Like most royalty, Cinema Expo International Exhibitor of the Year Award honoree Odeon & UCI Cinemas Group—Europe’s leading circuit—has a fine pedigree and rich history. Founded in 1930 by Oscar Deutsch, then acquired by the J Arthur Rank film production and distribution entity in 1941, the original Odeon remained with The Rank Organisation for 58 years more.

In February 2000, venture-capital company Cinven, which already owned ABC Cinemas, acquired Odeon Rank Group Plc. Having a few years earlier rebranded with its signature "Fanatical About Film" slogan and upgraded its fabled Odeon Leicester Square in London, Odeon aggressively built and refurbished other theatres as its ownership passed to a consortium of investors comprising WestLB AG’s Principal Finance Group, The Entertainment Group and Robert Tchenguiz of Rotch.

Cut to the near-present when, in 2004, private-equity firm Terra Firma stepped up and acquired both Odeon and UCI (Universal and Paramount’s United Cinemas International), which was a partnership of Warner Bros. and Paramount.

Now known as Odeon/UCI, the chain has become synonymous with the best in cinema-going experience. Its Odeon Leiscester Square flagship, with its 1,600-seat main auditorium, is one of the most famous movie theatres in the world today and a magnet for premieres.

Odeon/UCI’s International Exhibitor of the Year Award brings with it some important messages—reminders actually—for the worldwide film community. For starters, large scale and high quality can go hand in hand and one need not be sacrificed for the other.

Now with 202 cinemas and 1,800 screens in seven different countries, Odeon/UCI is the leading European movie chain and one of the largest exhibitors in the world. It is number one in the U.K., Spain and Italy and is second in Ireland since taking over management of Storm Cinemas. It ranks third in Germany, Austria and Portugal. (As for the conspicuous absence of France, as the saying goes, “The French, they are a funny race” and have a tradition of going their own way.)

For Odeon/UCI to maintain such high quality across so large and diverse a footprint requires unflagging vigilance and a savvy strategy, and the chain exercises both. Focus on the customer is the linchpin of this strategy, whether it applies to customer service, the customer experience or customer communication.

To assure the best service and experience, the chain uses its Mystery Shopper Programme, which, explains Odeon & UCI Cinemas Group chief executive Rupert Gavin, comprises surveys done by unidentified people hired by the chain to go anonymously into the theatres and, posing as regular customers, evaluate everything from restrooms to customer service to theatre presentation. The program is ongoing every month and has produced figures now showing 90% satisfaction.

Part of delivering to the customer is, of course, providing the optimum viewing experience. Thus, Odeon/UCI has also been a pioneer in digital and 3D technology. Since successfully completing the first trial in Europe—in several venues just outside London—of all-digital multiplexes, the company has rolled out 150 DCI-compliant screens. It is also growing its 3D capabilities and is adding IMAX screens. Says Gavin, “We’re behind what’s going on in North America, but we’re ramping up. It’s all about concluding agreements with the Hollywood studios and these are close to conclusion.”

And not only is alternative content part of the equation, it is also part of Odeon/UCI’s tradition. Gavin reminds, “Don’t forget, we’ve been doing alternative content for 50 years, as our original cinemas were combinations of film and [live performance] variety. Alternative entertainment is our roots.”

With retail also so important to the customer experience, Odeon/UCI has innovated to the extent that it is now the largest Ben & Jerry’s franchise in the world. Its customers in the U.K. also love coffee, so the chain has launched several Costa Coffee in-theatre spaces. Telepizza in Spain, because the Spaniards love pizza, and Pane & Sapori in Italy are other franchises meeting customer demand.

Odeon/UCI has also established areas in about 50 cinemas where it sells DVDs, both recent releases and the classics. The chain, says Gavin, also has bars across its footprint and often the alcoholic beverages can be brought into the auditoria.

The chain also focuses on customer communication. It has built up a database of four million households that allows it to communicate to many customers, but on a more targeted basis that is highly efficient. Notes Gavin, “Our ability to communicate this way [on the Net] allows the Hollywood studios and others to target audiences with specific films, and this is very valuable to distributors.”

Importantly, up to 30% of weekly ticket transactions are also now completed online. While mobile ticketing has not yet caught on as fast as intended, Gavin, who was most recently CEO of BBC Worldwide and has had broad experience in entertainment, media and marketing, believes it’s just a matter of time (and technology) before customers will also be using their cell-phones to get into theatres.

Odeon/UCI uses e-mail engagement techniques and provides further customer value by way of rewards incentives to bring back filmgoers.



Besides the size/quality balance the chain has achieved, the recognition of Odeon/UCI sends a second message—an affirmation of its robust health and growth. The chain’s ability to thrive, expand and grow profits, especially in recent years, provides further evidence that theatergoing continues to be recession-proof, maybe even recession-stimulated.

Just in the past economically pummeled year, Odeon/UCI has been opening new sites on a regular basis throughout Europe, with Milan, Lisbon, Liverpool, Belfast and Wrexham being the sites of key launches, says Gavin.

“At the end of 2004 when Odeon and UCI merged and into 2005, we began ramping up a new site pipeline. We then acquired Warner venues in Spain and AMC theatres in Spain and Portugal.”

Gavin says that the chain’s new sites are new builds, some replacing old sites, and that upgrades or renovations are in the expansion mix. “We’re focused very much on existing markets, but each has a different structure. For instance, the U.K. is well-developed, but at the other end you have Italy, where there is much more growth potential because there are many fewer multiplexes. We’ll be growing most aggressively in Italy and are also aggressive in Spain.”

Except for a very few single-screen exceptions, all theatres throughout the chain are multiplexes, with screen counts going as high as 22.

The Cinema Expo spotlight on Odeon/UCI provides an additional insight that should interest an embattled world of clashing nations and cultures.

Let’s call it the Odeon/UCI popcorn lesson. Recognizing the cultural differences in the countries where its theatres operate, the chain keeps patrons happy by customizing the popcorn according to local tastes. Explains Gavin, who did not share his particular tastes in popcorn, the territories vary. The Spaniards like their popcorn salty while the Portuguese go for sweet. Italy is on the salty team while the U.K. and Germany are on the sweet side.

The countries, of course, also have different movie tastes. About 30 to 40% of box-office revenue in Italy comes from local product, whereas in Spain Spanish films only account for about 10%. There are also differences in when patrons choose to see films. In Spain, Gavin says, people favor late hours like ten o’clock and midnight, but that’s not the case in the U.K. And in Italy, one of the most popular cinema-going nights is New Year’s Eve, but the British would never go for that.

As for some differences in buying habits, the Spanish are last-minute choosers who show up at the theatres and then decide. The Germans, on the other hand, love to pre-book their tickets.

While Odeon/UCI chain has gotten so many things right, including the popcorn, there are still big challenges to be met. Gavin sees the biggest as “implementing the complete digital transformation. We’re doing a lot towards that, including staff training, installing new equipment and transforming every one of our sites.”

And there’s forever the challenge of dealing with the competition. “Intriguingly, the home-entertainment options are not having so much of an impact,” Gavin observes. “For us the competition is the ‘going out’ market, all those other things besides moviegoing that people are doing outside their homes—restaurants, concerts, just sitting in the park. And certainly the weather impacts. What we most love is drizzle, because drizzle means it won’t be pleasant to sit in the park but it looks like it’s about to rain, although not so heavily that it will make getting to a theatre unpleasant.”

Rain or shine, as Odeon/UCI continues to do all the right things, “the core of our offering is a fantastic film,” says Gavin.

About the Cinema Expo recognition for Odeon & UCI Cinemas Group, Gavin declares, “We are absolutely delighted to have been awarded International Exhibitor of the Year. It’s fantastic to be recognized for our efforts and our commitment to our customers. With such a fast expansion plan, we look forward to continuing to develop the business and welcoming many more customers through our doors.”