10 Nov 10

DCM and Vue Entertainment Sign 4 Year Advertising Deal

by Jade McKerracher, Trainee Planner/Buyer

DCM (Digital Cinema Media) and Vue Entertainment have signed a 4 year advertising deal which will commence on 1 January 2011.

The deal means that DCM now has exclusive rights to sell all of Vue’s on screen advertising in all of its 67 cinemas in the UK. This is clearly a huge loss for Pearl & Dean, who previously had the contract with Vue, worth about 20% of the cinema market and which accounted for almost half of Pearl & Dean’s revenue. From 1 January 2011 DCM will have around 80% of the cinema ad sales market and the remainder will be held by Pearl & Dean.

It is not yet known what effect the change will have on the internal structure at Pearl & Dean. However, in what could be construed as a knee-jerk reaction to the loss, Pearl & Dean recently offered film-lovers the chance to download its famous “asteroid” signature tune and play it in their own homes, for a charge of £2.99.

So far cinema has managed to ride the recession quite well. In the midst of cutbacks it has remained a popular leisure activity for many consumers. However, the road ahead is paved with a number of challenges and cinema may need to widen its appeal beyond the youth audience. The new deal between DCM and Vue is a key development in the cinema market and advertisers should watch this space – will DCM live up to its reputation for innovation, and what will become of Pearl & Dean?