Fast Facts

Background

 

  • NCM LLC was formed on March 29, 2005, by as a joint venture between American Multi-Cinema, Inc (AMC) and Regal CineMedia Holdings, LLC (RGC). On July 15, 2005, Cinemark Media, Inc. (Cinemark) joined NCM LLC as a founding member.
  • NCM operates the largest digital in-theatre network in North America.
    •  As of September 29, 2016 we had nearly 20,500 screens in our network.
  • Our network is currently located in 48 states and the District of Columbia and covers all of the top 25, as well as 49 of the top 50, DMAs® , and 187 DMAs® in total.
  • More than 700 million moviegoers annually attended theaters that are currently under contract to present NCM's FirstLook pre-show program.

 

Industry Data

 

  • Today, cinema advertising accounts for a small but growing portion of the U.S. advertising market.
    • Large addressable market -- 2015E total U.S. advertising spending: $184 billion.1
    • Cinema advertising revenue was an estimated $716 million in 2015.2
    • Cinema advertising spending to more than $7.31 billion since 2002.2
  • Superior advertising network
    • Movie-goers recall advertising messages four to six times better than television viewers.
    • Cinema advertising audiences have a 73% unaided recall rate, compared with 13% for network television audiences.3
    • Cinema advertising targets a young, affluent and educated audience.

 

Competitive Strengths

We believe that our key competitive strengths include:

 

  • Superior, Targeted National Advertising Network. We believe our ability to deliver marketing messages in theatre auditoriums to young, affluent and engaged audiences using our digital content network provides measurable results, yielding a superior return on investment for advertisers as compared to many traditional media platforms. Our digital network technology gives us flexibility in distributing content to our entire audience, specific theatres, geographic regions, or demographic groups based on film or film rating category.


  • Innovative, Branded Digital Pre-Feature Content. We believe that our digital entertainment and advertising pre-feature program, FirstLook, provides a high-quality entertainment experience for patrons and an effective marketing platform for advertisers.


  • Integrated Marketing Products. By bundling on-screen advertising with our in-lobby and ncm.com marketing programs, we believe our advertisers can extend the exposure for their brands and products and create an interactive "relationship" with the consumer that is not available with broadcast television or traditional display advertising.


  • Scalable, State-of-the-Art Content Distribution Technology. Our technology provides the ability to electronically change advertisements from our network operations center as needed by advertising clients, which shortens lead times, provides increased flexibility to change messages or target specific audiences, and significantly reduces distribution costs.


  • Strong Operating Margins with Limited Capital Requirements. A significant portion of our advertising inventory is covered by multi-year contracts. Due to the agreements with our founding members and the scalable nature of our business model, we do not expect to make major capital investments to grow our operations as our network of theatres expands. The combination of the presale of a significant portion of our advertising inventory, our strong operating margins and our limited capital expenditures has allowed us to generate significant net income before distributions to our founding members.


  • Experienced Management Team. Our management team has significant experience in advertising sales and marketing, theatre operations, digital network design and operations, and finance. The majority of our senior management team was assembled during the formation of RCM, our predecessor company, in early 2002.

 

Credit Ratings

National CineMedia has been assigned the following ratings by the credit ratings agencies:

 

  • Standard & Poor's: BB- corporate credit and bank loan rating, B notes rating
  • Moody's: Ba3 corporate family, Ba2 bank credit facility, and B2 notes rating

 

1 According to eMarketer
2 According to CAC (Cinema Advertising Council
3 According to a 2005 Roper study, as cited by a 2000 Nielsen Media Research study commissioned by the Cable Advertising Bureau.

 

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