Almost Half of AOL Members Now Go Online to Get Information Before Deciding Which Movies to See, ACNielsen ReelResearch Indicates.

DULLES, Va.--(BUSINESS WIRE)--Sept. 2, 1999--

Ads on AOL Heightened Members' Interest in Viewing the Blockbuster 

Hit "Austin Powers: The Spy Who Shagged Me"

More than Half of AOL Members Report Interest in Buying Tickets

Online Through AOL's Moviefone.com Web Site

A new ACNielsen ReelResearch (sm) study conducted for America Online and released today underscores that the online medium has become an important marketing vehicle for the promotion of motion pictures.

According to the study, almost half of AOL members turn to the online medium for information before deciding which motion picture to see. More than half of members also expressed strong interest purchasing tickets online through the Company's Moviefone.com Web site.

When asked the question, "In the past three months, where have you received information about movies you are considering to see," 45% responded that they research information online. The percentage reported for online is higher than that of magazines (44%), and radio (36%).

Among frequent moviegoers -- those who attend four or more movies a month - the number increased, with 54% reporting that they had received information about a movie they were going to see online.

And, among AOL members ages 18 to 24, another key demographic for movie marketers, online is becoming increasingly more influential than newspapers in providing detailed information on a film members want to see. Already, more than half (52%) of AOL members in this category now obtain information about movies online versus 45% who get the movie information from newspapers.

A recent promotional campaign underscores the ACNielsen ReelResearch findings:

Movie advertisements on America Online this summer heightened AOL members' interest in seeing the motion picture hit "Austin Powers: The Spy Who Shagged Me." Interest in viewing the blockbuster hit was 44% greater among members who recalled seeing an ad for the film on AOL or AOL.COM, supplementing the substantial impact of all other broadcast and print marketing campaigns for the film that were running concurrently, according to the study.

Significantly, the data indicates that 65% of AOL members who recalled seeing an advertisement on AOL were more likely to want to see the film, versus 45% of those who did not recall seeing an ad on AOL.

Awareness of the film's advertising on AOL rose significantly over the life of the campaign, as 17% of the respondents recalled seeing the ads on AOL during the first week of the campaign's flight, beginning May 3, versus 60% during the last week, ending June 6-- an increase of 253%.

The Nielsen ReelResearch study, which also investigated AOL members' interest in purchasing tickets online, indicated that most (56%) of AOL's members are interested in using the Moviefone website (WWW.Moviefone.com) to purchase tickets.

Myer Berlow, America Online Inc.'s President of Interactive Marketing, said: "Smart marketers know that in a time when consumers are seeing hundreds of messages daily, getting noticed is everything. Not only are our members over 40% more likely to attend movies regularly, more than half are now actively using the medium to research information on movies they want to see. The next step is purchasing tickets online and already more than half (56%) of our members are interested in using our Moviefone site to obtain movie show times and tickets."

"These findings show that the online medium strongly influences the decisions people make about movies and entertainment," said Gordon Paddison, New Line Cinema's Director of Interactive Marketing. Mr. Paddison continued, "As the younger generation continues to embrace the interactive medium, it will be important to dedicate greater resources to online promotions to engage this attractive audience."

Online's Role in the Promotion of New Movies

Mr. Berlow added: "New Line Cinema has been very innovative in using the power of AOL to heighten awareness of their films and impact their target consumers. They created a great ad, placed it in front of a prime audience of moviegoers, and, as a result, dramatically impacted millions of AOL members who were their target audience. Clearly, these ads broke through the clutter."

Robert Friedman, Co-Chairman of Worldwide Marketing for New Line Cinema, said: "New Line is committed to online advertising and promotions. ACNielsen's findings confirm that as more and more people turn to the online medium, AOL is a key marketing vehicle for entertainment.

Earlier this summer, New Line Cinema, AOL and MovieFone joined in an exclusive promotion for AOL members in which 10 cities offered special advance screenings of Austin Powers: The Spy Who Shagged Me. Tickets were sold through special links to Moviefone.Com throughout all AOL brands, and all 10 screenings were sold out. New Line Cinema, a pioneer in marketing movies online, is the first studio to have ever implemented a program of this kind, and its success demonstrated the power of online marketing in filling theater seats.

Methodology

The study was conducted by ACNielsen ReelResearch, the next generation of research tools for the entertainment industry, which represents a quantum leap in motion picture research for the entertainment industry by utilizing the power of the online world.

Approximately 1,700 respondents participated in the study by clicking on a static banner ad on the flagship AOL service or Web site, AOL.COM, that read: "Hollywood wants your opinion," with no reference made to any specific movies or the evaluation of online advertising. Respondents were then sent to the ACNielsen ReelResearch Web site and asked a series of questions on the topic of upcoming movie selections, including specific questions about "Austin Powers: The Spy Who Shagged Me."

Launch and completion dates for the advertising campaign and online survey were consistent. Each ran a total of five weeks, beginning May 3 and ending June 6.

Last month, AOL and New Line Cinema announced an unprecedented marketing agreement whereby New Line will have a major presence on the AOL Movies main screen and promote its films throughout the AOL Entertainment Channel, AOL Chat areas, Entertainment Asylum, AOL.COM and Digital City. As part of its online promotions, New Line will create special areas linked to AOL for each of its movies. These sites will contain photos and information on such things as the film's cast, release date and story line. In addition, they will also provide moviegoers with a listing of convenient locations to see the movie.

About America Online, Inc.

Founded in 1985, America Online, Inc., based in Dulles, Virginia, is the world's leader in interactive services, Web brands, Internet technologies, and e-commerce services. America Online, Inc. operates: two worldwide Internet services, America Online, with more than 18 million members, and CompuServe, with approximately 2 million members; several leading Internet brands including ICQ, AOL Instant Messenger and Digital City, Inc.; the Netscape Netcenter and AOL.COM portals; the Netscape Navigator and Communicator browsers; AOL Moviefone, the nation's No. 1 movie listing guide and ticketing service; and Spinner Networks and NullSoft, Inc., leaders in Internet music.

Through its strategic alliance with Sun Microsystems, the company develops and offers easy-to-deploy, end-to-end e-commerce and enterprise solutions for companies operating in the Net Economy.