Cineplex Entertainment

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Cineplex Entertainment LP, based in Toronto, Ontario, is a limited partnership which operates Canada's largest chain of movie theatres. Cineplex Galaxy Income Fund TSX: CGX.un owns approximately 50.5% of the company's equity; Onex Corporation is the sole voting partner and owns 27% of the group.

1 History
2 Theatres
3 Controversy
4 See also
5 References
6 External links

[edit] History

Famous Players logo, used until 1988

[edit] Early development

Famous Players Canadian Corporation was founded in 1920 when Paramount Pictures bought Nathan Nathanson's Paramount Theatre chain that was established four years earlier. The Canadian Paramount Theatre chain was not affiliated with the American Paramount Theatres. The Famous Players Theatres chain was always strongly linked with Paramount Pictures and was a wholly owned subsidiary of Paramount Communications by the time that firm was acquired by Viacom in 1994. Some of the most high-profile and popular theatres in the Famous Players chain over the years included the Imperial and the Uptown in Toronto, and the Capitol, the Orpheum and the Strand in Vancouver.

Odeon Theatres of Canada was started by former Famous Players executive Nathan Nathanson and his son Paul in 1941. It was not initially affiliated with the British Odeon Cinemas circuit, but it gained common ownership with that chain following a sale to the Rank Organisation in 1946. Odeon Canada merged with the Canadian Theatres chain in 1978 and became known as Canadian Odeon Theatres from that point on.

On April 19, 1979, Nathan (Nat) Taylor, inventor of the multiscreen theater, and Garth Drabinsky opened the first Cineplex location, an 18-screen multiplex in the basement of the Toronto Eaton Centre. After successfully challenging the Famous Players/Canadian Odeon duopoly and their exclusive contracts with major studios, they proceeded to purchase Canadian Odeon, having brought on the Bronfman family as a major investor, forming Cineplex Odeon Corporation. There was once again a duopoly, albeit a much more competitive one.

[edit] Expansion and competition

In the 1980s, not content with having lept from one location to dozens across the country, Drabinsky began buying up regional circuits throughout the United States, which took the Cineplex Odeon Theatres name as well. Back in Canada, Drabinsky used his new position to aggressively challenge Famous Players Theatres , opening more, ultramodern multiplexes nationwide.

Most famously, Famous Players Theatres allowed the lease on a property containing the entrance of one of its flagship Toronto locations, the Imperial Six, to lapse in 1986. Cineplex immediately took over the lease, denying Famous Players Theatres access to the portion the latter chain already owned outright. Famous eventually sold its property to Cineplex Odeon Cinemas on the condition it never again be used to show filmed entertainment; it is now the live-entertainment Canon Theatre.

Cineplex also established a distribution unit, Cineplex Odeon Films, during this period; its assets were largely sold to Alliance Atlantis in 1998.

Throughout the 1990s, Famous Players took the reins of expansion. Under chairman John Bailey, Famous Players re-built its entire infrastructure from 1997 to 2003 with new "megaplex" stadium-seated theaters and extensive innovative food court offerings. It was also believed to be the first exhibitor in the world to have automated box offices.

Also during this time, AMC Theatres entered the Canadian market, and most of the traditional ties between the existing chains and the major studios began to unwind, putting all three chains in full-on competition in several major markets.

[edit] Consolidation

By May 1998, Drabinsky had lost control of Cineplex to the Bronfmans' Seagram, which subsequently merged Cineplex Odeon Theatres with Sony's Loews Cineplex Theatres. The resulting firm, Loews Cineplex Entertainment, subsequently suffered due to the economic recession of the early 2000s, leading to a buyout led by Onex.

Meanwhile, Galaxy Entertainment Inc. was created in 1999 by Ellis Jacob, a former COO of Cineplex, and Steven Brown, a former Cineplex CFO. With investments from Onex and Famous Players, the new company focused on smaller markets which were usually served by smaller theatres and old equipment, opening large, major chain-style locations under the Galaxy Cinemas banner.

In October 2003, Loews Cineplex Theatres merged its Canadian operations with Galaxy Cinemas , forming Cineplex Galaxy Cinemas. Mr. Jacob became the chief executive of Cineplex Galaxy Cinemas. Onex was the controllng shareholder of both Loews Cineplex Theatres and Galaxy Cinemas at the time of the merger, but sold its interest in Loews in June 2004. It maintained control of Cineplex Galaxy Cinemas.

In 2004, Famous Players Theatres locations in the Maritimes, none of which were branded-concept theatres, were sold to the region's dominant exhibitor, Empire Theatres. Canadian Odeon locations in the region had been sold to Empire in the late 1970s or early 1980s, prior to the former's acquisition by Cineplex Odeon Cinemas.

On June 13, 2005, Cineplex Galaxy Cinemas announced its acquisition of Famous Players Theatres from Viacom for $500 million or about US$397 million. This deal was completed July 22. To satisfy competition concerns, on August 22 the sale of 27 locations in Ontario and western Canada to Empire Theatres was announced.

On March 31, 2006, Cineplex Entertainment announced it sold 7 more theatres in Quebec to Chelsea based Fortune Cinemas Inc. The assets of Alliance Atlantis Cinemas are still on sale.

Eight days after Cineplex Galaxy Cinemas Announced its Purchase of Famous Players Theatres, Loews Cineplex Theatres and AMC Theatres announced a merger; while AMC Theatres also operates in Canada and will be ranked third behind Cineplex Galaxy Cinemas and the enlarged Empire Theatres, Cineplex Odeon Cinemas and AMC Theatres will remain competitors in Canada, at least for now. The company adopted its current name on October 3, 2005.

[edit] Theatres

After divestitures relating to the Famous Players Theatres Acquisition, Cineplex will operate 130 locations with 1267 screens in locations from British Columbia to Quebec. They can be organized as follows:

Cineplex Odeon Cinemas: The company's most widespread banner, generally indicating a more expansive movie house with a wide variety of movies and concessions available, although locations run the gamut from small mall multiplexes to large, ultra-modern locations. Many locations in smaller markets are being renovated into or replaced by Galaxy locations.
Galaxy Cinemas: Cineplex's predominant brand in mid-sized markets which house little or no competition. Essentially a slightly smaller version of Silvercity, these locations feature six or more screens, branded concessions and stadium-style seating.
Famous Players Theatres: Traditional theatres with small numbers of screens and traditional concessions. A number of these locations still operate in downtown or mall locations across Canada, although many have been replaced or supplanted by larger-format theatres.
Famous Players Silvercity: Famous Players sub-banner; mid- to large-size locations found in many cities not large enough to support a Coliseum or Colossus, or in smaller neighbourhoods of major cities. Similar to Galaxy, above. There is one in West Edmonton Mall and one in Metropolis @ Metrotown.
Famous Players Coliseum: Famous Players sub-banner; round, stand-alone locations often found in the suburbs of major cities (in the Toronto suburbs of Scarborough and Mississauga, the Montreal suburb of Kirkland, and the west end of Ottawa). Coliseum was the first of the branded concepts introduced by Famous Players. These locations are usually slightly larger than Silvercity theatres and feature additional branded concessions. Previously, there was a Coliseum in Calgary, which has recently been acquired by Empire Theatres and rebranded as the Studio 10 MacLeod Trail.
Famous Players Colossus: Famous Players sub-banner; stand-alone megaplex locations even larger than Coliseums; they were opened in response to similar-sized cinemas being opened in Canada by AMC Theatres. Locations are in Laval, Vaughan and Langley, which are respectively suburbs of Montreal, Toronto and Vancouver.
Famous Players Paramount: Famous Players sub-banner; flagship downtown locations in cities such as Toronto, Montreal, Calgary and Vancouver. Despite the chain's sale, the Paramount name – which is still owned by Viacom through Paramount Pictures – is still in use at all four locations. Effective 2007, naming rights to these locations, as well as one other location not yet revealed, will be owned by Scotiabank, under a five year agreement. [1]
Famous Players IMAX Theatres: IMAX theatres with eight story screens and stadium seating, within one of the above-named theatres.

The above figures also include Cineplex's minority interest in Alliance Atlantis Cinemas, in partnership with the movie distribution unit of Alliance Atlantis Communications. One location has already been sold, with a second sale pending; the three other locations remain up for sale.

[edit] Controversy

In an action described as "commercial censorship", Cineplex rejected a cinema ad campaign arranged by Campus Crusade for Christ, tied to the film version of the Da Vinci Code. The 10-second ad, without overt religious content, invited viewers to a CCC-linked website for an alternative point of view to that of the movie. In canceling the campaign on 17 May 2006, Cineplex officials stated that the chain has a policy against such ads, as they are potentially offensive to religious sensibilities.