Fandango to Buy Hollywood Movie Money Parent to Grow Promo Biz

Purchase of Quantum Loyalty Solutions to help Fandango expand its film promotions business

Movie ticketing service Fandango has entered into an agreement to acquire Quantum Loyalty Solutions, the owner of Hollywood Movie Money.

Fandango sees the purchase as a way to grow its film promotions business, especially when it comes to offering up free or discounted tickets as an incentive to get more consumers into the megaplex for clients that include studios, exhibitors and brands looking to connect with moviegoers.

“We are in the promotional business currently but we think this is a big accelerator of that,” Paul Yanover, president of Fandango told Variety. “These guys are very focused on this area. It’s a great opportunity that aligns with a business we’re already in.”

The deal is the latest move Fandango has made to bolster its various revenue streams, which may have started with selling movie tickets but has since expanded into online advertising associated with the reviews and other editorial content it posts on its websites, as well as promos it produces for clients.

Financial terms of the deal were not disclosed, but the purchase of Quantum will enable Fandango to significantly expand its promotional movie ticket and gift card business.

Quantum’s Hollywood Movie Money biz is used by studios, exhibitors, advertisers, and promotional sponsors through the giveaway of “movie currency” and loyalty programs accepted at more than 36,000 screens nationwide.

For example, Disney’s Movie Rewards program used Quantum to give away up to $10 for a ticket to see “Monsters University” this summer for consumers who purchased the re-release of “Monsters Inc.” on DVD or Blu-ray. Coca-Cola has issued similar movie tickets to some people who buy Coke and Sprite products as part of its My Coke rewards program. And individuals who bought selected Fox titles on homevideo received a ticket for up to $12 to see “A Good Day to Die Hard.”

See below for an example of Disney’s free-ticket promo for “Brave” with Subway stores using Hollywood Movie Money.

Free ticket giveaways were also used for promos around “Iron Man 3,” “Despicable Me 2,” “Man of Steel,” “Fast and Furious 6,” “Star Trek into Darkness” and “The Heat” this summer.

“The marriage of Quantum’s promotions business and Fandango’s ticketing platform will offer unprecedented new opportunities for studios, exhibitors and brands to engage with millions of moviegoers,” Yanover said. “We look forward to working with the Quantum team to build on Hollywood Movie Money’s momentum and help drive even more movie fans into theaters.”

Fandango is expected to integrate the company by making its Hollywood Movie Money currency redeemable through Fandango’s website and mobile apps, visited by more than 41 million moviegoers each month. It also will enable consumers cashing in the currency to be able to purchase additional movie tickets accompanying them to a theater.

Fandango provides online and mobile ticketing to more than 21,000 screens nationwide, more than 75% of U.S. theaters with advance ticketing capabilities.

The addition of Quantum is expected to give Fandango access to over 95% of the nation’s theaters, as well as many theaters in international markets, through the movie ticket promotions.

Fandango recently added Pacific Theatres, in Southern California, Muvico, Studio Movie Grill, Krikorian Premiere Theatres and Penn Cinema to its exhibitors and extended a long-term partnership with Regal Entertainment Group, the nation’s largest theater circuit.

Quantum, based in Incline Village, Nevada, and operates with a staff of around 30, claims that it has issued 1.6 billion movie tickets in 28 countries over 27 years.

The acquisition is still subject to customary closing conditions but is expected to close sometime in the third quarter.