Boxoffice-May. 1999

I
INTERNATIONAL NEWS BRIEFS
PACIFIC OVERTURES
Notes From the Pacific Rim by Francesca Dinglasan
:AD STORY: HOT ON HOYTS
SYDNEY—Amid reports that Australia-based cinema circuit
oyts would be selling its U.S. arm, CEO Peter Ivany anda Hoyts
lokesperson said the company is merely consulting with New
irk investment bank B.T. Wolfensohn on possible options in-
)lving its 965 American screens. Like a number of other pub-
:ly traded exhibitors, Hoyts has been seeing unspectacular
'turns. ("Solly or No, Hoyts Cinemas Flags a Flat Full Year,"
sadlined the Australian Financial Review recently; "Hoyts to
3CUS on Returns to Placate Twitchy Investors," offered the Sydsy
Morning Herald late last year.) The spokesperson indicated
lat Hoyts was most interested in increasing the value of the
ircuit's shares, and that actual sale of the more profitable U.S.
ivision has not been determined as the foregone conclusion.
istead, the company will consider the benefits of all possible
ctions involving the chain, including putting the division on the
larket, merger and acquisition. Ivany also stressed that the
3view "may not well result in any change to the business."
Jowever, Down Under media titan Kerry Packer, via his Con-
Dlidated Press Holdings, has launched an AUS$609 million
JS$384 million) takeover bid for Hoyts in its entirety. The Street
ad placed a US$275 million-$330 million value on the circuit's
American holdings alone; newly appointed Hoyts financial adiser
Warburg Dillon Read has recommended further evaluation
)efore responding. CEO Ivany holds a crucial 15 percent holdng;
Packer, who cashed out his Village Roadshow holdings in
996, has secured options representing a 1 7 percent stake.
lANY YEN-Y AT JAPANESE BOXOFFICE
TOKYO— 1998 proved to be a record year at the Japanese
)xoffice. A report issued by the Motion Picture Producers' Associa-
3n of Japan indicates that revenue from cinema attendance reached
high of 193 bilUon yen (US$1.7 billion) last year a 9.2 percent
icrease over the previous year's boxoffice totals. The number of
loviegoers in the country also rose in 1998, increasing to more than
50 million attendees—an 8.8 percent climb from 1 997. These mount-
'ig figures have largely been attributed to the explosion of megaplex
onstruction last year, when 109 new additional theatres opened for
usiness, bringing the Japanese total to 1,993. Observers predict the
inema count to surpass the 2,000 mark in upcoming mondis.
VARNER MYCAL ON THE MOVE
TOKYO—Contributing significantly to Japan's continuing cinma
boom is Warner Mycal Corp., the country's largest multiplex
•perator. The company opened six new multiple-screeners (with a
ollective total of 46 screens) over a one-month period ending this
last March. The new additions increase Warner Mycal' s screen
ount to 190 nationwide, a figure that represents nearly 10 percent
>f all screens currently operating in Japan. Among the circuit's
argest new cinemas is an eight-screener in the city of Kita Kyusha,
o be located in proximal distance to a recently constructed AMC
nultiplex, as well as a nine-screener situated in a suburb of Tokyo.
PRODUCTS FROM CHINAWOOD
BEIJING—The China Film Co-Production Corp. has initiated
alks with Hollywood majors, including Disney, Sony, and Universal
(as well as with several independent film producers), concerning
he possibility of future co-production projects. Such features
^vould be financed by U.S. and China-based sources, most notably
he Chinese government. Although Chino-American films have
Dreviously been produced, this would be the first time that projects
receive state-sanctioned funding from China. The CFCC will
be partnered with the China Film Fund, and the two will be
jointly responsible for raising financial backing. Also helping
manage the fund, which aims to attract US$50 million in
investment from both governmental and private sources, will
be Strategic Capital Group and Intl. Pacific Artists. Chinese
fund management will be based out of Beijing and Hong
Kong; management stateside will take place in Los Angeles.
Also noteworthy for the U.S. major studios is the prospect
of further penetrating the tightly controlled film market in
China. Strict regulations over which and how many American
products can be played on Chinese screens could be
bypassed through CFCC co-production deals. Although the
content of co-productions would still be subject to approval
from the CFCC (primarily based on the use of locations
within China or the incorporation of Chinese subject matter),
there would be no limit placed on the number of films
released in the country.
GIVE-AND-TAKE AT THE AFC
SYDNEY—In consideration of the fact that just 4 percent
of budgets for Australian productions is apportioned to script
development (a figure far below the 12 percent average in most
countries), the AustraUan Film Commission has agreed to double
its financing of this specific area. Among the major changes
will be increased marketing and travel grants, as well as restricted
commercialization of the AFC's research services.
However, due to the AFC's limited resources, which fell from
about AUS$3 million (US$2 million) to about AUS$1 million
(US$650,(XX)) in annual government funding, the increase in
support to script development will come at a cost to Australian
documentary and short-film production, which will see its AFC
funding cut nearly in half to roughly AUS$775,000 (US$488,000).
The AFC says there are several other resources for these particular
types of productions, including the Film Finance Corp., Film
Australia and the AFC's screen culture program, which sponsors
production resource centers and film fests throughout the country.
INDIA SILENCES DUBBED FILMS
BOMBAY—Members of India's Theatre Owners, Cine Owners
and Indian Motion Pictures Distributors associations have decided to
permanently halt all screenings of dubbed versions of English-language
films in the state of Maharashtra, which includes the large
metropolitan area of Bombay. Official explanation for the ban claims
that the Hollywood products debauch Indian tastes. However, observers
believe that increasing theatre space for Indian-produced films and
reruns to be the true motive behind the recent action. Although the
agreement has not been recognized by the Indian government as law,
a verbal pact—such as this particular understanding between the
various film industry associations—is considered binding.
PACIFIC RIMSHOTS
Two screenplays by late director Akira Kurosawa have been
slated for production. "Ame Agaru," being co-produced by
Kurosawa's son, Hisao, is scheduled for an August completion
date; "Dora Heita," co-written by another deceased director,
Keisuke Kinoshita, will open in summer 2000.. .Japan's Shochiku
Co. reported a fiscal-year loss of 17.18 billion yen (US$148 million).
Shochiku intends to put its properties in Tokyo on the market,
which is forecast to bring in about US$151 minion...The Film
Critics Circle of Australia has named "The Boys," which will be
released in the U.S. by Stratosphere, as the best film of 1998. It also
won for best director, adapted screenplay and supporting actress.
May, 1999 49