Centennial, CO and Chicago, IL—Aug 20, 2007
National CineMedia and Kerasotes Showplace Theatres Enter into Affiliate Agreement to Present Pre-Show Advertising, Meetings and Alternative Events in Sixth Largest U.S. Movie Circuit
National CineMedia LLC (NCM), has entered into a network affiliate agreement with Kerasotes ShowPlace Theatres, LLC, the sixth largest movie theatre exhibition company in the U.S., for the presentation of pre-show advertising, comprehensive meetings and event services, and in-theatre entertainment events. Under the terms of the new multi-year agreement, Kerasotes’ 95 theatres and 853 screens in top U.S. markets such as Chicago, Denver, Indianapolis and Minneapolis, will exclusively present NCM’s digitally distributed pre-show program, FirstLook; offer in-theatre corporate meetings and event services through NCM’s CineMeetings; and present NCM FATHOM live and pre-recorded in-theatre entertainment events. The agreement will be effective in early December 2007, with respect to approximately 725 screens and on January 1, 2010, with respect to the remainder of the screens that are operated under the Colorado Cinemas name, primarily in the Denver market.
NCM currently has exclusive, long-term agreements in place with its founding member exhibitors, AMC Entertainment Inc., Cinemark USA Inc. (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC), as well as network affiliate pacts with theatre circuits such as Georgia Theatre Company, Goodrich Quality Theatres and Marcus Theatres, among others. The Kerasotes Theatres are the most recent addition to the expanding NCM national digital distribution network. NCM’s Fathom division also has an agreement with National Amusements for the distribution of digital programming and other events within select theatres.
“With the market for cinema advertising, as well as in-theatre meetings and entertainment events continuing to build, the addition of a quality regional theatre circuit like Kerasotes’ to NCM’s affiliate network is becoming a more important part of our company’s growth strategy,” said Kurt Hall, president and chief executive officer at NCM. “The expansion of our digital network with network affiliates, when combined with the Loews addition in 2008, will allow us to more effectively compete in the broader advertising marketplace and provide broader distribution for our CineMeetings and Fathom events divisions.”
“Kerasotes ShowPlace Theatres are pleased to join NCM as a network affiliate and we look forward to bringing NCM's innovative services to our patrons. We are eager to participate in the growth of the NCM FATHOM network and have the opportunity to feature live events such as the Metropolitan Opera in select theatres,” said Dean Kerasotes, chief operating officer.
Since 2002, NCM has presented a digitally delivered pre-show entertainment program to movie theatres nationwide, now called FirstLook. FirstLook features content provided by some of Hollywood’s most well-known entertainment companies, including Discovery Communications, NBC, Sony Pictures Entertainment, Turner Broadcasting and Universal Pictures, as well as primarily made-for-cinema advertising. NCM also presents a variety of music, sports and other entertainment events, as well as corporate meetings, in movie theatres during off-peak movie-going hours using its proprietary digital distribution and satellite network. Recent NCM FATHOM in-theatre presentations have included live, High Definition performances of The Metropolitan Opera; the “Dirty Dancing 20th Anniversary Celebration;” and numerous concert events featuring popular artists such as The Rolling Stones, Bruce Springsteen, Prince, Bon Jovi and Linkin Park, among others.
