BROADCASTS.com

Cinemark's new subscription service - Movieclub - a good start, however bolder steps are required. \nMovieclub subscription service:\n$8.99 per month;\n1 2D movie per month per subscriber;\nUnused tickets roll over and never expire;\nMembers may share unused allocations with other members and non-members;\nNo online fees;\nAdditional tickets may be purchased at member price of $8.99;\n20% discount on concessions;\n\nNotes, Assumptions and Our Advice to Theater Owner/Operators:\n - Avg ticket price for a Friday/Saturday night 2D movie = $11. Therefore Movieclub subscription is approx. an 18% discount per ticket (before the 20% concession discount); \n - Positive for Cinemark in that this offering will increase Cinemark's revenue visibility, albeit at discounted prices;\n - My view is that theater owner/operators need to take bolder steps to further mitigate the risk associated with the mega-trend that is in-home viewing (which applies downward pressure to theater-owner revenues). Our advice: make the capital investment and partner with movie studios and technology companies to offer premium services such as Augmented Reality ("AR") and Virtual Reality ("VR") in-theater experiences.