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Boxoffice-May. 1999

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United Cinemas as they were called, were<br />

HORSING AROUND: Guzzo prides itself on its unique attractions, sucli as this in-theatre carousel.<br />

This combination of top-quality equipment,<br />

unique attractions and an emphasis on customer<br />

service helps to explain Cinemas Guzzo's<br />

striking success as an independent theatre chain<br />

in a country whose exhibition industry has long<br />

been characterized as a duopoly.<br />

All of which inevitably leads to questions<br />

about Guzzo's lawsuit, an unprecedented step<br />

taken by the circuit against what Vmce Guzzo<br />

has claimed is a concerted effort by Famous<br />

Players and Cineplex Odeon to deny him firstrun<br />

product for his theatres. (Neither Cineplex<br />

nor Famous would comment on Guzzo's lawsuit.)<br />

It's also the latest effort in the Guzzo<br />

family's fight to let all<br />

shot at all first-mn product.<br />

independents have a<br />

That state of affairs didn't happen overnight,<br />

he explains. "For a number of years, my dad<br />

was a second-run theatre operator because that<br />

was the only thing that could happen as an<br />

independent. Odeon, which later became<br />

Cineplex Odeon, and Famous Players, or<br />

only ones who had access to any [first-r<br />

product. Later on, the market opened up a<br />

with [Cineplex Odeon founder] Ga<br />

Drabinsky and his [similar] lawsuit. Once<br />

had [won] the lawsuit and bought up Ode<br />

he continued opening up the market. Th;<br />

when we [upgraded our status] from a seco<br />

run theatre operator to a first-run theatre op<br />

ator."<br />

That was in the mid-' 80s, but the ease u<br />

which Cinemas Guzzo made that move did<br />

last,<br />

says Guzzo. "We continued always<br />

build in 'non-compete' zones, very, very<br />

away—20 kilometers [12.4 miles] in soi<br />

cases—^from major markets and suburbs.<br />

^<br />

created markets that had never existed bef(<br />

in Quebec; markets of40,000 to 50,000 peo]<br />

now had their eight-plex. Before, they woi<br />

have to travel 20 kilometers to bigger cities<br />

share a six- or eight-plex with 350,000 peoi<br />

of that city."<br />

"We got the product. [But] in 1986, we mu<br />

a deal with Cineplex Odeon whereby th<br />

were to officially represent us to distribute)<br />

Unofficially, though, they did not do ve<br />

much representation." Guzzo also claims l\<br />

despite the C$300,000 (US$201 ,000) paid a<br />

nually to Cineplex Odeon as what he term;<br />

"non-obstruction fee," Guzzo's zone for safe<br />

playing chain product was significantly i<br />

duced over time. After 10 years, that relatio<br />

ship went bust. Marci Davies, Cineple><br />

senior vice president of communicatior<br />

termed the agreement "a booking arrangeme<br />

[to] supply film product to their theatre.'<br />

30 BOXOFFICE Response No. 421

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