In January, Nu Metro Cinemas, one of South Africa’s two major movie theatre
chains, announced that it had been sold by its long-time owner, Times Media
Group (TMG). The new owner is Subcocept (Pty) Ltd, a purpose-built company
funded by private equity business One Fifty Capital.
The change of ownership, said One Fifty Capital’s Commercial Director, Julian
Kannigan, transforms the cinema chain from a “non-core asset’ into an “owner-
managed business’. This could mean a fundamental change in the way in which
the well-established movie theatre brand is operated and marketed.
The effects of the management transition, says Nu Metro’s General Manager,
Luke Roberts, will manifest to the public in two phases. “As Nu Metro has been a
business that hasn’t had the most attention from its previous owners, there is a
back-to-basics approach being taken, where improvements around the simple
“hygiene’ factors need to be made. To provide a good cinema experience, factors
such as customer service, cinema look and feel and cleanliness, are being
addressed and then we can move into phase two, where we enhance and
develop the overall cinema experience.
“For us to compete against other forms of entertainment – both in-home and
out-of-home,’ Roberts continues, “we need to create a complete, end-to-end
experience, one that starts the moment you decide to book your ticket online
and share it with your friends via social networks, to the experience in the foyer,
where long queues are a thing of the past because you have your ticket on your
mobile device. Added to this, concepts such as our new VIP cinema “Scene’,
where people have their own private bar and lounge, and can enjoy their film
with a glass of wine and various food options, give our customers a different big
screen experience.
“While the rest of the world has been digital for some time now,’ Roberts says,
“South Africa only became a fully digital territory at the end of last year. With
digital comes a state-of-the-art, increased sound and visual experience never
before seen in this country. On the horizon there are plenty of other initiatives
such as IMAX, luxury seats, outdoor cinema, and live sporting and music events
that will take the cinema well into the future.’
Nu Metro also plans to expand its footprint across the country, including moves
into areas that, historically, have had no access to cinemas. “We are currently
only servicing about 25 per cent of the population,’ Roberts says. “As is the case
with other cinema chains in emerging markets, cinema footprint growth is the
quickest way to build this business. While no specific areas have been targeted
yet, viabilities on a new cinema model are at a very advanced stage so
development can happen as soon as the right property is secured.’
Finally, what about local content? “For South Africa really to grow as a territory
there certainly needs to be a focus on local content,’ says Roberts. “We will
continue to help and push local content onto our screens but, additionally, will
be looking at other initiatives to help produce more quality productions from
within our borders.’
