Joe Paletta: CEO, Spotlight Theatres, offers a personal insight into the way of things to come, starting next year. d-Cinema conversion, concession menu-sophistication and social interaction technology, he says, will each play a part in redefining the movie-going experience.

From my vantage point as CEO of Spotlight Theatres, the future of Movie Exhibition looks bright and exciting. The focus on individual customer experience has never been greater and is defining the expectations for the way our industry operates. This includes d-Cinema and Alternative Content, social media interaction, and a demand for boutique cinemas offering a full range of services such as restaurants, bars and a host of upscale VIP experiences.

The biggest d-Cinema conversion is currently happening in our industry and the end of 2012 augurs the end of film as we know it. This change will force our industry into the world of digital projectors, hard-drives, network operation centers (NOCs), servers etc., along with new technologies yet to be invented. It is a natural progression for this conversion to impact the way movie theaters operate, also how the customer experience will be improved by the same changes. The advantages are many and promise a superior entertainment experience with better quality, easier operation, reliability and consistency.

Among the bigger changes will probably see the 3D-upcharge disappear. 3D charges will

help increase the overall ticket-price but, as an industry, I think we’ll see a blend begin to emerge in 2012, where patrons will have a single price for both 2D and 3D films. 2D prices will increase and 3D prices will decrease.

Another thing to watch out for will be the studios’ push to keep reducing theatrical release windows. Indeed, some are already testing the waters with a resultant strong exhibitor-pushback. I expect to see this play out more in 2012.

Theaters are also expanding their concession menus to provide more than the traditional popcorn, soda and candy staples. Customers are becoming more sophisticated and discerning in seeking out theater menus that offer hot meals, sit-down service and dinner cocktails. The theater environment is conducive to providing this type of concession menu, which will fulfill the customer’s desire for a one-stop entertainment venue.

However, I cannot see exhibitors’ willingness to absorb spiralling concessions costs. We are already operating on very slim margins and will find ways to pass along price-increases to the consumer in some form or fashion. Frankly, movie theaters that do not turn a profit on their investment will go out of business.

Then there are the new technologies for social networking and media, which enable theaters to interact with their customers as never before. Theaters now interact directly via online services and mobile apps; also by reading customer movie-reviews and by soliciting reactions to services. Having this close and personal contact with our customers gives us opportunity to treat each interaction more individually and to exceed their expectations on every visit.

Many of these changes are already taking place today at Spotlight Theatres’ Parkside Main location in Greensboro. This theater is a good working example of the d-Cinema impact, of concession-expansion improvement and social media concepts, mentioned here. We are proud to be at the leading-edge of these positive changes and look forward to the future of our industry.

Spotlight Theatres, headquartered in Atlanta, GA,
operates five sites, with another presently under construction.
www.spotlighttheatres.com