South African exhibitors are keeping up with global trends by converting their cinemas to digital and looking at innovative ways to attract audiences.
Ster-Kinekor Theatres announced in June that a deal with Arts Alliance Media (AAM) will see the exhibitor’s more than 400 screens converted to digital within the next year.
Says marketing executive of Ster-Kinekor Theatres, Doug Place: “This trend is driven largely by the cost advantages of distributing films in digital format, as opposed to 35mm celluloid. In addition, 3D projection is impossible without a digitally enabled cinema.’
Nu Metro Cinemas content executive Mark Harris explains that the same process is underway for their 188 screens: “Cinemas worldwide are converting and the major film studios have all indicated that in the near future they will stop making 35mm prints. Nu Metro Cinemas has already converted 25% of its screens to digital and will see the remainder converted in the next 12 to 18 months.’
According to Harris digital cinema has opened up multiple avenues for alternative content that wasn’t possible on traditional 35mm projectors. “This includes music concerts and live sporting events,’ he explains. “Digital also gives us greater flexibility of adding more screens on blockbuster movies and a greater variety of content at any given cinema.’
Avalon Group CEO AB Moosa notes that the CineCentre cinema chain is in advanced discussions to make their entire cinema circuit 2K digital compliant.
“As it currently stands almost 50% of our screens have 2K digital projectors which certainly positions CineCentre with the highest percentage of its circuit 2K digital as compared to other exhibitors. This includes 16 3D screens.’
3D still popular
Place adds that demand for 3D films in South Africa is still growing and driving higher attendance. “When 3D launched in late 2009 it drove roughly 10% of our box office results. In 2012 it is expected to deliver more than double that at 25% of total box office. As Hollywood produces more and better 3D films it is sure to continue to drive the category of cinema going.’
Harris agrees that demand is growing. “The new and improved 3D experience brought about by digital projection systems show a significant enticement for customers to come to our cinemas. The increased digital infrastructure combined with more than 30 3D movies releasing every year, shows that there is still a demand. James Cameron’s Avatar in late 2010 confirmed the economic potential of this new technology.’
Nu Metro signed an agreement with RealD Inc. earlier this year to install a total of up to 100 RealD 3D Cinema Systems. The exhibitor currently has 44 auditoriums equipped with the technology and plans to install a further 41 RealD 3D Cinema Systems in the immediate future.
Innovation
According to Place trading at Ster-Kinekor theatres is in line with their expectations. “We remain optimistic about cinema and this is underpinned by our continuous investment,’ says Place.
He adds that the launch of Cine Prestige, which offers a “business class’ movie experience, has been a tremendous success for them. “It has driven more than double the occupancy rates versus adjacent theatres (showing the same film), albeit at a slightly higher price of admission. This is further evidence for us that consumers are always looking for an enhanced movie-going experience.
“As a standard business practise we also constantly evaluate our many sites and refurbish them and upgrade them as the need arises,’ notes Place. Recent refurbishments include N1 City, Blue Route, Cavendish and Tygervalley in the Western Cape, and Sterland Cinema in Pretoria.
Place explains that, along with the growth of business class cinema such as Cine Prestige, other global trends include 4D (moving seats coupled with 3D projection) and the constant improvements in projection and sound technology which accompany digital projection.
“This makes for an increasingly immersive film viewing experience. As a result cinema attendance globally is increasing, with the US experiencing a 17% increase year on year for 2012 so far. As usual product plays a key role.’
Global trends
Nu Metro’s Harris notes that cinema operators worldwide are constantly innovating to improve the cinema experience to compete with consumer’s disposable entertainment income.
“To adapt, Nu Metro is improving presentation through new complexes that have stadium seating, as well as the installation of digital sound and digital projectors, which offer a consistently better presentation and image quality from the first showing of a movie until its last screening – it does not degrade over time like traditional 35mm prints. Digital 3D also offers a movie experience not available anywhere else.
“We also continuously explore new food and drink options within the cinema environment for our customers,’ says Harris. “At this point in time we do not have any expansions planned but we continuously evaluate new shopping malls that are built.’
Nu Metro announced the opening of two new screens at the Bedford Centre Cineplex in Johannesburg in April, as well as self-service confectionery counter and a family beanbag cinema.
Moosa explains that attendance at CineCentre continues to remain on a consistent growth path. “We continuously seek opportunities for significant sites that we believe have commercial potential,’ he adds.
Among the innovations at CineCentre is CineComedy, a once-monthly live stand-up comedy event that takes place at the Killarney CineCentre. “The events are growing in popularity as each month goes by,’ says Moosa.
The Avalon Group also signed a deal with Yash Raj Studios at the Cannes Film Festival earlier this year.
“The deal is part of our ongoing initiative to develop the Bollywood market in South Africa, which is certainly growing in relevance internationally and in South Africa. Yash Raj Studios is among the most renowned Bollywood production houses in India, having produced many blockbusters and is therefore a wonderful addition to our Bollywood bouquet,’ explains Moosa.
Local film
Place notes that they see growing interest in local films at their cinemas. “The ubiquitous Leon Schuster films notwithstanding, we have seen very promising box office performances from titles such as Semi-Soet, Platteland and Material. South African filmmakers are getting better and better not only at their craft but also at finding films which have a wider appeal. Therefore marketing and distribution of their titles is improving and results in better box office performance.’
Moosa agrees: “There certainly seems to be a growth of interest in local films as the content evolves into more commercially orientated films and the quality of the productions is improving all the time.’
By Linda Loubser
screen africa magazine – september 2012
