Category Archives: Software

How Smartphones Rule Cinema Ticketing in China

China mobile ticketing WeChat

The boom in China’s box office is mainly attributed to the growth in the number of modern multiplexes catering to a growing middle class. Yet an equally important role has been played by convenience of mobile ticketing, which enables flexibility, impulse buying and seat selection that is valued by the 80, 90 and 00 generations (i.e. born in those decades), who are the main drivers of China’s cinema growth.

Just how big this is and how fast the trend is growing was highlighted in an article by Chinese entertainment consulting firm Entgroup last month:

During this year’s summer profile, market share of online ticketing business accounted for more than 30%. As of the third quarter, the total box office mainland film market beyond 2013 full-year results of 21.7 billion, is expected to reach 30 billion annual box office revenue, and online ticketing service will reach 50%, micro-channel movie tickets will use its unique “ripple communication “vibration entire online ticketing market, and root out the 3-4 line market, in response to consolidation and mergers and acquisitions in the context of the total forest hot market making the message is “no one can integrate me, I do not accept integration. “

Financial website Tiger Sniffing Network (!) profiles the rapidly evolving market and interviews people from three of the leading Mainland mobile ticketing providers: Pull Movies founder Kai, a Cat Movie insiders (interviewed anonymously) and Micro-Channel Movie Tickets founder Lin Ning.

Mobile ticketing in China is considered an O2O (Online-to-Offline) business, which is described by Wikipedia (Chinese) in the following terms:

O2O (Online To Offline) mode, also known as the offline business model refers to the purchase of consumer online marketing online and offline operations driving under the wire. O2O through promotions, discounts, information, service book, etc., the next line of the message store pushed to Internet users, which will convert them to customers under their own line, which is particularly suitable for the goods and services necessary to store the consumer, such as dining, fitness, movies and shows, beauty salons, and department stores such as photography.

In understanding Chinese consumers, particularly 80/90/00, it is important to appreciate the mobile-first, as well as savvy bargain, discount and special deals mentality that underpins consumer behaviour.

Added to this there is a strong element of social networking, using WeChat (messaging), Weibo (Twitter-type ‘micro-blog’) and other social apps, whereby peer influences and decision guided purchasing decisions for both goods and services/experiences.

Mobile Enablers Create Win-Win Situation

The article begins by pointing out that mobile movie ticketing vendors are in a unique position in terms of being enablers, rather than just middle-men between cinemas and their potential audience.

Online seat selection is typical of the O2O industry, where they provide cash flow from online and complete the import line. A mobile phone app will be able to direct the attention of online marketing to generate transformed into the purchasing power of the line at the box office, it is probable that all the movie marketing companies currently can not match the “creativity.” They are closer to the audience than the cinema, so they have amazing box office pulling power to entice the film side more and more to cooperate with them.

There is thus a power that rests with mobile movie ticket companies that is stronger than in most other parts of the world. This change has not come about overnight and the article does a good job of providing a chronology of how ticketing software systems have evolved in China over the past two decades.

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Vista Continues Strategic Growth and Diversification With Stake In MACCS

Murray Holdaway, Bert Huls and Mathieu van As

(From left): Murray Holdaway, Bert Huls and Mathieu van As

One of the more important stories to come out of this year’s CinemaCon is one that didn’t even get announced until more than a week after the show ended. By then anyone who follows such news was already well aware that the cinema exhibition software firm Vista Entertainment Solutions had acquired a stake in MACCS International, the developer of market leading distribution software. We’d like to summarize why we believe this is a significant industry development.

As I noted just before this year’s CinemaCon, I have a great deal of respect for Murray Holdaway, Vista’s Chief Executive, and Derek Forbes, the company’s President of North America. Over nearly twenty years they, along with a growing team of smart executives, have taken the New Zealand based outfit from being a small player in a crowded field of cinema point-of-sale vendors to being the dominant exhibition software solutions developer in the space. In the process, Vista has left a wake of once prominent entities such as Splice and Titan Technologies.

In all fairness, Vista still faces a field of new and perennial competitors. They include, though are not at all limited to, regional and worldwide entrants such as Allure Global, Compeso, Diamond Ticketing Systems, Jack Roe, NCR, Omnico, Omniterm, Ready Theatre Systems, Retriever, TicketNew, TicketSoft and Vendini.

What has helped set Vista apart from some of these rivals is how the company has been able to think beyond its own systems and offerings to see opportunities in related or adjacent markets. They have managed to avoid pitfalls, even when enticing distractions beckoned with the promise of future riches. A great illustration of this would be Vista’s decision to not develop a theatre management system (TMS) for digital cinema installations. Such software is generally forced upon exhibitors by integrators and has become commoditized, save for a few solutions offered by Arts Alliance Media, Cinedigm and Unique Digital.

At the same time, Vista has been adept at increasing its revenue through a series of wise decisions about building or acquiring product offerings that have expanded its customer base. For instance, the company developed Veezi as a cinema management and ticketing system for small and independent cinemas; a market it didn’t serve and one that couldn’t afford Vista’s current solutions.

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Apollo Gets More From Sony and Vista

Apollo Cinemas More Campaign

Over the past week Apollo Cinemas has decided that more is… well, more. The United Kingdom’s sixth largest exhibition chain is partnering with Sony Digital Cinema to bring more 3D alternative content to its customers and they have selected Vista Cinema Software to increase their overall operational effectiveness.

Apollo launched the More campaign to offer content from partners such as The Royal Opera House, Shakespeare’s Globe Theatre and the English National Opera. Performances will be offered in what is being described as “super high definition live 3D” using Sony’s 4K projectors. The circuit is also planning to show sporting events such as rugby, football and tennis, as well as concerts and music festivals.

Apollo has held their first live 3D event earlier this month when pop star Avril Lavigne debuted her new album at the chain’s cinema in London’s Piccadilly Circus. Lavigne was on-hand for a question and answer session after the video screening. In March, Apollo will be showing a 3D film version of the opera “Carmen”. The George Bizet opera was filmed during performances at the Royal Opera House.

The deal seems somewhat inevitable since Apollo signed up with Sony as their digital cinema deployment entity in 2009. The theatre chain’s press release didn’t specifically detail how Sony was enabling them to bring 3D alternative content into their theatres beyond providing the equipment that makes it all possible. In fact, Nicole Oakley, Marketing Manager at Apollo Cinemas said just that:

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