Putting the Motion in Motion Pictures: Movie Theatre Marketing

Summary

Under the Influence with Terry O'Reilly Episode: Putting the Motion in Motion Pictures: Movie Theatre Marketing Release Date: March 1, 2025

In this episode of Under the Influence, host Terry O'Reilly delves into the evolving landscape of movie theatre marketing. As streaming services proliferate and home entertainment systems become increasingly sophisticated, traditional cinemas face significant challenges in attracting and retaining audiences. O'Reilly explores how movie theatres are innovating to create compelling experiences that go beyond the screen, ensuring their survival in a competitive market.

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Introduction: The High Stakes of Movie Theatres

Terry O'Reilly opens the episode with an intriguing anecdote involving John Cleese and a humorous yet tragic story about Dr. Ole Benson, whose death was ironically caused by laughter during a scene in A Fish Called Wanda ([00:01] - [04:54]). This story underscores the profound emotional impact movies can have on audiences and sets the stage for discussing the critical importance of the movie-going experience.

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The Shift in Theatrical Windows and Revenue Models

O'Reilly highlights the drastic reduction in theatrical exclusivity windows—from 90 days pre-pandemic to just 32 days in 2024. This contraction is attributed to the rise of premium video-on-demand (PVOD) services, forcing cinemas to adapt rapidly ([05:04] - [12:47]). The reliance on Hollywood blockbusters is dwindling, pushing theatres to adopt innovative marketing strategies to draw in patrons.

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Creative Marketing Strategies: Beyond Traditional Approaches

Movie theatres are reimagining their marketing tactics to engage diverse audiences:

• Eventicizing Experiences: Chains like Warehouse Cinemas utilize social media to promote themed events such as Daddy Daughter Date Nights and interactive experiences like car-smashing events tied to specific movies, increasing ticket sales through unique offerings ([12:47] - [15:54]).

• Live Event Streaming: Cinemas are diversifying their content by streaming NFL games, concerts, religious services, and Broadway productions. The New York Metropolitan Opera, for instance, broadcasts live performances in over 2,000 cinemas, selling 2.4 million tickets ([15:54] - [19:59]).

• Specialized Screenings: Offering double feature nights and catering to niche communities, such as gamers and knitting clubs, helps theatres attract specific audience segments. For example, Cineplex hosts gaming events where patrons can play games on the big screen, leading to sold-out shows ([15:54] - [19:59]).

Notable Quote:

“A lot of unusual and surprising things happen in movie theaters.” – Terry O'Reilly ([04:54])

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Enhancing the Movie Experience: Immersive Technologies and Amenities

To compete with home entertainment systems, theatres are enhancing their physical spaces and integrating advanced technologies:

• 4 DX Motion Effects: Originating in South Korea, these theaters simulate all five senses with motion seats, wind, fog, strobes, bubbles, and scent-emitting seats, creating an immersive experience that physically engages the audience ([19:59] - [20:35]).

• Screen X Technology: Offering a 270-degree panoramic view, Screen X wraps the screen around three walls, providing a more enveloping visual experience ([20:35]).

• Fine Dining and Gourmet Offerings: AMC's Dine-In theaters feature commercial-grade kitchens and a diverse menu, including artisanal cheeses, gourmet snacks, and bespoke cocktails like the "Sandworm Slayer" ([12:47] - [16:23]). Executive chefs prepare high-quality dishes, and some cinemas offer rooftop terraces and VIP lounges with extensive drink menus ([16:23]).

Notable Quote:

“Because AMC wants us to fall in love with movie theaters again.” – Nicole Kidman ([12:47])

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Innovative Dining Experiences

Fine dining has become a cornerstone of the modern movie experience:

• Comprehensive Menus: From lobster rolls and truffled parmesan popcorn to gluten-free options and decadent desserts, theatres cater to diverse culinary preferences ([16:23]).

• Thematic and Interactive Dining: Offering brunch with mimosas during afternoon showings and creating themed cocktails enhances the overall experience ([16:23]).

• Integrated Ordering Systems: Mobile apps and in-seat call buttons streamline the ordering process, allowing patrons to enjoy meals without missing any part of the movie ([16:23]).

Notable Quote:

“We make movies better.” – Nicole Kidman ([12:47])

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Loyalty Programs: Building Customer Loyalty and Increasing Revenue

To foster repeat business, cinemas are implementing robust loyalty programs that offer various perks:

• Discounts and Freebies: Members receive discounted or free tickets, complimentary snacks, and exclusive access to special events ([16:23]).

• Enhanced Membership Benefits: Some programs offer unlimited access to 2D movies, early access to new releases, and birthday rewards, significantly boosting customer lifetime value by 200-300% ([16:23]).

• Personalized Marketing: AI-driven algorithms analyze viewing habits to send personalized marketing messages, enhancing ticket sales and customer engagement ([20:35]).

Notable Insight:

"Research shows effective loyalty programs increase customer lifetime value by 200 to 300% on average." – Terry O'Reilly ([16:23])

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Technological Innovations: AI and Immersive Experiences

The integration of artificial intelligence and advanced technologies is revolutionizing the cinema industry:

• AI for Dynamic Pricing and Marketing: Cinemas use AI to adjust ticket prices based on demand and personalize marketing efforts, similar to Netflix's recommendation systems ([20:35]).

• AI for Maintenance and Safety: Predictive maintenance of equipment and AI-powered crowd management enhance operational efficiency and patron safety ([20:35]).

• Immersive Technologies: Innovations like 4 DX and Screen X provide sensory-rich experiences that make visiting a theatre more appealing than watching at home ([19:59]).

Notable Quote:

“Theaters don't just want you to come to the movies. They want you to be part of the movies.” – Terry O'Reilly ([20:35])

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Historical Context and Future Outlook

O'Reilly reflects on the long-standing battle between movie theatres and evolving technologies:

• From radio and television to VCRs and streaming services, each technological advancement posed challenges that cinemas had to overcome by enhancing the viewing experience ([20:35]).

• The pandemic underscored the vulnerability of cinemas but also accelerated their transformation into multi-faceted entertainment hubs offering dining, live events, and immersive experiences ([20:35]).

Notable Quote:

“They have become restaurants and bars and atmospheric pleasure domes.” – Terry O'Reilly ([20:35])

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Conclusion: The Resilient Future of Movie Theatres

Despite the relentless march of technology and changes in consumer behavior, movie theatres are reinventing themselves to offer unparalleled experiences that integrate entertainment, dining, and immersive technologies. By embracing innovation and focusing on creating unique, engaging environments, cinemas aim to reignite the magic of the movie-going experience and ensure their relevance in the digital age.

Closing Thought:

“Theaters have revolutionized the immersive experience. They send wind through your hair, tickle your feet, and send you home soaking wet. That's an experience you probably won't get in your living room.” – Terry O'Reilly ([20:35])

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Notable Quotes Summary:

• Nicole Kidman ([12:47]):

  “We come to AMC theatres to laugh, to cry, to care. Because we need that, all of us. That indescribable feeling we get when the lights begin to dim and we go somewhere we've never been before... AMC theaters. We make movies better.”

• John Cleese ([19:59]):

  “My experience with this movie has been incredible, especially with people fainting halfway through the movie... It's hard to make people faint.”

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This episode provides a comprehensive exploration of how movie theatres are adapting to survive and thrive amidst the rise of streaming services and home entertainment advancements. Through innovative marketing, enhanced amenities, and embracing cutting-edge technology, cinemas are striving to offer experiences that lure audiences back into the darkened halls.

Transcript

[Terry O'Reilly]

Hi, it's Terry O'Reilly. You may know me as the host of under the Influence, but my passion is the Beatles and I'm hosting a new podcast series called the Beatleology Interviews. I get to talk to people who worked with the Beatles and loved the Beatles, and people who write about the Beatles and their stories are surprising and so very interesting. The Beatleology Interviews, give it a listen. Today, this is an Apostrophe podcast production. We're going to show you our big new Studebaker Mama. That's a spicy meatball. What love doesn't conquer, Alka sells her will.

[Nicole Kidman]

What a relief.

[AMC Theaters]

You're under the influence with Terry O'Reilly.

[Terry O'Reilly]

Back in 2023, John Cleese made a startling admission. He said he had killed a man. Actually, he and actor Kevin Kline had killed a man together. It happened in March of 1989. The deceased man in question was a 71 year old doctor named Ole Benson who lived in Denmark. He was an ear, nose and throat specialist. The fatal blow that killed Dr. Benson involved french fries. In March of 89, Dr. Benson did what he often did. He went to see a movie. That movie was A Fish Called Wanda, written by John Cleese, starring Cleese, Kevin Kline, Jamie Lee Curtis and Michael Palin. Dr. Benson was known to have a big, hearty laugh. As a matter of fact, his laugh was famous in the small Danish town he lived in. There is a scene early in the movie where Kevin Kline's character Otto tortures Michael Palin's character Ken by sticking french fries up Ken's nose. Well, Ken, I'm going to ask you some questions while I eat my chips first. Who is the philosopher who developed the concept of the Superman in Alsa Sprach Zarathustra? No, that's a chip up the nose, I'm afraid. When Dr. Benson watched that hilarious scene, he laughed so much his heart rate zoomed up between 250 and 500 beats per minute. He laughed so hard his heart stopped. Many years before that night, Dr. Benson was at dinner at home and made his family a silly bet. He challenged them to stick a piece of broccoli up their nose and see who could eat the most carrots without the broccoli falling out. So when the doctor saw the scene in A Fish Called Wanda where Otto sticks french fries up Ken's nose, he started laughing hysterically and literally died laughing. Years later, Dr. Ben Benson's son, Niels Benson, met John Cleese. Niels is a professor and has inherited his father's huge laugh. He now gives lectures titled Death and Humor, Teaching doctors how to use humor when discussing death, Neil said, my father could hardly have wished for a better death. When Cleese asked Professor Benson if he had ever seen a fish called Wanda, Niels looked at Cleese and said, no, I'm not ready to die. A lot of unusual and surprising things happen in movie theaters. And with the arrival of home theater systems and streaming services, movie theaters now have to work hard to attract customers to survive. Cinemas now offer restaurants and bars and offer patrons atmospheric movie experiences. For theaters, it's do or die time.

[AMC Theaters]

You're under the influence.

[Terry O'Reilly]

It is crafted from tightly woven fabric with chenille textured yarn featuring a plush backrest, luxuriously thick armrests, and wood toned wedge feet. Built with premium materials including carefully chosen sinuous springs and high density foam, it guarantees exceptional durability and comfort. It is a movie theater's greatest foe. The Sofa with all these streaming options out there and the bewildering array of home theater equipment, it prompts the why bother getting off the sofa to go to a movie theater? According to reports, the average window of theatrical exclusivity, meaning the period of time when a movie is available only in theaters, was just 32 days in 2024, down from 90 days before the pandemic. And a movie must earn over $50 million in its first weekend to get a 32 day theater exclusive. Many movies only get 18 days in theaters before moving to streaming services. Back in 2023, Christopher Nolan struck a highly unusual deal for his blockbuster Oppenheimer 122 days in theater. It was the longest theatrical window of the year. Last year only Inside Out 2 and Deadpool and Wolverine enjoyed theatrical windows of 67 days each. So if movies move so quickly to PVOD or premium video on demand, why schlep downtown to see a movie in a theater? That question has dogged movie theater companies for years now. In 2019, over 1.2 billion movie tickets were sold in Canada and the US during the pandemic year of 2020, the bottom dropped out. Only 200 million tickets were sold in the US over 3,000 movie theaters closed their doors for good. Last year, just under 800 million tickets were sold. While those numbers have not fully recovered to pre pandemic levels, 800 million tickets is still nothing to sneeze at. But movie theaters had to get creative to generate those sales. The key is to make the movie going experience much more interesting than sitting at home on your comfy couch in your sweatpants, watching a movie on your swanky home theater system. And that ain't easy. Movie theaters, of course, have always been at the mercy of Hollywood blockbusters to survive, which explains all the superhero sequels and occasionally an Oppenheimer and a Barbie sneak through. But since the pandemic, theaters are relying less on Hollywood and are now more aggressive with their own marketing strategies. As a matter of fact, the CEO of AMX Theaters, the world's largest cinema chain, said his company will no longer depend on what's always worked before, noting that the pandemic pushed the industry into uncharted waters. Those turbulent waters are sometimes expensive and sometimes incredibly simple. A chain of US Theaters called Warehouse Cinemas doesn't have the deep pockets of its bigger rivals, so they use social media to invite patrons to special evenings. The CEO calls it eventicizing. For example, they offer special Daddy Daughter Date Night films. When it was showing the movie Unhinged, which revolves around a road rage incident, the theater hosted a car smashing event. Customers who bought tickets could take a swing at a car to vent their frustrations. That led to an uptick in ticket sales at a cinema chain in Australia and New Zealand. They began welcoming knitting clubs to special nights. People buy tickets to watch the movie while they knit. A theater chain in California offers self Care Sundays. Patrons are given soothing hydrating under eye patches, and each showing has a 10 minute mindfulness meditation to relax patrons before they enjoy the film. As another way of generating revenue, many cinemas have started marketing live event streaming. Some stream NFL games, others show live streams of concerts, some stream Sunday religious services, and still others show filmed Broadway theatrical productions. The New York Metropolitan Opera broadcasts live performances in over 2000 cinemas selling 2.4 million tickets. Some larger chains have transformed smaller screens into bars or bowling alleys so patrons can linger longer after or before the movie. Some theaters will have double feature nights like showing Home Alone and Ferris Bueller's Day off so parents can introduce their kids to the hilarious world of John Hughes. Cineplex has rented their screens to gamers. 12 players can have the theater with its gigantic screen and thunderous sound. Gamers can bring their own games or use one provided by Cineplex. Some theaters even arrange special Dungeons and Dragons events for the gaming community, where fans can come and watch simulcasts of the role playing campaign, which spans hundreds of episodes, some four or five hours long. Tickets sold out within an hour. More than 100 years after its founding, AMC Theaters did something in 2021 that it had never done before advertise on television. AMC spent $25 million on a multimedia campaign featuring Academy Award winning actress Nicole Kidman. Traditionally, theaters rely on the studios to advertise with movie trailers. But again, the AMC CEO said its business as unusual. Now in the commercial, Nicole Kidman walks into an AMC theater, sits down and watches a montage of great movie scenes. Because AMC wants us to fall in love with movie theaters again.

[Nicole Kidman]

We come to this place for magic. We come to AMC theatres to laugh, to cry, to care. Because we need that, all of us. That indescribable feeling we get when the lights begin to dim and we go somewhere we've never been before. Not just entertained, but somehow reborn together. Dazzling images on a huge silver screen. Sound that I can feel. Somehow heartbreak feels good in a place like this. Our heroes feel like the best part of us. And stories feel perfect and powerful. Because here they are. AMC theaters. We make movies better.

[Terry O'Reilly]

In order for people to fall in love with movie theaters again, cinemas have to go well beyond the screen. In South Korea, some cinema chains have recreated bedrooms and forest scenes in the theaters. In Bangkok, there are luxury cinemas that offer you reclining day beds and cozy cocoon like seats. You get a pillow and a blanket, minibar, snacks, alcoholic or non alcoholic drinks, a hook for your bag, a place to charge your phone and a button to call for butler service. In Greece, a cinema actually offers double beds instead of seats, complete with sheets and night tables. There are mobile apps now that can detect audio messages from the screen so advertisers can offer patrons special deals before and after the movie. BMW recently invited male theater goers aged 25 to 44 a chance to take a simulated lap on the BMW test track using their mobile phones, which was triggered by a big screen BMW ad. The lap times were posted on a leaderboard and the top scoring patrons were offered the opportunity to win a test drive of each new BMW model on a real BMW test track. And that was all before the movie began. When we come back, fine dining in the dark. One of the biggest innovations in the movie theater experience over the past decade has been fine dining. Stale popcorn and flat soft drinks just don't cut it anymore. AMC opened 50 Dine in theaters between 2009 and 2020.

[AMC Theaters]

At AMC Dine in theaters, we're mixing up the way you see movies. Kick back in our extra comfy seats and when you're ready to order, press the button and your server will appear. It's just like magic, only better. Mouth watering appetizers, entrees and desserts are prepared fresh. When you order, we Bring it all to your seat so you can enjoy the show with a side of something delicious. It's a movie theater and restaurant rolled into one only at an AMC Dine in theater near you.

[Terry O'Reilly]

Larger chains have installed commercial grade kitchens. They now have executive chefs preparing dishes like lobster rolls, hot pepper, fried calamari, turkey sliders, pizza topped with smoked bacon and goat cheese and truffled parmesan popcorn. There are gourmet snacks like artisanal cheese and charcuterie plates, hummus and nachos. And healthier gluten free options are popping up. There are a variety of decadent desserts prepared by an in house baking team. Afternoon showings at some cinemas offer brunch with options like caramel brulee, French toast, fried egg, BLTs and mimosas. In many cinemas, patrons can order their food via a mobile app or there are call buttons at their seats to alert staff that you're ready to order. Cineplex offers VIP lounges with separate entrances, complete with reserved seating, appetizers, a three course dinner and dessert. Then there's the drink menu. One theater chain In Arizona offers 25 different local beers to choose from. Not long ago, a cinema in New York offered a special cocktail to go with the showing of Beetlejuice. Beetlejuice. The cocktail was called a Sandworm Slayer. It was a sky blue vodka cocktail with a foam float and a crown of gummy worms perched on top. Cost 25 bucks. How about a vanilla passion fruit martini? Or a spicy BlackBerry margarita? Or a feisty little cab salve? All this and more is available at your local Cineplex. Another cinema in Arizona offers a rooftop terrace where people can enjoy beer, wine and cocktails and talk about the movie they just watched. For the non alcohol drinkers, there are honey milkshakes, apple cider and coconut water. Many theaters have loyalty programs offering perks in return for continued patronage. Benefits may include discounted or extra free tickets, free popcorn, snacks or drinks, exclusive screenings and special events, early access to new releases and birthday rewards. Some loyalty programs let you earn points for every dollar spent on tickets, and some give subscribers Unlimited access to 2D movies with no restrictions on how many you want to see or when you want to see them. Research shows effective loyalty programs increase customer lifetime value by 200 to 300% on average. Members visit theaters more often, spend more per transaction through concessions and upgrades, and interestingly, are less sensitive to higher prices. Back in 1973, the Exorcist hit theaters. Audiences were stunned by scenes in the film. Theater staff had to learn how to help traumatized patrons.

[John Cleese]

My experience with this movie has been incredible, Especially with people fainting halfway through the movie. It starts. The movie starts getting quite violent and people get quite unusual reactions and we have a lot of people throwing up and a lot of people shuddering. But the thing that really surprises me is people faint. I mean, I have never in my life known a movie where people would faint. I mean, it's hard to make people faint.

[Terry O'Reilly]

In some theaters, staff had to help patrons restore their consciousness.

[John Cleese]

Well, as soon as they faint, I get out to smelling salts. And most of them, once they fainted, they don't go back into the picture.

[Terry O'Reilly]

Ambulances and police were on hand to help in the event of larger medical emergencies. Imagine what would have happened if theaters back in 73 had the remarkable technology that is available today. Because if there's one aspect of moviegoing that theaters have revolutionized, it's the immersive experience. Once there was 3D. Now there's 4 DX motion effects theaters developed in South Korea. These theaters are made to stimulate all five senses. They put the motion in motion pictures. Cineplex offers 74 DX cinemas in Canada right now. First, the seats are comfortable loungers, so that's nice. They heave up and down in sync with the action on the screen. They roll left to right. They sway and twist, pitch forward and back. So good luck holding onto that. Premium martini. 4 DX theaters generate wind, so your hair blows back. If you have hair, it can generate fog. Strobes simulate lightning bolts and flashes. The theater walls can release bubbles into the air and sprinkle snow onto the audience. There is a tickler at your feet. Fun. If you're watching a horror movie, the seats vibrate and can spray you with a fine mist. Water effects roll off the screen as the theater can shower rain down on the audience. Seats emit scents that link to the storyline. And all the seats are heated to correspond to warm scenes on the screen. Add to all this screen X. It's a multi projection wrap around screen that appears on three walls giving you a 270 degree panoramic viewing experience which can extend all the way to the back of the theater. In India, a leading movie theater company is using 3D 270° on screen commercials. Hmm, maybe you do want to stay home when we come back. Movie theaters use AI to determine dynamic pricing. Movie theaters are also employing AI in their marketing. Like Netflix, theaters are leveraging AI algorithms to suggest films based on past viewing habits. So if you used your phone or computer to buy the tickets. AI grabs your data, analyzes it, and can send you personalized marketing messages, which leads to increased ticket sales. Like Uber, theaters are starting to embrace AI dynamic pricing to optimize ticket sales by adjusting prices based on demand, time of day, and even seating preferences. Like your car, theaters are using AI for equipment maintenance. By monitoring the performance data of projectors, bulbs and sound systems, AI can predict when maintenance is required. Theaters are also using AI as a crowd management tool. AI surveillance systems analyze foot traffic and crowd patterns to enhance safety at peak times and optimize staffing. So AI is not only being used to make movies, it's now being used to manage movie goers. From the dawn of the first movie palaces, theaters have had to battle the march of technology. First, there was radio. People could stay home and listen to soap operas, variety shows and exciting detective serials, especially during the Depression. Then came television, the ultimate kingslayer. A universe of channels in the comfort of your own living room. Next came a little gizmo called a remote control. Now you never had to leave your La Z Boy or your home to enjoy a night's entertainment. As technology kept evolving, the VCR appeared in our homes. Now you could tape shows and watch them on your schedule. And if that wasn't enough, enter the home theater system. Surround sound and big screens became more and more affordable over time. Now there are streaming services, arguably the toughest rival yet. Endless movies and TV series, all available for the cost of a single movie ticket every month. Then the world was blindsided with a pandemic, shutting cinemas down all over the world for an entire year. But through it all, theaters have always fought back. They have become restaurants and bars and atmospheric pleasure domes. Theaters don't just want you to come to the movies. They want you to be part of the movies. They want to shake, rattle and roll you, send wind through your hair, tickle your feet, and send you home soaking wet. That's an experience you probably won't get in your living when you're under the influence. I'm Terry O'Reilly. This episode was recorded in the Tear Stream mobile recording studio. It doesn't tickle our feet, but it does move. Producer Debbie O'Reilly. Chief sound engineer Jeff Devine. Under the influence Theme by Casey Pick, Jeremiah Pick and James Aten. Tunes provided by APM Music. Hey, let's be social. Follow me erryoinfluence. This podcast is powered by acast. See you next week. Fun fact. Hi, this is Piers Hemingsen from Toronto. In 1952, a TV remote called the Blab off was invented to turn the sound down on TV commercials. Not one television station would run ads for it.