67 WALL STREET, New York - November 12, 2012 - The Wall Street Transcript has just published its Entertainment, Toys and Games Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Cable Subscription Rates - International Paid Television Growth - Digital Advertisement Trends - Mobile Device Gaming Prospects - Content Quality
Companies include: Digital Cinema Destinations Corporation (DCIN) and many others.
In the following excerpt from the Entertainment, Toys and Games Report, the CEO of Digital Cinema Destinations discusses the outlook for his company for investors:
TWST: Please begin with an overview and profile of Digital Cinema Destinations.
Mr. Mayo: Well, let's start with our founding of Clearview Cinemas, a movie theater chain that is one of the largest independent chains in the metro New York area back in the early 1990s, rolling up a group of theaters which grew to almost 300 screens. During that period, we had a lot of success addressing audiences that had expressed an interest in a particular genre of movie. But we also really ran into a very serious gating issue of how we can fill seats that are empty, in particular, Monday to Thursday. Theaters around the country, perhaps even around the world, are underutilized on nonweekend days and have a concentrated business on Friday and Saturdays, when most people have more time in their schedules to go out to the movies. In trying to address that problem with Clearview, we really bumped right up against the constraints provided by film, and it became clear that the only way to change that was to get rid of film and convert to digital.
After successfully selling Clearview to Cablevision and staying for a year - and literally learning a lot about how technology and content converge very effectively in a cable network - I left to start a company called Access Integrated Technologies, today known as Cinedigm. And so after retiring from Clearview and starting Cinedigm, we set about creating technologies that would facilitate the transformation of movie theaters from film based to entertainment-based featuring digital cinema. And in doing that, we not only created the integrated technologies that allowed all the various parts to work together with software, but we also in the process created a revolutionary model that allowed us to finance the digital conversion of thousands of screens, more than 10,000 so far at Cinedigm, and it became the ubiquitous model internationally for billions of dollars of cinema industry financing. And by getting all of the studios to agree, which was arguably the greatest accomplishment of Cinedigm, on a single financing model called the Virtual Print Fee, we were able to really begin the transformation of the cinema industry back in 2005.
So fast-forward to Digiplex Destinations - Digital Cinema Destinations Corp. - the company I founded back in July of 2010. I did that because it gave me an opportunity to assemble a team that worked together, in some cases, going back to the Clearview days, certainly Cinedigm as well, and combine the application of the technologies that we know so well and that we've used extensively with our comprehensive understanding of movie theater operations. This time around we are in the process of building a national network, instead of a local one, as we did for Clearview, because we want to be in all of the top markets in the country. And why do we want to do that? We want to be able to address the needs of numerous content owners, whether it's a music label, a gaming company, an independent filmmaker or a sports franchise to bring their content to a national audience while providing a unique way for them to interact with audiences who have expressed an interest in this content. So that's what Digiplex is doing.
We are acquiring theaters that have had a track record of making money, and we have transformed them into entertainment centers. And in doing that, we've put a great deal of emphasis on alternative programming, which gives us the chance to target audiences during those weeks, especially the nonpeak periods and the midweek crowd, in particular, when virtually no one is watching movies. Our goal is to bring them back to the theater with programming that they are interested in. So we offer content geared to the ballet crowd, an array of concerts, lecture series and a whole host of things that empty nesters, senior citizens and singles are interested in because that's the audience that can actually attend movie theaters and go out in the middle of the week, unlike people who have children in school or the children themselves.
TWST: When you look at this marketplace today, what is it that defines the company's niche from its competitors?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Arts & Entertainment
- movie theaters