With Cinema Europe currently underway in Barcelona, two trends for premium cinema experiences that pull in opposite direction are hot topics for exhibitors gathering in Spain. The first is towards smaller, intimate venues that typically serve fine food and wine, as exemplified by The Electric in London or the Alamo Drafthouse in Austin, Texas. But it is the super-sizing of cinemas in a bid to compete with IMAX and its ability to charge premium ticket prices that is attracting the most attention right now. And RealD wants to be the centre of that action.
With cinema admissions in most of Europe static or even down and 3D seeing its lowest admission figures yet in the US this week, the hunt is on for how to squeeze more out of the people that still go to the cinema. This is where the success of IMAX comes into play, with exhibitors either partnering the large format (LF) player or launching their own premium experience auditoriums, to be able to charge a premium above that of 3D. The track record of exhibitors that have launched their own IMAX-like screens has been mixed, with social media in particular abuzz with patrons venting their unhappiness about large screen up-charges. This blog called AMC’s ETX ‘an Excuse To charge Extra’ and is no less kind about Regal’s RPX.
With Digital 3D being a key part of the PLF experience, RealD has spotten and opportunity to try to create a branding on behalf of exhibitors. From their press release:
At a special presentation to European cinema exhibitors at CineEurope, RealD Inc. (NYSE: RLD) today introduced “LUXE: A RealD Experience,” a premium large format (PLF) initiative aimed at unifying the exhibition community under a single brand with a goal of becoming synonymous with the ultimate out of home entertainment experience. Minimum standards will assure all “LUXE: A RealD Experience” auditoriums feature massive screens, ultra bright 2D and 3D, enveloping audio and luxury seating for a premium movie-going experience. “LUXE: A RealD Experience” auditoriums will provide full flexibility with content, allowing exhibitors to show any movie at any time for optimized profitability.
The code words are clearly audible dog whistles for cinema owners. The first sentence effectively says, “you have largely failed with your efforts of creating in-house PLF brands that can take on IMAX.” The second sentence says, “too many of the PLF auditoriums have been poor IMAX-lite causing consumer backlash.” The third sentence is the most critical, because it tells cinemas not to tie themselves in with IMAX’s restrictive licence terms – “you will have to pay a licence fee to RealD, but it will be less than what you would pay IMAX and we also won’t tell you which films to play and for how long.” Not surprisingly the effort has won the backing of the studios, who are keen on premium ticket pricing, but not on IMAX dominating the market. [NB: The first point was made even more strongly in the ScreenDaily interview, where Mayson is quoted as saying, “There are more than 50 PLF brands worldwide. We’re trying to unify those brands on the grounds that it’s easier to create awareness around one experience.”]
Bob Mayson is quoted in the Hollywood Reporter on the technical specifics:
“LUXE comes in response to our exhibitor customers, who are seeing increasing demand for premium cinema offerings but really want a single identifiable brand that will be a guarantee of quality to their customers,“ Robert Mayson, Managing Director of RealD Europe told The Hollywood Reporter. According to Mayson, the technical standards, which include wall-to-wall, floor-to-ceiling screens of at least 16 meters (52.5 feet) in width; 3D sound; auditorium rakes and a screen brightness for 3D projections about twice the current norm, means LUXE will be an elite standard. “We are talking about the top five percent of cinemas, there will be many theaters that won’t have the capacity or the physical dimensions to qualify,” he said.
Note in particular the mention of ‘3D audio’. RealD is careful not to pick a winner in the fight between Dolby’s Atmos and Barco’s Auro and would most likely prefer to see an open standard, as called for by NATO and UNIC [pdf]. With Regal recently having announced that it is installing Dolby’s Artmos in its RPX screens, 3D audio will together with a big screen and bright projection be a cornerstone of the PLF experience. Though for exhibitors not willing to install two projectors, whether Sony or DLP, the equation will not truly be completed until the arrival of laser projection.
The next thing to note is the territories where this system will launch. THR identifies this as, “RealD plans to roll out the new LUXE initiative in Europe, Russia, the Middle East and Africa. Europe in particular has seen strong growth in the premium segment of the cinema market.” Screen meanwhile lists, “Russia, Ukraine, Kazakhstan, South Africa, Bulgaria, Romania and the Balkans.” The thing to note is that it is the emerging markets that are of particular focus, which is why we get a quote from “Paul Heth, CEO of Karo Film, a leading cinema chain in Russia.” These are the markets that have not attempted a PLF brand on their own and that will build new multiplexes, so that the system does not have to be retrofitted into existing multiplexes. RealD is thus unlikely to try to persuade existing cinema clients in North America and Western Europe to ditch their own in-house PLF brand in favour of LUXE.
While IMAX is built on great technology and offers (depending on the site) a terrific viewer experience, there is nothing about it that cannot be replicated with todays digital technology – unlike the analogue 70mm systems of olden days. What sets it apart from in-house PLF screens is thus one thing: branding. IMAX has done a terrific job of re-positioning its brand from 60 minute documentaries for school groups that put bums on seats Monday through Friday 9am until 5pm, to one where people book tickets weeks in advance to catch the latest Hollywood blockbuster on the opening weekend. This despite the backlash of the ‘IMAX-lite’ entry into the multiplex market a few years back. Vue Xtreme and Regal RPX have simply not been able to match the branding power of IMAX. RealD too has some cleaver technology, including launching the brighter screen this week, but there is nothing inherently unique about circular polarization 3D at the heart of their solution. The truth is that RealD too is about branding. Just like IMAX it charges a licence fee. Just not as much or with terms perceived as equally restrictive. If RealD succeeds with LUXE – and it stands a better chance than in-house PLFs – it is because the company understands IMAX and what makes it a success all too well.
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