state of the industry presentationnaconline.org/wp-content/uploads/2014/07/fithian.pdf11/14/2014...

State of the Industry

Presentation

July 16, 2014

John Fithian

President & CEO

About NATO

NATO Membership Report

Screens Sites Companies

Domestic 31,991 3,276 625

U.S. Territories 330 42 3

Canada 2,240 250 21

International 20,547 2,330 37

Total 55,108 5,898 686 81 Countries

NATO: A Global Organization

NATO Website

State of the Theatrical

Exhibition Industry

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

2012

2013

2013 Record Box Office (Domestic)

$10,919,118,735$10,792,894,020

+1.2%

0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

2013

2014

YTD Domestic Box Office (as of 6 July 2014)

$5,439,596,846$5,714,895,627

-4.8%

07/18/2014 Sex Tape

07/18/2014 Planes: Fire and Rescue

07/25/2014 Hercules

07/25/2014 Lucy

08/01/2014 Guardians Of The Galaxy

08/08/2014 Teenage Mutant Ninja Turtles

11/07/2014 Interstellar

11/14/2014 Fury

11/14/2014 Dumb And Dumber To

11/21/2014 The Hunger Games: Mockingjay, Part 1

11/26/2014 The Penguins Of Madagascar

12/12/2014 Exodus

12/17/2014 The Hobbit: The Battle Of The Five Armies

12/19/2014 Night At The Museum: Secret Of The Tomb

12/19/2014 Annie

12/25/2014 Into The Woods

12/25/2014 Unbroken

12/25/2014 Paddington

Big Movies For The Rest of 2014

2015 Movie Releases

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=F5zSYwqhMTf_aM&tbnid=ZPYQFu88vn8koM:&ved=0CAUQjRw&url=http://hdwallimg.com/beautiful/star-wars-7-movies-2015-wallpaper-hd.html&ei=wAq8U8muMaGxsATCqIGQAQ&bvm=bv.70138588,d.cWc&psig=AFQjCNHew-1uxw4JKcUQaSiQNGjgkKh0DQ&ust=1404918840893499

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=F5zSYwqhMTf_aM&tbnid=ZPYQFu88vn8koM:&ved=0CAUQjRw&url=http://hdwallimg.com/beautiful/star-wars-7-movies-2015-wallpaper-hd.html&ei=wAq8U8muMaGxsATCqIGQAQ&bvm=bv.70138588,d.cWc&psig=AFQjCNHew-1uxw4JKcUQaSiQNGjgkKh0DQ&ust=1404918840893499

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=f3mDjmLJ5hN5LM&tbnid=GqqeF2xzUhG73M:&ved=0CAUQjRw&url=http://jamesbond.wikia.com/wiki/Bond_24&ei=qQ68U7GHC8_nsASGyIHoAQ&bvm=bv.70138588,d.cWc&psig=AFQjCNE5Rhp6h5Hlq1aN-ImUDsv1Iyhetg&ust=1404919839210134

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=f3mDjmLJ5hN5LM&tbnid=GqqeF2xzUhG73M:&ved=0CAUQjRw&url=http://jamesbond.wikia.com/wiki/Bond_24&ei=qQ68U7GHC8_nsASGyIHoAQ&bvm=bv.70138588,d.cWc&psig=AFQjCNE5Rhp6h5Hlq1aN-ImUDsv1Iyhetg&ust=1404919839210134

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=WXD9krBapiKzmM&tbnid=n2Hh0XqzaXtseM:&ved=&url=http://www.washingbrain.net/the-best-celebrity-selfies/&ei=YBK8U8b3KqejsQToiICACQ&bvm=bv.70138588,d.cWc&psig=AFQjCNH_o0CAbKILqOrQbl5OuBEA8tFZAQ&ust=1404920801066263

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=WXD9krBapiKzmM&tbnid=n2Hh0XqzaXtseM:&ved=&url=http://www.washingbrain.net/the-best-celebrity-selfies/&ei=YBK8U8b3KqejsQToiICACQ&bvm=bv.70138588,d.cWc&psig=AFQjCNH_o0CAbKILqOrQbl5OuBEA8tFZAQ&ust=1404920801066263

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=3jlWLRHdaqzyZM&tbnid=IVfhSVtXnZsH0M:&ved=0CAUQjRw&url=http://www.youtube.com/watch?v=FvTOiIJHVcQ&ei=FRS8U4HBF5LLsASdz4KgBg&bvm=bv.70138588,d.cWc&psig=AFQjCNFSGpcy1POLwF8oXk1t_8MfCdQpyw&ust=1404921184160949

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=3jlWLRHdaqzyZM&tbnid=IVfhSVtXnZsH0M:&ved=0CAUQjRw&url=http://www.youtube.com/watch?v=FvTOiIJHVcQ&ei=FRS8U4HBF5LLsASdz4KgBg&bvm=bv.70138588,d.cWc&psig=AFQjCNFSGpcy1POLwF8oXk1t_8MfCdQpyw&ust=1404921184160949

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=ScDYAC1hbhDTsM&tbnid=zkDGyi7hw5Tk_M:&ved=0CAUQjRw&url=http://www.firstshowing.net/2013/mission-impossible-5-joins-crowded-2015-calendar-on-christmas-day/&ei=vhS8U4TOOM_IsATDgIKYDA&bvm=bv.70138588,d.cWc&psig=AFQjCNEv9zWL4A2Ans8A7BU6po2HZPa5QQ&ust=1404921396055420

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=ScDYAC1hbhDTsM&tbnid=zkDGyi7hw5Tk_M:&ved=0CAUQjRw&url=http://www.firstshowing.net/2013/mission-impossible-5-joins-crowded-2015-calendar-on-christmas-day/&ei=vhS8U4TOOM_IsATDgIKYDA&bvm=bv.70138588,d.cWc&psig=AFQjCNEv9zWL4A2Ans8A7BU6po2HZPa5QQ&ust=1404921396055420

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=ntNE0eHN4JfaWM&tbnid=1_pEyg9X_r9j2M:&ved=0CAUQjRw&url=http://starseeker.com/&ei=LhW8U_LBKsLjsAS-wYCYCw&bvm=bv.70138588,d.cWc&psig=AFQjCNFiVS5mXIyBNPZtMyjXmghv2Asdsg&ust=1404921504146722

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=ntNE0eHN4JfaWM&tbnid=1_pEyg9X_r9j2M:&ved=0CAUQjRw&url=http://starseeker.com/&ei=LhW8U_LBKsLjsAS-wYCYCw&bvm=bv.70138588,d.cWc&psig=AFQjCNFiVS5mXIyBNPZtMyjXmghv2Asdsg&ust=1404921504146722

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=DadRvtxEkRYQSM&tbnid=sE6rhBLX2A3QEM:&ved=0CAUQjRw&url=http://animationfascination.wordpress.com/2013/09/18/the-good-dinosaur-moved-to-2015-no-pixar-film-for-2014/&ei=nBa8U9PgDJXNsATijYCwCA&bvm=bv.70138588,d.cWc&psig=AFQjCNHvKngsYY6j4jDgopN1cj3yQMXPOQ&ust=1404921875053955

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=DadRvtxEkRYQSM&tbnid=sE6rhBLX2A3QEM:&ved=0CAUQjRw&url=http://animationfascination.wordpress.com/2013/09/18/the-good-dinosaur-moved-to-2015-no-pixar-film-for-2014/&ei=nBa8U9PgDJXNsATijYCwCA&bvm=bv.70138588,d.cWc&psig=AFQjCNHvKngsYY6j4jDgopN1cj3yQMXPOQ&ust=1404921875053955

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=DadRvtxEkRYQSM&tbnid=sE6rhBLX2A3QEM:&ved=0CAUQjRw&url=http://www.mydisneyblog.com/&ei=yxa8U6OIBejT7Aa_84GACg&bvm=bv.70138588,d.cWc&psig=AFQjCNHvKngsYY6j4jDgopN1cj3yQMXPOQ&ust=1404921875053955

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=DadRvtxEkRYQSM&tbnid=sE6rhBLX2A3QEM:&ved=0CAUQjRw&url=http://www.mydisneyblog.com/&ei=yxa8U6OIBejT7Aa_84GACg&bvm=bv.70138588,d.cWc&psig=AFQjCNHvKngsYY6j4jDgopN1cj3yQMXPOQ&ust=1404921875053955

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=Bq7EIvXZ6OzeuM&tbnid=QHFI_FFrwYOZZM:&ved=0CAUQjRw&url=http://www.eonline.com/news/522347/fast-furious-7-resumes-filming-after-paul-walker-s-death&ei=jBC8U_ueDaPksASZnIGoAw&bvm=bv.70138588,d.cWc&psig=AFQjCNHUj4Xh96yIep0ex9-amrl1KjG0ag&ust=1404919905222010

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=Bq7EIvXZ6OzeuM&tbnid=QHFI_FFrwYOZZM:&ved=0CAUQjRw&url=http://www.eonline.com/news/522347/fast-furious-7-resumes-filming-after-paul-walker-s-death&ei=jBC8U_ueDaPksASZnIGoAw&bvm=bv.70138588,d.cWc&psig=AFQjCNHUj4Xh96yIep0ex9-amrl1KjG0ag&ust=1404919905222010

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=FXA_K8B9tPhf3M&tbnid=GGj96a35a3siAM:&ved=0CAUQjRw&url=http://www.chud.com/143890/a-movie-rundown-of-2015-including-new-dates-for-jurassic-world-pirates-5-ant-man/&ei=zja8U-noHevY7Aa834DACQ&bvm=bv.70138588,d.cWc&psig=AFQjCNEu88vkeUTo1Pc6rXjI8hVY3uugEA&ust=1404930059707961

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=FXA_K8B9tPhf3M&tbnid=GGj96a35a3siAM:&ved=0CAUQjRw&url=http://www.chud.com/143890/a-movie-rundown-of-2015-including-new-dates-for-jurassic-world-pirates-5-ant-man/&ei=zja8U-noHevY7Aa834DACQ&bvm=bv.70138588,d.cWc&psig=AFQjCNEu88vkeUTo1Pc6rXjI8hVY3uugEA&ust=1404930059707961

“2015 should be easily a record breaking year for the box office.” Tony Wible, analyst, Janney Montgomery Scott 30 June 2014

“Exhibitors outperformed the S&P 500 by more than 2x

in the face of worsening box office. We continue to believe

investor focus has already shifted to a stronger 2015 film slate.” Eric Wold, analyst, B. Riley & Co. 7 July 2014

Wall Street Looks Ahead

$9.6 $9.6 $10.6 $10.6 $10.2 $10.8 $10.9

$16.6 $18.1$18.8

$21.0 $22.4$23.9 $25.0

$0

$5

$10

$15

$20

$25

$30

$35

$40

2007 2008 2009 2010 2011 2012 2013

U.S. Canada International

$26.2$27.7

$29.4$31.6

$32.6

Global Box Office

$34.7

In billions

$35.9

0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

$3.50 Per Cap

$3.75 Per Cap

$5,025,000,000$4,690,000,000

Estimated 2013 Concessions Revenue

Improving the

Theatrical Experience

Luxury Cinema

Self-service

U.S. Total Sites – 5,847

Digital Sites 5,055 86.4%

3D Sites 3,586 61.3%

U.S. Total Screens – 40,121

Digital Screens 38,154 95.0%

3D Screens 15,220 37.9%

U.S. Digital Cinema

Satellite Delivery

Distributor(s) Title

Fox Dawn of The Planet of the Apes

Disney Planes: Fire and Rescue

Paramount Hercules (2014)

Disney Guardians of the Galaxy

Paramount Teenage Mutant Ninja Turtles (2014)

Lionsgate/Summit Step Up All In

Weinstein/Dimension Frank Miller’s Sin City: A Dame to Kill For

Focus The Boxtrolls

Fox The Book of Life (2014)

Disney Big Heron 6

Fox/Dreamworks Animation The Penguins of Madagascar

Warner Bros/New Line The Hobbit: The Battle of the Five Armies

3D Releases (2014)

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=kNoX5ig875ZBlM&tbnid=GXmWMgAWNg-4UM:&ved=0CAUQjRw&url=http://schmoesknow.com/new-dawn-of-the-planet-of-the-apes-poster-is-the-best-one-yet/24452/&ei=I-K6U5i5KqTmsASU9YKACg&bvm=bv.70138588,d.cWc&psig=AFQjCNEyMUKAhENBUMNonTSepjUqlrDNcA&ust=1404842878342593

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=kNoX5ig875ZBlM&tbnid=GXmWMgAWNg-4UM:&ved=0CAUQjRw&url=http://schmoesknow.com/new-dawn-of-the-planet-of-the-apes-poster-is-the-best-one-yet/24452/&ei=I-K6U5i5KqTmsASU9YKACg&bvm=bv.70138588,d.cWc&psig=AFQjCNEyMUKAhENBUMNonTSepjUqlrDNcA&ust=1404842878342593

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=GQNzImXGybzHWM&tbnid=7zbTdStLvWGraM:&ved=0CAUQjRw&url=http://www.csfd.cz/uzivatel/163057-petrson17/&ei=cuO6U_-mAurgsASy34H4Aw&bvm=bv.70138588,d.cWc&psig=AFQjCNHja69GGyqoCo_uwgCZr8ivYpH9rg&ust=1404843180270209

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=GQNzImXGybzHWM&tbnid=7zbTdStLvWGraM:&ved=0CAUQjRw&url=http://www.csfd.cz/uzivatel/163057-petrson17/&ei=cuO6U_-mAurgsASy34H4Aw&bvm=bv.70138588,d.cWc&psig=AFQjCNHja69GGyqoCo_uwgCZr8ivYpH9rg&ust=1404843180270209

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=dlwzVE3DinODuM&tbnid=baOFcWMRk0oZiM:&ved=0CAUQjRw&url=http://thelowdownunder.com/2014/06/25/teenage-mutant-ninja-turtles-new-trailer-posters/&ei=5N-6U8uuMdOqsQSu9YGwBg&bvm=bv.70138588,d.cWc&psig=AFQjCNEsc238C0E4rc3TLl3C0Co1ugfhwQ&ust=1404842273584544

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=dlwzVE3DinODuM&tbnid=baOFcWMRk0oZiM:&ved=0CAUQjRw&url=http://thelowdownunder.com/2014/06/25/teenage-mutant-ninja-turtles-new-trailer-posters/&ei=5N-6U8uuMdOqsQSu9YGwBg&bvm=bv.70138588,d.cWc&psig=AFQjCNEsc238C0E4rc3TLl3C0Co1ugfhwQ&ust=1404842273584544

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=ZcOAGoVF0_CybM&tbnid=q0SA3kAoFrx8DM:&ved=0CAUQjRw&url=http://disney.wikia.com/wiki/Planes:_Fire_&_Rescue&ei=Yty6U9DjNLHJsQT0yYHAAw&bvm=bv.70138588,d.cWc&psig=AFQjCNFVGzgC3eOO8hqNbwlDUvSx6no-Bw&ust=1404841399759298

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=ZcOAGoVF0_CybM&tbnid=q0SA3kAoFrx8DM:&ved=0CAUQjRw&url=http://disney.wikia.com/wiki/Planes:_Fire_&_Rescue&ei=Yty6U9DjNLHJsQT0yYHAAw&bvm=bv.70138588,d.cWc&psig=AFQjCNFVGzgC3eOO8hqNbwlDUvSx6no-Bw&ust=1404841399759298

4D

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=aIC7hlktEEebbM&tbnid=f6UIgm2AvzuknM:&ved=0CAUQjRw&url=http://crispylogs.com/4d-movie-theaters-allow-to-see-hear-smell-feel-the-actions/&ei=QD20U9G1LcaNqAaDsICYCA&bvm=bv.70138588,d.cWc&psig=AFQjCNF55lChZctZQbu7JVrQ9G2cQymOCQ&ust=1404407481066014

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=aIC7hlktEEebbM&tbnid=f6UIgm2AvzuknM:&ved=0CAUQjRw&url=http://crispylogs.com/4d-movie-theaters-allow-to-see-hear-smell-feel-the-actions/&ei=QD20U9G1LcaNqAaDsICYCA&bvm=bv.70138588,d.cWc&psig=AFQjCNF55lChZctZQbu7JVrQ9G2cQymOCQ&ust=1404407481066014

Opportunities

• Brighter light

• Higher contrast

• Longer projector and bulb life

Challenges

• FDA oversight currently prohibits laser projection

• Variances required

• Cost

Laser Projection

Immersive Audio

Thank You

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