Theater Ad Distributor National CineMedia Raises $798 Million in IPO

Authored by Mark Hefflinger on February 8, 2007 - 8:37am.

Denver - National CineMedia, a distributor of pre-feature digital programming and advertising in movie theaters, on Thursday announced its initial public offering, which raised $798 million and saw shares rise as much as 26% in their first day of trading.

The company offered 38 million shares at $21 per share, above a forecasted range of $10 to $20.

Denver-based National CineMedia distributes digitally-delivered ads and other programming to a network of over 1,100 theaters that includes 13,000 screens.

Competitors in the space include Screenvision and Unique Screen Media.

"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," the company said.

Proceeds from the IPO will be divided among the company's theater-owner backers, who include the nation's three top exhibitors -- Regal Entertainment Group, Cinemark and AMC Entertainment.

http://www.ncm.com

Published in DMW Daily, February 8, 2007

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Comments

Crass commercialism

Submitted by Daniel Archer (not verified) on February 18, 2007 - 3:44pm.

Last night my family suffered through 15-20 minutes of commercials before we finally saw the movie. We paid $10 per person to see a movie--not some damn commercials. We pay $12 a month for HBO, which does not have commercials, and that is why we pay $12. If we pay $30 to watch ONE movie, we expect no less. We, along with several families who complained to the theatre manager, last night, are boycotting CineMedia Theatres until they remove this crap from their theatres. Additionally, we also removed Discovery Channel and NBC from our remote 'favorites', along with not purchasing Lay Potato Chips. We have now removed NBC Thursday Night, Discovery Channel. GET A LIFE CINEMEDIA!! PS, this email will not be private and WILL be shown publicly through other media.