National CineMedia (NCM) puts on its show before the previews of coming attractions. Through its NCM Cinema Network, the company distributes in-theater advertising on more than 18,000 movie screens across the US. NCM also produces and distributes FirstLook, a pre-show entertainment program and entertainment industry infomercial. It additionally provides advertising to theater lobbies on its Lobby Entertainment Network (LEN). Its NCM Fathom Events division distributes live and recorded programs to theater screens, including concerts, sporting events, and corporate meetings. Major NCM shareholders include theater operators Regal Entertainment, AMC Entertainment, and Cinemark.
NCM's advertising network incorporates both satellite and terrestrial distribution technologies, and distributes FirstLook to screens across some 1,450 theaters. The company's LEN is a network of more than 2,800 TV and high-definition plasma screens located in about 1,300 theater lobbies. The screens are placed in high-traffic areas such as near concession stands and in other waiting areas and run a 30-minute loop of advertising. In addition, the company operates the NCM Interactive Network, which offers integrated marketing opportunities through more than 40 entertainment-related websites, online widgets, and mobile applications.
NCM saw its revenues and net income increase in 2010. Advertising sales, which accounted for nearly 90% of total revenues that year, increased thanks to an expanding client base. The remaining revenues came from NCM Fathom Events, which also saw its revenues grow due to increased revenues from sports, arts, and concert events.
The company was founded in 2005 when AMC and Regal merged their cinema screen advertising businesses (National Cinema Network and Regal CineMedia, respectively). Cinemark acquired its stake in the business later that year. NCM filed an IPO in 2007; proceeds primarily went to Regal, AMC, and Cinemark for payment obligations related to exhibitor services agreements.
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