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High Prices, Unruly Crowds and Lack of Quality Movies Turn Movie Goers Away from Theaters Invoke Solutions Researches the Decline in Box Office Revenues

WALTHAM, MASS -- May 1, 2006 -- As Hollywood kicks off another “so called” blockbuster summer season with the opening of Mission: Impossible III on Friday, consumers are gearing up for a summer filled with movies boasting intense drama, hot movie stars and a bonanza of special effects. However, new research indicates moviegoers will not be kicking and screaming to get into the theaters. In a recent series of Invoke LIVE! sessions conducted by Invoke Solutions, when asked what is keeping them away from the movie theaters, an overwhelming 78% of consumers said movie tickets are simply too expensive, while 66% said the same about concessions. The other top two reasons were rude crowds (and their ever-present cell phones) and the lack of quality movies.

These research findings are the results from a series of four Invoke LIVE! interactive researching sessions aimed at uncovering the truth behind the decline in box office ticket sales. This research reflects the responses from a national sample of more than 200 men and women ages 18 to 64 with an interest in watching movies.

“We found that consumers enjoy the movie experience more when the movie is compelling AND the price is right. But limited movie choices combined with the high cost of a night out at the movies are prompting consumers to stay home and watch DVDs,” said Peter Mackey, VP of Research at Invoke Solutions. “Only 23% of movie goers were ‘very satisfied’ with the quality of movies in 2005. When we probed deeper to find out why they were dissatisfied, people said there were too many remakes and sequels and that the excessive violence, sex and language kept them away from the theaters.”

The study shows that 35% of moviegoers are attending movies less than they did three years ago. During the session, moviegoers had the opportunity to explain why this is so:

• “I can watch in the comfort of my own home and don’t have to deal with other people, their children and their cell phones. I can go to the bathroom or get a snack without missing any of the movie. It’s also cheaper. By the time you buy movie tickets for two people and popcorn and soda, you’ve spent as much or more than the movie would cost to rent or buy.”
• “I go to the movies much less frequently now because there is much less in the theaters that interests me and it costs too much.”

To explore what would entice consumers to come back to the theaters, Invoke presented participants with three different twists on the movie going experience and conducted qualitative and quantitative questioning to understand each concept’s potential appeal. The concepts were presented randomly in the Invoke LIVE! session to eliminate order bias and participants were asked to rate each one and provide feedback on each idea. The three concepts were:

• A High-Definition Experience: An up close and personal theater experience with the latest in digital media technology. Watch a movie in comfortable stadium seating with your very own set of BOSE high fidelity noise-canceling headphones.
• The VIP Movie Pass: Purchase this pass for a reasonable annual fee for significant discounts on tickets and concessions, VIP seating, no waiting in lines, front row parking at the theater.
• Dinner, Drinks and a Movie: Order snacks and appetizers, as well as beer and wine during the movie with the option to stay and watch a double feature.

The VIP Movie Pass was found to be the most appealing. However, the primary benefit of the VIP Movie Pass was by far the discounts on tickets and concessions. Consistent with the other findings in the study, the other perks were much less important than the savings associated with going to the movies.

“Our research shows that there isn’t a “silver bullet” answer to this problem. The solution lies in a combination of three inter-related factors: producing more original movies, controlling run-away prices of attending movies, and improving the overall crowd experience. Unless these improvements are made, we are likely to see a continued fall-off in attendance for some time to come,” said Mackey. “Hollywood needs to pull consumers away from their ‘home theaters’ and DVDs back into the Multiplexes by creating a budget friendly and unique experience that they can only get in the movie theater.”

About Invoke LIVE!

Invoke LIVE! is a series of live interactive researching sessions with real participants designed to gain deep insight into some of today’s most widely debated business and consumer topics and demonstrate the power of Invoke platform in action. Each Invoke LIVE! session brings together approximately 50 targeted participants to interact with the moderator and answer both quantitative and qualitative questions. Participants also have the opportunity to rate concepts and provide feedback on ideas presented during the sessions – all in real time.

About Invoke Solutions

Invoke Solutions is the leading innovator of real-time researching technologies that help businesses gain instant insight into the opinions, views, and dynamics of their customers, employees, and other constituents. This insight allows Invoke clients to make fast, confident decisions to reduce risk, drive innovation, and gain a competitive advantage.

Unlike traditional, costly, and decades old research methodologies, Invoke offers live Internet sessions with large, targeted audiences to give businesses robust, trustworthy results with the depth of insight needed to drive real understanding.

Already used by many Fortune 1000 companies, the Invoke researching platform is enabling faster, smarter decisions throughout the marketing innovation lifecycle. From brand exploratory research to final communications testing and product concept tests to in-home use studies, Invoke delivers the insight needed to move forward with confidence.