Tag Archives: India

Daily Cinema Digest – Monday 9 March 2015

Odeon Printworks Manchester

UK – With a drink called ‘Fifty Shots of Grey Goose’ on the menu, is it any surprise that Manchester’s Odeon takes the crown in most booze sold for the S&M blockbuster? Amazingly there were “barely any incidences of anti-social behaviour” in the cinema.

Odeon Manchester not only sold more alcohol than any other Odeon in the UK but also managed to sell the second highest number of tickets during Fifty Shades of Grey’s opening weekend.

The latest figures reveal that Odeon Manchester sold more than £10,000 worth of alcohol, surpassing any other weekend in the company’s history.

Ticket sales were at a record high as Fifty Shades sold more than 14,000 tickets after three days, including the Gallery – the Odeon’s VIP experience.  LINK

Tamil film

India – This proposal to stop all south Indian film releases to kill piracy seems like a incredibly dumb joke. Never mind pirates, has anyone stopped to think for a second what it will do to cinemas?

The Tamil Film Producer’s Council (TFPC) is likely to halt the releases of latest Tamil films for about three months to put movie pirates out of business.

On Sunday, at the general body meeting of TFPC, most of its members decided that the only way to stop the problem of video piracy is to stop releases of films for at least three months.

“Piracy will automatically stop when there’s no content. When we stop film releases, say for three months, the movie pirates will go out of business. We are looking into this option because film producers have suffered heavily in the last 24 months,” Kalaipuli S Thanu, TFPC president told IANS.  LINK

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Daily Cinema Digest – Friday 13 February 2014

regal-entertainment1

Regal has announced its 2014 Q4 figures, which are up, up, up in all departments, on the back of an improved film slate. Reason enough for it not to want to sell itself any longer. Dividend was also announced.

Total revenues for the fourth quarter ended January 1, 2015 were $799.1 million compared to total revenues of $739.9 million for the fourth quarter ended December 26, 2013. Net income attributable to controlling interest was $46.3 million in the fourth quarter of 2014 compared to $24.0 million in the fourth quarter of 2013. Diluted earnings per share was $0.30 for the fourth quarter of 2014 compared to $0.15 during the fourth quarter of 2013. Adjusted diluted earnings per share (1) was $0.30 for the fourth quarter of 2014 compared to $0.17 during the fourth quarter of 2013. Adjusted EBITDA (3) was $163.5 million for the fourth quarter of 2014 compared to $125.8 million for the fourth quarter of 2013. Results for the fourth fiscal quarter of 2014 and for fiscal 2014 were significantly and positively impacted by the timing of our fiscal calendar which consisted of a 14 week period in the fourth quarter of 2014 compared to a 13 week period in the fourth quarter of 2013 and a 53 week period in 2014 compared to a 52 week period in 2013. The additional week was the week between Christmas and New Year’s Day, a traditionally high attendance week for the company and the industry. Reconciliations of non-GAAP financial measures are provided in the financial schedules accompanying this press release. LINK

Lotte Popcorn

South Korea – Popcorn profeteering and misleading film start times (actually advertising block) has become a civic cause in South Korea.

South Korean civic groups and the Democratic Youth Federation and the promotion of the Law Society was held in front of the 9pm news conference, said Lotte Cinema, South Korea Studios CGV, Lotte Cinema and theater in general MEGABOX the existence of “popcorn profiteering” and “mandatory advertising,” and a series of injustice, against the interests of consumers. According to the Korea Association of consumer groups last year statistics, the results of the three big companies sell snacks original show that vat of popcorn sells for 5000 yuan (about 29 yuan), but the raw material price is only 613 yuan, the price of the raw material actually 8.2 times the price. One consumer said, can not help but read more than 20 minutes of advertising, movie tickets in actually also includes the cost of 3D glasses, himself unknowingly become “taken for a ride.”  LINK

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Daily Cinema Digest – Monday 12 January 2015

Glitz Cinema

India – Carnival group has acquired small Indian multiplex operator Glitz, having previously bought most of Big Cinemas.

After buying Anil Ambani’s Big Cinemas, the Carnival Group has picked up elder brother Mukesh Ambani’s majority stake in Stargaze which operates the multiplex chain “Glitz” for an undisclosed amount. Network 18 Media and Investments Ltd, on Thursday said its venture capital unit, Capital 18 has sold nine operational screens in Rajasthan, MP, Chhattisgarh, Uttaranchal and UP and one non-operational screen. Network 18 has sent a brief notice to the exchanges. The latest acquisition take the Carnival group ,which has over 300 screens, closer to their top competition PVR which still leads at 462 screens. Around two weeks ago, the Shrikant Bhasi-led Carnival acquired Big Cinemas for around Rs 700 crore.  LINK

 There will be blood

USA – Will cheaper oil/petrol prices lead to more discretionary income and more cinema visits? This Seeking Alpha analyst thinks so.

The stunning collapse in the price of oil can be considered a “tax cut” that will allow for additional spending. To quantify the impact, it is expected that the average family will see an additional $500 in funds which can be earmarked as they see fit. With wage growth virtually stagnate over the past few years; the relief on the consumer due to lower energy prices will be welcomed. In my view, an investable trend has emerged where a clear path for higher discretionary spending. Unlike in recent times, I expect consumers to continue to be cautious with their spending and expect some of the funds to be earmarked for savings and debt reduction which will consume a portion of the savings. With this backdrop in mind, the stronger plays will be those companies that offer affordable luxuries to the masses. The theatrical exhibition chains neatly fall into the above definition as their product is affordable and offers a bit of an “escape” from the everyday routine. In the article below, I will detail the investment case for AMC Entertainment Holdings Inc (NYSE:AMC).  LINK

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Daily Cinema Digest – Monday 3 November 2014

Cinepolis

Mexican/international chain Cinepolis is mentioned as one of the potential bidders for Regal, according to the LA Times. Other potential buyers mentioned include No. 3 US chain Cinemark, Shanghai Film Group Corp., Chinese e-commerce major Alibaba, or South Korea’s CJ Group. It is clear that there is no obvious front runner, but nobody is prepared to rule themselves out at this stage.

Cinépolis, Latin America’s largest theater chain known for its luxury amenities, may be among the prospective bidders for the United States’ largest theater chain.

Adrian Mijares Elizondo, chief executive of Cinépolis USA, said his company would consider buying Regal Entertainment after the Knoxville, Tenn., company surprised investors last week when it announced that it would entertain offers to sell the chain.

“It’s not every day that the biggest chain in the industry goes on sale,” Elizondo said. “We would take a look at Regal. This is a growth opportunity, and like any growth opportunity we have available, we will discuss it and evaluate it.”  LINK

Zhovten yellow cinema fire

Ukraine – The apparent arson attack on Kiev’s oldest cinema is starting to make waves with the city’s population and politicians, including the Mayor of Ukraine’s capital. Questions are also being raised if it was a hate crime or related to a rent dispute.

Hundreds of people rallied in front of Kyiv city hall on Oct. 31 to demand an investigation into a fire that recently destroyed the popular Zhovten cinema. They also called for reconstruction of the historic building and Kyiv’s oldest move theater built in 1930, which has been the subject of a years-long rent dispute.

The activists honored the ruined arthouse cinema by wearing yellow jackets, hats and scarves and holding yellow posters that read “Give Zhovten cinema back!” Zhovten means ‘October’ in Ukrainian and derives from the word “yellow.” Others spattered black drops on their placards accompanied by the inscription: “There are still drops in the ocean,” a reference to the popular EuroMaidan Revolution slogan “I am a drop in the ocean.”  LINK

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Daily Cinema Digest – Friday 31 October 2014 (Halloween)

Zolten cinema Kiev fire

An apparent arson attack has destroyed the oldest cinema in Ukraine’s capital. While nobody was injured, this appears to be a despicable hate crime attack that could have had even more tragic consequences.

The oldest movie theater in the Ukrainian capital of Kiev was seriously damaged as fire swept through the historic building during the screening of an LGBT movie in a suspected arson attack.

There were no injuries reported among the 100 moviegoers, who attended the screening of the French film ‘Les Nuits d’Ete’ (Summer Nights) as part of the Molodist film festival program.

However, the landmark Zhovten movie theater, which was opened back in 1931, suffered severe damage in the incident.  LINK

Curzon Soho Victoria

The same week that Picturehouse (Cineworld-owned) announces that it said would sack staff from the Brixton ritzy after lengthy strikes for a Living Wage (see next story), rival Curzon has agreed to pay its London staff the UK capital’s version of minimum wage.

The arthouse cinema chain Curzon, which runs nine sites around the country, has agreed to pay front-of-house staff the London living wage at its six cinemas in the capital.

It follows a year-long negotiation with media union Bectu as well as an online Change.org campaign, and sees wages rise from around £7 an hour to £8.80.  LINK

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Daily Cinema Digest – Friday 12 September 2014

As you may have noticed Patrick von Sychowski is in Amsterdam attending IBC which means you must suffer my attempt at putting together a Daily Cinema Digest.  Be sure to check out all of Patrick’s coverage of IBC after catching up on the day’s (or in this case, week’s) cinema news.

Big Cinemas

Hey, remember when North American exhibitors built way too many multiplexes during the 1980′s and 90′s over extending themselves to such a degree that during the early 2000′s the industry began to consolidate with cinema chains buying each other out or merging?  Well, it seems this is a trend that might be hard to avoid.  India has been going through a huge multiplex boom over the past decade and now it seems has entered the consolidation phase of the business cycle.  Rumors are afoot that Carnival Films is in negotiations to acquire the majority of Reliance MediaWorks theatre chain Big Cinemas.  This would be the third such merger or acquisition for India’s exhibition industry in as many months:

Inox Leisure, India’s second largest multiplex operator, acquired Delhi-based Satyam Cineplexes Ltd for nearly Rs.240 crore, paying Rs.182 crore in cash and taking over its debt in a deal that expanded Inox’s presence to 50 cities, with 91 multiplexes and 358 screens; and Housing Development and Infrastructure Ltd (HDIL) sold its multiplex business Broadway Cinemas to Carnival Cinemas for an undisclosed amount.

If the deal goes through Carnival would end up with 280 screens.  That really seems to be one of the main reasons for all the mergers and acquisitions; more screens a bigger market share of the box office and thus more leverage when negotiating with film producers and distributors over film rental.

According to the omnipresent anonymous source “familiar with the situation” Reliance isn’t looking to completely exit exhibition:

“The contour of the final transaction is yet to be arrived at, but Big Cinemas will not entirely exit the business. It will form a strategic alliance with an existing cinema exhibition chain that will run the daily operations and it will receive proportionate revenues from them as part of the partnership. Reliance MediaWorks will also invest in the venture as part of its growth strategy because it believes there is growth potential in this business.”

Don’t expect the consolidation of the Indian exhibition industry to slow down anytime soon.  Jehil Thakkar, head of the media and entertainment practice at KPMG, told LiveMint:

We certainly do see the cinema multiplex industry continuing to consolidate inorganically as the real growth opportunity lies there… Most of the big players are seeking inorganic growth options and scale is a very important part of this business.”

I just love that word “inorganic”.  Do you think since organic products usually cost more at stores that inorganic ones would cost less?  If so, maybe Carnival could get a discount on Big Cinemas since it would technically be considered “inorganic growth”.  LINK

Megabox

South Korea – The sale of exhibition circuits isn’t limited to India.  Over in South Korea an investment group is looking to cash out on their seven-year investment in Megabox.  Korea Multiplex Investment Corp.

Inside, though anonymous, sources have told various media outlets that backers Korea Multiplex Investment Corp., whose shareholders include the National Pension Service, Public Officials Benefit Association and Military Mutual Aid Association, are pushing for a sale of the company and have been reaching out to potential buyers.

Megabox is one of South Korea’s largest multiplex operators controlling 21% of the screens in the country as of last year. That figure is third to CJ CGV which operates 43% of screens and the film division of Lotte Shopping Company which controls 32%. Korea Multiplex, which owns 50% of Megabox (Jcontentree Corp. holds a 46% stake in the exhibitor), is hoping the circuit will sell for as much as 13 times its current earnings.

In 2013 Megabox netted KRW 25.6 billion (USD $24,745,216) on KRW 206.1 billion (USD $199,218,321) in revenue.  LINK

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Daily Cinema Digest – Thursday 24 July 2014

Sex Tape header

The summer isn’t over but already it seems that last rites and post-mortem are being performed on what has been a disappointing box office season, at least in the US. Thank goodness there is China and other emerging markets to cheer up Hollywood, though this is cold comfort for US-based exhibitors. Apparently its men’s fault for staying away in droves.

Less than six weeks before Labor Day, hopes for recovery at the North American summer box office have evaporated. The season is expected to finish down 15 to 20 percent compared with 2013, the worst year-over-year decline in three decades, and revenue will struggle to crack $4 billion, which hasn’t happened in eight years. As a result, analysts predict that the full year is facing a deficit of 4 to 5 percent.

And

Although there have been no Lone Ranger-size debacles, for the first time since 2001 no summer pic will cross $300 million domestically (X-Men: Days of Future Past, Maleficent and Transformers: Age of Extinction hover near $230 million). May kicked off with The Amazing Spider-Man 2 earning $200 million less domestically than 2013′s Iron Man 3; by July 20, the divide had swelled to nearly $690 million as revenue topped out at $2.71 billion, down 20 percent compared with the same period last year.  LINK

Could it be partly because US ticket prices are up compared to Q1 this year (but down compared to Q4’13)?

The average cost of going to the cinema in the U.S. rose to $8.33 in the second quarter of 2014 as the summer season kicked into high gear, according to the National Association of Theater Owners.

That’s up from $7.96 in the first quarter of the year, when there were fewer 3D tentpoles.
However, it was notably down from the second quarter of 2013, when the average movie ticket price clocked in at $8.38 (the reason for the year-over-year decline could include fewer 3D tickets being bought overall as the appetite for the format wanes).  LINK

 Screen Australia chief executive Graeme Mason

Australia - Federal budget cuts means that Screen Australia has to cut staff by one-tenth and decrease funding for cinema-related projects.

Chief executive Graeme Mason has announced plans to save more than $5 million this financial year, including up to $3 million in development and production investment and another $1 million by cutting staff from 112 to 100.

Faced with a $38 million cut over four years in the May budget, Screen Australia will also reduce what it spends to help a film’s cinema release – so-called ”print and advertising” support – and end direct funding of such industry training organisations as Sydney’s Metro Screen, Melbourne’s Open Channel and Adelaide’s Media Resource Centre.  LINK

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Daily Cinema Digest – Friday 18 July 2014

Vista Murray Holdway

New Zealand – Ticketing specialist Vista has been valued at $188 million. Not clear if US or NZ dollars, but as it is on the NZX bourse most likely the latter, meaning it is would be worth USD $163.4 million.

Investors in cinema software company Vista’s sharemarket float will pay $2.35 for its shares, valuing the company at $188 million.

The price was set following a book build open to institutional investors and retail brokers who had been told to expect the price to fall between $2.10 to $2.70.

Vista, one of a stream of technology companies listing on the NZX, is raising $40m of new capital through its initial public offer. Its existing shareholders are seeking to cash up $52m by selling down their stake in the company to 47 per cent.  LINK

Laxmi Talkies

India – Yet another article noting the loss of single screen cinemas in India as multiplexes march on, with Ranchi (the city in question) having four multiplexes but only three stand-alone cinemas left.

Licensing authority for theatres, Ranchi deputy commissioner Vinay Kumar Choubey, says: “We have just issued a licence for a new multiplex in Lalpur. We expect more such theatres to come up in the next few years. The biggest advantage that they have vis-a-vis single-screen theatres is that with multiple screens showing one movie at the same time, the money spent on making the film is recovered in the first weekend itself.”  LINK

Yet it is not smooth sailing for all multiplexes, including this one in Sambalpur that has not opened, despite construction work being finished back in January.

Though its operator Eyelax Films had scheduled to open the multiplex on January 26, it failed to do so as the district administration did not issue the licence.

The town used to have three cinema halls – Ashoka Talkies, Laxmi Talkies and Gaiety Talkies- till pirated CD market spelled doom for their owners. While encroachment by locals forced the Kerala-based owner of the Gaiety Talkies to sell the land to a real estate owner, others are running with old infrastructure. In absence of any option, cine lovers flock the Ashoka and Laxmi Talkies.  LINK

Meanwhile more reports that Reliance ADAG is looking to dump Big Cinemas.

The company is said to be in talks with other multiplex majors like Inox, @PVR_Limited1 Limited and also other PE firms.

As per reports if the strategic sale does not consummate the company would rope in the PE partner to invest in the multiplex chain after being spun off as a separate entity to be listed. LINK

Perhaps Reliance should sell them to Carnival, which is looking to acquire 3,000 screens over the next three years – a figure to be taken not so much with a pinch as a barrel of salt.

Shrikant Bhasi, chairman of the Carnival Group, said that his company is in talks to acquire 175 screens from three separate multiplex operators in Andhra Pradesh, Punjab and Uttar Pradesh. Bhasi did not share details of the plans, but confirmed that consulting firm KPMG is advising the company on the transactions, which he said will be concluded in the next two to three months. “The immediate goal is to have 300 screens,” said Bhasi, who is also a movie producer and has played minor roles in Malayalam films. “My team is already working for a 3,000-screen project.”  LINK

Not sure if they will want screens in southern India where state governments keep setting price controls on tickets and now also concessions.

The Congress government had promised to introduce uniform fares to contain the multiplex lobby in January.

But, in an interview to NDTV, state Information Minister Roshan Baig said, “I used to feel the pinch as a movie-goer. But then we are not paying for the ticket alone. Chennai has uniform rates of Rs. 120 and we wanted to bring the same to control the prices imposed by multiplex owners, but I realized it cannot work. Malls are now turning away from Chennai. But I have ordered multiplex owners in Bangalore to reduce prices of food items because they are very expensive”.  LINK

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Daily Cinema Digest – Friday 11 July 2014

Big Cinemas

India – After the surprise merger of its RMW film services division with Prime Focus, Reliance ADAG looks set to sell off its Big Cinemas operation. Good analysis as always from Variety’s Patrick Frater.

The company is in advanced negotiations to sell its Big Cinemas circuit to an unidentified private equity firm, according to Indian business media. RMW is also reported to be holding similar talks with PVR and Inox Leisure, the country’s two largest cinema operators. Big Cinemas operates some 280 screens across India, making it the third-largest circuit. Born from the Adlabs group that Reliance ADA acquired in 2006, Big Cinemas was previously the largest exhibitor in India. But it lost ground to its smaller rivals because it opened too many single-screen cinemas and missed some key acquisitions. LINK

India – And like most other multiplexes, Big Cinemas has completed the transition to DCI-grade digital cinema while most single-screen cinemas in India now have lower grade e-cinema systems from the like of UFO Movies, meaning that the country is close to complete digitisation.

With nearly 95 per cent of Indian cinema screens now digitised, the industry is expected to see buoyant growth in the long run. The Government has approved an anti-piracy plan for combating piracy which impacts movies’ box office collections. The Government has also signed co-production agreements with nine countries including Italy, Brazil, Germany, France, New Zealand, Poland and Canada. India is also a sought after shooting location, as the Government gave permission to 31 foreign production houses in 2013-14. Also, the first phase construction of the National Museum of Indian Cinema in Mumbai has been completed and will open for the general public shortly. LINK

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Daily Cinema Digest – Monday 7 July 2014

Lotte Super Plex G Is The World's Largest Cinema Screen

What is the largest cinema screen in the world? According to Guinness World Records it is now in the tallest building in South Korea. So that’s officially official.

The screen of the multiplex cinema which will open at the Lotte Cinema World Tower, boasts its unparalleled size in the industry: With 622 seats — the largest available number of seats for a screen, the Super Plex G is an ultra large theater which looks like a two-storey opera theater in appearance. In its 34 meters wide and 13.8 meter long screen, 34 adults can lie on it together.

On July 3, a special ceremony was held to commemorate the recognition of the largest screen “Super Plex G” at Lotte Cinema World Tower by the Guinness World Records that confirmed the huge screen has been qualified as the world’s officially biggest screen. LINK

USA: THR asks what is behind the underperforming summer box office in North America, which is down nearly 20% up to the 4th of July holiday. Underperforming titles seem the culprit and no blame apportioned to World Cup (unlike Europe and Latin America).

What’s behind the summer drought? Hollywood studio executives and box office observers blame a lack of mega-grossing tentpoles, a dearth of doubles and triples and no huge animated family film. In other words, a number of films have underwhelmed (or bombed), including Fourth of July R-rated comedy Tammy, which posted a five-day debut of $32.9 million, Melissa McCarthy’s lowest recent opening (as a way of comparison, fellow R-rated comedy Neighbors launched to nearly $50 million in May).

Revenue for Fourth of July weekend hit only $130 million, down 44 percent from last year’s $229.8 million haul. Granted, the holiday fell on a Friday this year, a disadvantage, but revenue managed to reach $160.2 million in 2008, the last time the Fourth was a Friday. One reason for the dramatic downturn is that no big tentpole rolled out, probably because no one wanted to open in the wake of Transformers: Age of Extinction, which debuted June 27. LINK

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