National CineMedia (NCM) puts on its show before the real show starts at the movies (and even before the previews of coming attractions). Through its NCM Cinema Network, the company distributes in-theater advertising on about 20,150 movie screens across the US. NCM also produces and distributes
, a pre-show entertainment program and entertainment industry infomercial. Additionally, the company provides advertising to theater lobbies on its Lobby Entertainment Network (LEN). Major NCM shareholders include theater operators
Nearly all of NCM's revenue comes from its advertising segment. In addition to FirstLook and its LEN, the company sells advertising across a 40-website network and on mobile apps Movie Night Out and CinemaSync.
NCM's advertising network incorporates both satellite and terrestrial distribution technologies, and distributes
to screens across some 1,600 theaters. The company's LEN is a network of more than 3,000 TV and high-definition plasma screens located in about 1,475 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 apps.
NCM is headquartered in Colorado with sales offices in New York, Chicago, and Los Angeles. Its network operates in 48 states and Washington, DC.
Sales and Marketing
The company's advertising business has a diverse customer base, consisting of national and local advertisers.
NCM reported $394 million in revenue for fiscal 2015. That was a decrease of $68.8 million compared to the prior fiscal period. Its net income was $13.4 million in fiscal 2015. That was a decrease of $27.8 million compared to the company's fiscal 2014 net income.
NCM's cash flow from operations decreased by more than $35 million during fiscal 2015, bu the company still ended the year with $117.9 million in cash on hand.
The company has been expanding its mobile apps to reach customers on their smart phones. Physical expansion is also part of NCM's plan for growth. NCM has entered into agreements with multiple new affiliate theater circuits in recent years.
The company also intends to launch an aggressive sales, marketing, and public relations strategy to differentiate its marketing product compared to other national video networks.
Mergers and Acquisitions
In fiscal 2014 NCM acquired
for $375 million of cash and stock.
The company was founded in 2005 when AMC and Regal merged their cinema screen advertising businesses (
National Cinema Network
and Regal CineMedia, respectively).