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02/19/2013

Barter Plays A Role Between Major Hollywood Studios & Theatres

Traditionally, theatre owners were happy to run the advertisements for upcoming movies on the understanding that they drove box-office receipts and concession stand sales. Studios paid to make the trailers and cinemas screened them. Each movie came with two coming attractions attached, while other trailers ran at the discretion of the theatre � often as a result of lobbying by Hollywood marketers.

But theatre owners, realizing the value of having Hollywood�s target audience already in the theatre, have begun charging movie companies to run their trailers. Now major studios are forging marketing partnerships with theatres, in deals that cost $3 million to $6 million. The transactions include benefits such as special advertising in lobbies and on popcorn bags, along with preferential theatre placement.

Cash doesn�t always change hands. One studio spends heavily advertising on the theatre chain�s website with the expectation its trailers will be treated better as a result.


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