditional 3LCD projection. By adding a fourth LCD this results in:
o Increased colour gamut by 20% (the reproduction of colours).
o Increased brightness by 10% when using a mercury-vapor lamp.
o Utilizes inorganic alignment layers which greatly increase the
contrast ratio thereby creating more brilliant colours and deeper,
more intense blacks.

The use of inorganic alignment layers (as opposed to
organic ones) also creates a higher resistance to UV
light which allows the projector to be in use for a longer
period of time, in addition to making it more reliable.
o In the past, or with other systems, you would have to choose
between either more light output or higher quality colours; with
this system you can have both and neither one need to be
sacrificed. (See appendix B)
Services Offered
Christie is dedicated to customizing their services to best suit the needs of
each individual exhibitor. One way this is done is through their VPF (Virtual
Print Fee) Program for theatre owners who cannot, or have difficulty
affording the financial investment of transitioning to digital projection. This
program offers a wide range of payment and financing options, as well as
includes a payment from Hollywood film producers to the theatre owner for
each digital film booked. This payment is tailored to each exhibitor in terms
of amount and duration, and is meant to be used to cover the costs of
equipment changes and/or replacements.
In addition to this, Christie customers also have access to Christie Managed
Services which includes the following offers and services:
•
Industry-leading warranties.
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•
Help desk support phone line which is available 24/7/365 and connects
you with a Christie technician from the Network Operations Center (an
online e-support portal is also available).
•
Remote monitoring services are provided through the Network
Operations Center (NOC), which is a facility in operation 24/7/365
whereby Christie technicians monitor the performance of their
projectors throughout Canada and the United States. This allows the
technicians to ensure all machines are running smoothly and receiving
proper maintenance and software upgrades. Additionally, technicians
are able to spot any potential problems and develop a solution, often
before there is any observable deficiency in the visual display.
•
Software upgrades, conducted remotely through the NOC, are
accompanied with an explanation from the technician as to how the
upgrade will affect and improve the display system. The upgrade will
also come with a phone call 24 hours prior to notify the customer the
upgrade will be taking place, as well as a phone call once the upgrade
has been completed.
Christie understands that different businesses have different needs and thus
allows each customer to decide the level of service they wish to receive. This
includes customizing things like frequency, type, and timing of the services.
(See Appendix B)
Testimonials from Christie Customers
“Having reviewed a plan from another supplier than could not accommodate
my single screen theatre, I chose Christie because they offered many more
advantages to us. Their VPF plan eliminates the complex, highly-restrictive
clauses found in other plans, providing us with a wider range of financing
options and greater control. Because Christie offered more options for all
phases of the digitization process, and as a cost-conscious exhibitor I felt
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totally comfortable about my choice.” - Robert Wiesenmayer, owner of the
Wapa Theatre in Wapakoneta, Ohio
“We chose Christie because we believed in the quality of the Christie
product, the flexibility built into the projectors, the ease in using the menus,
and settings that can be adjusted quickly and easily.” - Michael LaMarca,
general manager of three cinemas, the Sierra Cinemas in Grass Valley,
California
[Regarding Christie’s service and support system] “It was an absolute major
deciding factor. Christie is serious about service. They are responsive and
professional.” - Michael LaMarca, Sierra Cinema, Grass Valley, California
“The Christie VPF program is straightforward, and in comparison to others,
it’s the best deal out there. In terms of simple economics, we get the best
return on our money because the [virtual print fees] are paid faster and we
have the ability to depreciate the equipment under Christie’s self-financing
program. We didn’t have to jump through hoops and deal with all sorts of
restrictions.” - Leslie Aberson, president of Apex Theatres in Louisville,
Kentucky
(See Appendix B)
Lab Test & Certification by DCI
DCI (Digital Cinema Initiatives) LLC was founded in March 2002 by the
following companies: Disney, Fox, Paramount, Sony Pictures Entertainment,
Universal and Warner Brothers Studios. The purpose of DCI is to establish
voluntary specifications for digital cinema to ensure consistency and quality
when it comes to screening motion pictures through a digital medium.
Although following these specifications is completely voluntary, it is highly
recommended that projection manufacturers do so as a way to guarantee
moviegoers receive the best theatre experience.
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All of Christie’s digital projectors have been tested by the DCI and have
passed without any detected failures.
(See Appendix B)
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Competitive Knowledge
Product Comparison
Specifications
Screen Size
Brightness
(Light Output)
Resolution
(Pixel Count)
Contrast Ratio
Height
Width
Depth
Weight
(See Appendix B)
Models
Christie CP4230 4K Sony SRXR 320P
DLP
4K D Cinema
Projector
Up to 105 feet (32 Up to 66 feet (20
metres)
metres)
34,000 lumens
21,000 lumens
Digital Projection
Titan 1080p Quad
2000 3D
Up to 17 feet (5.1
metres)
20,000 lumens
4096x2160
4096x2160
1920x1080
2,1000:1
19 inches
25.6 inches
53.9 inches
245 lbs. (111 kg)
2,000:1
25.3 inches
27.6 inches
49.3 inches
429 lbs. (195 kg)
2,000:1
10.2 inches
21.3 inches
24.4 inches
86 lbs. (27 kg)
Christie
Services Offered
As noted previously, Christie is dedicated to providing quality and
customized services to their customers. This includes the VPF program
which is designed to aid theatre owners with the financial investment
of transitioning to digital projection. This includes a variety of financing
and payment options, as well as the option to receive payments from
Hollywood film producers for each digital film the exhibitor books.
Additionally, Christie offers the Managed Services program which
provides technical support to their customers. This includes such
benefits as:
•
Help desk support phone line available 24/7/365.
15
•
Remote monitoring services through their Network Operations
Center (NOC) which allows potential problems to be detected and
resolved by Christie technicians.
•
Software upgrades conducted remotely through their NOC.
Competitive Advantage
Christie has been a leading innovator in the projection technology
industry for over 80 years. Over the course of this time Christie has
gained extensive knowledge and experience when it comes to digital
projection, resulting in the following notable achievements:
•
Best New Product Technology award at WFX, both in 2011 and
again in 2012.
•
InAVation Awards 2012 – Most InAVative Corporate Facility.
•
Played a key role in setting the Guinness World Record for largest
3D projection in 2011 at the French premiere of the final
installment of the Harry Potter films.
•
Achieved the world’s first 3-D high frame rate alternative content
demo using a single DLP projector at IBC’s Big Screen Event in
2011.
•
4DColor projection system is one of the most recent innovations
made by Christie and is exclusive to their products.
•
Are dedicated to developing the best technology as proven in the
fact that they have the most engineers per square foot of office
space than any other projection manufacturer.
Source: http://www.christiedigital.com/en-us/about-christie/Pages/default.aspx
Digital Projection International
Services Offered
Once Digital Projection products are no longer covered by their
warranties they offer a service rate of $135 per hour and $200 per
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hour for overtime for the servicing of malfunctioning products. If the
customer requires engineering services, the rate is $235 per hour or
$1,410 per 8 hour day. User manuals for all of their products are
available to download online through their website.
Source:
http://www.digitalprojection.com/ProductResourcesSupport/ServiceRates/tabid/73/D
efault.aspx
Competitive Advantage
Digital Projection International has been in the projection
manufacturing business since 1989 and was the first, and remains the
only projection manufacturer to win an Emmy Award for Outstanding
Achievement in Engineering Development.
Source:
http://www.digitalprojection.com/CompanyInformation/AboutDPI/tabid/62/Default.a
spx
Sony
Services Offered
Sony offers a support service program call SupportNet which includes
the following benefits:
•
Priority response to phone calls, usually responding within 1 hour,
and for onsite assistance will arrive next business day. However
telephone support is only available during business hours; for
24/7/365 service one must upgrade to SupportNet24.
•
Regularly scheduled maintenance which helps decrease the chances
of equipment failure.
•
SupportNet service agreement is available at a discounted price if
purchased at point of product sale.
•
Offer a variety of different coverage levels to suit customer needs.
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Sony also offers a support service specifically for their digital theatre
projectors called CineWatch which is a network monitoring system
providing 24/7 remote management through IP networks. The
objective for this program is to prevent rather than react to technical
problems.
(See Appendix B)
Competitive Advantage
Sony is a major manufacturer of audio, video, communication and
information technology based products. They do not deal exclusively
with digital projection, but have secured a wide market share in the
entertainment technology industry as a whole. As a result their brand
name has become synonymous with the latest technology, as well as
quality products.
Specifically in the digital projection market, Sony has established itself
as a major competitor. This is demonstrated by the fact that later this
year Sony’s projectors will begin to use 48-frames per second frame
rate rather than the traditional 24-frames per second. This change will
result in crisper, higher quality images, as will be seen in Peter
Jackson’s The Hobbit: An Unexpected Journey to be released in
December 2012.1
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Knowledge of Cineplex Entertainment
Basic Business
Cineplex Entertainment, which is headquartered in Toronto, is the largest
motion picture exhibitor in Canada. They have an online store where
customers can rent or buy movies either in digital or DVD format. They also
maintain a Twitter feed and a Facebook page as well as a mobile app. They
not only cater their business to movies; they offer their theatres to be
rented out for events such as product launches and training seminars as well
as worship services. They include services like catering and their theatres
can accommodate PowerPoint, DVD, Blu-Ray, and much more.
Source: http://www.cineplex.com/Corporate/Information.aspx
Size
With 129 theatres and 1,344 screens, they serve approximately 70 million
guests annually and have 66% of the national market share. They employ
approximately 10,000 people.2
History
The history of Cineplex Entertainment starts with the formation of Famous
Players Canadian Corp. in 1920. Famous Players was then purchased by
Viacom Inc. in 1994.
Cineplex Odeon Corporation was founded in 1979. They merged with Loews
Theatres in 1998, creating Loews Cineplex Entertainment. This was one of
the world's largest motion picture theatrical exhibition companies at that
time.
Galaxy Entertainment Inc. was co-founded in 1999 by Ellis Jacob (former
Chief Operating Officer for Cineplex Odeon Corporation) and Steven Brown
(former Chief Financial Officer for Cineplex Odeon Corporation). In 2000, the
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partnership expanded with the announcement of a deal with Famous Players
and Alliance Atlantis Communications who invested in the partnership.
In 2002, Onex Corporation and Oaktree Capital Management acquired Loews
Cineplex Entertainment. In 2003, Cineplex Odeon Corporation merged with
Galaxy Entertainment Inc., which created Cineplex Galaxy LP.
Cineplex Entertainment is a Limited Partnership that was renamed in
October 2005 upon completion of Cineplex Galaxy LP's acquisition of the
Famous Players exhibition business. In 2007, the company launched SCENE,
the first-ever Canadian entertainment rewards program in partnership with
Scotiabank.
Source: http://www.cineplex.com/Corporate/Information.aspx
Image in Industry
Since Cineplex Entertainment holds such a large share of the market, they
have a very strong image that they must uphold. Typically they are the first
movie theatre company that most Canadians think of since they have
locations from British Columbia to Quebec. Now that they have acquired
many AMC Theatre locations, they will have an even greater share of the
market. Cineplex operates the following brands: Cineplex Odeon, Galaxy,
Famous Players, Colossus, Coliseum, SilverCity, Cinema City and Scotiabank
Theatres. They share trade on the Toronto Stock Exchange under the symbol
CGX.
Cineplex Entertainment has a strong image in the industry. This is due to the
support they provide in the community, the support they provide their
employees, and the support they provide their customers.
Source: http://www.cineplex.com/Corporate/Information.aspx
Community Involvement and Social Responsibility
Cineplex is a proud supporter of Starlight Children’s Foundation. This is
an organization that makes life easier for children and their families
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during times of severe medical need. Cineplex employees support local
events and programs that benefit the communities in which Cineplex
operates. Some of these programs include:
•
Family activities and outings.
•
In-hospital entertainment technology.
•
Online communities and interactive websites.
•
In-hospital playrooms and kid-friendly treatment rooms.
•
Educational programming.
Furthermore, many of the materials that Cineplex uses to operate their
business are environmentally friendly. Materials such as food trays and
popcorn bags are manufactured with paper from sustainable or
recycled resources. Recycling programs are in place at all theatres and
degradable garbage bags are used. Also, film prints are returned for
recycling. Environmentally responsible cleaning products are used and
all food service and washroom paper products are manufactured with
100% recycled paper. The lighting is also being converted to be
energy efficient.
Source: http://www.cineplex.com/Corporate/Information.aspx
Support for Employees
Cineplex is an equal opportunity employer. They have many
opportunities for individuals with special needs. They are also a strong
supporter of Canadian Picture Pioneers, a charitable institution that
provides financial assistance to past and present members of the
Canadian theatre exhibition industry. They also have a scholarship
program for children of employees.
Source: http://www.cineplex.com/Corporate/Information.aspx
Support for Customers
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Cineplex Entertainment theatres are accessible. They provide free
admission to persons accompanying a person with a disability. They
also train staff to assist guests with disabilities so that they can have
the best possible experience. Cineplex also offers Rear Window
Captioning for deaf and hard of hearing guests and Descriptive Video
Service for blind and visually impaired guests. Since it is up to the
film’s owner to make their movie available in a captioned or described
format, Cineplex may not be able to provide some films with this
option. However, they continue to encourage film owners to caption all
films prior to their theatrical release.
Source: http://www.cineplex.com/Corporate/SocialResponsibility.aspx
Analysis of Cineplex Entertainment’s Needs
Who makes the buying decision?
Due to the heavy financial investment required for this new-task purchase,
many within Cineplex Entertainment would be involved in the purchasing
decision of a digital projector. This would include deciders, influencers, the
buyer, and users.
The deciders are those who are involved in making the actual decision. This
includes Cineplex executives who must approve the decision to invest money
into buying the digital projectors. Digital projectors are $70,000 to $80,000
per projector; therefore this large investment must be approved by the
deciders. They must determine if all theatres will receive the projectors or if
they will test them first in select theatres. They must also determine how
they will finance the purchase due to the fact that this purchase is an
expensive investment.
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Furthermore, the influencers are included in the purchasing decision. These
are the people who determine if a product’s specifications meet the
requirements needed to adhere to their policies and procedures.
The buyer also influences the purchasing decision as they are the ones that
ultimately make the purchase. Without them and their expertise, the
purchase would not be possible. The other influencers rely on the buyer to
make the purchase a reality.
Finally the users, in the case of Cineplex, would be the projectionist
employees. They influence the buying decision as they are the ones working
directly with the product every day. They are affected by the purchase due
to the fact that they will require training to operate the digital projectors as
they are different from the 35-mm projectors. Having a projector that is
easy to operate creates less of a burden on the staff if a problem should
arise.
Key needs of Cineplex Entertainment
The key needs of Cineplex Entertainment are:
•
The need to have a competitive advantage over alternative methods of
watching films (For example, home theatres, online streaming, DVDs,
etc.)
•
The need to stay relevant with new and emerging technologies such as
enhanced audio systems, 3-D technology, etc.
•
The need to provide a variety of entertainment in order to expand into
different audiences who may not have a strong enough interest in
films to justify paying the ticket price to see a film; this includes
screening live events such as the Opera, Olympics, Wimbledon, and
other events.
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•
The need to have a system in place for employees to run films
efficiently and on time.
•
The need to be able to change and screen films according to regional
tastes and box office revenue and to be able to do this in a timely
manner.
•
The need to acquire films remotely from Cineplex Entertainment or
from other Cineplex theatres without having to obtain directly from
studios or distribution companies.
•
The need to be able to have a significant return on investment
considering the significant cost of replacing older projectors.
•
The need to be able to provide viewers with a quality image. 12
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Endnotes
1
Kung, M., & Orden, E. (2012, May 09). Movie magic to leave home for? Wall Street Journal
(Online). Retrieved from http://search.proquest.com/docview/1011926967?accountid=3455
2
Cardwell, M. (2011, June 25). End of a movie era; switch to digital projection next year
will darken most drive-in theatres. The Gazette. Retrieved from
http://search.proquest.com/docview/873834836?accountid=3455
3
Connor, E. (2012, October 24). Movie Theatres Adapt to Changing Demographics,
Technology. Herald News. Retrieved from
http://www.lexisnexis.com.library.sheridanc.on.ca/lnacui2api/delivery/DnldWorking.do?dnld
FileName=MOVIE_THEATERS_ADAPT_TO_CHANGING_DEMOGRAPHIC&jobHandle=2827%3
A378107853&disb=0_T15921891217&fromCart=false&hideSource=false&docRange=Curren
t+Document+%282%29&estPage=4&zipDelivery=false&delFmt=QDS_EF_PDF
4
Cieply, M., & Barnes, B. (2009, Feb. 28). In Downturn, Americans Flock to the Movies. The
New York Times. Retrieved from
http://www.nytimes.com/2009/03/01/movies/01films.html?_r=0
5
Gazze, M. (2011, May 18). Head of Canada’s largest theatre chain says digital movie law
would protect jobs. The Canadian Press. Retrieved from
http://search.proquest.com/docview/867884870?accountid=3455
6
Motion Picture Association of America Inc. (2011). Theatrical Market Statistics 2011.
Retrieved from http://www.mpaa.org/resources/5bec4ac9-a95e-443b-987bbff6fb5455a9.pdf
7
De Vany, A.S., Walls, W.D., & Walls, W.D. (2007, Aug. 24). Estimating the Effects of Movie
Piracy on Box-Office Revenue. Retrieved from
http://search.proquest.com.library.sheridanc.on.ca/abiglobal/docview/209913651/13A1FE4
6EAE7430E634/1?accountid=3455
8
Ho, J., & Weinberg, C.B. (2011). Segmenting Consumers of Pirated Movies. Journal of
Consumer Marketing, 28, 252-260. Doi: 10.1108/07363761111143141
9
Krashinsky, S. (2011, Nov 11). Box-office results hinge on regional tastes. The Globe and
Mail. Retrieved from
http://search.proquest.com/docview/903145071?accountid=3455
25
10
Laird, K. (2009, Dec. 9). Cineplex to Broadcast Vancouver Games. Retrieved from
http://www.marketingmag.ca/news/marketer-news/cineplex-to-broadcast-vancouvergames-12437
11
McLeod, R. G. (2003). Movie Theater Experience Comes Home. PC World, 21(4), 124.
Retrieved from
http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=9254504&site=ehostlive&scope=site
12
Langdon, M. (2012, 10 05). Interview by E Thorpe [Personal Interview]. Cineplex
entertainment pre-call interview.
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