The deal gives Screenvision exclusive advertising sales rights for Reading's American properties--City Cinemas, Reading Cinemas and Consolidated Theaters--which own theaters in New York, San Diego, and Honolulu.
As part of the deal, Screenvision will install its satellite-based digital delivery system in all the theaters owned by these three chains. Out-of-home video networks have hurried to implement digital delivery systems, offering more flexibility to advertisers by allowing them to tweak ad placement, creative and targeting over the course of a campaign.
Screenvision's system can also bring concerts, sports events and other kinds of consumer entertainment to movie screens. The digital installations at Reading's properties should be completed in the first quarter of 2009.
Altogether, Screenvision's U.S. network now includes more than 14,500 screens in 2,300 theaters around the country. Once the new digital installations are complete, its digital network will cover over 7,000 screens nationwide.
Screenvision covers 92% of U.S. DMAs through partnerships with over 150 movie chains, aggregating scores of smaller theater owners along with a handful of bigger chains like Carmike Cinemas, Clearview Cinemas and National Amusements Theaters.
By comparison, Screenvision's major competitor, National CineMedia, combines the assets of super-chains AMC, Cinemark and Regal Entertainment Group with about 10 other mid-sized chains. The NCM network includes 17,000 screens in over 1,350 theaters, covering 47 states. Seventy-two percent of its screens are in top U.S. markets.