This statement may seem remarkable at first coming from someone who also holds formidable positions as vice chair of the boards of directors of Viacom, CBS Corporation and Midway Games, not to mention the title of co-chairman and co-CEO of MovieTickets.com. Then again, Shari is the daughter of Sumner and granddaughter of Michael Redstone, who founded the privately held corporation over 70 years ago.
"I am so proud of what we do as a company," Redstone reflects on her ShowEast 2006 Achievement Award in International Exhibition. "I think we have really tried to take advantage of the opportunities that exist and be creative in terms of how we develop them. In that regard, it is certainly nice to be recognized for what you do. But the truth is," she insists, "we are all in this together. All the exhibitors are trying to do great things to ensure the success of theatrical exhibition around the world."
Hard to believe it has been 20 years since National Amusements officially established its foothold in the United Kingdom. Given the Dedham, Massachusetts-based circuit's history of innovation and expansion, it is no surprise, however, that over the following ten years no fewer than 15 Showcase Cinemas and almost 200 screens were built there. It was also in 1996 that NA began traveling to South America, with the first theatre opening in Maipu, Chile, followed in July 1998 by that country's second complex. Today, the region offers six more Showcase locations in Argentina (with 74 screens including Center Norte with the only IMAX 3D theatre in South America) and, since the 2005 purchase of UCI's holdings, ten locations (111 screens) in Brazil, three of which are in partnerships.
On that subject, Redstone says she believes "in the importance of relationships. The quality of what you do is based on the quality of people you work with. Internationally, it obviously takes even more of an effort to build relationships and to maintain them, just because of the distance involved." Having an infrastructure already set up helps avoid unnecessary start-up costs. "When we bought the theatres in Brazil," she notes, "we already had those in Argentina and Chile and were able to utilize the management of the circuit we acquired--because they were terrific--and to have them work with the management we already had. Entering into Russia, we had an infrastructure in the U.K." For that reason, "while there may be a lot of opportunities, let's say in India or China," she cautions, "we tend to concentrate on the general geographic areas where we already do business."
Back in the United Kingdom, with the addition of two cinemas and 28 screens in Scotland and one Showcase of 12 screens in Wales, NA's portfolio has grown to 19 multiplexes and 243 state-of-the-art auditoria. On the horizon for 2008 and beyond are four locations under the Cinema de Lux brand for the U.K. and additional openings in Moscow and St. Petersburg to be announced later this year. NA's Russian enterprise began in 2002 with the founding of Rising Star Media--a joint venture between National Amusements and Soquel Ventures, led by Paul B. Heth, that also collaborated on The Bridge: Cinema de Lux in Los Angeles and Philadelphia--and the subsequent opening of its first KinoStar de Lux on Sept. 19, 2003. After KinoStar Mega Khimki and the spring 2007 opening of Russia's largest complex so far at KinoStar City 14 in St. Petersburg (FJI, Sept. 2006), Rising Star will be operating 37 screens. On the drawing board for November 2007 target openings are a 10-screen KinoStar Classic (at Ikea Mega St. Petersburg) and a second KinoStar City (Ikea Mega Belya Dacha in Moscow) with 16 screens and additional entertainment themed as New York, New York.
"Things are more the same than they are different," Redstone says about customer expectations in different parts of the globe. "Everywhere, people love a great moviegoing experience in terms of technology and comfort, with a sense of luxury. They want to be treated special. They want the experience to be personalized, their visit to be hassle-free, and to have great things to eat." That being said, NA "does take a look at each culture to see what is it that people like...what is going to make them feel special and alive." In a retail and service-oriented environment, "you have to understand your consumer... There isn't any business out there including ours--and maybe even especially ours--where the consumer is not in the driver's seat." At the end of the day, she finds "the whole industry is facing the challenge of making sure that moviegoing doesn't become a commodity but is personalized and stays special. This is the philosophy that we take everywhere we do business."
For Redstone, another "one of the neat opportunities" of doing business abroad is "to take a fresh look at the business. In terms of architecture and décor, in terms of having new and creative offerings, we've really been able to test the limits more abroad than we have in the United States. In some ways, a lot of what we've done in Russia we are now bringing back here." She mentions different pricing structures, live entertainment and the stage built for it on top of the concession stand at the first KinoStar in Moscow. For the second venue, "we built it even larger and during the opening had the orchestra of the Bolshoi Ballet perform. I think we're able to better test new concepts abroad, as you are not limited to how you normally do business."
On the other hand, NA can surely rely on three generations of expertise that help start off markets with--and often leapfrog them to--what Redstone calls "the latest and the greatest." In terms of territories chosen and under consideration, generally "we look for some of the same things we looked for when we first started in the United States. Namely, underserved markets that present a lot of opportunities for our business"--opportunities like acquiring land, building modern facilities and increasing average moviegoing. Seizing the right moment "when not everybody is looking at the same time" represents a challenge--along with those of the economic, legal, social and cultural variety--in that a market "goes from being way underserved to almost being oversaturated in a quick period of time. That is one of the dangers now, not only in the United States, but also in the international markets."
No wonder that NA looks at "our business as being there for the long term. We know there will be ups and downs, but let's face it," she laughs, "when you hit a down, you're never prepared for it. Even though it's part of your basic business plan, it's never something you'd want to see." In terms of good sights to behold, Russia is her pride and joy. "It was a market that a lot of people wanted to stay away from and were uncomfortable with," she recalls. "I was really fortunate to hook up with Paul and to be able to understand this market in a unique way because of his experience there. I don't think anybody really believed that we could do it and be successful. Our ability to be successful in a market with so many challenges as well as with so many opportunities is something that I am really the most proud of."
Russia is also proof positive of the effect new theatres have on filmmaking. Observes Redstone, "Almost every country where we have done business has seen an immediate surge in local production. That goes to show when you pick the right country where they love entertainment and you rebuild the movie theatres, it really excites everybody in all aspects of the business. When people enjoy local films and see local talent they know and love, that success helps foreign films as well," she has observed. "We do everything we can to screen films, help people get visibility and distribution. That has actually been super-exciting." A case in point is Monumental Pictures, a joint production company with Sony working on its second feature film. "There are many films that do well around the world--and thank goodness for those--but at the end of the day a lot of a country's identity is based on their own productions and it is our job to support that."
