Boxoffice-July.1995

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EXHIBITION PROFILE RUN FOR THE BORDER Cinemark's Centro Cultural 12 opens its doors to Mexico City's prime demographics As the feature film business burgeons into a global industry, motion picture exhibitors increasingly are embracing international expansion as a key component of their corporate strategies. One company aggressively working toward the goal of becoming an international flieatre Dallas-based Cinemark USA, led circuit is by Chief Executive Officer Lee Roy Mitchell, recipient of the 1995 Robert W. Selig NATO/ShoWester of the Year award. Since 1984, Cinemark has grown under Mitchell's leadership to become die sixth largest exhibition circuit in the United States. The demand for American films abroad has never been greater, and a glance at international boxoffice receipts indicates that some foreign markets may be on tlie verge of astonishing growth. The explosive potential of the Latin market is ot particular interest to Cinemark. Five years ago, well before the passage of NAFTA, Cinemark began looking into opportunities in Mexico. "We were looking at Latin American markets, particularly those just south ot the Tfexas border," says Diane Fefter, director of marketing for Cinemark's subsidiary Cinemark de Mexico. "We were experiencing great success with our theatres in the south Tfexas area, in the heavily Latino areas of the Rio Grande Valley, moving across the border seemed like a natural progression." Thie market research data pointed to the future possibilities for Cinemark. "Latin America contains nearly 400 million people and is growing fast, lb illustrate die potential, the entire population of our home state of Tfexas is 14 million people, but Mexico City alone has a population of 18 million people. Most exhibitors target audiencesbetween the ages of 1 5 and 3S. If you look at the demographics, half of the population of Mexico is under die age of 27. That's a lot ofpotential moviegoers and indicates a very bright fijture," says Fetter In 1994, Cinemark became the first U.S. exhibitor company to open modem multiplexes in Mexico, a country in dire need of now theatres. Four 10- to 12-screen complexes were opened in the cities of Aguacalientes, Chiliuahua, I lernujsillo and so By Michael Haile Monterrey, and plans were made for fiirther construction. "Here in the United States, there is one theatre screen per 10,000 people. In Canada, there's one per 18,000. But in Mexico the ratio is one theatre per 90,000 people. Going to the movies in Mexico is a time-honored tradition, but crushing lines at theatres is unfortunately the norm," says Feffer "Also, most theatre locations there are technologically outmoded and contain only one or two screens." Cinemark's Centro Cultural 12. Mexico City's first multiplex Cinemark's most recentiy completed exhibition site in Mexico is the Centro Cultural Cinemark 12 in Mexico City, the city's first multiplex theatre. Destined to become "Mexico City alone has a population of 18 million people. Most exhibitors target audiences between the ages of 15 and 35. Half of the population of Mexico is under the age of 27. That's a lot of potential moviegoers and indicates a very bright future." — Diane Feffer, director of marketing, Cinemark de Mexico Cinemark's flagship theatre in the Latin market, the Centro Cultural Cinemark 12 is being billed by the company as "the most sp(u:tacular, most luxurious theatre" in ,ill ol Latin America (Cinemark invested S7 million in die project, more money than has been spent by the company for any otiier building). Located in an area of southern Mexico Citj' called Coyoacan, the theatre is part of a culmral arts center, rather than situated in a shopping mall setting. As Feffer explains, "The Mexican government owns the land upon which the theatre is built. They had a vision to create an area devoted to the perfomiing arts— dance, live theatre, cinema, die visual arts. We are the only commercial entity in the complex." When the Mexican government awarded Cinemark the contract to build the Centro Cultural Cinemark 1 2, tiiey also held a contest to elicit ideas from leading architects in the countrT,^ on the design of the center's buildings. There were so many good ideas submitted that tlie government committee invited each architect to design a building. "That's why each of the buildings in the cultural arts center looks different, yet they harmonize wi\i\ each other beautiftilly," comments Feffer Cinemark brings the same level of dedication to a quality moviegoing experience in its Mexican theatres as is evidenced in the United States— friendly service, a clean and comfortable environment, colorfiil decor and state-ot-tiie-art technology. Also included in die Mexican theatres will be amenities like covered parking and handicapped access, non-standard features in most other moviehouses in Latin America. "When you come into the auditorium of the Cinemark 12 in Mexico City, you will not be able to know ffiat you are in Me-xico City. We are trying to repliaite the experience filnigoer's have in United States." That experience includes top-ot-the-line ptx)jection and sound equipment, all customized to Cinemark's specifications. "Most of our fixed cost is in U.S. dollars because the best equipment comes from the U.S.," Feffer says. The massive two-lr\cl CciUro t'ultural Cini^rnark complex, designed by Mexican architect Sordo Madaleno, contains 12 screens {"siilas"), each named affer a legiiul.uy Mexic an movie star Of the ]'lsaliis, 46 BOXOFFICK
ti\'e are equipped with DTS digital sound. .Also featured is a gallery of Mexican movie memorabilia and a coffee bar ("El Cafecito") where customers can enjoy an array of international coffee and pastries. "Coffee bars are the rage right now in the United States; obviously we feel like there is an appeal in Mexico as well. It gives patrons something to do before or after the movie, a place for them to talk about the notes film," Feffer. Additionally, concession stands are located on botli floors of the theatre. One of the hallmarks of Cinemark's business has always been discount Ernesto Zedillo, president of Mexico; his wife; Lee Roy all of Cinemark's discount theatres are equipped with the same top-of-the-line equipment and well-designed interiors as the first-run houses. At the Centro Culmral Cinemark 12, the company will strive to price tickets at a level affordable to tlie Mexican customers: 15 pesos (around $3.00) and 10 pesos (around $2.00) for matinees. Cinemark plans to run popular American films in its Centro Cultural Cinemark 12 theater, as well as films made in Latin America and oflier countries tliroughout the world. "The mix on any given day might be eight films fi-om Hollywood and four films from international markets, be it Mexico, Russia, China. Typically, all films will be subtitled into Spanish, although if it's a children's movie it may be dubbed. We have a goal to increase the awareness of the good Mexican films that are being produced. Mexico City used to be the home of a lot of serious film production, but that kind of went by the wayside. Now, tiiere's been a resurgence and tlie government is really helping to support good filmmaking. We have an agreement with the Institute Mexicano de Cinematografia to help exliibit Mexican-made films. They realize that Cinemark is serious about playing good movies, so if they produce good movies, we will play them. The consumers are out there and they want to see new Mexican films. Hopefiilly, this tlieatre will act as a catalyst for other theatres here to play more Mexican films," says Feffer On May 5, 1995 (Cinco de Mayo), Cinemark celebrated the grand opening of the Centro Cultural Cinemark 1 2 in Mexico City with a ribbon-cutting ceremony attended by Mexican President Ernesto Zedillo and his wife. "Their appearance shows tlie high level of government commitinent to this venture," says Feffer The grand opening capped off a week of events, including promotional screenings and giveaways. Inaugural films exhibited included eight Hollywood movies ("Little Women," "Kiss of Death," "Outbreak," "Ready Tb Wear," "Just Cause," "Mother's Boys," "Street Fighter" and "Star TVek Generations"), three Mexican films and one film from Russia. the However, grand opening on the 5th was disrupted by a protest from Mitchell, CEO of Cinemark; and Ken Higgins. president of Cinemark de Mexico were in attendance at the Cinco de Mayo opening of the Centro Cultural 12. Mexico's principal cinema pricing, without sacrificing service. In the United States, workers union. Union of Cinema Industry Workers (STIC), who blockaded the Cinemark venue, accusing the company of ignoring its right to represent all cinema workers. Cinemark de Mexico employs workers through another union, the Justo Sierra Progressive Union (SPJS). Similar labor protests interrupted other Cinemark openings in Mexico this year The actions reflect the militancy of Mexico's older labor unions, and point to some of the inherent difficulties for American businesses attempting to do business soutli of tlie border Add to that Mexico's economic crisis and peso devaluation, which has adversely affected company income, and it's clear fliat smoothly navigating the business waters of the Latin market can be a challenge. Nevertheless, Cinemark remains optimistic and plans to open theatres in a number of other cities in Mexico in 1995. Ritiire sites include Irapuato, Reynosa, Acapulco, Juarez and Queretaro. The company also has opened a theatre in Santiago, Chile, and plans to open five more in that country by year's end. "Our mission statement is to be the leading global movie exhibitor," concludes Feffer. _ Vital Statistics CINEMARK USA INC. 7502 Greenville Avenue, Suite 800 Dallas, Texas 75231 Execurive Roster: Lee Roy Mitchell, founder and CEO Alan W. Stock, president and COO Tkndy Mitchell, director and ejcecutive vice president Jeffrey Stedman, \'ice president and CFO Founded: 1984 Screen Count: 1,246 (USA: 1,174; Mexico: 54; Canada: 12; Chile: 6) Locations: 166 (USA: 159; Mexico: 5; Canada: 1; Chile: 1) Tbtal Number of Theatre Employees: 5,500 CENTRO CULTURAL CINEMARK 12 Mexico City, Mexico Number of Auditoriums/Screens: 1 Seating Capacities - Tbtal for Site: 2,380 Architect: Sordo Madaleno BOOTH/PROJECTION EQUIPMENT Projectors: Stiong International Platters: Speco Systems Lamphouses: Cinema FUni Systems Lenses: Schneider Corporation Consoles: Cinema Film Systems SOLIND EQUIPMENT Speakers, Screen: JBL Speakers, Surround: Feavey Electronics Amplifiers: Peavey Electronics DTS Digital Systems: 5 Sound Processors: Llltra Stereo JSX 1000 Hearing Impaired Systems: Ultra Stereo Screens; Hurley Seats: Invin Seating Armrest Cupholders: Cy Young Aisle Lighting: Tfempo Lighting Seat and Draperj' Installer: Cinema Services Poster Cases: Shultz Marquee: Advanced Signing Candy Cases: Bass Industries, Inc. Drink Machines: Lancer Corp. Popcorn Poppers: C. Cretors Coffee Bar: 1 July, 1995 47
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Boxoffice-July.1995

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