Google and MarketCast Release Benchmark Study on the Internet's Influence on Consumer Moviegoing

Google Inc. and MarketCast today released summaryresults of a research study entitled "The Internet and Moviegoing: ABenchmark Study on Influences and Opportunities." An overview of theresearch, commissioned by Google in July 2006, was presented thismorning by MarketCast VP and General Manager Henry Shapiro, at anexclusive symposium at the Regent Beverly Wilshire Hotel attended bytop marketing, creative and research executives from the film studiosand television networks. The event was sponsored by Google, Variety,and the Motion Picture Association of America (MPAA). Dan Glickman,Chairman and CEO of MPAA served as keynote speaker and Charles C.Koones, President and Publisher of Variety moderated a panel includingguests: Dean Garfield, MPAA; Richard Glatzer, director of Quinceanera;Gordon Paddison, New Line Cinema; and Rick Krugh, Google.

MarketCast surveyed approximately 2,100 moviegoers ages 13 to 49via telephone and the Internet to test two main hypotheses:

1. The Internet--as a medium for content, advertising, community and commerce--wields substantial influence in the decision-making process of moviegoers; and

2. The Internet's influence looms large compared to the resources applied to it as a marketing medium for entertainment companies.

The study found that these moviegoers recall televisionadvertising, trailers and word-of-mouth as the most important sourcesof what MarketCast called "first awareness"--essentially the firstintroduction of a movie to a potential consumer. However, in betweenfirst awareness and the point of sale--during the critical period inwhich consumers learn more about movies, winnow their choices, andlook up showtimes and theater locations--the Internet's influence isvast.

MarketCast found that 49% of moviegoers surveyed actively researcha movie after first hearing about it; and of these, seven in ten gothe Internet, typically using search engines like Google. MarketCastcalls this influential segment "Moviegoing Infoseekers," and foundthey account for about a third of respondents. "These are activistconsumers, for whom the decision to see a movie is not made in asnap," noted MarketCast's Shapiro. "Trailers and TV ads aren't enoughfor them. They want to know more, they want to make comparisons and doadditional research; and they're using the Internet to satisfy theirinformation needs on a proactive basis."

Importantly, when it comes to the movies, the Internet is not anexclusive province. All ages of men and women, and people from everyeducational stratum and background were represented just about thesame in the Infoseeker segment as they were in the Traditionalsegment.

Other findings include the following:

-- Just over half of the moviegoers surveyed (Infoseekers and Traditional combined) use the Internet to research movie schedules and theater locations, more than all other sources combined. Newspaper listings are second, at 18%, but only the older moviegoers (those 35 and older) were found to use newspaper listings with any great frequency (one in three of those over 35, compared to just 13% to 16% of the younger age groups).

-- Infoseekers are four times as likely to first find out about a movie via the Internet (16% compared to 4%) and are a third less likely to first find out about a movie via television (32% compared to 48%).

-- More than a third of Infoseekers say the Internet--search engines, general portals, entertainment websites, sites created by studios for specific movies, ticketing sites--is the most influential medium in their decision to see a movie, compared to just 7% of Traditional Moviegoers. Fewer than half of Infoseekers say that television is the most important medium, versus 70% of traditional moviegoers.

"MarketCast's research suggests a disparity between the influenceof the Internet in driving consumers to theaters and the amount ofmarketing dollars spent online," said David Fleck, Google's IndustryMarketing Manager, Media and Entertainment. "As marketers have abetter understanding of the Internet and new advertising productsbecome available, the Internet is becoming more effective atgenerating awareness and driving tickets sales."

"We are not saying to cut your television budget and put all ofyour money into search and Internet advertising," added MarketCast'sShapiro. "This is a benchmark study. This research, and the waves tofollow, are meant to serve as a fact-based framework to help thestudios set marketing strategy and allocate resources. This year'sresearch shows that the Internet is hugely influential for manymoviegoers, so it certainly bears monitoring and being informed."

"Clearly consumers are using the Internet to guide them inmoviegoing--helping find showtimes, locations and reviews," saidMotion Picture Association of America, Inc. (MPAA) Chairman and CEODan Glickman. "In addition, there is a world of opportunity on theInternet not only for delivering movies but also promoting them andour studios are working to harness those opportunities and get moreconsumers to the movies."

About MarketCast

MarketCast is a leading provider of marketing research for motionpicture studios, television networks, and production companies.MarketCast services support marketing strategy at every point in thelifecycle of an entertainment project, from development throughmarketing for the theatrical release and the DVD release, in bothdomestic and international markets. These services, which MarketCasthas provided to studios and networks for hundreds of film andtelevision projects, include brand and segmentation studies,advertising testing, focus groups, tracking studies, DVD salesforecasts, and a host of custom studies. MarketCast is a division ofReed Business Information. For more information go towww.marketcastonline.com.

About The Variety Group/Reed Business Information (RBI)

The Variety Group, Daily Variety, Daily Variety Gotham, WeeklyVariety, Variety China, and Variety.com, are all owned by ReedBusiness Information (RBI), the largest business publisher in the U.S.RBI is a member of the Reed Elsevier Group plc (NYSE: RUK and ENL) - aworld-leading publisher and information provider operating in thescience and medical, legal, education and business-to-businessindustry sectors

About the MPAA

The Motion Picture Association of America, Inc. (MPAA) serves asthe voice and advocate of the American motion picture, home video andtelevision industries from its offices in Los Angeles and Washington,D.C. Its members include: Buena Vista Pictures Distribution; ParamountPictures; Sony Pictures Entertainment Inc.; Twentieth Century Fox FilmCorporation; Universal City Studios LLLP; and Warner Bros.Entertainment Inc.