In this special episode, an interview I've been looking forward to for a long time, a Canadian business icon, exceptional citizen, and one of the world's most respected entertainment operators, Ellis Jacob, CEO, Cineplex. We chat briefly about his origin story and spend lots of time talking about the state of the entertainment and movie industry, what innovation looks like in theatres across Canada, and how the changes brought on by the COVID era will forever shape the strategy of Cineplex.
Welcome to The Voice of Retail. I'm your host Michael LeBlanc. This podcast is brought to you in conjunction with Retail Council of Canada.
In this special episode, an interview I've been looking forward to for a long time, a Canadian business icon, exceptional citizen, and one of the world's most respected entertainment operators, Ellis Jacob, CEO, Cineplex.
We chat briefly about his origin story and spend lots of time talking about the state of the entertainment and movie industry, what innovation looks like in theatres across Canada, and how the changes brought on by the COVID era will forever shape the strategy of Cineplex.
Last but certainly not least, I couldn't miss the opportunity to ask Ellis about the incredible rise and success of the SCENE plus loyalty program, what it means to the Cineplex business, and the big news around the tie-up with Sobeys
Thanks for tuning into this special episode of The Voice of Retail. If you haven’t already, be sure and click subscribe on your favourite podcast platform so new episodes will land automatically twice a week, and check out my other retail industry media properties; the Remarkable Retail podcast, the Conversations with CommerceNext podcast, and the Food Professor podcast. Last but not least, if you are into BBQ, check out my all new YouTube barbecue show, Last Request Barbecue, with new episodes each and every week!
I’m your host Michael LeBlanc, President of M.E. LeBlanc & Company & Maven Media, and if you’re looking for more content, or want to chat follow me on LinkedIn, or visit my website meleblanc.co! Have a safe week everyone!
About Ellis
Ellis Jacob was appointed President and Chief Executive Officer (CEO) of Cineplex in October 2003. Working in the motion picture exhibition industry since 1987, his passion and leadership transformed the movie-going experience for Canadians. Prior to his current role, Ellis was President and CEO of Galaxy Entertainment Inc., which he co-founded in 1999. Previous roles include the Head of Integration for Alliance Atlantis Communications Inc., and various leadership positions with Cineplex Odeon Corporation that eventually culminated with the role of Chief Operating Officer.
Ellis serves on a number of boards, including Cineplex and ASM Global. He is also a member of the Executive Committee of the National Association of Theatre Owners and the Global Cinema Federation, and a member of the Board of Directors of the Movie Theatre Association of Canada. He is an active philanthropist, a founding director of the Canadian Children’s Literacy Foundation, and a member of the Board of Baycrest Centre for Geriatrics.
Among his many accomplishments and awards over the span of his career, he has received the Order of Canada, the Order of Ontario, Canada’s Most Innovative CEO, Canada’s Most Admired CEO, and the ICTA Global Cinema Innovation Award.
About Michael
Michael is the Founder & President of M.E. LeBlanc & Company Inc and a Senior Advisor to Retail Council of Canada as part of his advisory and consulting practice. He brings 25+ years of brand/retail/marketing & eCommerce leadership experience and has been on the front lines of retail industry change for his entire career. He has delivered keynotes, hosted fire-side discussions with C-level executives and participated on thought leadership panels worldwide. Michael was recently added to ReThink Retail’s prestigious Top 100 Global Retail Influencers for a second year in 2022.
Michael is also the producer and host of a network of leading podcasts, including Canada’s top retail industry podcast, The Voice of Retail, plus the Remarkable Retail with author Steve Dennis, Global E-Commerce Tech Talks and The Food Professor with Dr. Sylvain Charlebois. Most recently, Michael launched Conversations with CommerceNext, a podcast focussed on retail eCommerce, digital marketing and retail careers - all available on Apple, Spotify, Amazon Music and all major podcast platforms. Michael is also the producer and host of the “Last Request Barbeque” channel on YouTube where he cooks meals to die for and influencer riches.
Michael LeBlanc 00:05
Welcome to The Voice of Retail. I'm your host, Michael LeBlanc and this podcast is brought to you in conjunction with Retail Council of Canada.
Michael LeBlanc 00:11
In this special episode, an interview I've been looking forward to, for a long time a Canadian business icon, exceptional citizen, and one of the world's most respected entertainment operators, Ellis Jacob, CEO, Cineplex.
Michael LeBlanc 00:23
We chat briefly about his origin story and spend lots of time talking about the state of the entertainment movie industry, what innovation looks like in theaters across Canada, and how the changes brought on by the COVID era will forever shape strategy of Cineplex.
Michael LeBlanc 00:36
Last, but certainly not least, I couldn't miss the opportunity to ask Ellis about the incredible rise and success of the Scene+ loyalty program, what it means to the Cineplex business, and the big news around the tie up with Sobeys.
Ellis Jacob 00:47
Look, we've learned a lot during, during COVID. And we've actually made some major inroads, especially with the use of data, because it's given us the opportunity and with our Scene program, and, you know, all of the other ways that we can, can communicate with our guests. It really allows us a lot of flexibility as we move forward.
Michael LeBlanc 01:13
Let's listen in now.
Ellis, welcome to The Voice of Retail podcast, how are you doing this morning?
Ellis Jacob 01:18
Great. Thank you had a great weekend at the box office. So, happy about that.
Michael LeBlanc 01:23
Well, I guess we just need Tom Cruise to continue to make great movies, right? What's your favorite movie released so far this summer is it, I guess your favorite is the one that's pulling the best numbers, but they all seem to be doing pretty good.
Ellis Jacob 01:33
Yeah, Top Gun was phenomenal and it's done a lot of business for us. And this past weekend, we had Minions which worked extremely well with the younger audiences. And we're quite excited about Thor, which is coming out this week.
Michael LeBlanc 01:49
You know, I want to get to a little bit more about the movie business a little later on. Let's start with you, I can't imagine there's many people listening in this country who might who would not know of you, they might not know everything. And I've got a bit of an international audience. So, give us a bit of background about yourself and a role in the international business community and, and Canada and what you do and where you came from.
Ellis Jacob 02:09
Yeah, so, I was born in Calcutta, India. And I arrived in Canada, I came for my sister's wedding. And that was in 1969. And basically, thought Canada was a great country and wanted to stay and did some educating. I went to McGill for my undergrad did my CA's in Quebec and then moved to Ontario for my masters. And then started at Ford Motor Company moved on to Motorola where I had some connections at Ford and Motorola and then moved with the individual I reported to their to Cineplex Odeon in 1987. And I've been in the movie entertainment business for the last 35 years. So, it's something I enjoy, and it's been great. And really, you know, feel very confident about it.
Michael LeBlanc 03:12
Oh, fantastic. Now you did skip over a couple of little things. You both have the border of Canada and the border of Ontario, right? So, you've had tremendous contributions to the country to the province. So, thank you for that.
Ellis Jacob 03:24
Yeah, thank you. And a lot of that has to do with the awesome team I have, you know, built this business with and everything that we've been able to accomplish together.
Michael LeBlanc 03:35
So, likewise, hard to find anyone in Canada who doesn't know the name Cineplex. But often they don't entirely know the scope and scale, the number of theaters and seats and then you've got other parts of the business that you've, you've got, you've got set up including some commercial sites. So, take us through for a few minutes about the scope and scale of Cineplex.
Ellis Jacob 03:54
Yeah, Cineplex is a very diversified entertainment company. We basically, you know, big business is the movie exhibition business. And, you know, we've got between our movie theaters and our entertainment venues close to 170 locations. We've got 10 locations of The Rec Room and three locations of Playdium. And we also have businesses and digital commerce with the CineplexStore, alternative programming with Cineplex Events, Cinema Media and with Cineplex Media and film distribution with Cineplex Pictures, and then we also have the Digital Place based media, which is Cineplex Digital Media and finally amusement solutions is which is Player One Amusement Group. And we also have one of the leading loyalty programs and entertainment loyalty programs in Canada called Scene+.
Michael LeBlanc 04:53
It's a big enterprise, right? I mean, you're coast-to-coast it's a very big enterprise very, it's, it's surprisingly diverse and, in, in that regard. And I want to get to this talk about Scene some more interesting, interesting, interesting developments. So, let's, you know, this, this podcast isn't a history lesson. But let's talk about, you know, past couple of years, the COVID era, and not to dwell on the history of it or the past. But I'm wondering, as you reflect on the past couple of years, and we're still kind of not quite past it yet. I've been thinking about these changes that are more structural than temporary, you know, temporary accommodations to a weird time in our lives. How are you thinking around any changes to, to business and, and how you do business, because of the COVID era, things that are more structural, that might, might stick around more business strategy, so to speak?
Ellis Jacob 05:42
Look, we've learned a lot during, during COVID. And we've actually made some major inroads, especially with the use of data, because it's given us the opportunity and with our Scene program, and, you know, all of the other ways that we can, can com-, communicate with our guests, it really allows us a lot of flexibility as we move forward. And to give you an example of that as say, we look at films from other parts of the world, now we can actually pinpoint which theaters these films are going to work and how strong they're going to be.
Ellis Jacob 06:20
And in some cases, we have locations where the theaters actually in their local content, outgrows the, the Hollywood content, and do extremely well for us. And that's a whole area where we are going to continue to focus and grow as we move forward. And that's, you know, we've got the Scene program, we've got CineClub, which, you know, members love, it's a monthly subscription program, and it really provides an overall benefit to our guest.
Ellis Jacob 06:53
And the other thing we've done as a company, we continue to increase the number of experiences. In the old days, when I started, you could see a movie in 2D. And that was it. Today, you can see a movie in close to eight different ways at our theaters. And our guests love those experiences, because you can't replicate it on your TV at home. And to me, that's a big change in what's happened in the last number of years.
Michael LeBlanc 07:20
Unpack for me a little bit, the membership, the monthly membership. Tell me a little bit more about that.
Ellis Jacob 07:25
Yeah, so CineClub is a, a program where you basically, you know, pay $9.99, and you get to see a movie every month. And if you miss a month, because you're away traveling, you can basically use it the next month. So, you never lose the benefit of that ticket you have and you can also bring, you know, other members with you as you've come to enjoy the programs, something that, you know, you can continue to use. And we did it because we want to drive attendance, we want to increase the movie going frequency, and we want to provide our guests with an exceptional entertainment experience.
Michael LeBlanc 08:09
Well, you give me a nice segue into talking about the movie business, the entertainment business itself. I mean, tremendous change, certainly over the course of your career, but also recently, perhaps accelerated by the COVID era, we saw a few you know, a few changes happening and so many people are watching movies at home, some of the big studios, you know, we're playing around with launch dates and what do you call in the industry windowing and different things like that? Talk about the future Cineplex movie in the entertainment business. It's been a good summer, people are back in the theaters. No doubt, though. It's changed again, over the course of your career, and no doubt, there's been some acceleration with this, this menu of choice, how do you, how do you think about that?
Ellis Jacob 08:47
Look, I remember when I, you know, started the Galaxy Theater chain. And everybody said, you know, DVDs are here, your bad going into this business, it's a bad idea. And you know, what actually happened is the attendance went up. The reason is people became more aware of movies, and they wanted to see it in a social environment and the big screen provided them with that great experience.
Ellis Jacob 09:13
And today, I think it's no different. Yes, we've had studios that have experimented with, you know, the shortening of windows and trying to come out with movies day and date. And what they've seen is basically it actually hurts them from a business perspective, because, you know, they don't get the benefit of the theater. Number one, and I always say the movie business is the engine that drives the train. So, it increases the awareness of the product and then helps in the end, (inaudible) as they move into the future. Whether it's from, you know, merchandising, to seeing the movie at home or to any other areas of theme parks and things like that. But we are going to be that important ingredient as part of the overall experience for the distributors that, you know, come up with these movies right across the world?
Michael LeBlanc 10:11
Do you find there's a curation role? In other words, you have a group of talented people who look at all the movies. I mean, I'm sure you're presented, you know, I don't know, 1000s of movies, but you know, you can't play 1000s of movies. So, there's a curation role and that, that, in and of itself sends a signal to, to audiences, is that still the case? And is that, again, part of the framework, how you approach what you're going to put on the screen?
Ellis Jacob 10:35
Well, we look at all of the movies, and the studios know which ones they do, you know, viewing surveys to see which ones are going to be most relevant in the big screen. And those are the ones that they focus on providing us as we move forward. Like I mean, you know, after watching Top Gun, and I've seen it twice in the last month, the bottom line is I wouldn't want to watch that movie at home, I think it would be, you know, not an experience that I would enjoy. And I think being in, in a group and watching it, that's part of, you know, an overall social experience is phenomenal, because you're excited together. And you're, you know, seeing all of the different focuses. And Tom Cruise does a great job in the film of, you know, promoting the whole success story of what he's able to achieve.
Michael LeBlanc 11:33
Let's talk about innovation in the movie theater, in person entertainment business, what does that look like? You know, does it look, you know, in retail, we're talking about a spot to win in a bifurcated market between, you know, very highly efficient consumption or in retail kind of distribution versus, you know, experiential, highly entertaining. Talk about your vision, I mean, you're already introducing innovation with your membership club. But talk about what that looks like in the future cinema as a entertainment ecosystem?
Ellis Jacob 12:00
Look, as I said, before, you know, it's all about providing our guests with an enhanced experience and an experience, they cannot replicate at home. And to me, that's absolutely critical. And, you know, providing them with the most advanced technology to create an experience that, you know, far exceeds anything that they could enjoy anywhere else. And as I talked about, you know, you can go to the movie theater today and watch a movie in Ultra AVX. We could watch it in the VIP Cinemas, you can do it in 3D, 4DX, ScreenX, IMAX, D-BOX, there's many different ways to watch a movie.
Ellis Jacob 12:44
And I always say when I did, you know, Undercover Boss, and I was working at the box office and a gentleman and his son came up to the ticket wicket and he said to me, he said, I said, what movie would you like to watch? He says what's playing in Ultra AVX. So, there is a desire to actually have those experiences and watch the movies in those formats. And to me that's going to continue to evolve as, as we move forward. And more and more of our guests, we see are actually signing up for those experiences. And they are the first tickets to sell when we open the film.
Michael LeBlanc 13:26
Let's, let's talk about Scene+, I mean it, you know, I was in the loyalty business back with Hudson's Bay and, and even back to Zellers and, and you know, this Club Z program, and all the way back to (inaudible) in kind of terms of loyalty, you know, when, when Scene+ launched, it looked like a niche kind of program. And, and even I, I was reading somewhere in the in the news, when you announced the news, with a tie up with Empire and Sobeys you know, the little, the little program that could be and. and look what it's become. So, did you ever imagine Scene+ would grow to be this kind of, I mean, it's a coalition program that's on par with, with many now. I mean, it's an impressive achievement, what what's led to its success and, and talk a little bit more about the tie up and the deal with Empire the Sobeys Group?
Ellis Jacob 14:09
Yeah, and if you asked me when we first set up the program, you know, 15 odd years ago, whether we'd be over 10 million, you know, members, I would have said, hey, that's, you know, a good thought, but I don't think we'll get there. But now we are way over that mark, and with the coalition with Scotiabank, and Sobeys. I think the program is going to continue to grow and be very strong. And it will be you know, we are the biggest entertainment program. I think we're going one of these days become the biggest loyalty program for Canadians. And what we've done is it's easy to burn and it's easy to redeem. And that to me is very critical for our guests and our users right across.
Michael LeBlanc 14:57
Yeah, any success any loyalty program earning and burning right, make it easy, 10 million. I mean, it's, it's an amazing number when you think about what is there 18 19 million adult Canadians, right? It's it's an amazing achievement. How did the deal come together with Empire? Would it was it like minded individuals, and you just saw the opportunity to expand his pick a bit more of that?
Ellis Jacob 15:19
Well, it's, you know, looking at the overall value of the program, the relationship with, you know, Scotiabank, the relationship with Sobeys, Mike Medline, and, you know, a long relationship we had with, you know, the, the family and all of the different components within the group.
Ellis Jacob 15:44
So, I feel that it's something that will continue to, you know, move for-, forward. And the pandemic, you know, really improved the, the opportunity, as we looked at all the things we've done. And I don't know, if Mike spoke to you, when we were shut down with the pandemic, we actually sent a number of our employees over to Sobeys. And they worked while we were in a, you know, a close situation.
Michael LeBlanc 15:44
Right.
Michael LeBlanc 16:18
So, a, a nice tie up, and again, it gets back all the way back to the first part of your conversation around innovation around data, right? What makes it different, because it, it allows you to do that kind of what you were describing that customization, who sees what, when right, as opposed to a scattering, that's probably been the biggest change, I would suspect. I mean, it's technology changes and how movies are presented but that's probably been a pretty big change in your career. Yeah, -
Ellis Jacob 16:40
Yeah. And it's great, because, you know, we are one of the few companies in the exhibition business that can do that, because we've really worked on it for quite a, you know, significant period of time. And I remember when we first set it up, everybody said,you have a pretty reasonable market share, what do you need a loyalty program for? And today, it's probably one of the most important assets that we have. And the same holds true for, you know, Scotiabank, and I'm sure when Sobeys becomes part of the overall, it's going to be quite exciting moving forward.
Michael LeBlanc 17:18
Well, last question for you. And I wrote this question, actually, before the Scene deal was announced, what's next for Cineplex? As if there needs to be more next, beyond this, this, you know, the fall coming up the fall and the growth of the program, but ready and what's where's the next 18 months look like for you?
Ellis Jacob 17:33
Well, we are excited about, you know, continuing with our diversification, you know, I talked to you about the Rec Rooms, the Playdiums. And we are also have, you know, junction, which is a concept that will be, you know, opening up very shortly, which really combines a number of the strong facets of the different parts of the business, from the cinemas, to The Rec Rooms, to, you know, the Playdiums and making them all part of the same, you know, overall experience. And then we have Cineplex Digital Media, which also is an important asset that, you know, is beneficial right across North America, and we have a number of our peers in the US that use us to supply them with the digital signage in their locations.
Michael LeBlanc 18:26
Well, fantastic. Well, you know, it's a real treat to get to talk to you I've long admired your work and, and but we've never had the chance to meet so it's really a treat for me and thanks for taking the opportunity out of a no doubt busy day to connect and, and I wanted to wish you continued success and a great rest of your day. Thanks for being on the podcast.
Ellis Jacob 18:45
Thank you very much for your time and looking forward to meeting you soon.
Michael LeBlanc 18:50
Thanks for tuning in to this special episode of The Voice of Retail. If you haven't already, be sure and click and subscribe on your favorite podcast platform so new episodes will land automatically, twice a week. And check out my other retail industry media properties, the Remarkable Retail podcast, Conversations with CommerceNext podcast and The Food Professor podcast with Dr. Sylvain Charlebois.
Michael LeBlanc 19:10
Last but not least, if you're into barbecue, check out my all new YouTube barbecue show Last Request Barbecue with new episodes each and every week. I'm your host, Michael LeBlanc, president of M. E. LeBlanc & Company and Maven Media.
And if you're looking for more content or want to chat, follow me on LinkedIn or visit my website at meleblanc.co.
Have a safe week everyone.
SUMMARY KEYWORDS
Cineplex, business, movie, Sobeys, theaters, big, entertainment, Canada, loyalty program, podcast, retail, program, worked, guests, continue, number, talk, watch, film, cinemas