Theaters' Recovery Drove First National CineMedia Profit in 6 Quarters

Cinema advertising network National CineMedia generated an operating profit before depreciation and amortization for the first time in six quarters, having “successfully navigated through the unique marketplace challenges that have impacted our business for nearly two years,” said CEO Tom Lesinski on a Q4 earnings call Thursday. With a more consistent film release schedule and the record-breaking box office results of Spider-Man: No Way Home, “cinema is once again providing the broad reach our clients have been accustomed to,” said Lesinski, who worked for former Warner Home Video President Warren Lieberfarb on the 1997 introduction of the DVD. “For the first time since the start of the pandemic, we're starting the year with meaningful upfront bookings, a packed and attractive film release slate and growing consumer demand to return to the theaters as COVID infection levels plummet and mask mandates come to an end.” Most 2022 film releases “are confirmed for a 40-day exclusive theatrical window,” said the CEO. Films that opened in 2021 exclusively on streaming services or day-and-date with cinema didn't benefit from the huge marketing exposure that comes from “a broad initial theatrical launch,” he said. Though ad-supported streaming is growing, it represents only about 9% of overall video consumption, “and in any given week, it provides for far less reach and overall effectiveness than cinema,” he said.