Tag Archives: Vue

Private Equity Firm Acquires U.K.’s Vue

Vue Cinemas Logo.jpgLate last week Vue Entertainment, the United Kingdom’s third largest movie theatre chain, was sold to a private equity firm. Doughty Hanson & Co. will reportedly cough up GBP £450 million (USD $730 million) to take over the circuit. The news was picked up primarily by business and trade publications, though depending on how events play out it could actually prove to be rather significant.

Based in London, Vue began it’s life in 1998 as SBC International Cinemas. With backing from Boston Ventures, co-founder and chief executive Tim Richards had opened six theatres by 2003. That was the year SBC pulled off a huge coup by acquiring the much larger Warner Village Cinema chain for £221 million (USD $353.6 million) and rebranding the company as Vue Entertainment. With 42 venues and 384 screens Vue became the third largest exhibitor in the U.K.

Then in June of 2006, Vue announced a management buyout of the company. The Bank of Scotland helped finance the deal which was estimated at £350 million (USD $644 million). By that time Vue had grown to 544 screens across 55 cinemas. Vue’s executive team took a controlling 52 percent share of the company with Coller Capital Ltd. taking a 29 percent ownership and Och Ziff Capitam Managment Group holding a 19 percent stake.

Today Vue operates 68 cinemas accounting for 678 screens throughout the U.K. and Ireland. Over last several years the company has been responsible for about half of all the multiplexes built in the U.K. They also own one theatre in Portugal and another in Taiwan. But that number could soon grow quite rapidly. Bloomberg suggested that Vue might use some of the cash from the Doughty Hanson sale to buy the U.K.’s largest circuit, Odeon, or possibly Cineworld. Another scenario has Vue scooping up a European theatre chain outside the U.K. Of course, they could always expand by opening new cinemas.

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Popularity: 2% [?]

A Recap Of Disney’s Adventures With “Alice”

Alice In Wonderland.jpgSurely Walt Disney Studios was hoping their upcoming release “Alice In Wonderland” would generate a lot of media attention before it hits theatres on March 5th, though they probably weren’t trying to create the kind of buzz the picture received over this past week. Theatre owners in North America and Europe protested when the studio announced it would move up the DVD release of the movie to early June, just three months after Tim Burton’s adaptation of Lewis Carroll’s classic is distributed theatrically.

The announcement was made on February 8th by Disney’s CEO, Bob Iger, during an earnings call and seemed to come as a surprise to many. A surprising number of newspapers, websites and radio shows beginning running numerous stories about the dispute just two days later and through the course of last week. In fact, the Los Angeles Times managed to sum up the latest battle over movie release windows rather nicely:

The flare-up illustrates how an arcane topic once only of interest to Hollywood executives can affect moviegoers around the world.

The L.A. Times, along with The Wrap, touched on the fact that studios have been meeting with key North American exhibitors (probably Regal Cinemas, AMC Theatres and Cinemark) to negotiate a deal on shortening theatrical release windows. These meetings weren’t done surreptitiously. In January John Fithian, President of the National Association of Theatre Owners, told attendees of the International Cinema Technology Association’s tech conference that theatrical windows would be changing to help studios maximize revenues from home releases:

“As a person who represents the cinema industry I’m not going to tell you that we’re very happy that that model is going to change, but it has to. But it has to change logically and it has to change with studios and exhibitors sitting down together and analyzing the models. It’s not a great secret, this is happening. Leading studio executives, leading cinema representatives are talking about what these models should look like. The good news is we’re all at the table talking. That’s much better and much more cooperative than if studio x decided just to abandon the model and release a major picture in the cinema and in the home roughly at the same time. That’s not going to happen. What’s going to happen is some scientific thinking and some research and a deliberative process to maximize the model for the studios without killing the model for exhibition.”

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Popularity: 29% [?]

Daily Cinema Roundup – Wed 13 May – “Going forward it will look different after the 3D screens are in place.”

Say hello to my little 8K friend!

Say hello to my little 8K friend!

- For those that decry Imax Digital’s 2x2K imaging technology, perhaps we can interest you in JVC’s new 8K projector? (pictured above) From CrunchGear, “8K content is pretty much…impossible to find right now. Unless you were to make a motion-JPEG movie out of full-size shots from a Hasselblad, I don’t think 8K is even approaching necessary. Fortunately, it also supports 4K (and why shouldn’t it?), a more reachable standard and one at which hi-def cinema cameras are actually shooting.” At 10,000 lumens, it won’t even make a proper size Imax screen blush, but it would do justice to a fully scanned Imax film frame (69.6 mm x 48.5 mm), so you could watch the action set pieces from “The Dark Knight” at home, just as Messrs Noland and Pfister intended them to be seen;

- National CineMedia Q1 2009 Earnings Call Transcript has been posted online courtesy of Seekingalpha. It’s been a good quarter for NCM with revenue up 17 per cent. “The improving reach of our networks, especially in the larger DMAs, is continuing to aid our strategy to broaden our client base. Several new clients are buying our network for the first time in 2009, including clients in the retail, import auto, broadcast TV, cable TV, and restaurant categories. I was most encouraged by the fact that several clients who had previously bought Screen Vision exclusively began to buy our network.” Which leads us to conclude that Screenvision’s Q1 was probably not as good;

– HBO will not be sponsoring Washington DC’s Screen of The Green, ending the outdoor summer cinema tradition after nine years, according to the Washington Post. “Ah, memories. The persistent bugs, the hateful humidity, the evening thunderstorms rumbling in the distance, the veggie plates and the contraband alcohol — Screen on the Green allowed us to experience all the hallmarks of a summer in D.C. at once, with a classic film unspooling on a giant screen on the grassy expanse between Fourth and Seventh streets NW. It was fine viewing on prime real estate.” There is a Facebook group to save the Screen on the Green event, but unless a new big sponsor is found, don’t expect President Obama to dig into the TARP funding to rescue this tradition. Other outdoor screening continue, though, in the suburbs, “Rosslyn is running movies from the ’80s every Friday through September at Gateway Park near the Key Bridge. Crystal City is doing the same thing with superhero movies. Other outdoor festivals are hosted in Bethesda, Rockville and elsewhere in Arlington.” As far as cheap or even free cinema entertainment goes, outdoor screenings are hard to beat, particularly in these tight financial days;

- The hunt is on for the Norwegian projectionist believed responsible for camcording and uploading a recent local hit Max Manus, according to Screen International. “The film was released on 103 prints but was illegal copies were made available online shortly afterwards. Filmkameratene tried to trace their origin from the so called ’water marks,’ different signals on each film copy which are not visible to the audiences, but readable to computers. The result has not been reported.” It sounds like the copy was made off a digital cinema screening, though it could also be the more primitive cap coding on 35mm prints. We will try to track this one;

- While box office taking are good, US exhibitors like Regal Cinemas are still having to scale back their growth plans because of the tighter credit climate, according to Reuters. “But plans to build 10 to 12 new theaters per year have been tempered by the ability of shopping center owners to move forward with projects, Campbell said. Regal expects building to be slowed to five to six theaters per year for the next three to five years, he said. The company’s participation in Digital Conversion Implementation Partners — a partnership with the No. 2 and No. 3 U.S. theater chains aimed at converting screens to digital and 3D projection systems — also had been slowed in the financing stage.” Regal is expecting growth to continue at four to five per cent for the next five years, but that is without calculating the added growth from 3D, which they say is “harder to project” (no pun intended). Quote in headline from new CEO Amy miles;

- More signs of the recession, UK’s Vue is putting on free film screenings, The Times tells us. Just don’t expect “Star Trek”. Instead Metrodome is providing some…interesting…choices. “First up, on May 15th, One Eyed Monster.  What sounds like a classic piece of schlockeroo starring adult film legends Ron Jeremy & Veronica Hart with”Buffy The Vampire Slayer” pin-up Amber Benson. Expect slimy alien creatures and unwise costume choices from an array of screaming starlets. And, most importantly, expect it for free.” The participating cinemas are: Vue West End, Vue Cambridge, Vue Edinburgh Omni, Vue Manchester Lowry and Vue Bristol Cribbs Causeway and you can get a ticket by e-mailing creditcrunch@metrodomegroup.com. Bless;

- THR.com uses the Cannes premier of Pixar’s “Up” as a jump off point for two in-depth articles about 3D in general and in Europe in particular: ‘Who’ll pay for 3-D glasses? Exhibitors, studios squabble over who should foot the bill‘ and ‘3-D accelerates as ‘Up’ opens Cannes – Film’s exposure at the fest could give 3-D an international push.’ Both articles are well worth reading and we particularly like Chris Morris’ illustration of what the black tie screening might look like (right), though perhaps XpanD as one of the sponsors and technology providers of the event might want to have a word with him for drawing anaglyph red-and-blue glasses instead of the Nuvision active glasses. We hope to bring you a picture of Co-Editor Sperling on site with glasses for comparison. Possibly even a report on the event if he can tear himself away from the Cannes parties. Follow him on Twitter here, where he reports: “The press in Cannes loved Pxar’s “Up”. Many in the press screening audience were all teary eyed at the end.“;

- Slight relief for Indian multiplexes (and cinema goers) as Bollywood film “99″ opens this Friday in defiance of the Distributor-Exhibitor stand-off, while Sony Pictures is going ahead with the release of “angels & Demons” on 29th of May. But two films don’t make a box office summer and the dispute remains unresolved.

Popularity: 41% [?]

Daily Cinema Roundup – Friday 1 May

- UK exhibitor Vue has bold expansion plans for London, announced as part of the tie up with retail property group Westfield and build a total of eight sites by 2011, with two ‘crown jewel’ sites in London. From THR.com, “Vue Entertainment CEO Tim Richards said the site at London’s Westfield shopping center aims to be “the jewel in the crown” for the chain. It will be an all-digital venue with “no film projectors in sight” and Richards claims it will be the biggest purpose-built cinema in Europe, with 3,000 seats in a complex of more than 100,000 square feet.” Tim hopes to throw open the doors to this all-digital 3D entertainment palace in time of James Cameron’s “Avatar”;

- Fellow UK exhibitor Cineworld has just announced another terrific quarter. From Reuters, “Cineworld said in a statement that box office takings were up 19.1 percent in the 17 weeks to April 23, driven by British multi-Oscar winner Slumdog Millionaire, but other income led by advertising was down 24.6 percent in the same period.” From the Press Assosiciation we learn that 3D is also padding the coffers nicely. “So far the group has been “very encouraged” by its initial investment in 3D after it claimed 50% and 46% box office share for children’s films Monsters versus Aliens and Bolt.” Cineworld is also opening more screens, next up 10 screens in Aberdeen and five in Witney. From Brand Republic we learn that “The rise in cinema takings comes as consumers continue to desert UK pubs and clubs.“;

– No sooner has the Dolby announced the Arqiva satellite tie-up then its green digital cinema credentials get trumpeted for the distribution of eco-mentary “Big River Man“. From Home Cinema Choice, “The film will be mastered in the US and then transmitted from there to the company’s UK centre. From there the DCP (Digital Cinema Package) will be transmitted to digital cinemas around the UK – cutting out the need for air freight and couriers, which in the past have been used to transport 35mm film and hard drives containing digital prints, and significantly reducing Big River Man’s carbon footprint.” Friends of the Earth might be happy but as the subject of the film is a ‘horseburger-loving Slovenian‘ don’t expect this to get the support of PETA.

- Anti-social behaviour is the bane of cinema operators in most countries, but in the UK the problem is Greys Gone Wild. From The Telegraph, “Pensioners at the Odeon, in Leicester, have been reprimanded for threatening, pushing, poking, bullying, harassing and intimidating staff, saving seats for friends and queue jumping. Concerns were also raised about customers abusing the complimentary tea and biscuits arrangement.” The Senior Screen programme will be terminated, a three-page letter (see above) warned, if this type of bad behaviour is not curtailed;

- National Amusements sale of some of its cinemas appears not to be going as well as hoped, we learn from THR.com. “U.S. screens included in a $1 billion-plus batch of National Amusements theaters drew fewer than a half-dozen bids by Thursday, but more were expected by Friday’s deadline after lucrative properties initially withheld were tagged for sale. A separate auction of National’s roughly 275 U.K. screens completed its first round of nonbinding offers last week amid a flurry of last-minute bidding.” Apparently other major cinema chains are not knocking on the doors, meaning that financial institutions are likely to have put in ‘lowball’ offers only at this stage;

- UK’s Empire Cinemas has awarded the contract for its telephone booking system. From the press release, “Telephonetics VIP, the speech automated specialist, today announces the signing of a multi-year contract with Empire Cinemas Ltd for the supply of its MovieLINE® automatic speech recognition (ASR) ticket booking and information technology solution to all of its 17 UK cinema sites. After a 3 year long relationship with Eckoh, Empire Cinemas has decided to switch their supplier to major competitor Telephonetics VIP. ” I’m sorry, I didn’t understand – could you repeat that? Click, brrr:

- Barco is trumpeting its successes in Latin America in a press release out just in time for, errh, ShowCanada. “Digital Cinema pioneer Barco announced today that the deployment of its digital cinema projectors is growing substantially into the Latin American marketplace. Spearheaded by Barco’s relationship with Texas-based Cinemark International, Barco DP-2000 projectors have been deployed into more than 25 Cinemark multiplexes throughout Mexico, Central and South America, including major cities in Argentina, Chile, Peru, Guatemala, Panama, Colombia, Ecuador and Brazil.” This triumph is somewhat undercut by the toll that the H1N1 (don’t-call-it-swineflu) is taking on the Mexican exhibition industry at the moment. It is no small irony that this summer’s box office might be undone by  small virus instead of a great big recession. Do your duty and visit your local multiplex this weekend – bing your hand sanitizer gel if you are worried;

- Ending on a positive note (as we like to here on CJ), Australia’s The Age has an article where the headline really says it all ‘Cinema boom shows even economic clouds have silver lining‘. “”Cinema does represent demonstrable value, particularly in tougher economic times, and compared to the cost of holidays, concert tickets and restaurants,” Liebmann said. Spending on filmed entertainment is set to rise by 5.3 per cent a year until 2012, to $3.4 billion, according to PricewaterhouseCoopers.” And who are we to argue with PWC?

Popularity: 31% [?]

Cinemas – Ignore Baby Boomers At your Own Peril

senior-vue

This very good article from the New York Times does not dicsuss cinema or cinema advertising explicitly. But the implications are writ large for the two about the growing importance of the aging US (and European) population in terms of impact it will have on spending habits.

For decades, older consumers were largely shunned by marketers because they were deemed less wealthy, less likely to try new products and less willing to change brands. Campaigns directed at them were described dismissively as made for the “Geritol generation.” As much as older consumers were to be shunned, young consumers — ages 18 to 34, or 18 to 49 — were desired for what were deemed their free-spending ways, eagerness to sample new products and brand-switching proclivities. The idea that they were starting in life with a proverbial blank slate of marketing wants and needs was catnip to product peddlers.

Those attitudes have been changing, for a couple of reasons. One is the recession, which makes older consumers who may have paid off mortgages seem a safer bet than younger ones who may get laid off in last-hired, first-fired downsizings.

The hard numbers bear out this thinking.

Although “18 to 49 is going to remain the predominant buying demographic,” Mr. Donchin said, “this country is aging, and the boomers are an attractive demographic.”

That appeal is because of the size of the boomer market and because, as Mr. Donchin put it, “50 isn’t what it used to be.”

Older consumers today “are not as resistant to change” as older consumers previously may have been, Mr. Donchin said, summarizing their attitude as “Show me something better, and I’ll try it.”

And the boomers are even “comfortable with digital media,” he added.

Hollywood studios are slowly waking up to this as well, with films like “The Queen” having significantly higher investment return ratios than even big hits like “The Dark Knight”.

But cinemas are only slowly embracing this fact. UK exhibitor Vue spoke on a panel at ShoWest about how it has introduced screenings aimed at an older clientele where they don’t have to sit next to youngsters chatting on mobile phones. Vue may soon want to consider targeting 45-65s with wine and cheese in the evening, rather than just the 65+ tea-and-biscuit crowd.

Popularity: 25% [?]

RealD Scores Hat Trick in 3D Deal With UK’s Vue

vue-logo Digital 3D provider RealD was bagged three of the top three UK exhibitors with the announcement that Vue will be converting 200 screens using RealD’s solution. This follows hot on the heels of #1 exhibitor Odeon/UCI’s deal for 500 screens and #2 exhibitor Cineworld’s deal to convert 30 of its 73 sites. From article in THR.com:

Vue Entertainment, the U.K.’s third-largest theater operator, is turning to 3-D technology, striking a deal with RealD to add 200 screens equipped by the 3-D specialist.

Vue and RealD said Monday that the rollout of RealD 3-D-enabled screens already has begun, with an installation at Vue’s flagship location in the British capital, Leicester Square.

“RealD 3-D is the market-leading choice for its remarkable track record of providing a superior viewing experience, something we can’t wait to bring to our many locations across the U.K.,” Vue CEO Tim Richards said. Read More »

Popularity: 41% [?]

UK’s Vue: We Don’t Need No 35mm Projectors

Vue logo UK cinema chain Vue has made history of sorts by becoming the first in the UK to open a new multiplex with no 35mm projectors, putting its faith instead in digital cinema. The company has spent no less than £5m ($10m) on equipping each of the ten cinema screens at the multiplex in Hull with digital sound, picture and 3D, opening in time for Christmas. From the Hollywood Reporter:

“We believe this development paves the way for the future of cinema by encouraging film distribution and studios into providing more films in digital format,” Vue Entertainment CEO Tim Richards said. “The installation of a 10 Terabyte computer server allows over 100 movies to be stored at any one time, providing the opportunity to offer a wide and varied choice of movies.”

Vue also plans to show alternative content covering music, sport and comedy in addition to movies at the 10-screen multiplex, Richards said.

Two further multiplexes are in Vue’s pipeline, one in Kent and one in Scotland, both with digital. Though Vue has trailed behind rival Odeon in terms of grabbing headlines for digital, the company has quietly pursued a very clear digital agenda that we are now seeing the results off. The move is also a tremendous vote of confidence in both US and UK distributors in being able to deliver titles in digital, mainly on the back of the UKFC’s DSN, in which Vue has been a significant partner in, and the ramp up of the Hollywood studios in the United States on the back of Christie/AIX deployment.

Popularity: 14% [?]