In The Spotlight this week is Jason Pang, CEO of PRIMA Cinema, a premium in-home entertainment system that provides first run titles in a home theatre experience at a premium price. Here he talks with Box Office Insider/ This Weekend at the Movies about his company.
FOR READERS WHO DON’T REALLY KNOW ABOUT YOUR COMPANY GIVE US AN OVERVIEWS AS TO WHAT PRIMA IS.
PRIMA Cinema delivers Hollywood movies directly to the home during the theatrical release window. It allows you to watch a box office title in your private residence’s home theatre. When I talk to people about what we do it generally takes three times to describe the product and then the client usually answers “Wait, I can get it at the same time that it’s in my local theatre?” Yes, you can. They ask “Aren’t the studios shocked?” “No”, I answer, “the studios are on board with this exclusive offering”.
DO YOU SOMETIMES FEEL LIKE IT’S THE BEST KEPT SECRET IN THE FILM INDUSTRY?
Oh yes, but then people find out about PRIMA and they get it. I had a client recently in Los Angeles and they invited friends over and they asked him “how did you get this film?”. Then they explain they have PRIMA Cinema and you can get first run movies in your home. It then turns into a conversation piece and we acquire many new clients this way.
WHAT IS YOUR PENETRATION DENSITY?
We are across the entire United States but our highest density locations are in Southern California, New York Tri-State area and Florida. Texas is becoming a rapidly growing area as well.
DO PEOPLE COME ACROSS IT BY WORD-OF-MOUTH? DO YOU ADVERTISE?
We do not advertise but word-of-mouth is growing as our client base increases. The press does a lot of stories on us so that helps us in the public eye. We actually get a lot of our clients from authorized A/V installation dealers, of which we have roughly 100 signed up, and a lot of them tell their clients which leads to sales.
IS THE COMPANY JUST DOMESTIC OR ALSO INTERNATIONAL?
It’s just domestic for now but we would like to expand internationally
TELL US ABOUT THE COSTS ASSOCIATED WITH THE PRODUCT
The PRIMA player costs $35,000 retail and each first run film is $500 to rent for a single view, 24 hour period. There is no monthly fee associated with the product. The biggest surprise we’ve noticed is that many of our clients rent the same film many times so the studios make $1,000 or more just from a single household.
WHAT IS YOUR RELATIONSHIP WITH THE INDIVIDUAL STUDIOS AT THIS MOMENT?
We are continuing to sign up more studios and as of right now we are at nearly 50% of Hollywood box office volume. Based on our current negotiations with the film companies we have a high degree of confidence we’ll continue to add more studios throughout the year.
LASTLY, WHERE DO YOU SEE THE COMPANY IN FIVE YEARS? DO YOU ENVISION A TIME WHEN NOT ONLY ALL THE STUDIOS ARE ON BOARD BUT YOU ARE ALSO BRANCHING OUT INTO OTHER PRESENTATIONS?
If you were to fast forward five years we hope to have every major studio as well as every independent film company on board. Based on our market demand we should have a global presence that would include Europe, Asia, the Middle East and South America. There is such a strong international demand for PRIMA that we’ll continue to go after that very high end market because that’s the draw for the studios. The high end consumer is very hard to monetize and research shows it’s incredibly difficult to get them to go to the public box office. Therefore PRIMA takes the box office to them and we charge a premium that they happily pay for because it’s a product that’s custom catered to their schedule, privacy and family needs.