Searching for cinematic gold

The Hamilton Spectator

Jan 30, 2007

As troubled times continue for Canadian movie exhibitors, the beaten and bruised box-office is set to lean on a flamboyant pirate, a charming ogre and Homer Simpson to do what even James Bond couldn't -- turn ticket sales declines into cinematic gold.

The characters are expected to be several of the strongest power players this year for an industry that just clocked its 10th consecutive week of declines.

The release of the last instalment in the Pirates of the Caribbean trilogy, as well as Shrek the Third and a big screen version of The Simpsons TV series are expected to be three of the biggest money-makers this summer, according to analysts.

Ultimately, they're the most likely candidates to turnaround the Canadian box office, which fell 7.1 per cent year-over-year during the fourth quarter, which includes the lucrative Christmas season.

Ben Mogil, an analyst for Westwind Partners, said he expects the fourth quarter of 2006 will be comparatively weak relative to the highly successful Christmas 2005 season.

In 2005, an upswing in DVD sales was blamed for the largest box office drop in two decades.

There was an attendance turnaround of sorts in 2006 when Pirates of the Caribbean: Dead Man's Chest took in more than $420 million US across North America last summer. But by the end of the year, numbers were slowing again, even though the James Bond action flick Casino Royale became the highest grossing film in the franchise.

Cineplex Entertainment has been reworking its approach to the movie-going experience to find new revenue drivers that counter weaker quarters. Recently, the company introduced high definition live broadcasts of performances from New York's Metropolitan Opera and also some National Hockey League games.

The company has also teamed with the Bank of Nova Scotia (for a loyalty rewards program that gives points to moviegoers which are redeemable for free movies and concession items). Bonus points are awarded for items bought with a Scotia debit card.

As part of the agreement, the Paramount Toronto will now be called the Scotiabank Theatre Toronto,with further name changes in Montreal, Calgary, Edmonton, and Vancouver.

Meanwhile, a survey was recently released by U.S.-based PA Consulting Group which found that 86 per cent of consumers polled want cheaper movie tickets while 60 per cent want reserved seating.

"We may be entering an era where consumers want the movie-going experience to be more of an event rather than an occurrence," Mike Hunter of the management and market research firm said.

After a decline in ticket sales, movie theatres hope summer blockbusters will stop the drop