Cineplex Entertainment, a dominant movie theatre brand in Canada, is looking to enter the home entertainment market with the launch of its Cineplex Store online.
The store went live today and is accessible from Cineplex.com, which had been used primarily for movie listings. The site now allows Canadian visitors to purchase DVDs of films and television shows for home delivery through distribution partner Entertainment One.
“It’s part of our continuing strategy to provide the best entertainment experience to our guests,” said Pat Marshall, vice-president of communications and investor relations. “It’s part of our expansion in terms of our interactive business.”
When asked if home movie sales could potentially cut into cinema ticket sales—which, industry-wide, are up 4.6% on a year-to-date basis according to the Motion Picture Theatre Association of Canada—Marshall said there is little to fear.
“We know that 60% of DVD buyers saw the movie in theatres. It makes sense that we would extend the opportunity to buy the DVD or the electronic downloads, as that technology evolves. But that’s for future phases.”
Marshall would not provide details on the timing of the company’s movie download service, but did say the project’s next phase will produce a French version of the site in early 2009. Over the coming months Cineplex also plans to make video games, gift cards and movie merchandise available.
It also plans to integrate its Scene Card loyalty program with the store system. The membership card, which awards points for ticket and concession sales to be redeemed for discounts later on, is where Marshall sees Cineplex’s competitive advantage over other movie retailers such as Cinema 1 or Rogers.
“You’ll have the opportunity to earn and redeem Scene points,” said Marshall. “We’re the first touch point when guests come to movie entertainment. I think Canadians already think of us as the movie authority in this country. We’re a trusted source, and a proudly Canadian company. It makes sense to support and benefit from all of those various attributes.”
Cineplex will advertise its new offering through its media properties such as cinema pre-show, Famous magazine, in-lobby media and Cineplex.com. It will also advertise on CBC Television and use search engine marketing.
