The document discusses how the media landscape is shifting towards mobile and online platforms, with mobile internet usage surpassing desktop by 2015. This shift is impacting businesses like cinemas. While cinema spending will remain strong, online DVD/download sales and rentals will increase at the expense of physical rentals. The document advocates that cinemas respond by creating an omni-channel experience and cross-channel touchpoints to engage customers across multiple platforms.

1. BECOMING AN OMNI CHANNEL
RETAILER BY CREATING CROSS
CHANNEL TOUCH POINTS

2. FOR DISCUSSION TODAY
How our world is shifting
The impact on our business
How Hoyts is responding

3. FOR DISCUSSION TODAY
How our world is shifting
The impact on our business
How Hoyts is responding

4. THE WORLD WE KNEW
Cinema was the preferred
movie experience
Newspapers (and PC’s) were
the critical source of
showtime information
Word of mouth was actually
spoken

5. THE MEDIA LANDSCAPE IN FIVE YEARS TIME
• MOBILE INTERNET WILL OVERTAKE
DESKTOP USAGE:
– 90% Smartphone penetration: smarter than
todays laptop
– 25% Tablet usage: Inexpensive, disposable
– 5% of all payments, 86% Second screening:
Seamless interaction
• CONTEXT AWARE EXPERIENCES
– Better Customer Data will deliver this,
Customers will control their social data
better and require an established
relationship to give it to brands
– Prevalence of Hi Definition screens in many
locations
• SOCIAL COMMERCE
– 40-50% of digital sales will flow through
social and mobile platforms, followed by
Google at 20%, 15% referral traffic, and 2%
direct-to-URL traffic
SOURCE: http://digitalmarketinglab.com.au/index.php/2012/01/29/2012-2015-digital-predictions-trends, INMA: Print + Digital Dynamic

6. THE MEDIA LANDSCAPE IN FIVE YEARS TIME
• CONTENT WARS
– Even lower cost of data distribution will
drive a war among telecommunications
companies, wireless providers, and TV
companies will occur to decide who to
pay for content.
• ONLINE VIDEO AND DISPLAY ADVERTISING
PLATFORMS TO GROW AT THE EXPENSE OF
SEARCH
– Forrester predicts a shift away from paid
search towards display advertising:
decline by 11% as paid search costs
continue to rise and ROI is eroded.
– Connected TV’s will be upto 80% of
sales providing more viewing
opportunities
SOURCE: http://digitalmarketinglab.com.au/index.php/2012/01/29/2012-2015-digital-predictions-trends, INMA: Print + Digital Dynamic

7. FOR DISCUSSION TODAY
How our world is shifting
The impact on our business
How Hoyts is responding

8. CINEMA AS AN EXPERIENCE WILL REMAIN
STRONG
Cinema Spend (A$m)
1600
1400
1200
1000
800
600
400
200
0
2009 2010 2011 2012 2013 2014 2015 2016
Cinema Spend (A$m)
SOURCE: PWC Australian & Media Landscape 2012- 2016

9. THE GROWTH IN DOMESTIC TECHNOLOGY
CREATES MORE VIEWING OPPORTUNITIES
80
70
60 Lack of competitive
50 content offerings may
40 have stalled Smart TV
30 growth and PVR
20 penetration but that is
10 being resolved quickly
0
HDTV Games PVR Pay TV Internet 3D TV
Console enabled
TV
2010 2011 2012(e)
SOURCE: Nielsen, Australian Online Landscape, Base: Online Australians 16+ n= 5104 , 2011, CEA Research

10. BOX OFFICE WILL REMAIN THE MOST IMPORTANT PART
OF THE BUSINESS, THOUGH THE ROLE OF ONLINE WILL
INCREASE AT THE EXPENSE OF PHYSICAL RENTAL
2500
2012-2016
CAGR
2000
32.9%
1500 -9.5%
1000
4.3%
500
0
2009 2010 2011 2012 2013 2014 2015 2016
Online DVD Subs/ Dig Downloads (A$M)
In-Store Rental (A$m)
Cinema Spend (A$m)
SOURCE: PWC Australian & Media Landscape 2012- 2016

11. GLOBAL CASE: MULTICHANNEL STRATEGY
"The best way to experience a movie
is still in-theatre but when guests
Exhibition want to enjoy the movie again, they
can now choose from a variety of
formats … including digital
downloads via our Download To Own
Merchandising Media or Video on Demand service, or on
DVD or Blu-ray…
CUSTOMER … in addition to our existing
entertainment content and online
ticketing, we believe we are creating
one of the most powerful online
Interactive Loyalty entertainment experiences available
to Canadians”
Alternative Ellis Jacob, Cineplex's President and
Programming
CEO, .
SOURCE: Cineplex “Delivering a premium customer experience, Annual Report 2011

12. INTEGRATED MOBILE AND LOYALTY PLAY IS A
KEY TO THEIR SUCCESS
2.8 Million app downloads (7% of all
Canadians
Number 1 movie site
Loyalty at the heart
SCENE loyalty rewards across movies,
concessions, music, DVDs/Blu-rays, digital
movie downloads, gift cards, contests.
Canadian movie distributors regularly use
SCENE to market their movies recognizing
its value and unique ability to segment and
target movie-goers and ultimately drive box
office performance.
SOURCE: Cineplex “Delivering a premium customer experience, Annual Report 2011,

13. HOW DIGITAL CHANNELS CAN DRIVE THE
CORE BUSINESS
Inspiration • INSPIRATION (STREAMING)
• Deliver trailers for cinema through
the streaming channel
• ANTICIPATION (SOCIAL)
• Help people arrange movie outings
Afterglow Anticipation
with social network tools
• ADMIN (MOBILE)
• Look up, Book, Find Cinema’s
• IMMERSION (ONLINE/TABLET)
• Interviews, behind the scenes pre
and post view
• AFTERGLOW (STREAMING)
• Opportunity to relive cinema
Immersion Admin
experience
“OverDrive, a global distributor partnered with Amazon last year to entice readers into buying the
book they just borrowed”
SOURCE: TORCH research customer experience Mapping, http://nowandnext.com/

14. FOR DISCUSSION TODAY
How our world is shifting
The impact on our business
How Hoyts is responding

15. 5 KEY CHANNEL INITIATIVES
Creating Capitalising on Better
the Tailoring Social
Expanding our Differentiated targetted
digital/mobile to the needs of
touchpoints Channel Loyalty and
information the business
Experiences CRM
opportunity

16. 5 KEY CHANNEL INITIATIVES
Creating Capitalising on Better
the Tailoring Social
Expanding our Differentiated targetted
digital/mobile to the needs of
touchpoints Channel Loyalty and
information the business
Experiences CRM
opportunity

17. IN ADDITION TO HOME THEATRE, TABLETS
WILL ALSO DRIVE FUTURE VIEWINGS
TABLET PENETRATION
40
35
2012 (e) 39
30 Driven by total market growth
25 63% usage
entertainment
20
motivated
15
10
5
0
16-24 25-34 35-44 45-59 60+
SOURCE: Nielsen, Australian Online Landscape, Base: Online Australians 16+ n= 5104 , 2011, Google Multiscreen World

18. ONLINE VIDEO IS NOW A MASS ACTIVITY
Downloading Video
Over half of the
population has
experienced some
Streaming Video type of online video in
the last 12 months
0 20 40 60
Weekly/ More often L12M
SOURCE: Nielsen, Australian Online Landscape, Base: Online Australians 16+ n= 5104 , 2011,

19. WE WILL DO THIS BY OFFERING THE
CONVENIENCE CUSTOMERS CRAVE EVEN
MORE THAN PRICE
REASONS FOR WATCHING “INTERNET TV”
Cheaper than Pay TV
Lesss ads
Missed broadcast time
Watch shows unavailable
No/ Skip ads
Able to pause/stop
It's Free
Watch at suitable time
0 10 20 30 40 50 60 70
SOURCE: NIELSEN Australian Online Consumer, 2012

20. STREAMING WILL HELP US CAPTURE THESE
NEW
NEW VIEWING OCCASIONS

21. 5 KEY CHANNEL INITIATIVES
Creating Capitalising on Better
the Tailoring Social
Expanding our Differentiated targetted
digital/mobile to the needs of
touchpoints Channel Loyalty and
information the business
Experiences CRM
opportunity

22. WE KNOW THERE ARE THREE TYPES OF
VIEWING DECISIONS
CONTENT BASED COMBINED PLATFORM/ CONVIENCE
“A good time to catch
“It had a good trailer” up with friends”
You have to see Avatar “Movies are a great
“I love James Bond
in 3D escape”
movies”
“It was on TV at the
time”
SOURCE: Screen Australia, What to watch

23. WE ARE CREATING MORE INSPIRING CINEMA
EXPERIENCES
MORE SPECTACULAR MORE LUXURIOUS

24. DIFFERENTIATED CHANNEL
EXPERIENCE

25. 5 KEY CHANNEL INITIATIVES
Creating Capitalising on Better
the Tailoring Social
Expanding our Differentiated targetted
digital/mobile to the needs of
touchpoints Channel Loyalty and
information the business
Experiences CRM
opportunity

26. CINEMA AND DIGITAL CHANNELS CLOSE THE
LOOP FOR CUSTOMERS
Gain greater
share of our
customers
viewing wallet
CINEMA DRIVES
ONLINE DRIVES ONLINE AS THE
CINEMA As THE MOST
PRIMARY POWERFUL
SOURCE OF TRIGGER FOR
INFORMATION ONLINE VIDEO
VIEWS
A more
compelling
presence online
so they consider
us first

27. BUILDING A HOYTS DIGITAL
ECOSYSTEM

28. 5 KEY CHANNEL INITIATIVES
Creating Capitalising on Better
the Tailoring Social
Expanding our Differentiated targeted
digital/mobile to the needs of
touch points Channel Loyalty and
information the business
Experiences CRM
opportunity

29. VALUING OPINION IN A CAREFULLY CURATED
SETTING CREATES GREAT ENGAGEMENT
Phase 1
1 Drive SEO/Website Views
House
Own Our Ensure Ownership
2 Of Content
Content
3 Capture Consumer Data (O&A
EDM Databases)

30. 5 KEY CHANNEL INITIATIVES
Creating Capitalising on Better
the Tailoring Social
Expanding our Differentiated targeted
digital/mobile to the needs of
touchpoints Channel Loyalty and
information the business
Experiences CRM
opportunity

31. Data Driven Targeted Content to
localise and personalise
eDMs previously have successfully focused on offer and title Moving forward we will add location relevant content
We will also
shoot location
relevant
photography

32. RECAP
Creating Capitalising on Better
the Tailoring Social
Expanding our Differentiated targetted
digital/mobile to the needs of
touchpoints Channel Loyalty and
information the business
Experiences CRM
opportunity

33. “Our tools are evolving exponentially
faster than our ability to interpret how
the tools will impact our world. This
may be the most important trend of all”
SHELLEYPALMER 2013 CET REPORT