Kurt Hall, CEO of Regal Cinemedia

This is a partial transcript from Your World with Neil Cavuto, October 31, 2002, that was edited for clarity. Click here for complete access to all of Neil Cavuto's CEO interviews.

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NEIL CAVUTO, HOST: My next guest says moviegoers are the perfect audience for ads. Joining us from Denver, Colorado, Kurt Hall, the CEO of Regal Cinemedia, the advertising arm of the Regal Entertainment Group.

Kurt, thanks for coming.

KURT HALL, CEO, REGAL CINEMEDIA: You bet.

CAVUTO: I hate these ads, I can't stand them, why do you guys push them?

HALL: Well, I think advertising, if it is not done well is always bad. So I think what we are trying to do is we're trying to recreate the motion picture experience in a way that is entertaining for the customer. The advertising...

CAVUTO: Yes, but it is not entertaining, Kurt, people are going to see a movie and they're sitting through commercials, one after the other, I can see that at home.

HALL: Right. Right now, it isn't, as you probably are aware, we are rolling out a nationwide network that will be able to start delivering advertisements digitally to 4600 of our screens throughout the nation.  Once we get the system in place, we are going to be able to do a lot of things on a lot more creative basis than are currently done. And they will be entertaining...

CAVUTO: But why be creative about it? Why don't you just stop it? I know you guys need extra revenue coming in, but you seem to be ticking off the customers who just want to watch a movie.

HALL: Well, I think that cinema advertising is here to stay. I think how people do it is the most important thing. Advertising has been a major part of the cinema in England and Europe and it is a very important part of their cinema-going experience. And what we are hopeful to do is make it an important part of people's cinema-going experience here.

CAVUTO: Why can't you just tell people the honest time the movie starts then, all right? So if you say there is going to be an 8:10 show, when in fact the commercials are going to be begin at 8:10, and then the trailers, it's 30 minutes later, the movie's beginning. Why don't you just tell people it is at 8:40?

HALL: When we launch our advertising network, that is exactly what we are going to do. The advertising and content that we are going to put in our pre-show program is going to run up to the advertised show time and at that point in time the trailers will run and then the motion picture. Most people like the trailers and like that as a part of their movie going experience. So we will...

CAVUTO: I think they like the trailers, you're right. I don't know if they flip over the ads, though. And I'm afraid you're going to be dealing with a customer revolt if this gets worse.

HALL: Well, it is our job to make sure we don't. The theater going experience is still the core - the most important part of our core business. And if we don't do a good job putting nice, good advertising, entertaining advertising up there, and really what we are trying to do is to start to blur the lines between advertisement and entertainment. And if we can move it more towards entertainment, I think people will actually enjoy it.

CAVUTO: I don't know about that, Kurt, but best of luck to you, Kurt Hall, Regal Cinemedia CEO, from Denver.

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