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I have to go to the movies I was just there a couple of days ago about that they would have so I look at this guys -- make funny Gerri Lopez CEO and president of ANC.
With us now from Kansas City.
-- should be and that's.
Dignitaries and -- for having me on the program.
The talent and mean.
Pretty much through this whole -- in the theater stocks theaters have held up people still looking for an -- and even with the increasing ticket price.
Still -- -- aren't that.
Yeah that's the that's a reality the the truth of the matter is that as you look at the many entertainment options of the family have to individual -- were -- have.
Theaters -- going to the movies I remain -- pretty reasonably -- particularly when compared to some of the live entertainment of some of the other sports venues.
Even have prices gone up and there's been a lot of publicity around some of the pricing on some of the premium formats like 3-D -- the one -- The fact of the matter is that I've come to the movies is still pretty reasonable price four.
How much are you relying on blockbusters because that he lets face it -- whether it's Iron Man stool -- whether it's you know avatar before hand and it just seems like.
These up production -- houses are putting all their rigs in these baskets and you obviously have to be reliant on them coming up with -- good movies and providing me with that concept.
There's no doubt this is an industry where we rely on them to provide us -- confident and the big movies are always the core of the business and what attracted big masses of people to -- with theaters.
There -- dependent on us though you know we are the ones that are the forefront.
Of those investments -- them movies get a lot of bus before they open and then what happens in the box office.
Has tremendous impact on -- -- reputation of that movie.
They'll longevity of the movie whether or not it's gonna have led into some of the secondary and tertiary markets like home -- -- broadcast television.
A lot of those kind of opinions get formed not just -- the movie itself but in the success that anyone will be named joy the box office.
It's meant processes -- Bob is right invite to its online now makes it a lot easier.
He's the -- is now making a deal with IMAX opening these fifteen to 25 new IMAX theaters is that the next logical step for you.
Absolutely we've had a long term relationship would -- will be -- opening up.
The theaters are inside of our or the -- -- -- out of -- theaters for the last couple years.
We were ready committed to -- building -- -- 10004.
IMAX auditoriums inside of our circuit.
Well we're now saying is after having had the experience over the last three years.
Frankly after watching our guests enjoy the IMAX experience as much as they have -- that it would make sense to -- -- a couple of things on number one.
Is increase of footprints from the 100 or so that we had -- -- committed two and number that is gonna come close at 215120.
Not just in the US but we also announce it would have been looking at some opportunities in Canada.
And frankly it's all predicated on that kind of acceptance.
That are I guess have shown in the -- election.
That they've shown for the IMAX movies will we look at this -- -- -- that is coming.
Down the -- -- just the sheer body to next year it is very clear to us.
That the big blockbuster movies are going to be in the IMAX formats and the ability to provide that kind of experience to our guest.
It is what sets us apart.
-- the end of the day we need to provide people a reason to to leave the house and com.
And enjoy the movie you know theaters and IMAX is probably the best manifestation of that that big screen that big sound.
That kind of different geometry.
If you see a movie in IMAX IMAX 3-D.
Four out of -- it was a different experience.
Then seeing that movie in any of the format.
General of focus on that for a second here is that a flash in the pan or is that something that you are looking to invest in because you see you know long term possibilities there.
Now we -- we don't think it's a flash in the pan -- behavior that we've seen now from our guest.
Would indicate that he's here to stay frankly that technology.
That is being deployed behind 3-D now it's far superior to any technology that was used ever in the past.
So what we see is people not only enjoying it through the experience more but also willing to pay for it more.
We've actually doubled down on 3-D we are today have almost 750 of our screens equipped for -- We anticipate that between now and a -- year from now.
Would be about 15116100.
Of our screens.
In 3-D social we're very much looking for the 3-D format to remain and to be a big part of the industry in the years ahead.
Even though you still -- people coming and they're still willing to pay there's a fair amount of people -- -- You know backing off saying hey I don't have to go to the theater always -- comes on Netflix I'll download DVR it how -- that affected business.
There's no doubt that all of these forms -- entertain any to -- who won another.
The truth though when you step back and look at the facts is that some of the movies that are coming out into their home video market have had relatively little effect on that theatrical box office.
We just listening to street enjoy the best year ever that we had in 2009.
I think that's indicative that people when given a good piece of content.
1% -- dot com Dan in a format that they can enjoy they'll -- out.
It's all interactive are sure some people are gonna miss them movie and it theaters and and go watch it and -- for it to come out at home.
You know we just did a little experiment about to -- through which to go and our our first came out -- dvd.
And we brought it back into some of our IMAX to -- -- screens.
Are frankly piggybacking on some of the publicity and some of the advertising that was going to be used.
To launch it into the dvd market.
And -- we saw was people coming back to the theater to enjoy the IMAX experience to enjoy avatar in the best format that you can watch it.
Which is in in a big screen in one of -- towards.
So yet people that like the movie that bought it for the home but that also wanted to come and see it and -- -- street again.
I think in the end so long as we can maintain that engagement with a customer we're all going to be better off.
Today Tracy's got a bunch ankle -- running around it costs -- more to feed them at the theater that does for me to go out to stake it sparks.
You're not being fair -- I'm getting a rally at the all right but it happens and I told me hey it's expensive.
B I guess what I really wanna get too was how important is that for you in terms of you know your bottom line it is that.
Does that go right to the bottom line and that's part of the ancillary you know thing of going to -- movies it's really important you when you're you're.
-- -- -- -- -- you got it exactly right we are really two businesses when you when you stop and not take a careful look at RP NL.
On our balance here for that matter ready -- hitters PNL or or or balance sheet.
Part of our business and about two starts haven't really had the revenue line column from the movie exhibition business itself.
That's -- money that we collected the box office that as I think most of you know.
Comes in a revenue share model between us and the studios.
The concession stand it's really the profit engine for for our company as well as the other exhibition -- this out there.
Yes some of the price perhaps there are higher than you would anticipate but they're really no different.
That in any other entertainment any idea and that's because that that profit margin in the concession business.
Is really what's driving our ability to build for the future is really what's driving our ability to finance some of the conversions.
For the digital screens and that 3-D.
This technology is wonderful.
And he's great and it's very engaging and fortunately none of its chief.
So it's really the combination of the theatrical part of the business on the concession.
That enable us to have put forth the money that it takes to keep some of these movie theaters vibrant and places that are welcoming to the guest.
Real quick do you get us sponsorship money from a cold call for example -- Mars -- at a candy companies to help you with that.
Now I'm not really not sponsorship money per say we do have given the size of our business.
Some very favorable deals from -- from our major suppliers Coke and -- mention too that that are among the top list.
-- in particular.
If I was to single someone -- will be -- they really do a fantastic job of supporting the exhibition business overall.
They are very active participants.
They advertise in our screens that provide us all manner of expertise in terms of the beverages on the equipment to dispense those beverages in the -- theaters.
They're really -- a a great job.
In terms of helping us figure out how to best service aghast so it's not the sponsorship money -- -- is not it's not in the traditional sense.
But when you look at their level of investment that a company like Coke.
Puts behind our business.
It is it is great to have a partner like -- nine to -- Splat -- there's something about movie popcorn you can't replicated.
You can charge fifty dollars for a big.
That and I'm in a dive in my kids -- nine head -- known it at its Atlantic there's some -- it.
Jerry thanks -- attribute that's.
Thank you for having me on the program enjoyed it up as CEO and president of AMC entertainment and as I -- I was there in the -- --
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