Cinemark Holdings, Inc. operates in the motion picture exhibition industry.
The company’s U.S. circuit operated 304 theaters and 4,255 screens and its Latin America circuit operated 193 theaters and 1,398 screens across 13 countries. The company’s significant and diverse presence in the U.S. and Latin America has made it an important distribution channel for movie studios and other content providers. The company’s portfolio of high-quality theaters with multiple platforms and amenities provides...
Cinemark Holdings, Inc. operates in the motion picture exhibition industry.
The company’s U.S. circuit operated 304 theaters and 4,255 screens and its Latin America circuit operated 193 theaters and 1,398 screens across 13 countries. The company’s significant and diverse presence in the U.S. and Latin America has made it an important distribution channel for movie studios and other content providers. The company’s portfolio of high-quality theaters with multiple platforms and amenities provides a preferred destination for moviegoers and has contributed to its consistent industry-leading results.
As of December 31, 2024, the company managed its business under two reportable operating segments: U.S. Markets and International Markets.
Strategy
The company’s strategies are to deliver an extraordinary guest experience; maximize attendance and box office while expanding revenue opportunities; and maintain a disciplined focus on productivity and profitability.
Theatre Operations
As of December 31, 2024, the company operated 497 theaters and 5,653 screens in 42 United States, or ‘U.S.’ states and 13 Latin American countries. The company is a market leader in Brazil and Argentina, where the company is the largest exhibitor. The company also has significant market presence in Colombia, Peru, and Chile.
Content
The company offers a wide variety of content at its theaters. The company monitors upcoming film releases and other content and work diligently with film distributors to license content that will be most successful in its theaters. The company plays mainstream films from many different genres, such as animated films, family films, dramas, comedies, horror and action films. The company offers content in both 2-D and 3-D formats in all of its theaters, and in many locations, it offers either the company’s own premium large format, XD, IMAX or ScreenX. The company also offers a format that features motion seats and added sensory features.
The company offers a variety of alternative entertainment content for its guests. Examples include concert, sporting and gaming events, as well as art, independent, faith-based, and multicultural foreign language films. In certain Latin American markets where the company operates, it also offers local film product to its guests. Additionally, the company has the functionality and technological infrastructure to live-stream events via satellite network across its portfolio of theaters in the U.S. and Latin America.
In addition, the company’s joint venture, AC JV, LLC, with Regal Entertainment Group and AMC Entertainment, Inc. provides marketing and distribution of live and pre-recorded entertainment programming to augment theaters’ feature film schedules. AC JV, LLC, referred to as Fathom Entertainment, is the largest distributor of documentaries and inspirational content, as well as classic films and performing arts, such as the Metropolitan Opera.
Film and Content Licensing
In the U.S., the company’s corporate film department negotiates with film and content distributors to license content for each of its domestic theaters. Local film personnel in the company’s international offices negotiate with local offices of major film distributors, local film distributors and independent content providers to license films for its international theaters. Film distributors determine film release dates, as well as plan and fund the related film marketing campaigns, while the company is responsible for scheduling the films at each of its theaters at the optimal showtimes for its guests.
In both the company’s domestic and international locations, film rental fees are based on a film’s box office receipts. The majority of film rental rates are negotiated on a sliding scale formula, under which the rate is based on a standard rate matrix that is established with each content provider prior to a film’s theatrical run. The company may also negotiate some film rental rates on a firm terms formula, a percentage of box office receipts negotiated prior to a film’s theatrical run, or a rate that is negotiated after a film’s theatrical run.
Food and Beverage
Concession sales are the company’s second largest revenue source. The company has expanded concession sales by enhancing its offerings and adapting to its customers’ changing preferences, as discussed below. The company has partnered with major third-party delivery services, such as DoorDash, Uber Eats, Grub Hub, and 7Now to offer home delivery of its customers’ favorite movie theater snacks from many of its U.S. locations.
Product Mix: Core concession products offered at all of the company’s theaters include various sizes and types of popcorn, soft drinks, frozen carbonated drinks, candy and quickly prepared or pre-packaged food, such as hot dogs, pizza, pretzel bites, nachos, and ice cream. The company’s food and beverage offerings vary in particular markets based on guest preferences. In many markets, the company offers enhanced food and beverage options for its guests, including beer, wine, and cocktails, freshly made signature Pizza Hut pizzas, burgers, sandwiches, and specialty desserts, as well as some healthier snack options and diverse ethnic foods based on market demographics.
The company has dedicated category managers that monitor product sales, new product variations, upcoming content and events, and make adjustments to product mix on a theater-by-theater or market-by-market basis. This approach also allows the company to efficiently activate and manage both national or regional product launches and promotional initiatives to further grow food and beverage sales.
New products and promotions are introduced on a regular basis to increase concession purchase incidence from existing consumers, as well as to attract new consumers. In all of the company’s domestic theaters and certain international countries, it offers a free loyalty program that routinely offers food and beverage promotions and rewards. The company’s paid subscription programs allow its guests to receive exclusive concessions discounts.
Innovation: The company offers unique movie-themed merchandise to customers both in its theaters and online to enhance their experience and drive incremental revenue. Additionally, the company has partnered with strategic suppliers to create an online store that offers unique merchandise to guests across the country from the comfort of their homes. The company is also the first major theater exhibition company to partner with Door Dash, Grub Hub, 7Now, and Uber Eats, to allow consumers to have many of its concession products delivered to their homes.
Theater Design: The company’s theaters are designed to optimize the guest purchase experience at the concession stands to facilitate serving guests in an expedited manner. The company strategically designs large concession stands to heighten visibility, reduce the length of concession lines, and improve traffic flow around the concession stands. The company incorporates queue lines, self-serve candy cases, grab-and-go food cases, modern digital menu boards and bottled drink coolers at its concession stands to help provide convenience for its guests, drive impulse purchases and increase product visibility across the company’s core categories. The company also has self-service cafeteria-style concession areas in many of its domestic theaters, which allow customers to select their own food and refreshments and proceed to the cash register when they are ready. This design allows for more efficient service and superior visibility of concession items. The company also has lobby bars and VIP lounges in many domestic and international theaters that provide guests space to socialize outside of the auditorium.
The company’s proprietary mobile concession ordering capability allows moviegoers to purchase their cinema snacks in advance and have them waiting to be picked up upon arrival or delivered directly to their seat. This functionality streamlines the guest experience, adding convenience and enhanced guest service for the company’s customers. As of December 31, 2024, mobile concession ordering was available at all of the company’s U.S. theaters. Similarly, guests in the company’s Latin American locations can pre-pay for select concession products online or at kiosks within the theater and pick them up at the concession stand.
Staff Training: Employees are continually trained on proper sales techniques, food safety, preparation and handling, and maintaining the quality of the company’s concession product offerings. Many employees are also certified in food safety protocols and serving alcoholic beverages.
Cost Management: The company negotiates concession prices and rebates that are volume or promotional based directly with its suppliers. Concession products are generally managed through a distribution network, with theaters placing and receiving orders directly through a distributor. The company monitors inventory levels at every theater to ensure proper stock levels are maintained to appropriately serve its guests.
Screen Advertising
The company’s U.S. theaters are part of the in-theater digital network operated by National CineMedia, LLC (NCM). NCM provides advertising to the company’s theaters through its branded ‘Noovie’ pre-show entertainment program and also handles certain lobby promotions and displays for its theaters. The reach, scope and digital delivery capability of NCM’s network provides an effective platform for national, regional and local advertisers to reach its audiences. The company receives a monthly theater access fee for participation in the NCM network, which includes screen rental revenue on a per patron basis and on a revenue share basis depending on the placement of the advertisement.
Throughout the company’s international markets, the company has developed its Flix Media brand that handles screen advertising functions in all of its Latin American countries. The company’s Flix Media marketing personnel work with local agencies and advertisers to coordinate screen advertising in its theaters, as well as other theaters in its markets. In addition, the company continues to expand Flix Media’s services to include, among other things, alternative content, digital media and other synergistic advertising products.
Marketing and Promotions
Digital Marketing: The company’s investment in digital marketing and customer experience over the past several years has enabled it to expand its reach to the company’s guests, communicate with them on a consistent basis, and streamline their digital customer journey. The company continues to adapt its platforms to engage movie-goers more effectively and make it as compelling and simple as possible for them to purchase their next movie ticket and concessions from it. Through both organic and paid marketing efforts, the company keeps its millions of guests informed through email, social media, website and mobile app updates, and advertising to promote upcoming content and keep Cinemark elevated in the moviegoer consideration set.
Transforming the digital customer journey has enabled the company to more effectively reach movie-goers through targeted and refined search engine optimization and provides the customer a better experience once they are directed to its website or app. The company regularly conducts comprehensive analysis of the customer journey on its channels, making updates that reduce clicks and decrease the friction from search to ticket purchase. Ongoing enhancements result in higher traffic volume to the company’s digital channels and increased ticket and concession purchases.
In an effort to more deeply engage with the company’s guests, the visual identity and physical flow of its theaters are regularly assessed. This includes keeping all signage, merchandise, food and beverage vessels and employee attire updated and reflective of the modern experience.
Campaigns and Promotions: The company marketd its theaters and special events, including new theater grand openings, remodel re-openings and VIP events, using email/in-app push messaging, social media communications, digital advertising, and various forms of traditional media advertising. The company exhibits previews of coming attractions and current films as part of its on-screen pre-feature program. The company offers guests access to movie times, the ability to buy their tickets and reserve their seats in advance, and purchase concessions, merchandise and gift cards at its website www.cinemark.com and via its mobile applications. Guests can subscribe to the company’s emails and push notifications to receive information about current and upcoming films and events at their preferred Cinemark theater(s), including details about upcoming XD movies, advanced ticket sales, screenings, special events, concerts, live broadcasts, contests, promotions, and its latest concessions and merchandise offerings. The company partners with film distributors on a regular basis to promote upcoming films through local, regional and national programs, many of which are exclusive to its theaters.
Social Media: In the evolution of the company’s external communication strategy, it is meeting movie-goers where they are and ensuring the company is present as they scroll throughout the day. The company interacts with moviegoers every day on social media platforms, such as Instagram, Facebook, Snapchat, X and TikTok to provide advanced ticketing, promotions, and event information and to monitor and respond to guests’ questions and feedback.
Membership and Loyalty: The company’s domestic subscription membership program, Movie Club, offers guests a standard monthly ticket credit, waived online fees, member-pricing for a companion ticket and concession and other transaction discounts for their choice of a monthly or annual fixed price. Movie Club is a unique option to reward the company’s loyal guests and allows it to stay informed of frequent moviegoers’ preferences. Movie Club includes a premium tier, Movie Club Platinum, allowing members with a high visit frequency and/or high volume of ticket purchases during the year to earn additional movie ticket credits, receive an increased concessions discount and the ability to purchase additional tickets at a discounted price.
The company offers a free domestic loyalty program, Movie Fan, to its guests in the U.S. Movie Fan allows its moviegoers to earn one point for every dollar they spend. Points can then be redeemed for tickets, concession items and discounts. The company’s loyalty programs are closely monitored, and new strategies are consistently tested to incentivize consumers to prioritize visiting its theaters.
The company also has membership and loyalty programs in most of its international markets that either allow customers to pay a monthly or annual fee for a membership card that provides them with certain admissions and concession discounts or that allows guests to earn loyalty points for each purchase. Similar to the Movie Fan program, the company’s points-based international programs offer discounts on movie tickets and concessions.
The company’s global loyalty programs put it in direct contact with its moviegoers and provide opportunities for the company to partner with the studios and its suppliers through targeted promotions.
Competition
The company’s primary U.S. competitors include Regal and AMC. The company’s primary international competitors, which vary by country, include Cinepolis, Cine Colombia, CinePlanet, Kinoplex (GSR), UCI, Royal Films, and Araujo.
Seasonality
The company’s revenues have historically been seasonal, coinciding with the timing of releases of motion pictures by the major distributors. The most successful motion pictures have historically been released during summer months in the U.S., extending from May to July, and during the holiday season, extending from November through year-end. In the company’s Latin American markets, while Hollywood content has generally similar release dates as in the U.S., local holidays and seasons vary.
Regulations
The company is subject to various general regulations applicable to its operations, including the Americans with Disabilities Act of 1990, or the ADA, and regulations promulgated by the U.S. Food and Drug Administration and certain state laws that require nutrition labels for certain menu items. The company’s domestic and international theater operations are also subject to federal, state and local laws governing such matters as data privacy, wages, working conditions, citizenship, health and sanitation requirements, trade compliance, and various business licensing and permitting.
Geographic Areas
The company has operations in the U.S., Brazil, Argentina, Chile, Colombia, Peru, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, Guatemala, Bolivia, and Paraguay.
History
Cinemark Holdings, Inc., a Delaware corporation, was founded in 1984. The company was incorporated in 2006.
