Article

Now showing at Douglas Theatres: trailers on kiosks

The goal of the kiosk project was entertainment, but advertising has since emerged as a potential source of new revenue for the theater.

November 19, 2003

Moviegoers in Lincoln, Neb., don't have a chance to be bored or aggrevated waiting in line for their popcorn to pop. They're too busy selecting cool movie trailers on a kiosk and viewing the results on huge screens "floating" in the lobby.

Nanonation has developed an interactive kiosk and signage application to allow users to control the content they view on the terminal and signage around the lobby. The benefits of the kiosk trial have been significant, with even a few bonus results.

Bradley Walker, president and chief executive officer of Nanonation, said the goals of the project were building Douglas' brand and engaging customers. "Douglas looked at this as a competitive differentiator. Younger kids have a lot of visual stimulus, from HDTV to video games. Douglas wanted to think of a way to get them back every week."

But advertising on the kiosks has since emerged as a potential source of new revenue for the theater.

John Decker, chief financial officer at Douglas Theatre Co., said, "I'm a finance guy, so it kind of gets my juices flowing to thinking about the possibilities of offering advertising at the point of sale." He said the kiosks could show pictures of popcorn popping, Coca-Cola pouring and various types of candy floating across the screen.

He estimated the project to date has cost Douglas under $50,000. And the ROI potential could be great.

Decker explained, "How often do you get the chance to interact with customers when they are 30 seconds away from making a purchasing decision? That's what we're exploring now: the kiosks as a profit center."

Douglas Theatre is exploring the possibility of tying in the interactive system with concessions at a new theater under construction in Omaha. "Using kiosks and digital technology in the lobby is part of our long-term plans," said Decker.

And there is another element of ROI for the movie theater. Management can use the system to tell which movies are likely to be more popular based on the number of times customers chose a particular movie trailer.

They can use the information to better staff operations during peak periods, or offer additional showings of particular movies.

Kiosk and digital signage at Douglas Theatre

Nuts and bolts

The Nanonation system uses multiple computers and projectors to display video and promotional content while enabling users to choose the movie trailers they want to watch.

Patrons choose from a selection of current and upcoming movie trailers. The kiosk plays the multimedia clip and communicates wirelessly to a second computer controlling multiple projectors mounted in the theater's lobby.

The projectors run the chosen trailer on two 89-inch screens that are suspended in the lobby area. Two smaller circular screens run motion-enhanced sponsor advertisements.

Another original goal of the project, according to Decker, was for the theater to test how well it handles digital projection. "That's a hot button in our industry; when theaters will move to digital from 35 mm," said Decker. And the kiosk/digital signage project provided the perfect testing ground for the technology. "We found the reaction to digital projection to be positive."

Decker said the company does not have a way to track customer satisfaction with the kiosks, or whether the kiosks bring customers back to the movies. But he does have anecdotal evidence that the technology is a blockbuster. "We know what our market is and what our customers like."

Decker said some customers may avoid the kiosks because they don't know what they are for. But he added there is no way to ignore the impact of what is playing on two huge screens in the lobby, and that content is driven by the kiosks.

In explaining the Douglas project, Walker noted that Nanonation is not just a kiosk company, but a company that creates customer experience. "We capture imaginations."

He noted that the Nanonation software works on all kiosk systems and varied devices. The software can remotely manage, monitor and update devices. He pointed out that fresh content is critical in the movie business.

Walker said his company will branch out beyond movie theaters with this application. "This is applicable anywhere businesses want to offer customers control over their own messaging and entertainment."