China Cinema Digest – Tuesday 28 October 2014

 

China online ticketing

Beginning in November, China will start reporting box office number and info using social media in an effort to improve transparency. The move is good news for Hollywood studios, but will also provide a better picture of the exhibition market in the world’s second largest cinema territory.

In July, the State General Administration of Press, Publication, Radio, Film and Television introduced an updated ticketing system, which gives better real-time information.

This week, Li Dong, head of a special unit of SAPPRFT which looks at ticketing and box office issues, said the watchdog was planning to release the information through popular social media, such as Weibo, which is similar to Twitter, and WeChat, which has parallels with WhatsApp. It wasn’t immediately clear at what frequency the data would be reported.  LINK

Wanda Cinemas Logo

The re-submission of their IPO prospectus has lead to plenty of coverage of Wanda Cinemas, including the astonishing revelation that the operator can manage the construction of an entire multiplex in just 105 days from start to finish. Lots of data, number and statistics in this article on China’s largest cinema operator, which still “only” accounts for less than 15% of total Mainland BO takings.

Coupling that is pure theater assets invested directly by theaters, cinemas and theaters all assets owned by relying on the model, capital and Wanda Cinema mode as a link for the film, its unified management, unified row theater piece. Since its inception in 2005, grossing Wanda Cinema faster growth each year, in 2011 box office revenue reached 1.785 billion yuan, accounting for the proportion of the movie grossed 13.61%; 2012 box office revenue reached 2.456 billion yuan, accounting for the movie box office income ratio was 14.39%; 2013, box office revenue reached 3.161 billion yuan, accounting for the proportion of the national film grossed 14.52%; 2014 January to June, the box office revenue reached 1.988 billion yuan, accounting for the proportion of movie box office revenue was 14.46%, continue to maintain the country’s first cinema box office revenue.

Wanda market share

Development of Wanda Wanda Plaza cinema into projects and tenant lease non Wanda commercial real estate development business projects, Wanda Cinema is the only strategic partner Wanda Plaza theater format, along with the rapid expansion of Wanda and other commercial real estate projects, Wanda cinema investment flourish, construction accelerated.

Wanda cinema investment and construction process is divided into the project site, theater design and theater construction, single Wanda cinema construction period is usually 105 days or so, in other words, after the completion of the siting and design of the theater, Wanda only three and a half months will be able to Wanda opened a theater. LINK

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Daily Cinema Digest – Monday 27 October 2014


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Regal lawsuit

Regal has escaped a major anti-trust lawsuit brought on by a small chain complaining about unfair film booking practices that favour larger cinema chains. Major implications in an age when 35mm scarcity is no longer a reason for denying smaller chains film “prints”. This is bad news for Look Cinema and other small exhibitors.

On Thursday, just a few days after The Wall Street Journal revealed that the DOJ was asking questions about these types of arrangements, a federal judge in California dismissed a lawsuit brought by Starlight Cinemas, the owner of a few independent movie theaters in California, against exhibition giant Regal Entertainment Group.

According to the lawsuit, filed in June, Starlight operates a state-of-the-art 15-screen movie theater in Corona, Calif., but has been suffering because Regal has been having more success licensing the blockbuster films from the likes of Sony and Universal. Regal operates an upscale 18-screen theater in Corona, but is advantaged by the fact that it controls approximately 575 theaters and 7,631 screens. So if studios wish to effectuate a “wide release,” they need cooperation from the likes of Regal. But according to the allegations, Regal demands exclusivity for that privilege.  LINK

Brixton Ritzy

UK – It proved a short-lived victory for the staff of the Brixton Ritzy cinema (owned by Picturehouse/Cineworld), who won the right to a Living Wage, only now to be told that a quarter of them will be laid off.

Picturehouse Cinemas said that the cost of increasing basic wages at the Ritzy Cinema in Brixton to £8.80 an hour would be absorbed by reducing the number of staff by at least 20, with a redundancy programme starting next month.

Two management posts will be axed along with eight supervisors, three technical staff and other front-of-house workers from its workforce of 93.

BECTU, the union that represents cinema staff, today described the move which follows a year of strikes and negotiations as a “kick in the teeth”.  LINK

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Daily Cinema Digest – Friday 24 October 2014

Ymagis and dcinex

The acquisition of dcinex by Ymagis has finally been approved by shareholders. This is the single largest and most important digital cinema consolidation in Europe as dcinex/Ymagis is without a pan-European competitor of similar size, facing instead competition on the national levels. From the translated French-only press release.

“We are convinced that the combination between dcinex Ymagis and will in the short term, create synergies creating value for all shareholders Ymagis” says Bart Diels, outgoing Chairman of the Board of Directors and Partner of dcinex GIMV (1).

Creation of the European leader in digital technology for the film industry

With the acquisition of dcinex, Ymagis performs an operation that will create a European leader in the provision of financial services and technology to the film industry.

Following this acquisition, Ymagis becomes:

The financier No. 1 Park cinemas in Europe deployed VPF contract with nearly 5800 auditoriums in 14 European countries;

The European leader in the sale and installation of cinema equipment operators with a share estimated at 20% of the European market;

Operator No. 1 st European network routing dematerialized content, with more than 3200 theaters in 15 countries connected in Europe;

Technical partner No. 1 Park cinemas in Europe as outsourcing and maintenance contract with nearly 7200 screens (about 36 000) under contract in 21 countries.  LINK

Dolby Logo

Dolby – Quarterly earnings from Dolby show revenue at USD $227 million, which was slightly above their own projections and full year-on-year revenue is up 6%.  Licensing revenue outweighs product and services revenue by more than 11:1 (USD $208.9 million to $18.1 million), so don’t be surprised that Atmos was not the first thing discussed in the earnings conference call (transcript courtesy of SeekingAlpha). They do say that “The amount of revenue we get from the Doremi acquisition in Q1 will depend on the actual timing of the close,” which is still pending approval in Brussels.

Turning to cinema. We’ve seen tremendous growth with Dolby Atmos, increasing our screens by 150% this year to over 750 screens committed globally. Providing content to these screens is a key focus, and we now have more than 200 titles released or announced in Dolby Atmos; which includes content from all of the major studios. 14 of the 15 highest grossing titles in 2014 were in Dolby Atmos and we have a strong slate for the rest of the year, including The Hunger Games: Mockingjay and The Hobbit: The Battle of the Five Armies.  LINK

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Daily Cinema Digest – Tuesday 21 October 2014

The Space Italy

Last week’s big news was the announcement that UK/European exhibitor Vue had acquired Italian cinema chain The Space. Having previously expanded into Germany and Poland, this was a vote of confidence in the troubled south European market – though The Space is the cinema leader in an otherwise fragmented market, plus Italy had unless most other European territories an excellent cinema year in 2014.

European exhibitor Vue Entertainment International said Thursday it has agreed to acquire The Space Entertainment, a cinema chain in Italy with 36 multiplex theaters with 362 screens.

The deal is Vue’s fourth acquisition in the past three years and is supported via a follow-on investment from the firm’s Canadian owners Omers Private Equity and AIMCo. Over the past three years, Vue has more than doubled the number of cinemas and screens under its ownership from 70 to 187 cinemas and from 678 to 1,727 screens.  LINK

Wanda Cinema

China (PRC) – Wanda has re-filed its IPO documents for a listing in Shenzen. So much for the conspiracy theories that the first failure was a face saving strategy to list in Hong Kong or abroad.

Wanda Cinema Line, China’s biggest theaters chain, has re-filed its application for an IPO.

Its earlier attempt to float on the Shenzhen stock market in July was denied by regulators who said that its documentation was insufficient.

The company plans to issue 60 million shares and raise RMB2 billion ($326 million) of fresh capital.  LINK

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CJ@ECA Conference: Event Cinema Awards 2014

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It is time to hand out the Bronze, Silver and Gold awards for event cinema, which is for 100K, 250K and 500K admittance to any event cinema event. This is to help cast a light on the success of events in cinemas. The second category of awards is excellence awards, voted on by the members of the ECA. Sponsor is Rentrak.

The first Gold award goes to BBC WorldWide for the Doctor Who 50th Anniversary – Day of the Doctor, for getting more than 500,000 admissions this year. No silver, but five Bronze awards: Arts Alliance for The Nutcracker. Nobody from Arts Alliance is here to collect the award, but nobody is here from AAM to collect it. which is a shame, because they also win the next two prizes. The last two bornzes go to Omniverse for Muse and More2Screen for Pompeii, both of which got more than 100,000 admissions.

Mark Allen, Picturehouse picks up first excellence award and the second goes to Graham Spurling for Movies@. Final exhibition award goes to Mark from National Amusements. He is also not here to collect. “It is a bit like the Indian films awards” our host quips.

The first Excellence in Programming Award goes to The British Museum for Pompeii Live. Then Omniverse gets one for Keane and the final one is for Nexo for the live Cannonization. Caspar from AAM appears and runs down and collects his stack of awards, slightly out of breath.

Phil Grabsky, Exhibition on Screen delivers the Closing Address.

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CJ@ECA Conference: Practicalities of Live Cinema Delivery

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The afternoon break out session No. 1 looked at technical issues, such as delivery of live events to cinemas. Fabrice Testa of DSat gave a presentatio earlier over lunch (which they sponsored) of the company and its network 1,300 cinemas, showing 50 events and 400 hours of content last year. Isabelle Fauchet is the moderator.

The session structure will include a tour of the OB truck parked outside the Genesis cinema, with a live video link into the theatre. “We want to show you the sharp end of digital cinema,” were the opening words from Arqiva’s Nigel Crow and the OB truck that could be used for small and medium sized events.

A Tour of the OB Truck

We got a walk-through of the equipment in the self-contained truck. Nigel talks the audience through the routing that the signal takes in reaching the cinema, having a choice of four different satlites (Thor 10-02, EUT 5WA, IS-905 and Galaxy 16), which can then pass on the signal via the Arqiva Winchester Teleport all the way via fibre to Hong Kong or Atlanta. It will be used for Manon from the Royal Opera House this evening. With that he signs off and prepared to come in and join Fabrice and Isabelle on the sofa.

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CJ@ECA Conference: New Business Models and New Technology

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Micheal Gubbins of Sampo Media chairs the afternoon panel looking at new business models and new technology for event cinema. He begins with an anecdote about pensioners in his neighbourhood that book up entire opera seasons, go to every performance and all of them dressing up in their best operatic gear. Even the 90-year old gent.

Starting on the far end of the Salim Mukaddam, BBC Worldwide, who works on the music side on thing like the Westlife concert, in addition to Doctor Who and other content. Tom Shaw of Digital Theatre who captured some of the content we saw before the panel started (including flashing Philips lights0. The Matthew Aspray from LANsat/MPS. Thgen award winner Mariusz Spisz of Multikino in Poland (who I  just saw at the SAWA event in Berlin last weeks). And finally the Philips rep – Ronald Maandonks.

Micheal starts off with question to BBC WW about what it is with technology that now makes event cinema possible. Salim begins by stressing BBV WW’s television strength, being the biggest non-Hollywood studio television exporter. “Back in 2009 event cinema was possible and we were looking at things like Met Opera about how we can replicate things for things like the Proms. We split the world with By Experience in US and another company for Australia, New Zealand and South Africa.” Aparently the experience with By Experience was good [but what about the other one?] and they continued doing Last Night of the Proms with them.

They then continued the trials with Robbie Williams’ comback concert and Westlife, both of which were record breaking event cinema events. “It’s really about cost of taking it to the market. Prior to 2009 we would never have done it for the cost of taking such a film to cinema,” Salim states. “It is the move to digital that did it for us.”  The point is made about technology becoming’ invisible’ and now it is about the business model and the experience. Salim confrms that “the key for us is live, so if we can go briefly live over satelite makes it a ‘once in a lifetime’ experience,” as well as “cost effective ways of going live across the globe or near-live” rather than going out on DCPs.

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CJ@ECA Conference: Farsight Blueprint of the Future – Discussion Session

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Christine Costello from More2screen introduces the session looking ahead by quoting Bill Gates about over/under estimating change in the short/long term, as well as getting it wrong (as Bill Gates and Microsfto did with the Internet).

There is no panel, but an opportunity for discussion between Christine (a true veteran and event cinema expert) and the audience. She starts off by giving a background to her companyand the industry, ticking off several firsts and partnerships with the likes of Glyndbourne and the Royal Opera House into UK and international markets.

More2screen has gone out on 5,000 screens, 60 territories for 150+ productions (as you can see from the slide at the bottom). What’s new in 2014 is the British Museum for the first archeological exhibition (earlier ones had been art-focused), representing new genres. “Where there is new technology, we want to be using it,” Costello affirms. Which ties in neatly with how they also did the 4K concert for Peter Gabriel this year.

Key themes are using new technology, building new genres, collaboration, innovating wherever possible and partnering. “That’s us. Now we come to the big question: how will event cinema change ib the next ten years.” Admitting that none of us have crystal balls, she sent out the question ‘How will Event Cinema landscape develop in the next decade?’ to leading members of the industry all over the world.

The question/statement was: Event cinema is on a steady growth curve and by 20202 will represent the following % of my territory’s box office: 5%, 10%, 15%, or other. In the US it is just 2% today. The majority seem to be voting 10%, with 3-4 people voting 15% (including myself and Hancock, so that’s the analyst’s guess) with Rickard and Isabelle voting for ‘other’.

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CJ@ECA Conference: Utilising the Intermission to Generate Ravenue

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The second breakout session looked at revenue generating opportunities in the intermission, presented by Atena Simovic, head of event cinema department in a multiplex in Bucharest with 13 screens for past three years, during which they have had over 500 events, which inlcludes renting out the venue.

Their cinema organises live on-stage event, including stand-up comedy and concerts with full staging capabilities. “The first time when we had intermissions is when the distributors told us about the line-up of their shows,” she explains. There was a conscious effort to extract more revenue, but in the beginning effort such as opening new bars didn’t work. So they said, “let’s announce it and it started very slowly to grow. But then they had the first event without intermission. So we had an idea to have the intermission BEFORE the event.”

Initially this didn’t work because people didn’t shw up on time. “OK, we said, let’s create and Event Before the Event, which is a complegte experience.” So people gathered before for socialising, sharing and getting together as friends. During the week theyhave kids’ theatre, so they come up with After-the-show-Intermission with breakfast, games or face painting for their children, because the mall didn’t open early enough to do these events before the show.

They then tried product presentation and for an event that had not been selling well, once the commercial partner offered a beer and a sandwich for each attendees, the event sold out. “This is a little bit of what we have done and learned a ot in thr process, but we had questions; questions we want t share today.”

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