Cinema chain vows big changes

Jane Hastings says making all of Event Cinemas' screens digital will allow New Zealand to be part of global film releases. Photo / Paul Estcourt

Amalgamated Holdings is projecting large-scale development as it re-brands SkyCity Cinemas into Event Cinemas.

Event New Zealand general manager Jane Hastings said Amalgamated Holdings has committed to 3D cinemas at all its 14 multiplexes by early next year.

Amalgamated Holdings is also promising that all its 106 Event screens will be digital within three years.

The technological upgrade allows New Zealand to meet the global trend for same-day release of Hollywood movies.

Hastings said Event was also in the process of developing its cafe and food facilities.

Selected venues would be introducing "Vmax" cinemas with feet-up seating, bigger screens and better sound.

Vmax would be priced between standard tickets and the premium Gold Class.

Event dominates in Auckland but also has multiplexes in Hamilton, Lower Hutt, Whangarei and New Plymouth.

At present five of its 14 multiplexes have a 3D screen.

Hastings said 3D expansion was the result of Avatar's success.

That would be a particular boon for New Plymouth and Whangarei, she said.

"It has been tough for the rest of the country watching Avatar on 2D."

She said Amalgamated Holdings' switch to make all its cinemas digital would have a major impact.

Only nine of the 196 screens were digital and the company had to wait to have print delivered, meaning it was often not viable to be part of the global releases for blockbuster movies.

The effect of the change would reduce the potential revenue for people selling pirated copies of movies in the New Zealand market.

Hastings said development of "business class"-style Vmax cinemas at the Event-branded cinemas in Australia had been successful.

"It's luxury - but not as much luxury as Gold Class."

The developments were continuing the approach of SkyCity and its Gold Class - that going to the cinema should be like a night out.

Hastings said that special price packages for Gold Class were to attract new customers, which was a growing part of the market.

"Over the next six months there will be a big focus on Queen St and St Lukes and provincial locations also need attention," she said.

With Hoyts' purchase of Berkeley Cinemas this year, Auckland is now essentially divided between the two Australian exhibitors.

Hoyts has also promised a capital expenditure programme hastening the move to digital and more 3D cinemas at its complexes.

Hastings did not predict an increase in head-to-head marketing activity but there was still competition.

"Of course a lot of people when they go the cinema they go to the local down the road.

"But there are also cases where they drive past one complex because there is something more on offer.

"You can add incentives for people to bypass the competition."

BIG SCREEN EVENT

* ASX-listed Amalgamated Holdings bought the SkyCity Cinemas chain in January for $61.1 million.
* By July 1 all 14 locations with 106 screens will be rebranded Event Cinemas.
* The SkyCity purchase made Amalgamated the world's fifth-largest cinema exhibitor.
* It has 561 screens in New Zealand, Australia, Germany and the Middle East.