500 in one go
Kino Mediavision is withdrawing from Switzerland. Cinecom will once again handle the marketing for all 500 movie theaters on its own.
Cinema Mediavision withdraws from Switzerland. Peter Gmür Beteiligungen AG has taken over the Swiss representation of the French cinema marketer Mediavision et Jean Mineur SA (MV) as of January 1, 2004. It is to be merged with the media marketing company Cinecom, in which Peter Gmür holds a majority stake. Mediavision's previous marketing organization, Mediapresse-Pub SA, based in Lausanne, will in future market the expanded portfolio of the Zurich-based parent company in French-speaking Switzerland as an independent agent of Cinecom, a transaction that is tantamount to MV's complete withdrawal from Switzerland. It restores a market situation that existed between 1995 and 1999, when Cinecom was also the only Swiss provider of cinema advertising. In 1999, MV put a temporary end to this monopoly by leasing the first Swiss multiplex cinema Balexert near Geneva (13 screens, 2,700 seats). In the years that followed, MV succeeded in signing contracts for a total of around 100 cinemas - exclusively in French-speaking Switzerland. In 2003, it achieved a market share of 55% in French-speaking Switzerland, but did not exceed 14% in Switzerland as a whole.
By 2002, MV had already reached its limits. Although a few more cinema leases were added, it was unable to win over any cinemas in German-speaking Switzerland, even though several new multiplexes were opened. In 2003, MV was unable to conclude a single new lease agreement.
Digitization was the death blowThis stagnation and the economic situation are probably the reason why MV is now pulling out of the Swiss market. The fact that Cinecom has pushed ahead with the digitization of its cinemas in recent months (WW 1/04) could be another reason. MV would have had to follow suit with high investments in order not to lose the favor of advertising clients and cinema owners. No comment was available from MV headquarters in Paris at the time of going to press.
Matthias Luchsinger, Managing Director and co-owner of Cinecom, suspects that the digitization project was the straw that finally broke the camel's back for MV, which was already running at a loss in Switzerland. "Even without digitization, MV had a deficit of millions in Switzerland. We have now taken over this deficit." Olivier Bloch, Director of Mediapresse, the advertising sales company commissioned by MV, only wanted to say this much: "The decision to withdraw was made in Paris. Apparently the Swiss market seemed too small for two providers."
Because Cinecom is taking on all MV obligations, the contract with Mediapresse will also remain in place. "This is more than just a must," says Luchsinger. In fact, he is transferring additional tasks to the agency, which remains independent and has represented press groups such as L'Agefi, Hachette, Burda, Promoeditions and Hersant for years, generating sales of CHF 20 million. From February 15, Mediapresse will not only manage the Cinecom cinema sector in French-speaking Switzerland, but also the advertising and program window of Sat 1 and the screen networks currently being set up. "Only the print sector is excluded; we remain competitors there," says Luchsinger. The background: Cinecom markets Teleclub's cinema magazine Close-up, while Olivier Bloch is publishing director of the free title Film demnächst/Avant Première.
Happy ending for allLuchsinger expects Cinecom to increase its turnover by 15 percent thanks to the 20 percent more cinemas. Hardly any personnel changes will be necessary. The current Cinecom representatives in French-speaking Switzerland, Michael Steffan and Daniel Beier, will remain responsible for contacts with cinema owners.
Mediapresse is also benefiting from the new situation. "C'est pour nous une excellente nouvelle", says Bloch, who expects to double his cinema turnover to 10 million francs.
"All offers from a single source "Jürg Siegrist, Director of the Swiss Advertisers Association (SWA), assesses the new situation on the cinema market
positive. "For the medium of cinema, advertising clients now have just one point of contact and all services from a single source. That is an advantage." Conversely, "the new Cinecom monopoly means that we will have to monitor price developments in the cinema medium very closely in future," he says. Siegrist sees another plus point: because Cinecom is now digitally upgrading all cinemas, including those previously owned by Mediavision, clients will be able to save money thanks to the elimination of film copies.
will soon be able to expect cost savings everywhere. (mk)
Has a good laugh: Cinecom has been the sole leading actress on Swiss cinema screens since the beginning of the year.
Matthias Luchsinger, Cinecom.
Markus Knöpfli
By 2002, MV had already reached its limits. Although a few more cinema leases were added, it was unable to win over any cinemas in German-speaking Switzerland, even though several new multiplexes were opened. In 2003, MV was unable to conclude a single new lease agreement.
Digitization was the death blowThis stagnation and the economic situation are probably the reason why MV is now pulling out of the Swiss market. The fact that Cinecom has pushed ahead with the digitization of its cinemas in recent months (WW 1/04) could be another reason. MV would have had to follow suit with high investments in order not to lose the favor of advertising clients and cinema owners. No comment was available from MV headquarters in Paris at the time of going to press.
Matthias Luchsinger, Managing Director and co-owner of Cinecom, suspects that the digitization project was the straw that finally broke the camel's back for MV, which was already running at a loss in Switzerland. "Even without digitization, MV had a deficit of millions in Switzerland. We have now taken over this deficit." Olivier Bloch, Director of Mediapresse, the advertising sales company commissioned by MV, only wanted to say this much: "The decision to withdraw was made in Paris. Apparently the Swiss market seemed too small for two providers."
Because Cinecom is taking on all MV obligations, the contract with Mediapresse will also remain in place. "This is more than just a must," says Luchsinger. In fact, he is transferring additional tasks to the agency, which remains independent and has represented press groups such as L'Agefi, Hachette, Burda, Promoeditions and Hersant for years, generating sales of CHF 20 million. From February 15, Mediapresse will not only manage the Cinecom cinema sector in French-speaking Switzerland, but also the advertising and program window of Sat 1 and the screen networks currently being set up. "Only the print sector is excluded; we remain competitors there," says Luchsinger. The background: Cinecom markets Teleclub's cinema magazine Close-up, while Olivier Bloch is publishing director of the free title Film demnächst/Avant Première.
Happy ending for allLuchsinger expects Cinecom to increase its turnover by 15 percent thanks to the 20 percent more cinemas. Hardly any personnel changes will be necessary. The current Cinecom representatives in French-speaking Switzerland, Michael Steffan and Daniel Beier, will remain responsible for contacts with cinema owners.
Mediapresse is also benefiting from the new situation. "C'est pour nous une excellente nouvelle", says Bloch, who expects to double his cinema turnover to 10 million francs.
"All offers from a single source "Jürg Siegrist, Director of the Swiss Advertisers Association (SWA), assesses the new situation on the cinema market
positive. "For the medium of cinema, advertising clients now have just one point of contact and all services from a single source. That is an advantage." Conversely, "the new Cinecom monopoly means that we will have to monitor price developments in the cinema medium very closely in future," he says. Siegrist sees another plus point: because Cinecom is now digitally upgrading all cinemas, including those previously owned by Mediavision, clients will be able to save money thanks to the elimination of film copies.
will soon be able to expect cost savings everywhere. (mk)
Has a good laugh: Cinecom has been the sole leading actress on Swiss cinema screens since the beginning of the year.
Matthias Luchsinger, Cinecom.
Markus Knöpfli
