Boxoffice® Pro - October 2013

EXHIBITION BRIEFS
MOVERS AND SHAKERS
n With ShowEast just around the
corner, the annual convention
and tradeshow
has started
to announce some
of its award winners
in earnest.
Ellis Jacob, (left)
president and
CEO of Cineplex,
will receive
the Show
E Award
for his 25
years of
experience
in Canadian
exhibition
and on
the boards
of industry
associations
including the Motion Picture
Theatre Associations of Canada
and NATO. The Al Shapiro Distinguished
Service Award will go to
Mike Polydoros, executive vice
president of distribution operations
for Lionsgate, whose charitable
activities include serving on the
advisory board for the Will Rogers
charities and supporting Variety
Children’s Charity. And Abramorama
founder Richard Abramowitz
will accept the Bingham Ray
Memorial Award for demonstrating
leadership in independent cinema.
In addition, the event will present
its 2013 International Distributor
of the Year award to Giovanni
Gentili, recognizing the veteran
executive for a career serving the
Hollywood studios throughout Latin
America as well as his own company
Andes Film, which distributes
Sony, Disney, and indie films in
Chile and Peru. The International
Achievement Award in Exhibition
will go to Grupo Cinemex, which,
since its founding in 1995, has
grown to the fifth-largest theater
chain in the world with 217 theaters
and 1,958 screens. And Brazil deputy
Guilherme Campos will receive
the Anti-Piracy Latin American
Government Leadership award for
his work to promote public and
private sector cooperation and
support of anti-counterfeiting and
piracy field programs and events
throughout Brazil.
and entertainment facilities in the Changsha
area of Hunan province. The companies are
on track to complete construction of their
first three multiplexes by the end of the year,
with plans for another 40 by the end of 2016.
Each location will house about 10 screens
with all-digital projection, 3D, and alternative
content.
“With the growing urbanization trend, the
Chinese population continues to move from
rural areas to densely populated cities,” says
UltraStar president John Ellison. “This presents
a long-term opportunity to grow the movie
industry in China as a whole and implement
cinema technologies and concepts that have
been successful here in the United States.”
“The Chinese film market is growing rapidly
as an industry, enabling UltraStar to bring
capital, technology, and branding from a highly
saturated market to a high-growth market,”
adds Letian chairman Huidong Liu. “Both
parties are committed to leveraging complementary
resources, capabilities, and interaction
between Chinese and American industry to
create a competitive edge in the market and the
global film sector.”
MEXICO, CHINA GET REALD
n With two new deals on both sides of the
globe, RealD has expanded its worldwide footprint
by 750 screens.
The firm has inked a decade-long agreement
with Cinemex, the world’s sixth-largest cinema
exhibitor, to become the chain’s exclusive 3D
provider. The pact covers approximately 700
auditoriums in Mexico, including the replacement
of 540 or so rival 3D systems over the
next couple of years.
“By joining forces with Cinemex, RealD
will significantly increase our footprint across
Mexico,” says Marlene Songin, RealD’s vice
president of cinema. “This is a testament to
RealD’s performance advantage and the
commitment from exhibitors like Cinemex
to deliver on the promise of 3D with a truly
premium cinema experience.”
Meanwhile, RealD has pacted with UME
International Cineplex to install its 3D technology
on 50 screens across the chain’s Northern
China locations. Installation has already begun.
With the 50 RealD screens already installed in
UME theaters in Southern China, RealD will
equip 100 screens across the circuit.
“It is exciting to see UME’s continued
development in the China cinema market, and
RealD is honored to be a part of it,” says Edman
Chan, RealD’s vice president and general
manager of cinema in the Asia Pacific. Founded
in 2002, UME expects to grow to 22 cinemas
with 253 screens by the end of the year.
RealD’s 3D cinema technology is installed
in approximately 23,500 auditoriums by about
1,000 exhibitors in 74 countries around the
world.
QUANTUM LEAP
n Fandango has pacted to acquire Quantum
Loyalty Solutions, the Incline Village, Neveda,
firm that owns Hollywood Movie Money. With
Quantum’s movie “currency” accepted at more
than 35,000 screens nationwide, the deal will
expand the online ticketer’s promotional ticket
and gift-card business. The rewards will be redeemable
through Fandango’s website and mobile
apps, where users will be able to purchase
additional tickets at the same time—driving
business to the company’s ticketing offerings.
“The marriage of Quantum’s promotions
business and Fandango’s ticketing platform
will offer unprecedented new opportunities
for studios, exhibitors, and brands to engage
with millions of moviegoers,” says Fandango
president Paul Yanover. “We look forward to
working with the Quantum team to build on
Hollywood Movie Money’s momentum and
help drive even more movie fans into theaters.”
Financial terms of the deal, which is
expected to close in the third quarter, were not
disclosed.
VUE TO THE CINEMAXX
n Vue is one step closer to taking full control
of CinemaxX AG. The British exhibitor paid
nearly $200 million to buy an 84.6 percent
stake in the German chain last year. Since then
it’s been buying up minority stakes to the tune
of 97.5 percent. Now Vue has gained the CinemaxX
board of directors’ approval to “squeeze
out” the remaining minority shareholders, who
have a month to challenge the decision before
it becomes binding.
With CinemaxX, Vue operates 119 theaters
in the United Kingdom, Ireland, Germany, and
Denmark. The company inked to be acquired
by Canadian investment groups OMERS
Private Equity and Alberta Investment Management
Corp. for $1.45 billion in June.
CINEWORLD TO THE IMAX
n Imax has expanded its revenue-sharing
agreement with Cineworld Group, the United
Kingdom’s largest cinema chain. Under the
new deal, a giant screen will be added to an
as-yet undetermined theater. In addition, the
exhibitor will install a digital system in the
Glasgow Science Center’s Imax theater, which
it recently agreed to manage for the museum.
Eventually the theater will transition to
Imax’s dual 4K laser system. The pact brings
Cineworld’s commitment to the large format
to 13 screens.
“As we expand our network throughout
Europe, growing relationships with partners
such as Cineworld is a key strategy to support
our growth,” says Andrew Cripps, president of
Imax EMEA. “Together with Cineworld, we
look forward to bringing even more audiences
across the U.K. the biggest blockbusters in the
world’s most immersive film format.”
6 BoxOffice ® Pro The Business of Movies OCTOBER 2013