DCIN Keeps Pace with Broader Movie Industry
A trip to the movie theaters is a staple of American entertainment. While Redbox, Netflix, and other home cinematic offerings are more budget friendly, the numbers show the industry’s resilience to macro-economic concerns and suggest that for many consumers there’s nothing quite like heading to the big screen.
The movie industry has maintained steady growth from 1970-2012 despite the rise in popularity of alternative means of movie watching. The box office last year broke an all-time domestic box record.
Since its IPO in April 2012, Digital Cinema Destinations (Digiplex Destinations) has witnessed this growth and has significantly grown its own presence to a current count of 18 theaters/178 screens. Founded in 1994, DCIN has watched its numbers increase with the broader industry as it keeps the pace with changing trends and executes innovative strategies to draw in the crowds.
The company has increased total revenue per screen over the last four quarters as compared to comparable quarters in the year prior, by 18 percent, 30 percent, 15 percent, and 48 percent, respectively. In the second quarter of 2013 the company reported a seven-fold increase in revenue to $6.9 million.
As part of its strategy to achieve this growth pattern, the company offers patrons a wide range of alternative programming in addition to the Hollywood titles. In June 2012, DCIN formed DigiNext, a specialty content joint venture that features a curated series of select movies played at Digiplex theater locations. The selected films include comedies, dramas, documentaries, sporting entertainment, and independent films from festivals around the world. DCIN receives a 50 percent share of all net downstream or ancillary revenues, including DVD and download sales, and international broadcast rights.
The company’s overarching goal is to acquire existing cash flow positive theatres in top strategic markets, to profitably convert to digital format, and benefit from operational synergies, incremental revenue opportunities, and cost reductions. As part of this initiative, DCIN has its sights on establishing a national circuit featuring 100 theaters/1,000 screens in 76 top 100 DMAs, and targets 300 of these screens by year-end 2013.
For more information, visit www.digitalcinemadestinations.com