Cineworld agrees to Carlton Screen Advertising talks

The move comes after CSA approached Cineworld to adjust the terms of its advertising sales contract, which is due to run until January 2011.

CSA said in a statement: "Our contract with Cineworld is based on a long-term growth forecast of UK advertising revenues. Carlton Screen Advertising has consistently performed well in the current media market.

"However, due to a general slowdown of traditional UK advertising revenues, our forecasts have proven to be too optimistic. Therefore, we have approached Cineworld to propose an amendment to our existing contract."

It is believed that CSA is seeking similar amendments with other clients. CSA is the market leader in the UK with a 75% share of the market covering Odeon, Cineworld, Empire, Showcase and Picturehouse circuits as well as a large number of independent cinemas.

News of the talks comes after cinema audiences hit their highest levels since records began in the 1960s.

Cinema admissions in July rose by 33.7% compared with the same month a year earlier to 21.8m admissions, according to the Cinema Advertising Association.

The boost came on the back of a string of expensive Hollywood blockbuster including a Harry Potter sequel, 'Die Hard 4.0', 'Transformers' and 'The Simpsons'.