HOLLYWOOD STUMBLES BUT NU METRO WINS

SAVVY SOUTH AFRICAN CINEMA FANS

Nu Metro

In a tough market leading South African sector player Nu Metro Cinemas is retaining its share with inventive twists in the marketing plot and giving audiences the perfect cinema experience, General Manager Danie van der Werwe tells Ben Walker.

Nu Metro

“I’ve spent several years in Hollywood,” said writer Wilson Mizner, “and I still think the movie heroes are in the audience.”

His heroes are not what they were. Last year Hollywood audiences dropped to a sixteen year low, a trend partially cushioned by Nu Metro Cinemas in South Africa with high profiled movies and an imaginative package of audience-focused exclusive events and offers.

‘The Twilight Saga; Breaking Dawn’ (negative reviews; $702 million worldwide sales) was a serial sell-out, with

‘Hangover Part II’, and ‘Fast and Furious Five’ other major hits, says Danie van der Merwe, General Manager of South Africa’s second largest cinema operator, Nu Metro.

“Our audiences are very sophisticated and know what they want.” And with twenty-two sites and six of the country’s top ten cinema screens, Nu Metro is concentrating on developing the premium side of its cinema division.

Acknowledging the Hollywood Big Dip, van der Merwe recognises the industry’s shared trans-Atlantic and global challenges. “The South African cinema market is saturated

Amalgamated BeverageIndustries

www.abi.co.zaCustomer Interaction Centre: 0860 000 0224

ABI PARTNERS WITHNU METRO FOR GREATCUSTOMER SERVICE

As the soft drinks division of South African Breweries, Amalgamated Beverage Industries (ABI) aims to be the premier customer and market development organisation in South Africa. As such, their long-standing partnership with Nu Metro is one in which business decisions are made collaboratively, resulting in a focused approach to reach mutual objectives. As with all its customers, ABI’s partnership with Nu Metro has at its core, assisting their customers to provide a great experience for their customers – after all, what would movies be without the popcorn and the Coke?

It’s all about Customer Service

Recently, ABI’s focus has been on replacing the old fountain and vending equipment with the latest technology. This involved conducting a demand analysis during Nu Metro’s busiest period to assess each cinema’s requirements. ABI then fitted standardised equipment so that Nu Metro’s service counter staff would only need to understand how one machine works, enabling them to focus on their customers. Training for all Nu Metro service counter staff, including their managers, has been implemented and will continue on an on-going

basis. The new technology also features early warning systems that advise the operators of any potential problems in advance so that ABI can react quickly and ensure that the flow of Coca-Cola is never interrupted.

Quality is key

The new machines are highly advanced. Upgraded water filtration systems and water lines mean that the supply of clean water is constant and that it complies with the stringent Coca-Cola Quality Standards. After installing all the new machinery, ABI has undertaken to conduct random quality checks on the soft drinks dispensed so that they can ensure that it is always up to standard.

Sustainable Development is core to ABI’s business

All the new systems that have been installed at Nu Metro cinemas are fitted with Energy Management Systems (EMS) that ensure that Nu Metro now uses less energy to provide customers with their ice-cold Coca-Cola: sustainable development is core to ABI’s operations.

ABI DPS.indd 16-17 29/03/2012 09:59

Amalgamated BeverageIndustries

www.abi.co.zaCustomer Interaction Centre: 0860 000 0224

ABI PARTNERS WITHNU METRO FOR GREATCUSTOMER SERVICE

As the soft drinks division of South African Breweries, Amalgamated Beverage Industries (ABI) aims to be the premier customer and market development organisation in South Africa. As such, their long-standing partnership with Nu Metro is one in which business decisions are made collaboratively, resulting in a focused approach to reach mutual objectives. As with all its customers, ABI’s partnership with Nu Metro has at its core, assisting their customers to provide a great experience for their customers – after all, what would movies be without the popcorn and the Coke?

It’s all about Customer Service

Recently, ABI’s focus has been on replacing the old fountain and vending equipment with the latest technology. This involved conducting a demand analysis during Nu Metro’s busiest period to assess each cinema’s requirements. ABI then fitted standardised equipment so that Nu Metro’s service counter staff would only need to understand how one machine works, enabling them to focus on their customers. Training for all Nu Metro service counter staff, including their managers, has been implemented and will continue on an on-going

basis. The new technology also features early warning systems that advise the operators of any potential problems in advance so that ABI can react quickly and ensure that the flow of Coca-Cola is never interrupted.

Quality is key

The new machines are highly advanced. Upgraded water filtration systems and water lines mean that the supply of clean water is constant and that it complies with the stringent Coca-Cola Quality Standards. After installing all the new machinery, ABI has undertaken to conduct random quality checks on the soft drinks dispensed so that they can ensure that it is always up to standard.

Sustainable Development is core to ABI’s business

All the new systems that have been installed at Nu Metro cinemas are fitted with Energy Management Systems (EMS) that ensure that Nu Metro now uses less energy to provide customers with their ice-cold Coca-Cola: sustainable development is core to ABI’s operations.

ABI DPS.indd 16-17 29/03/2012 09:59

Nu Metro

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and very stagnant. We have twenty six million moviegoers and this has been the case for the past ten years, moving upwards only slightly with the advent of 3D.

The cinema industry is an unrelentingly tough market place. Consumer alternatives and sophisticated and cheap stay-at-home technology are making it so. ”It’s not any one thing, it’s a little bit of everything,” says

Jeff Goldstein, general sales manager at Warner Bros, explains: “Consumers are being more specific with their choices on how to spend their money. The options are a little greater than they were a few years ago with gaming and social-networking opportunities.”

Van der Merwe agrees. “The advent of all the new forms of entertainment, the ease of accessing content over the internet, and movies on demand from television channels are all impacting on the

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“We have probably the cheapest ticket pricing in the world - typically R35 - and a lot of discounting schemes. Even so the market is not growing; in fact it is now over-screened, and the roll out of digital and the costs involved will probably see a couple of the older cinemas closing doors.” Danie van der Werwe ,General Manager

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Nu Metro

whole movie going experience. No question.”Launched in the early nineties as a small cinematic

distribution company Nu Metro grew fast. Starting with the acquisition of home entertainment and theatrical distribution licenses in South Africa, it began to expand rapidly within the wider entertainment industry.

By the late nineties it was identified with the lion’s share of home entertainment within South Africa, representing giants such as 20th Century Fox, Warner Brothers and Walt Disney, and by 2002 Paramount and the BBC.

Currently the Home Entertainment division – Cinemas, and Film

Distribution are the other two Nu Metro operational arms - represents Paramount, DreamWorks, Universal, Sony, Warner Brothers and the BBC as well as numerous independent film makers and studios.

Nu Metro Home Entertainment is the South African market leader in DVD and Blu-Ray, distributing DVDs into major retail outlets and rental video stores as well as interactive console and PC-based games. But sales have been impacted by the recession and drop in disposable incomes.

Over on the Big Screen 3D is driving incremental business and attendances. It’s new and interesting and consumers are responding to the format, and for the moment it seems to be rejuvenating the cinema business in South Africa and across the world. And with full digitalisation at forty-four of its

screens across South Africa, Nu Metro is running fast with the shiny new ball.

But might it

Nu Metro

all be a passing fashion? According to reports from international sources, 3D is a

fad and a fading one, with the number of films falling from forty-seven in 2011 to thirty-three this year.

It’s a view backed-up by Enders Analysis whose research reveals 3D took a lower share of box office receipts in 2011, hit by the success of foreign content and the rise of 2D in 3D dual release box office receipts. “The period of experimentation is over. The reality has set in and the momentum has gone,” says Enders, an entertainment research service with a special focus on new technologies.

Danie van der Merwe disagrees. “I don’t think it’s a fad. It’s here to stay and I think there will always be 3D content coming through, especially for action sci-fi blockbusters, with thirty to forty films coming through being the norm. And this will attract people to immerse themselves in the 3D experience. The traditional romantic comedy doesn’t require this and will still be found on the 2D format.

“So I think there will always be this

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mix and I don’t see 3D taking over any time soon. However the studios will realise they must provide good quality 3D and not just conversions. The public knows the difference, it will not pay to see bad quality 3D, and so the word would go out. And yes, content is still king.”

And for Nu Metro a dual crown - content and customer focus. “When you come to one of our complexes you will have a great experience, starting with service levels from the moment you walk through the door, ease of purchasing tickets right through to the confectionary offering. And once inside the cinema - all that digital brings, great sound and quality 3D.

“At Nu Metro we deliver a great service and experience. We are very focussed on being the best in the market place, very customer-centric and alert to the wants and interests of cinemagoers in a particular market. We have quality partners and a great staff ethos and culture - over eight hundred professionally qualified employees from cinema floor to manufacturing and warehousing, all enthusiastic and working as a team.”

Looking five years ahead, van der Merwe sees a reduction in the number of movie complexes. “But the cinema will still be the core, very much alive and kicking - and in the new theatres and complexes going from strength to strength.

“Avid cinemagoers want to see and experience the movie in the big format, with the sound, their friends around them, and experiencing a true entertainment evening. And with Nu Metro they will find it all.”

Nu Metro

SECRET CUSTOMERAs a respite from the usual daring and dangerous missions Endeavour Magazine send me on, it was a pleasure to discover they were sending me to my local Nu Metro Cinema at the Westville Pavilion to do nothing more dramatic and dangerous than taking my family out to watch a movie. The film selected - John Carter 3D.

Having experienced cinematic excursions in the past, with cinema chains around the world, I have to admit that Nu Metro Cinemas has a class of its own, which is apparent in the little details. Firstly the experience begins not in the cinema at all but outside in the foyer where you walk into the spacious area, looking at the marvellous posters for the films and the plush carpets leading into the cinemas. The design of the décor surrounding the cinema, adds to the effect of this being somewhere different, a place where adventures are had.

There are a few things that I am a stickler for, cleanliness is one of them. I judge places very quickly on how clean they are, if there is chrome it needs to be polished to a mirrored shine, if there is a carpet it must not be frayed, if there is overhead music it must be clear and Nu Metro

Cinemas impressed me with all of these. It was almost as if someone had gone over the entire complex before I had even arrived to polish and clean and remove any dust.

While I got the tickets there was an area for my kids to disappear to for a little bit so I could do the grown up stuff.

I was served by a polite and cheerful attendant behind the counter who greeted me first with an enthusiastic smile, she sorted out my tickets, helped me select the best seat - asking questions like did I have kids and would I like extra leg room (the difference between being on the aisle or in the middle) and before I knew it I had all my tickets, plus enough flavoured popcorn and coke to feed a small army.

While my kids dragged me through the corridor leading into the main complex, and to our seats, I found them immensely comfortable and spacious with leg room for me to stretch out if necessary. Good music played over the speakers until the film started (exactly on time) and the film began.

Brilliant. Simply Brilliant.

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Written by Ben Walker

www.littlegatepublishing.com