Profile: National CineMedia Inc (NCMI.OQ)
18.33USD
1 Aug 2013
$0.22 (+1.21%)
$18.11
$18.28
$18.39
$18.12
77,654
86,308
$19.00
$13.08
National CineMedia, Inc. (NCM, Inc.), incorporated on October 5, 2006, is a holding company that manages its consolidated subsidiary NCM LLC. The Company operates in the digital in-theatre media network in North America, through which it sells in-theatre and online advertising, promotions and Fathom Events. The Company’s advertising pre-show called FirstLook, lobby entertainment network (LEN), programming and Fathom Events are distributed across its digital content network (DCN) or live digital broadcast network (DBN), utilizing its digital content software (DCS). NCM, Inc. has no business operations or material assets other than its ownership interest of approximately 48.6% of the common membership units in NCM LLC as of December 27, 2012.
The Company derive revenue principally from Advertising and Fathom Events. The Company develop, produce, sell and distribute several versions of FirstLook on theatre screens, and advertising programming on its LEN. The Company also sells other forms of advertising and promotions in theatre lobbies and across its online network and mobile apps called Movie Night Out and CinemaSync. During the year ended December 27, 2012, advertising accounted for 91.2% of its total revenue.The Company produce, market and distribute entertainment programming through its Fathom division to theatres across its DCN (for pre-recorded events) and DBN (for both live and pre-recorded events).
On-Screen Advertising
The Company’s on-screen digital FirstLook pre-feature show consists of national and local advertising, as well as behind the scenes making-of and other entertainment content provided by its content partners. The pre-feature show generally ranges in length from 20 to 30 minutes and ends at or about the advertised show time. The Company distributes several versions of FirstLook each month, including versions that include content and national advertisements that are targeted towards movie ratings, specific films, or groups of films related to specific film genres and local and regional advertisements that play in specific theatre markets or geographic regions. It also distributes a pre-show called FirstLook Play designed for a young audience and played generally before G rated animated films. All FirstLook pre-shows are customized with the branding of the theatre circuits in which the programming plays.
FirstLook consists of four segments, each approximately four to seven minutes in length. Segment four, the first section of FirstLook, begins approximately 20 to 25 minutes prior to the advertised show time and generally includes local advertising. Segment Segment three begins approximately 18 minutes prior to the advertised show time and features primarily 15 or 30-second local or regional advertisements by individual theatres, or across an entire DMA or geographic region. Segment three also includes a two and one-half minute entertainment content segment. Segment two and segment one run closest to the advertised show time and feature primarily national and regional advertisements. Both segment two and segment one include a two and one-half minute entertainment content segment provided by its content partners, along with national and regional advertisements which are generally 30 or 60 seconds, including a 60 second advertisement at the end of segment one for the circuits’ beverage supplier. Segment two and segment one begin approximately 13 minutes and 8 minutes, respectively, before the advertised show time.
As of December 27, 2012, approximately 96% of its total screens are part of its DCN representing approximately 97% of its total network attendance. As of December 27, 2012, 14,464 or 78% of 18,491 total digital screens are equipped with digital cinema projectors, with the remainder comprised of LCD projectors. The non-digital screens display national advertisements on 35 millimeter film or rolling stock and local advertisements using slide carousels. The Company offer multiple versions of FirstLook each month that include advertising content that is appropriate for a specific film or film rating category and branding of the specific theatre operator.
The FirstLook program includes time slots for NCM LLC’s founding member and network affiliate advertisements to promote various activities associated with the operations of the theatres, including concessions, online ticketing partners, gift card and loyalty programs, special events presented by the theatre operator and vendors of services provided to theatres, so long as such promotion is incidental to the vendor’s service or products sold in the theatre. This time is provided by them to the theatre operator at no charge and generally includes 45 seconds within 15 minutes of show time, 15 seconds of which will be placed within 12 minutes of show time, and the remainder placed at its discretion.
Lobby Network and Promotions
The Company’s Lobby Entertainment Network (LEN) is a network of video screens strategically located throughout the lobbies of all of its digitally equipped NCM LLC’s founding members’ theatres and the majority of its network affiliate theatres. As of December 27, 2012, its LEN had 2,966 screens in 1,394 theatres connected to DCN. Programming on the Company’s LEN consists of an approximately 30-minute loop of branded entertainment content segments created specifically for the lobby with advertisements running between each segment. The Company sells national and local advertising on the LEN individually or bundled with on-screen or other lobby promotions. The LEN programming includes up to two minutes for NCM LLC’s founding members’ advertisements to promote activities associated with the operation of the theatres, including concessions, ticketing partners, gift card and loyalty programs, special events presented by the theatre operator and vendors of services provided to theatres, so long as such promotion is incidental to the vendor’s service.
The Company sells a variety of advertising and promotional products in its theatre lobbies. These products can be sold individually or bundled with on-screen or LEN advertising. Lobby promotions typically include advertising on tickets and concession items, such as beverage cups, popcorn bags and kids’ trays; coupons and promotional materials, which are customizable by film or film rating category and are distributed to ticket buyers at the box office; product sampling and display, and signage throughout the lobbies, including posters, banners, counter cards, danglers, floor mats, standees and window clings.
Branded Entertainment Websites and Mobile Applications
The Company has three consumer facing websites, firstlookonline.com, FathomEvents.com and movienightout.com and mobile apps CinemaSync and Movie Night Out. CinemaSync allows its theater partners to engage directly with their patrons to market tickets for upcoming films and concession products. It also provides a marketing tool for its local and national advertising clients who can use it to distribute coupons and other value-added elements by syncing to consumer’s smart phones during the playing of ads and content segments in its FirstLook pre-show or on its lobby network. As of December 27, 2012, the Company’s online advertising network included 41 entertainment websites, including its 100% owned sites, with approximately 65 million visitors monthly. This vertically integrated online ad network provides advertisers the ability to target online entertainment consumers while providing publishers a way to benefit from NCM’s sales infrastructure and the integration and bundling with NCM LLC’s in-theatre network.
Fathom Events
The Company’s Fathom Events business focuses on the marketing and distribution across its digital network of live and pre-recorded entertainment programming to theatre operators to provide additional programs to augment their feature film schedule. The Company’s Consumer events have included live and pre-recorded concerts featuring contemporary music, opera and symphony, DVD product releases and marketing events, theatrical premieres, Broadway plays, live sporting events and other special events. The Company advertises its Fathom Consumer events either through a digital trailer shown after FirstLook or advertisements during FirstLook using designated slots and/or unsold advertising inventory, on lobby posters, on its LEN, its various websites and mobile apps and in some cases through radio trade-outs or paid media in select publications. In 2012, the Company's events included the New York Metropolitan Opera (Met), Singin’ in the Rain, TCM Event Series, Casablanca, RiffTrax Live, DCI Tour and Star Trek to name just a few of the 90 event nights it held during 2012.
Sales and Marketing
The Company sells its in-theatre and online advertising products and event sponsorships through its national and local sales teams. As of December 27, 2012, the Company had 37 advertising sales and client development related personnel, including management and sales support staff within its national sales group. In 2012, the Company held 90 Fathom Consumer events attended by approximately 2.2 million patrons. Fathom Consumer events are marketed primarily using designated and unsold inventory in the FirstLook pre-show, digital trailers after FirstLook, one sheets and other marketing materials in theatre lobbies, through its websites, the Company's mobile apps and Internet sites of its programming partners and other cross-marketing activities including radio and cable TV advertising.
Media and Creative Services
The Company’s media and creative services department uses states and technologies and practices to ensure the consistent image and sound quality of the FirstLook and Fathom Event content distributed over its network, creating the highest possible cinema presentation for FirstLook, LEN presentations and all of its other in-theatre marketing products, associated with its Fathom Events business.The Company provides a full spectrum of 2-D and 3-D production and post-production services to its advertising clients on a per contract fee basis, including audio enhancements, color correction and noise reduction.It also offers creative and production services to its clients (primarily local clients), developing full sight, sound and motion high-definition advertisements from concept to completion. This service substantially reduces the obstacles for smaller clients to invest in cinema advertising and ensures presentation for cinema patrons.
Technology and Other Corporate Branding
The Company utilizes its digital media , its DCS and various digital network technologies to deliver cinema advertising pre-show and live and pre-recorded Fathom Events to network theatres. The Company’s DCN is the combination of a satellite distribution network and a terrestrial network, to distribute its FirstLook and FirstLook Play content to 18,491 digital screens (96% of the total), 1,432 theatres and over 3.6 million seats, representing 97% of the total attendance of its advertising network as of December 27, 2012. The Company's DBN satellite network is used to support its live Fathom Events by broadcasting live feeds to over 1,000 screens in over 730 theatres and approximately 263,000 theatre seats. The integrated DCN ,including the DCS software is controlled by its NOC , which supports and monitors approximately 72,500 network hardware devices and more than 460,000 maintenance alarm technology points on the network as of December 27, 2012.
Company Address
National CineMedia Inc
Suite 200, 9110 East Nichols Ave
CENTENNIAL CO 80112-3405
P: +1303.7923600
F: +1302.6555049
Company Web Links
| Name | Compensation |
|---|---|
Kurt Hall |
3,372,010 |
Jeff Cabot |
-- |
David Oddo |
-- |
Clifford Marks |
2,997,110 |
Earl Weihe |
854,711 |

