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Living The Matrix: The Rise of The Experiential Theatre Economy

Experiential is one word that people in the movie exhibition business are going to hear a lot of. It is a word that will re-define movie theatres and re-shape the vision of theatre operators. It is important and learning the impact of this word is imperative.

The rise of this word, Experiential is being driven by the changes forced on the market by the millennial generation. Millennial’s have made it more than clear to the movie industry that they are no longer interested in the status quo. They are looking for entertainment that can adapt as quickly as the millennials themselves are changing. They are not looking for entertainment o be imposed upon them, they are looking to entertainment that they themselves can control. Millennials are totally uninterested in following any form of normalcy just for the sake of fitting in, and instead desire less material goods and more meaningful and tailored experiences within their lives.. This pesky generation is totally changing retail as they shape purchases around their values rather than product value. Offerings like the movies have to start listening to this soon to be dominant generation.

Movies are immersive and not necessarily experiential, but I believe that is coming. Millions sit in hopefully and independent movie theatre…(go ICA) waiting for the next tentpole movie to start. The movie theatre goes dark and lights flicker and for the next 90 minutes or so, we live out our fantasies through heroes that dance for us on screen. Movie theatres fulfill a need for us to be somewhere or to be someone else. As digital and audio technology has matured it has has altered our experience of escapism. As technology progressed audiences starting demanding more. Audiences are now ready to be come active participants, rather than observers. Movies created experiential entertainment and now advertisers are starting to realise the power of experiential entertainment, as it has the ability to provide that most elusive and sought-after return on investment a long-term emotional connection with a product set. When people are being entertained, they are engaged, committed , positive, proactive more inclined to share their experience and more likely to try something new. It’s an incredible state of being, which, if harnessed and used sensitively, can be exceptionally powerful for any product set.

Here is the rub though, audiences are no longer happy watching a hero, they want to be the hero.

Once you could only find experiential entertainment in top notch amusement parks; it now seems that every part of the media and entertainment economy is becoming experiential, and it seems that the drive to become experiential is actually shaping and defining consumer perceptions and thought patterns.

Movie theatres and home entertainment are soon to become hyper sensory in their nature and delivery. Virtual reality is on the rise, first with augmented reality will be fully launched then followed soon by a full deployment of a virtual holodeck like experience in theatres. Audiences will soon stop watching the movies, they will become the movie. It sounds like something out of Total Recall, the good one with Arnold not the crummy recent one. But it is coming fast. What is interesting is the studios are not prepared for it at all. It maybe hard to believe but I have experienced it. Virtual reality is where movie going and video gaming meet….We are truly entering The Matrix.

If you’re looking for a point of differentiation from the big chain theatres and seeking a substantial experience that will grow your customer base…look towards incorporating experiential into your theatre. Think of eSports, gaming tournaments, virtual reality environments, laser tag, escape rooms and much more as alternative offerings to your customer base.

What is really interesting is that malls are quickly realizing that their reliance on a purely retail environment can be no longer. They know that if their buildings are to remain profitable they must become retail-ainment business, coming both a measure of sustainable retail with cutting edge experiential entertainment offerings in order to retain the consumer interest. But other business sectors are embracing experiential entertainment as well.

I really hate flying. I find the experience painful and more than boring. Face it most people of airplanes are bored out of their gourd. Airlines have always struggled with coming up with ways to entertain the folks who fly them. Most airlines simply offered in-flight movies (rarely), painfully mediocre snacks, and more than expensive Wi-Fi so passengers could entertain themselves online (at price). But even airlines are catching the experiential bug.

One of the airlines leading the way is Air France, which recently launched Joon, an airline designed solely for Millennial travelers. That is right an airline which is geared solely to specific age group. In the age of discrimination lawsuits that is a ballsy movie by any account. One of the ways that Joon plans to make itself appear different and distance itself from other airlines is by offering distinct in-flight entertainment, including the opportunity to use virtual reality headsets. The headsets, which will only be offered to passengers on long flights who are sitting in business class, will transform the experience of watching movies and TV shows while in flight. It will also allow passengers who are not sitting next to one another to share the viewing experience with each other, and as a result making the flight much more enjoyable.

The bottom line is that the business of the movies is about to change. The experiential economy is on the march and its marching quickly. It is leaving malls and liner television channels in its dust. Theatres can adapt quickly to it. I was involved in transforming an underused auditorium in a 12 plex into a video gaming arena with 50 computer terminals and a 25 foot screen on which to play large tournaments. There were bugs to work out in the start but its now proving itself to be an accelerator for the theatre complex as a whole.

So think of integrating eSports, Virtual Reality, Escape Rooms into your facility. I am more than willing to help point the way.

By the way if you haven’t already please join the Independent Cinema Alliance, they need your ideas, your voice and your support. They are working hard to ensure that the independent movie theatre gets the support it needs in this more than challenging entertainment economy.

To support the ICA, please follow this link. http://www.cinemaalliance.org/Join.aspx