All-Day Ticket Drives Movie Buys

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The all-day-movie-ticket format continues to drive
buy-rates and customer satisfaction, according to a recent study conducted by
Viewer's Choice.

The promotion, in which subscribers can watch a movie at
any time that it is shown that day, is generating monthly buy-rates 15 percent higher than
non-all-day-movie-ticket titles, said Anthony White, vice president of research for
Viewer's Choice.

In addition, all-day titles also boost overall buy-rates:
Systems offering all-day films earn buy-rates 14 percent higher than systems not offering
the promotion.

The increases are even greater over time: After six months,
all-day buy-rates grew by 29 percent, and overall movie titles increased by 41 percent.

"What's so significant is that our initial
findings have been substantiated over time," White said. "We constantly see an
incremental lift in buy-rates."

Further, the all-day format seems to work better with
nonblockbuster titles. While movies with $40 million or more in box-office revenue
experienced an increase of 7 percent over non-all-day titles, movies with box-office
revenue of $10 million to $39 million generated an increase of 32 percent over their
counterparts.

"Systems will focus most of their attention on the
larger titles, so naturally, they'll get more exposure," he said. "Those
titles that don't get enough exposure go to the [all-day] format and perform
well."

The numbers bode well for the future of the format, which
studios initially greeted with mixed feelings. While several studios refused to license
their films for the promotion, White said Hollywood is now on board.

"There are more titles being allocated as
all-day-movie-ticket titles, so therefore, more operators are providing more awareness
about the offer," he said.

One studio executive said the format does work.

"We're supportive of anything that will increase
PPV buy-rates," the executive said. "Our research shows that our
all-day-movie-ticket titles are generating higher buy-rates."

White said the format also benefits cable operators because
it generates more revenue and, unlike discount-price offers, it does not compromise the
value of PPV.

All-day movies "are a great tool for operators because
they build buy-rates and they don't diminish the value of PPV," White said.
"They also go a long way toward building overall customer-satisfaction levels, and
that's most important."

As operators roll out digital compression and expanded
PPV-channel operations, the all-day-movie-ticket promotion could provide subscribers with
even more convenience, including a virtual pause option, White said.

"With the digital component, operators will be able to
offer as many as four channels with all-day-movie titles, which could allow for a
simulated pause," he added.

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