The Nokia Theater in Times Square, a 2,100-capacity room owned by the national concert promoter AEG Live, will become the Best Buy Theater in mid-September. The theater will mark Best Buy's first foray into naming rights for any entertainment site.
The David Rockwell-designed theater opened
in 2005 in the space formerly occupied by the Loews Astor Plaza movie theater
at a cost of $21 million. Its lobby and corridors were used for stylish neon
displays of Nokia's mobile phones. The Best Buy Theater will receive some acoustical
upgrades as well as new high-definition screens and a lounge area with interactive
displays showcasing consumer electronics sold at Best Buy. The retailer will
also use the site to host corporate events such as product introductions.
"If you're going to shows, and you're going to shows in Times Square, then you're the kind of customer we want to build a relationship with," Drew Panayiotou, Best Buy's chief of marketing, told The New York Times.
"Now more than ever, it's clear to us that Times Square has become the perfect showplace for the merging of entertainment, music and technology, and the Best Buy Theater is the ideal venue to showcase this integration," said Todd Goldstein, president, AEG Global Partnerships, in a statement.
Rock band Linkin Park officially opens the Best Buy Theater on September 14.
The Times article noted the economy is causing many major corporations to rethink investments in naming rights for sports arenas and concert halls, creating opportunities for others, including some much smaller businesses as well as atypical sponsors such as retailers.
One potential risk is that naming-rights deals often annoy fans and critics of blatant corporate sponsorship. But Mr. Panayiotou said the deal made sense because of Best Buy's position as one of the country's leading music retailers.
"A lot of times naming-rights deals are tougher for consumers to digest because there isn't a natural connection between what happens there and the brand," Mr. Panayiotou said. "In this case there is a great connection between our business and what happens there at the theater."
American Eagle Outfitters in June landed naming rights to a concert complex to open next to Heinz Field, home of the Pittsburgh Steelers. Other naming rights deals involving retailers include Target Field in Minneapolis and Dick's Sporting Goods Park in Commerce City, CO.
Discussion Questions: What do you think of naming rights deals for retailers and consumer goods companies? Is this marketing money well spent?