National CineMedia (NCM) and Harkins Theatres Sign Long-Term Cinema Advertising Agreement

Rhea-AI Summary

National CineMedia (NCM) has entered a long-term advertising agreement with Harkins Theatres, enhancing its cinema advertising network. This partnership will feature NCM's Noovie pre-show entertainment across Harkins' 500+ screens in the Southwest. Harkins, the largest independently owned theater company in the U.S., operates in key markets like Arizona and California, boosting NCM’s coverage. Both companies express optimism about the cinema industry's recovery and growth opportunities post-COVID-19 as audiences return to theaters.

Positive

• New long-term partnership with Harkins Theatres enhances NCM's national coverage.
• Inclusion of Harkins expands NCM’s network to all top five U.S. exhibitors.
• Potential for increased advertising revenue as audiences return to cinemas.

Negative

• None.

National CineMedia (NCM), the largest cinema advertising network in the U.S., and Harkins Theatres, the premier movie exhibitor of the Western U.S. and the fifth-largest exhibitor in America, have signed a long-term cinema advertising affiliate agreement to bring NCM’s Noovie® pre-show entertainment program to millions of Harkins movie fans across the Southwest. With the addition of Harkins Theatres, NCM’s national theater network now includes all of the top five exhibitors in the country.

With over 500 screens, Harkins Theatres is also the largest independently owned theatre company in the country, delivering Ultimate Moviegoing® for over 87 years. Harkins operates 33 premier theater locations in Arizona, California, Colorado and Oklahoma, and will now present NCM’s premium Noovie entertainment pre-show on all of its screens. Noovie, hosted by Maria Menounos, gives movie audiences a reason to arrive at the theater early to discover what’s next in entertainment, with exclusive content, in-theater gaming, and engaging advertising from national, regional and local brands.

“We are very excited to embark on this new partnership with NCM and introduce the Noovie program to our guests. This agreement represents further evidence of the resilience and growth opportunities for the cinema industry,” said Harkins Theatres CFO and Senior Vice President Tyler Cooper.

Harkins joins NCM’s network at an optimistic time in both the movie and advertising industry. The 2021 film slate is stacking up for a big summer, fall, and holiday movie season following the COVID-19 vaccine roll-out. Meanwhile, younger audiences are continuing to abandon ad-supported television, and audiences of all ages are eager to get off the couch and get back out to the movies. For brands seeking to reach this highly-sought-after 18-49 and 18-34 audience demographic, Cinema is an attractive TV GRP replacement.

“We’re thrilled to welcome Harkins Theatres to NCM — America’s largest cinema advertising network. Harkins’ industry leading and growing attendance per screen, in addition to its state-of-the-art theaters in key markets, enhances our already strong national media network,” said NCM CEO Tom Lesinski. “Brands rely on NCM for ratings in the biggest markets, and we especially see Harkins bolstering our coverage in California, Colorado, and particularly in Phoenix, the number #11 DMA.”

About Harkins Theatres

Celebrating over 87 years of Ultimate Moviegoing^®, Harkins Theatres is the premier movie exhibitor of the Western U.S. and the largest independently owned theatre company in the country. Founded by showman, inventor and community leader Dwight “Red” Harkins in 1933, Harkins Theatres operates over 500 screens and is renowned for its commitment and passion for providing the Ultimate Moviegoing® experience. Harkins Theatres is known as a trailblazer for advancements in the motion picture exhibition industry with amenities such as: the Ciné Capri, CINÉ1^®, CINÉ1XL, pristine state-of-the-art digital projection and sound, curved wall-to-wall screens, in-lobby bars, Ultimate Lounger™ leather reclining seats, Plush Ultimate Rocker^® loveseats, Loyalty Cups, in-lobby children’s PlayCenters, and an expanded selection of gourmet concessions. For more history, awards, and other information, visit Harkins.com.

About National CineMedia (NCM)

National CineMedia (NCM) is America’s Movie Network. As the largest cinema advertising network in the U.S., we unite brands with the power of movies and engage movie fans anytime and anywhere. NCM’s Noovie pre-show is presented exclusively in 57 leading national and regional theater circuits including AMC Entertainment Inc. (NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK) and Regal Entertainment Group (a subsidiary of Cineworld Group PLC, LON: CINE). NCM’s cinema advertising network offers broad reach and unparalleled audience engagement with over 20,600 screens in over 1,600 theaters in 190 Designated Market Areas® (all of the top 50). NCM Digital goes beyond the big screen, extending in-theater campaigns into online and mobile marketing programs to reach entertainment audiences. National CineMedia, Inc. (NASDAQ:NCMI) owns a 48.0% interest in, and is the managing member of, National CineMedia, LLC. For more information, visit www.ncm.com and www.noovie.com.

FORWARD-LOOKING STATEMENTS:

This press release contains various forward-looking statements, within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, that reflect management’s current expectations or beliefs regarding, among other things, expectations regarding the success of the 2021 movie slate, the COVID-19 vaccine rollout, and expected audience behavior. Forward-looking statements are subject to a number of important factors, risks, uncertainties and assumptions that could cause actual results to differ materially from those described in any forward-looking statements. Investors are cautioned that reliance on these forward-looking statements involves risks and uncertainties.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210202005340/en/

FAQ

What is the significance of the NCM and Harkins Theatres partnership?

The partnership allows NCM to expand its cinema advertising network, now including all top five exhibitors in the U.S.

How many screens does Harkins Theatres operate?

Harkins Theatres operates over 500 screens across various states.

What does NCM's <i>Noovie</i> program offer to moviegoers?

Noovie features exclusive content and engaging advertising, enhancing the pre-show experience.

Which demographics does cinema advertising target in the current market?

Cinema advertising is increasingly targeting the desirable 18-49 and 18-34 demographics.

What financial impact can NCM expect from the new partnership?

The partnership is expected to boost NCM's advertising revenue as more audiences return to theaters post-pandemic.