President’s ReportOct 2016 / Vol. 17 No. 3

Vol. 17 No. 3

2CONFIDENTIAL: FOR NATO MEMBERS ONLY NOT FOR DISTRIBUTION

THE PRESIDENT’S REPORT October 2016

CINEMACON 3

DIRECT DISTRIBUTION 4

GOVERNMENT RELATIONS – FEDERAL 4

GOVERNMENT RELATIONS – STATE 5

INDEPENDENT THEATER OWNERS 5

INTERNATIONAL ISSUES 6

MEMBERS REMEMBERED 7

MEMBERSHIP SERVICES 8

NATO ELECTIONS 9

NATO MEETINGS 10

REGIONAL ASSOCIATIONS 11

SECURITY 11

TECHNOLOGY 11

THEATRICAL RELEASE WINDOWS 13

Vol. 17 No. 3

3CONFIDENTIAL: FOR NATO MEMBERS ONLY NOT FOR DISTRIBUTION

THE PRESIDENT’S REPORT October 2016

CINEMACON 2017

Just Around the CornerYou can bet the house that CinemaCon 2017 will once again offer the industry a full, comprehensive, fun and exciting week when it convenes at Caesars Palace next 27 – 30 March 2017. We highly recommend you register and book your hotel rooms (www.cinemacon.com) today. Having just concluded a very successful round of studio meetings in Los Angeles, while we don’t want to spill the beans just yet, we promise the full support of the industry with better than ever studio presentations and screenings. Probably the best challenge we can face is that the demand to showcase product is greater than ever before.

We are also delighted to report that the trade show is almost sold out and our corporate and demonstration suites are totally spoken for. The CinemaCon team is hard at work planning compelling seminars, getting creative as it concerns sponsored events and parties and always thinking as to how to improve and raise the bar on the convention. 

We are committed to making your week at CinemaCon as productive and beneficial as possible. The continued success we achieve is thanks to the incredible support we receive from exhibition, distribution and the industry at large. And there is nothing more that we want than to continue this great success.

See you all at Caesars Palace next March!

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THE PRESIDENT’S REPORT October 2016

Executive Board Declined to Move Forward with Direct Distribution Model at this TimeNATO staff outlined in the Advance Report and during

both the Advisory Board and Executive Board meetings a

plan to seek a Request For Proposals regarding the costs

of setting up a potential secure, online system for direct

distribution of movies to cinemas. Following extensive

discussion and polling of the Advisory Board’s interest in the

potential system, NATO’s Executive Board declined to move

forward to develop such a system at the present time.

Government Relations Committee: NATO’s Government

Relations Committee met to discuss

pending federal legislation and regulation.

The committee discussed the range of

issues impacting NATO’s membership,

including the ADA drive-by lawsuits bill;

legislation amending the joint employer

standard; a new bill repealing the Durbin

Amendment’s cap on debit card swipe

fees; the overtime rule that will go into

effect on December 1 (more on that

below); and menu labeling regulations

scheduled for next May.

Overtime Rule: The House of

Representatives passed legislation at the

end of September delaying the overtime rule’s effective date

until 1 June 2017. The White House issued a Statement of

Administration Policy warning that President Obama would

veto the bill should it also pass the Senate. Separately, 21

attorneys general who are suing the Department of Labor

over the overtime rule asked the court in mid-October for

an emergency injunction to stop the rule from going into

effect. The attorneys general initially filed suit on September

20 asking the court for a permanent injunction on this rule,

but with the compliance date for the overtime rule less than

two months away, the states are seeking immediate court

action.

NATO conducted a webinar on the details of the overtime

rule and how it will impact movie theaters. The webinar

slide deck and more information on the rule can be accessed

here (you will need a login to the NATO website in order to

view this content).

ADA – DOJ Captioning and Description Rule: The

DOJ’s final rule on captioning and audio description has yet

to be published. The White House finished its review of the

final rule at the end of June, but the final rule publication

date is unknown.

ADA – Litigation Issues: At the Advisory Board meeting,

NATO members discussed two ADA litigation matters

of interest to theater owners. The first

case, Anderson v. Franklin Institute,

addresses a museum with an IMAX

theater’s obligation to give a free ticket

to a Personal Care Attendant (PCA) who

was visiting the museum with a severely

disabled individual. In that case, the

court found in favor of the plaintiff and

ordered the museum to change its policy

and admit PCAs at no charge. The second

case discussed was McGann v. Cinemark.

The plaintiff, who is both blind and deaf,

sued a movie theater, demanding that

the theater pay for a tactile interpreter

to accompany him to the movie. The

court ruled in favor of the theater, stating that a tactile

interpreter is not considered an “auxiliary aid” under the

ADA, and therefore the theater would not be required to

provide this service. The plaintiff appealed this ruling, and

the Department of Justice filed an amicus brief stating that

a tactile interpreter should indeed be considered an auxiliary

aid and does not constitute a fundamental alteration of the

theater’s services. The DOJ also rejected the theater’s undue

burden defense. The appeal is pending.

DIRECT DISTRIBUTION

GOVERNMENT RELATIONS FEDERAL

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THE PRESIDENT’S REPORT October 2016

Ballot Initiatives Pose Serious Challenges to ExhibitorsAdvocates are turning to

ballot initiatives to push

their agenda. Minimum

wage (five states), sweetened beverage taxes (four cities)

and employee benefits are amongst the various issues being

addressed through ballot or petition initiatives. Many of these

measures will affect exhibitors’ operations.

Addressing ballot initiatives can be very confusing for voters.

Often these ballot measures are fueled by outside interest

groups. Their ads usually try to persuade voters but do not

provide unbiased information and the language on the ballot

propositions can be complicated making it even more difficult

for the public to understand what a yes or no vote means.

NATO regional associations throughout the country are

working with coalitions to help educate voters on ballot

issues of concern to exhibition. Some outreach has already

been successful. An example of this is the proposed Part-

time Workers Rights petition initiative in Cleveland where

businesses and local lawmakers joined together to oppose

this issue. Petitioners have withdrawn their proposal.

Cinema Buying Group Offers Members Great Programs – but

Members Must Take Action to Use those Programs The CBG programs offer members real bottom line savings

on key products and services, and enable members to

better market the movies they exhibit. But these programs

can only exist and grow if members use them. If you are a

CBG member, or want to become a CBG member, please

take advantage of these programs. Volume usage will grow

these programs to better serve you. Please view this link for

the excellent summary of current CBG programs from the

CBG’s Purchasing Director, Brad Wardlow.

Indie Leaders Represent Member Concerns to Studio PartnersChair Joe Paletta of NATO’s Independent Theatre Owners

Committee (ITOC), and Vice Chair John Vincent

presided over a well-attended meeting of the ITOC on 27

September 2016 at the NATO Annual Board Meetings in

Marina del Rey, California.

Along with the four elected independent representatives to

NATO’s Executive Board (Byron Berkley, Gina DiSanto,

Jeff Logan and Mark O’Meara; and the CBG’s Managing

Director Bill Campbell, who negotiated the Cinedigm

VPF agreements for NATO), the group reported on several

key issues discussed with the distribution heads of the

studios. These topics included print availability, mid-

week discounts, three-week minimums, stacking, classic

title availability, faith-based films, and non-theatrical

competition.

The Indie leadership feels that they have made progress

on several of these issues, and continue to develop posi-

tive dialogue. They even offered push-back on destructive

policies (high guarantees, trailer demands, contract terms

specifying ticket categories and age cutoffs, etc.) proposed

by distributors that otherwise would have taken effect and

spread to other distributors.

All independent NATO members are encouraged to

attend the ITOC meetings at CinemaCon 2017 and next

year’s Annual Meetings in Marina del Rey. For general

advice and insights into studio relations and booking

practices, please refer to the first “Independent Theatre

Owners Meetings with Distribution” report distributed

to all independent members of NATO on 26 November

2014.

GOVERNMENT RELATIONS STATE

INDEPENDENT THEATER OWNERS

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THE PRESIDENT’S REPORT October 2016

Globalization – NATO Members Seek Greater Global Coordination and RepresentationIn a potentially historic step, members gathered at NATO’s

Advisory Board meeting on 28 September voted to expand

the organization’s work globally. Specifically, 85% of

members sought to expand the structure of the association

to address issues around the world. The reasons are

several, including the fact many key issues (e.g., windows,

technology, and piracy) affect exhibitors all around the

world; and the fact NATO already has members who

operate in 87 countries. At the same time, the members

gathered did not want the association to lose sight of its

important activities in the domestic market. On issues such

as government relations, theater security, the movie rating

system, and domestic distribution issues, NATO must

continue to represent its members in the United States. The

Executive Board authorized the creation of a member

task force to develop recommendations.

International Committee Meets to Address Dense List of IssuesThe NATO International Committee, following its decision

to relocate the fall meeting to the NATO Annual Meetings,

met to discuss the global scale of NATO’s activities. Chair

Jan Bernhardsson (Nordic Cinema Group) presided over

the meeting. Vice Chair Valmir Fernandes (Cinemark

International) was unavailable due to an important issue

occurring in Brazil. In attendance were NATO members

representing operations in Europe, South America, Asia,

Mexico, the Caribbean, and Canada.

One major topic discussed involved the globalization

of NATO. International expansion and recent policy

developments have broadened the association’s focus, and

NATO Chairman John Loeks wants to re-evaluate the

current governance structure in order to more accurately

reflect the global membership’s goals. As NATO researches

possible organizational changes, the International

Committee will become an important resource for guidance

and feedback. The committee set a goal to have a proposed

global structure for NATO by CinemaCon 2017.

INTERNATIONAL ISSUES

The next meeting of the NATO International Committee will take place on 26 March 2017 at Caesars Palace in Las Vegas.

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THE PRESIDENT’S REPORT October 2016

NATO General Membership Meetings Honors Carl Goldman, Ron Krueger Sr., and Curtis McCallAmidst all the policy talk and box office predictions, NATO always takes the time to honor industry leaders who passed away

during the year. It’s a good reminder to tip our caps to those individuals who represented the exhibition industry and NATO

with charisma and passion.

MEMBERS REMEMBERED

Carl Goldman (1924 – 2016) – Theatre Owners of New England

Carl spent over 60 years in the industry, and proudly represented his

constituents in New England throughout that time. A veteran of World

War II, he started working for the regional association in 1955. Carl

received the B.V. Sturdivant Award from NATO in 1995. In a heartfelt and

personal eulogy, Dan Vieira spoke of his mentor’s unflagging devotion to

the industry, even after retirement.

Curtis McCall (1956 – 2015) – Marquee Cinemas

Curtis came to the cinema industry after graduating college, and grew

his circuit to over 200 screens at 22 locations in 13 states in less than 20

years. He maintained a diverse business portfolio throughout the 1980s, and

decided to focus solely on exhibition in 1989. A proud West Virginian, Curtis

served on the regional board and national NATO’s Advisory Board. He

energetically supported his local community, and they in turn supported him

after being diagnosed with Acute Myeloid Leukemia (AML) in 2012. “Team

McCall” lives on as a lasting memory to his legacy within the community.

Ron Krueger, Sr. (1940 – 2015) – Wehrenberg Theatres

Ron was born into the industry as the grandson of Fred Wehrenberg, one

of the pioneers of theatrical exhibition. At a very young age, Ron inherited

control of the family circuit and oversaw several significant changes for

the company. He also became an important figure within his community,

donating time and resources to many local charities. Ron won the B.V.

Sturdivant Award from NATO as well, his coming in 1993. Midge Krueger

and Ron Krueger, Jr. presented the resolution on behalf of the family and

everyone back in Saint Louis.

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THE PRESIDENT’S REPORT October 2016

MEMBERSHIP SERVICES

Online Training Series Available for NATO members NATO’s Employment Training Task Force is putting the

final touches on a new online training module series for

cinema owners/operators, and will release the modules

in the near future. The series will include the following

modules:

1. Safety & Security, Parts I & II (including emergency

procedures)

2. Workplace Behavior (including EEOC, ADA and

sexual harassment)

3. Movie Ratings

4. Guest Services, Parts I & II

The modules will be available to members for $20/training,

which grants one-time access to all of the modules. Bulk

discounts and alternative licensing arrangements are also

available. Contact Jackie Brenneman at jeb@natoca.com for

more information.

Click here to sign up for updates on this program.

Young Members Committee Grows In Size, Schedules First Leadership Board MeetingAfter receiving some valuable exposure at the Fall Summit,

NATO’s Young Members Committee (YMC) has seen more

than 60 additional employees from member companies

sign up to participate. As of this writing, the YMC has

nearly 200 members. A Leadership Board composed of

nine volunteers will hold its first conference call on Tuesday,

October 25 in order to start rolling out initiatives such as

webinars, surveys, and in-person meetings.

The Leadership Board consists of:

Brock Bagby B&B Theaters

Jenny Jacobi Alamo Drafthouse

Frank Martinez Bow Tie Cinemas

Gurbani Marwah Cineplex

Jonathan Penn Cinemark

Garrett Rawson Marcus Theatres

Matthew Sharpe Southern Theatres

Mike Steineback Celebration! Cinema

Rob Westerling Regal

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THE PRESIDENT’S REPORT October 2016

Neil Campbell of Landmark Cinemas of Canada Elected to NATO Executive BoardNATO held an election this summer for four open seats on

the Executive Board – two representing regional/mid-sized

circuits and two representing independent cinemas. The voters

re-elected three incumbents, and elected Neil Campbell,

President and CEO, Landmark Cinemas of Canada, to serve

on NATO’s governing body. Here are the election results:

Two Regional/Mid-Sized Circuit

Representatives (for the 2016-2018 term):

• Neil Campbell, Landmark Cinemas of Canada

• John D. Loeks, Celebration! Cinema

Two Independent representatives (for the

2016-2018 term):

• Jeff Logan, Logan Luxury Theatres Corp. and Huron

Theatres Corp.

• Mark O’Meara, University Mall Theatres, Inc. and

Cinema Arts Theatre

Advisory Board Service Enables Executive

Board Candidacy and Voting Rights

In accordance with NATO’s Bylaws, the Executive

Board is comprised of 17 individuals who represent the

exhibition industry in the U.S. and Canada. Eight seats are

automatically assigned to the “Top Eight” companies based

on screen count, and nine seats are elected to represent

industry segments – four in the regional/mid-sized circuit

category (75 or more screens, but not “Top Eight”), four in

the independent category (fewer than 75 screens), and one

that represents NATO’s certified regional associations. The

terms for the elected seats are staggered so that some, but

not all, of the elected seats are up for election each year.

Only members of the Advisory Board are eligible to

run for the nine elected seats, and only members of

the Advisory Board who are the primary contact at a

NATO member company are eligible to vote for the

representatives in their own category. To become a

member of the Advisory Board, an individual must own

Composition of NATO Executive Board, 2016-2017 Term:

EIGHT AUTOMATIC SEATS listed by company screen count:

1 Amy Miles Regal Entertainment Group

2 Adam Aron AMC Entertainment Inc.

3 Mark Zoradi Cinemark USA, Inc.

4 David Passman Carmike Cinemas, Inc.

5 Ellis Jacob Cineplex Entertainment LP

6 Rolando Rodriguez Marcus Theatres Corp.

7 George Solomon Southern Theatres, LLC

8 Dan Harkins Harkins Theatres

FOUR REGIONAL/MID-SIZED CIRCUIT SEATS (listed alphabetically by last name):

9 Neil Campbell Landmark Cinemas of Canada

10 Nora Dashwood Pacific Theatres/ArcLight Cinemas

11 John D. Loeks Celebration! Cinema

12 Joe Masher Bow Tie Cinemas

FOUR INDEPENDENT SEATS: (listed alphabetically by last name)

13 Byron Berkley Foothills Entertainment Co.

14 Gina DiSanto Schuylkill Mall Theatres

15 Jeff Logan Logan Luxury Theatres Corp.

and Huron Theatres Corp.

16 Mark O’Meara University Mall Theatres, Inc.

and Cinema Arts Theatre

ONE REGIONAL ASSOCIATION REPRESENTATIVE SEAT:

17 Belinda Judson Heartland NATO

NATO ELECTIONS

Neil Campbell

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THE PRESIDENT’S REPORT October 2016

or be employed by a NATO member company in good

standing, and must participate in at least two meetings

of the Advisory Board. All NATO members are welcome

to attend Advisory Board meetings, held each fall in

Los Angeles. After an individual has participated in two

Advisory Board meetings, they’ll be asked to complete a

brief Advisory Board Application which will be reviewed

by the NATO Membership Committee, and approved, if

the requisite qualifications have been met.

NATO’s Bylaws limit individuals in the elected seats on the

Executive Board to serve a maximum of four consecutive

terms. Please note: Only one of the five individuals currently

holding the five seats that will be up for election next

summer (2017) will be eligible to run again; the other four

will all have reached the bylaws-prescribed maximum of four

consecutive terms and will be ineligible to seek re-election

until they sit out for a two-year term. NATO encourages

eligible Advisory Board members to consider running for

election to the Executive Board next summer.

NATO has been fortunate to have many dedicated and

talented candidates in each election since the adoption of

the revised NATO Bylaws in 2009. We appreciate the many

passionate and dedicated leaders in NATO’s membership

and thank them for their willingness to serve.

Combination of the Annual Meetings and Fall Summit was a Success!For many years, NATO’s

Annual Meetings

have brought together

exhibition’s most

committed leaders to discuss timely issues and to guide

the future of the industry. Given the abundance of current

challenges and opportunities, this year’s meeting was no

different. What was different was that NATO combined

NATO MEETINGS

the Annual Meetings with the NATO Fall Summit this

year, which resulted in record attendance at the meetings

held 27-29 September at the Marina del Rey Marriott in

California.

The Annual Meetings addressed important topics including

globalization, government relations, movie ratings,

theater security, theatrical release windows, technology,

and membership services. It also provided numerous

opportunities for networking and for reconnecting with

industry colleagues and friends, especially during the

evening events on 27 September, generously sponsored by

The Coca-Cola Company.

The NATO Fall Summit provides

NATO members with a forum to

share information and learn what

to do to promote the movie-going

experience and make it the best

possible for our guests. That core

goal was the basis for this year’s

program. The event kicked off

Ellis Jacob, President and CEO, Cineplex Entertainment LP, presents his perspectives on in-theater gaming.

Twelve millennial moviegoers assemble at NATO’s 2016 Fall Summit to share their movie-going habits and attitudes with Summit attendees.

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THE PRESIDENT’S REPORT October 2016

with an exclusive product presentation and screening of

Hacksaw Ridge courtesy of Lionsgate, and was followed

by a full day of informative and interactive sessions

concentrated on “Innovations and Strategies Focused

on Reaching Millennials and More.” Guest speakers

included Stacey Snider, 20th Century Fox Film’s new

Chairman and CEO; Brett Petit, SVP/Marketing & Sales

for Six Flags Theme Parks; Ellis Jacob, President & CEO,

Cineplex Entertainment; Ann Hand, CEO, Super League

Gaming; and a live focus group of millennials.

For those who attended, thank you for your time and

enthusiastic participation, and for those considering

joining us next year, please mark your calendar: NATO’s

Annual Meeting and Fall Summit, 26–28 September

2017, at the Marina del Rey Marriott. Please don’t

hesitate to contact us with questions or ideas, as we

continue to look for ways to grow these programs and to

grow our attendees’ bottom lines.

Regional Summit to be Held 26 – 27 October 2016NATO will be holding the annual regional summit at

Celebration! Cinema in Grand Rapids, Michigan. At this

event, NATO regional associations leaders come together

to cover important association management, legislative and

industry issues.

CyberSecurity Task Force EstablishedThe Executive Board approved a task force to examine

and collaborate on cyber and data security risks facing the

exhibition industry. Along with Chairman Dale Davison,

Senior VP, Operations and Development of Metropolitan

Theatres, current task force volunteers include:

• AMC

Scott Wiles, VP Infrastructure Systems

• CINEMARK

Lance Clark, Security Director

• MARCUS THEATRES

Mark Collins, Director of Projection Technology

• REGAL ENTERTAINMENT GROUP

David Doyle, Chief Information Officer

Randy Smith, CAO & Counsel

• A representative of the independent theater owner

community to be determined.

Contact NATO consultants Jerry Pierce and Todd Halstead

with insights or questions you have on the task force’s mission

at jerry@jerrypierce.org and trh@natodc.com, respectively.

Technology Committee Meets in Person and via Webinar – All Members Encouraged to ParticipateOn Tuesday 27 September 2016, the NATO Technology

Committee met to discuss the latest developments in

auditorium technology. Chair John McDonald (AMC

Entertainment) presided over the meeting, while Jerry Pierce,

NATO’s Cinema Technology Consultant, led the conversation.

NATO Technology Committee meetings are open to all

NATO members, so please volunteer in order to receive

meeting notifications. In addition to the in-person meeting

at the Annual Meeting, NATO broadcasts all meetings

throughout the year via a webinar service. If you cannot

attend the Annual Meeting in person, the online function

allows members to participate.

To volunteer for the NATO Technology Committee,

please contact David Binet (db@natodc.com).

REGIONAL ASSOCIATIONS

SECURITY

TECHNOLOGY

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THE PRESIDENT’S REPORT October 2016

Sony Pictures Discusses High Frame Rate Release of Billy Lynn’s Long Halftime Walk Sony Pictures attended NATO’s Technology Committee

meeting to discuss the upcoming release of Billy Lynn’s Long

Halftime Walk. According to Sony,

the current plan is to distribute Billy

Lynn in three different high frame rate

(HFR) formats: 3D 60fps, 2D 60fps

and 2D 120fps. Sony representatives

noted they plan to release exclusively in HFR.

Sony provided a list of equipment configurations that

should be capable of playing Billy Lynn in the varying

formats. This information, along with some additional

information about the technological specifications was

sent to members in a separate email.

Please email Jackie Brenneman (jeb@natoca.com)

with specific questions and concerns so she can help

communicate with our partners at Sony and with

NATO’s Technology Consultant, Jerry Pierce.

SMPTE-DCP is Coming – Are You Ready? The deployment of SMPTE-DCP (Society of Motion

Picture & Television Engineers – Digital Cinema

Package) has revealed that some exhibitors are not

performing periodic software maintenance for cinema

technology equipment. This is potentially a huge

problem, because changes

are coming rapidly, but

many of these technological

advancements cannot be

implemented if software is not

upgraded. It is critical for each

exhibitor to have a plan for checking and updating their

cinema technology equipment at least once per year. All

manufacturers provide information and updates, though

the updates may incur additional costs.

Based on our discussions with the studios, SMPTE-

DCP and other advancements are coming soon, and we

want all our members to have the information they need

to ensure smooth rollouts of new technologies. Disney

has already released a number of titles in SMPTE-DCP

through the DCDC network, and Fox’s Keeping Up

With the Joneses and Sony’s Billy Lynn’s Long Halftime

Walk will both be distributed in SMPTE-DCP format

via both DCDC and hard disc drives. A full transition to

SMPTE-DCP is expected by October of 2017.

We know that some systems may not be able to play

the SMPTE-DCP format. Let NATO know if you have

experienced any issues, or need assistance.

NATO-Studio Tech Meetings Provide a Voice for Exhibition Twice a year, members of NATO’s Technology

Committee and NATO staff meet with studios and

technology companies to discuss technology issues in

the field. The most recent visit was held on September

14-15. Rob Del Moro of Regal joined John Fithian,

Patrick Corcoran, Jerry Pierce and Jackie Brenneman

of NATO for a round of discussions with Disney,

Warner Bros., Paramount, Sony, Fox, Universal, DTS

and Deluxe. Topics covered in this round of meetings

included: immersive audio; DCI’s plans for RGB specs/

testing; SMPTE-DCP transition (covered separately);

and foreign language apps, among others. These meetings

are a valuable way to communicate with our distribution

partners about technological challenges that exhibitors

face, and to bring exhibition’s perspective to the table.

Another valuable way to have your voice heard is to

participate in key industry forums. Specifically, there is

very little exhibitor participation in SMPTE and ISDCF

(Inter-Society Digital Cinema Forum), which means that

some key industry technology decisions are being made

without key stakeholder input.

If you would like to participate in either of these

groups, email Jackie Brenneman at jeb@natoca.com.

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THE PRESIDENT’S REPORT October 2016

Netflix Seeks Wider Simultaneous Movie Release – NATO RespondsThe Wall Street Journal on October 4 reported an agreement

between Netflix and IPic – a luxury, dine-in theater company

with 15 locations – to exhibit ten movies simultaneously with

their release on Netflix’s streaming platform.

The article also suggested Netflix’s primary motivation

was to gain Academy Award consideration for its releases.

Academy rules require that movies play for a week in

Los Angeles and New York in order to be eligible for

consideration. Click here to view article.

NATO issued a statement the next day, noting that individual

exhibition companies make their own decisions about the

appropriate length of a movie’s release window and pointing

to the value of the theatrical release window to exhibitors

and studios alike and noted the economic failure of previous

attempts at simultaneous release. Click here to view statement.

The following day, Netflix CEO Reed Hastings, at The New

Yorker’s Tech Fest, asserted that “movie theaters are strangling

the movie business, so there’s no innovation in distribution in

movie theaters in the last 50 years.” Click here to view article.

NATO did not respond to Hastings’ assertions.

Industry Discussions are UnderwayAs reported in the May 2016 edition of the President’s

Report, the Executive Board directed NATO to sound

out the major studios for ways they can cooperate with

exhibitors, on a company-to-company basis, in finding

“smart windows” solutions that protect exhibition’s

interests while giving studios new methods to grow their

home market. Careful antitrust analysis guided NATO and

its members in a two-step process. First, NATO expressed

to major studios how important a robust theatrical window

is to the continuing success and viability of the exhibition

business, and how important that business is to the

studios as well. NATO also laid out general categories and

concerns on issues of windowing. Subsequently, individual

major studios and individual exhibitors have indicated

to NATO that company-to-company discussions are

underway. NATO is not involved in these discussions and

appropriately is not privy to the details being discussed.

But the association will continue to encourage the spirit of

cooperation and mutual interest as individual companies

continue their dialogue.

THEATRICAL RELEASE WINDOWS

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THE PRESIDENT’S REPORT October 2016

NATO STAFF CONTACT INFORMATION

NATO DC 1705 N Street, NW

Washington, DC 20036 USA

NATO LA 4605 Lankershim Boulevard Suite 180

North Hollywood, CA 91602 USA

John Fithian President & CEO jf@natodc.com

Kathy Conroy Vice President & Chief Operating Officer kmc@natodc.com

Patrick Corcoran Vice President & Chief Communications Officer pfc@natoca.com

David Binet Director of Membership db@natodc.com

Esther Baruh Director, Government Relations erb@natodc.com

Jackie Brenneman Manager of Industry Relations & Counsel jeb@natoca.com

Phil Contrino Data and Research Manager prc@natodc.com

Cheryl Dickson Executive Assistant & Office Manager cd@natodc.com

Bonnie Ruiz Bookkeeper br@natodc.com

NATO CONSULTANT CONTACT INFORMATION

Todd Halstead Program Consultant trh@natodc.com

Belinda Judson State Government & Regional Liaison bvj@natodc.com

Jerry Pierce Technology Consultant jerry@jerrypierce.org

Chris Rauch Controller cr@natodc.com

Brad Wardlow Purchasing Director, Cinema Buying Group bkw@cbgpurchasing.com

CINEMACON STAFF CONTACT INFORMATION60 Cuttermill Road, Suite 413 Great Neck, NY 11021 USA

Mitch Neuhauser Managing Director mitch.neuhauser@natodc.com

Matt Pollock Associate Convention Director matt.pollock@natodc.com

Matt Shapiro Operations Manager matt.shapiro@natodc.com

Cynthia Schuler Bookkeeper & Office Manager cynthia.schuler@natodc.com