Volume II No. 12

A publication of the National Association of Theatre Owners

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Cinema Park Spending $40 Million
New Chain Plans 40 to
50 Screens For Russia

MOSCOW – Vladimir Potanin, head of Russian financial conglomerate Interros group, joined with “Burnt by the Sun” director Nikita Mikhalkov in September to announce plans to build a $40 million chain of Russian cinemas over the next two to five years.

Profmedia, Interros’ holding company, and Mikhalkov’s Studio Trite will dually control the new exhibition chain, constructed under the name Cinema Park. Plans call for reopening Russia’s first multiplex, Formula Kino in Moscow, under the Cinema Park name and adding between 50 and 60 screens throughout the country. Rural cities such as Novosibirsk, Nizhniy Novgorod, Kazan and Rostov are among those earmarked for venues, Potanin told The Hollywood Reporter.

Cinema Park’s interest in expansion stems from Russia’s blooming film industry, with annual receipts for 2001 at around $65 million, an 88 percent increase over 2000, according to Variety.

Taiwan Site Up For Sale
Taipei’s Last
Arthouse to Shutter

TAIPEI, Taiwan – The Central Motion Picture Corp. (CMPC) announced in September that its Majestic twin, the only arthouse cinema in the city, is up for sale.

Bidding for the space, led by department store developers, began on Sept. 17, according to Variety.
CMPC, the nation’s largest movie producer, owns an additional nine screens at two other Taipai sites.

Bootleggers Head To Sea
Malaysian Pirates
Adjust To Crackdown

PENANG, Malaysia – Pirated video, DVD and music traders remain ubiquitous throughout Malaysia, despite a recently launched anti-piracy campaign.

According to recent press reports, Penang’s police superintendent, Mazlan Ayob, said pirates have now begun producing “thousands of pirated discs daily” on boats and carriers anchored in international waters.

As a result of increased arrests of retail and street-stall traders who sell illicit disks and DVDs, pirates are now selling to hotel proprietors who sell the goods directly to their guests, according to The Hollywood Reporter.

In 2001, the Motion Picture Association estimated that piracy losses in Asia amounted to nearly $598 million, with worldwide losses at over $3 billion.

French Programs
Loyalty Passes Hit
Program Plateau

PARIS – The loyalty pass scheme, first launched by France’s UGC circuit in March 2000, has plateaued at about six percent of all French admissions, according to the Centre National de la Cinematographie (CNC).
The pre-paid loyalty pass allows moviegoers to watch an unlimited number of films at participating venues over a designated period of time.

While loyalty-pass admissions account for 22 percent of the participating venues’ sales, the loyalty-pass venues, concentrated in Paris, constitute only 11.7 percent of French cinemas, according to the CNC.
There are currently three major loyalty passes available: Gaumont’s “Le Pass,” UGC’s “Illimité” and Pathé’s “Ciné à Volunté.” UGC’s pass remains the most popular of the three.

Local Box Office Slump
Germany’s Ufa Seeks
Insolvency Protection

HAMBURG, Germany – Hamburg-based Bertelsmann subsidiary Ufa Cinemas filed for insolvency protection Oct. 7, the result of a low summer admissions tally.

The struggling circuit, which saw its site-count drop from 99 to 38 over the last two years, can, like many American companies, trace its financial woes to a 1990s screen glut.

Summer German ticket sales in 2002 plummeted 15 percent from the prior year’s.

Comedy Sequels Pace Month
2002 Up, August Down
For British Ticket Sales

LONDON – By the end of August, year-to-date U.K. ticket sales were still up 16 percent over the same period one year prior, despite August 2002 sales lagging 13 percent behind those of August 2001.

Top August films were the comedy sequels “Men in Black 2” and “Austin Powers in Goldmember,” which garnered a combined $52 million during the frame.

The Cinema Advertising Association predicts more U.K. movie tickets will be sold this year than during any year since 1971.

UCI Hosts Euro E-Feed
Live Bon Jovi
Rocks Cinemas

LONDON – E-cinemas in England, Scotland, Wales, Germany and Austria played host to thousands of Bon Jovi fans as the band’s Sept. 18 album-preview concert at London’s Shepherds Bush Empire venue was beamed live via satellite to UCI screens in at least a dozen European cities.

“UCI has screened pre-recorded music programming in cinemas before,” said circuit business affairs VP Gerald Buckle, “but this is the first time we have been able to broadcast a live music event across our network of digitally enabled cinemas.”

“The partnership with UCI represents a new direction for the music business in terms of reaching a wider audience and opening up a new stream of business,” said Leo Wyndham, New Media manager at Mercury Records, which managed the live cinema event.

 

 

War on Piracy Trade
Russia Tightens
Grip on Illicit Video

MOSCOW – Russia moved to the front of the international war on movie piracy Oct. 3 when prime minister Mikhail Kasanyov, calling his nation’s weak intellectual property laws a “hallmark of a backward country,” announced plans to eliminate street vendors’ sales of pirated videos and DVDs.

“Starting in the streets around the Kremlin and central Moscow and fanning out across the city and then the country, the police and enforcement authorities will clean the streets of kiosks and stalls selling pirated material,” said Konstantin Zemchenkov, head of the 5-year-old Motion Picture Association of America-backed Russian Anti-Piracy Organization.

Pirated CDs, videos and DVDs account for nearly $250 million a year in lost sales, and 80 percent of all home video sold across Russia, according to The Hollywood Reporter.

Grosses & Production Decline
Forum Sets Out To Repair
Hong Kong Film Industry

HONG KONG – In a continuing push to boost box office figures, the one-day “Revitalizing Hong Kong Film Industry Forum” convened recently to discuss the rapid decrease in citywide movie ticket sales and the steady abatement of local film production.

Summer box office sales in Hong Kong were down a staggering 55 percent this year compared to the previous summer. Some 126 releases grossed $58.5 million in 2001. Only $38.5 million is expected to be accrued during 2002.

The shrinking market has also almost decimated Hong Kong film production. The city, which a decade ago produced about 300 films annually, produced only 30 films during 2002’s first half.

Many at the forum linked the industry’s woes to rampant piracy and a depressed economy. One panelist implored officials to excuse Hong Kong from the mainland’s annual film import quota, which creates a competition between local films and Hollywood blockbusters.

Opening up the southern province of Guangdong to Hong Kong films was another proposed solution. The Cantonese-speaking province already has access to Hong Kong TV and radio, and such an action would give 70 million additional people access to Hong Kong films.

Other proposals offered at the forum were creating a centralized film development council and, with money from the existing Film Development Fund, a government-supported surety system for local banks willing to loan money for film endeavors.


One Line For Popcorn and Tix
SBC Launches 7-Plex
In Northwest England

SOUTHPORT, England – SBC International Cinemas opened on Oct. 17 its new 1,600-seat 7-plex in the English town of Southport, just north of Liverpool.

The facility, operating with IBM’s Sure POS 500 cash register and VcsTimeless Vista software, enables moviegoers to buy tickets at the concession stand, eliminating the need to wait in line twice.

“We have all experienced queuing for a ticket, then concessions,” said SBC vice president of operations Rob Arthur. “We have taken one queue away.”

SBC began utilizing this technology with the August opening of its multi in the Scottish town of Hamilton, near Glasgow. SBC remains the sole cinema operator in England that offers the option of purchasing tickets at any line.

London-based SBC, founded in 1999, currently operates 60 screens at six sites in Portugal, England, Taiwan and Scotland. The circuit has plans to open at least four sites late next year: a 7-plex in Parma, Italy; a 10-plex in Blackburn, England; a 9-plex in Lainate, Italy; and a 9-plex in Grimsby, England.

Over Four-Year Period
Iranian Admissions
Plummet 25 Percent

TEHRAN, Iran – Ticket sales in Iran have dwindled by 25 percent over the past four years, according to a September report from the Reuters news service. The number of cinema sites in Iran has dropped from 500 to nearly 300, according to local officials.

In an attempt to boost sales, moviehouse owners are requesting more western films, but owners still lack funding needed to repair dilapidated cinemas.

Although Iranian films maintain a creative, well-spoken reputation abroad with titles such as “Children of Heaven” and “The White Balloon,” domestically they face fierce competition with pirated western DVDs and videos as well as strict film censorship.

 


 

 

 

 

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