Cineplex Entertainment

Cineplex Inc.
Formerly
  • Galaxy Entertainment
    (1999-2003)
  • Cineplex Galaxy Income Fund (2003-2011)
  • Cineplex Galaxy (2003-2005)
Public
Traded as
Industry
Predecessors
Founded 1999 (1999)
Founder Ellis Jacob and Stephen Brown
Headquarters
Number of locations
 162
Area served
 Canada
Products
Revenue Increase CAD$ 1.555 Billion (2017)[1]
Decrease CAD$ 97.83 Million (2017)[1]
Decrease CAD$ 70.34 Million (2017)[1]
Total assets Increase CAD$ 1.855 Billion (2017)[1]
Total equity Decrease CAD$ 711.77 Million (2017)[1]
Number of employees
 Over 10,000[2]
Divisions
Subsidiaries
  • Cineplex Starburst Inc.
  • Famous Players LP
  • Cineplex Media
Website www.cineplex.com

Cineplex Inc. (formerly known as Cineplex Galaxy Income Fund and Galaxy Entertainment Inc.) is a Canadian entertainment company headquartered in Toronto, Ontario.

Through its operating subsidiary Cineplex Entertainment LP, Cineplex operates 162 theatres across Canada. The company operates theatres under numerous brands, including Cineplex Cinemas, Cineplex Odeon, SilverCity, Galaxy Cinemas, Cinema City, Famous Players, Scotiabank Theatres and Cineplex VIP Cinemas. Cineplex also owns and operates multiple brands for entertainment (such as UltraAVX, Xscape Entertainment Centre, Player One Amusement Group) and restaurants (such as OutTakes and Poptopia). It is also a joint partner in the Scene loyalty program with Scotiabank.

History

Predecessors: 1912 - 1979

Cineplex stakes a partial claim to the history of the Famous Players Film Company (later Paramount Pictures), founded in 1912, as its earliest predecessor, though that company did not have any operations in Canada until 1920, when it bought Nathan Nathanson's Paramount Theatre chain, which Nathanson had established four years earlier.[3][nb 1] Nathanson, along with being the 5th richest person in the world, became the first president of the resulting entity, Famous Player Canadian Corporation.[4] In 1923, Famous Players bought out rival Allen Theatres, acquiring many buildings in the process .[5]

In 1979, Garth Drabinsky and Nat Taylor opened its first "Cineplex" theatre complex, Toronto Eaton Centre.

Early years: 1999 - 2005

Galaxy Entertainment Inc. was established in 1999 by Ellis Jacob, a former Chief Operating Officer of Loews Cineplex Entertainment, and Stephen Brown, a former Cineplex Chief Financial Officer. With investments from Onex Corporation and Famous Players, the new company focused on smaller markets that 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 Entertainment, which was a merger of Cineplex Odeon and Sony's Loews Theatres in 1998, who went bankrupt in 2001 due to the economic recession of the early 2000s,[6] consolidated its Canadian operations with Galaxy Cinemas, forming Cineplex Galaxy Income Fund. Jacob became the chief executive of Cineplex Galaxy Cinemas and Brown became the CFO.

Growth: 2005 - 2013

Famous Players Pickering remains in operation as of 2017.

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

Eight days after Cineplex Galaxy announced its purchase of Famous Players Theatres, Loews Cineplex Theatres and AMC Theatres announced a merger. While AMC Theatres also operated in Canada and was ranked third behind Cineplex Galaxy Income Fund and the enlarged Empire Theatres, Cineplex Odeon and AMC Theatres remained competitors. In 2012, AMC sold 4 of its theatres to Cineplex Entertainment, in an effort to divest their Canadian operations and focus on their U.S. assets.[7]

Cineplex Galaxy Income Fund, the owners of the chain, renamed Cineplex Galaxy LP to Cineplex Entertainment on October 3, 2005.[8] In 2011, Cineplex Galaxy became Cineplex Inc.

Cineplex Entertainment announced on March 31, 2006 that it had sold seven more theatres in Quebec to Chelsea-based Fortune Cinemas Inc. On June 29, 2007, Cineplex Entertainment announced its purchase of three Cinema City theatres in western Canada. Two theatres in Winnipeg and one in Edmonton were acquired.[9]

With the bankruptcy of Fortune Cinemas, Cineplex Entertainment acquired (or in this case, re-acquired) some of Fortune Cinemas theatres. The Starcité Gatineau (Starcité Hull) and the Cavendish theaters were reopened as Cineplex Entertainment theatres.

In July 2012, Cineplex Entertainment purchased four of AMC's Canadian theaters, including the Yonge Dundas 24 at 10 Dundas East, adjacent to the Toronto Eaton Centre, and the Forum in Montreal. The purchase of the Yonge Dundas 24, presently Canada's largest multiplex cinema, brought Cineplex Entertainment full circle, as the original Cineplex at Eaton Centre was the namesake for the present company. The company also earlier acquired the Tinseltown Movies 12 theatre from another American chain, Cinemark, in the Gastown neighbourhood of Vancouver.

In December 2012, Cineplex Entertainment opened its first VIP cinema outside Ontario, and the first Cineplex built from the start as a VIP cinema was in Edmonton, Alberta, in the SW neighborhood of Windermere in the Windermere (area). It was also the first Cineplex to be 18+ VIP. Cineplex reopened a theater in Coquitlam, B.C that had been renovated to host 19+ VIP, shortly after.

2013-present: Expansion, VIP Cinemas

The Lansdowne location that Empire Theatres announced in 2011 was acquired by Cineplex in 2014 and opened in 2015.

On June 27, 2013, Empire Company announced that it would sell or close its Empire Theatres chain to focus on its retail and real estate operations (including Sobeys, which earlier in the month had agreed to purchase Safeway's Canadian operations). To that end, Empire Theatres wound down its operations and sold or closed all of its theatres.[10] Cineplex Entertainment announced the purchase of 24 Empire Theatres locations in Atlantic Canada that same day. The sale also included 2 IMAX screens in Halifax, NS and St. John's, NL. and 2 Empire Extra screens in Dartmouth, NS and Dieppe, NB. The acquired Empire Extra screens were rebranded as UltraAVX.[11] Cineplex Entertainment received Competition Bureau Approval to buy 24 Empire Theatres in Atlantic Canada for approximately C$194 million on October 10, 2013.

The Empire Theatres in Atlantic Canada closed on October 22, 2013 after the evening shows[12][13] and the sale was completed on October 24, 2013.[14] On October 24 & 25, 2013, the theatres reopened as Cineplex Cinemas. Following the sale of Empire Theatres operations to Cineplex and Landmark Cinemas, Cineplex became the only significant chain in Atlantic Canada, a role previously held by Empire only. At first, the Empire Kanata and Whitby Theatres were to be sold to Cineplex, but were sold to Landmark Cinemas instead. In lieu of the Kanata location, Cineplex later acquired the rights to Empire's planned 10-screen Lansdowne Park location in Ottawa.

On November 1, 2013, Empire Company announced the completion of the sale of Empire Theatres to Cineplex & Landmark.[15]

In the 2010s, Cineplex began to deploy a new concept, "VIP Cinemas", at selected locations, featuring premium amenities such as reclining seats, in-seat meal services, and a licensed lounge. On August 15, 2014, Cineplex opened a dedicated VIP Cinemas Don Mills location, the first to be devoted solely to the format.[16][17] By 2017, the company had also begun to retrofit selected non-VIP auditoriums to feature reclining seating, as part of an effort to improve the customer experience.[18]

Operations

Theatre chains

Cineplex operates cinemas using the following banners: Cineplex Cinemas (known as Cineplex Odeon Cinemas for many pre-2013 locations), Cineplex VIP Cinemas, Scotiabank Theatre, SilverCity (French: StarCité), Galaxy, Famous Players, and Cinema City. The Coliseum (French: Colisée) and Colossus banners have been phased out in favour of the Cineplex Cinemas banner, but the unique architectural features of these theatres has been preserved.

Premium screens

Selected Cineplex locations offer premium screens and features for a higher ticket price, including large-screen formats, motion seats, and VIP. Following the premiere of Star Wars: The Force Awakens, Cineplex reported that at least 80% of customers watched the film with one of its premium formats, and 40% of the company's overall box office revenue came from premium formats.[19]

  • Prime Seats are reserved seating rows in selected auditoriums, near the middle of the audience. They were first piloted in Ontario in 2014, before receiving a wider roll-out.[20][21]
  • The company currently operates 24 digital IMAX screens. Only one of these, Cineplex Cinemas Markham and VIP, was built by Cineplex rather than acquired from another theatre chain.[22] The screen size is from about 73[23] to 119[24] feet, depending on the venue. As of July 2017, five Cineplex locations offer IMAX 70 mm film playback: both Scotiabank Theatre locations in Alberta, plus the Langley location (former Colossus) in Metro Vancouver, and the Mississauga and Vaughan locations (former Coliseum and Colossus, respectively) in the Greater Toronto Area.[25]
  • UltraAVX auditoriums feature a larger "wall-to-wall" screen with 4K projectors, Dolby Atmos surround sound, and reserved seating .[26][27][19]
  • D-Box seats are available at selected locations, which offer motion effects synchronized with the film.[28][29] About a dozen locations offer D-Box on UltraAVX screens.
  • VIP Cinemas refer to screens featuring a premium, adult-oriented experience. They feature reserved seating, leather reclining seats with tables, a "VIP Lounge" lobby area with a licensed bar, and in-seat meal services offering snacks and other premium menu options. Access to VIP Cinemas are restricted by the legal drinking age; depending on local liquor laws, some locations also allow consumption of alcohol inside the cinema proper (otherwise only allowing them to be consumed in the VIP Lounge). VIP Cinemas are offered at selected flagship locations, and Cineplex has also constructed several locations devoted exclusively to the format.[30][31][32]
  • 4DX, a 4D film format, launched at Cineplex Cinemas Yonge-Dundas on November 4, 2016. It debuted alongside the premiere of Doctor Strange as Canada's first cinema screen to feature the technology. 4DX includes stereoscopic 3D, as well as seat motion and other practical effects such as wind, strobes, and smell among others.[33]

Arcades and amusement

Most Cineplex locations feature arcade areas under various brands. In June 2009, Cineplex began to deploy a new concept known as Xscape Entertainment Centre, incorporating it into new locations or refurbishing existing locations to utilize the format. There are 28 locations as of September 30, 2017.[34] Xscape feature both redemption games and traditional games, with some locations also including a licensed lounge and party rooms. The centres utilize card systems to store credits and points for prizes, and offers for Scene rewards users.[35] About 77 other Cineplex locations continue to have a Cinescape arcade, replacing the TechTown brand previously deployed by Famous Players and Playdium.[36]

In January 2015, Cineplex announced a new entertainment restaurant chain known as The Rec Room. Comparable to Dave & Buster's, which operates two locations in the province of Ontario, The Rec Room features restaurant and bar areas, recreational game areas, simulators, and an auditorium equipped with a cinema-style screen.[37] Cineplex CEO Ellis Jacob explained that the chain is meant to help the company diversify beyond its core cinema business in the wake of the growing streaming industry,[38] The first location opened in South Edmonton Common in 2016. A second location in Toronto's Roundhouse Park opened in June 2017, along with a second Edmonton location at West Edmonton Mall.[39][40] Cineplex aims to open 10-15 locations of The Rec Room nationally, ranging in size from 30,000 to 60,000 square feet.[37][41][42][43] Further locations were announced for Brentwood Town Centre in Burnaby, Masonville Place in London, Square One Shopping Centre in Mississauga,[44] Avalon Mall in St. Johns, and Seasons of Tuxedo in Winnipeg.[45][46][47]

Cineplex owns Playdium, a major arcade and family entertainment centre in Mississauga, Ontario.[48] On October 2, 2017, Cineplex announced that it would re-launch the Playdium brand as a new entertainment restaurant chain.[49]

Virtual reality

D-Box VR theatre at Xscape in Scotiabank Theatre Ottawa

In November 2017, an IMAX VR centre opened at Scotiabank Theatre Toronto, as IMAX VR's first location in Canada. The following month, a D-Box VR experience launched at the Ottawa location.[50][51]

On September 13, 2018, Cineplex announced that it would acquire a stake in VRStudios—a Seattle-based provider of virtual reality installations, and utilize its equipment for as many as 40 VR centres across the country.[52]

Scene

Launched in 2007, Scene is the entertainment rewards program jointly owned by Scotiabank and Cineplex Entertainment.

Restaurants

Cineplex has an Outtakes restaurant in 94 theatres, some which replace previous restaurant partners (Burger King, KFC and New York Fries) and others which introduce restaurants at locations which did not previously feature one. VIP Cinemas and some Xscape locations feature a licensed lounge with more premium offerings compared to Outtakes. Poptopia is a flavoured popcorn restaurant offered in a full-service format at 22 locations. Other Cineplex theatres may feature Poptopia at the concession stand, but only in the caramel corn and/or kettle corn flavours.

Ice cream at Cineplex locations debuted with Baskin-Robbins and TCBY. Beginning in December 2007, Yogen Früz became the preferred partner.[53] On January 1, 2014, Cineplex acquired a 50% stake in Yoyo's Yogurt Café.[54] As of January 2017, 77 Cineplex theatres feature Yoyo's restaurants, while Yogen Fruz is still available in 23 Cineplex theatres while TCBY is available in 16 locations.[55]

Beverages are available in both cold and hot formats. Cold beverages include the Coca-Cola lineup, which replaced the Pepsi lineup used at locations formerly owned by Famous Players. 12 locations feature Coca-Cola Freestyle.[56] Hot beverages include Starbucks as the incumbent provider with 105 locations,[57] all which offer Pike Place Roast coffee (regular or decaf) and Tazo tea. Select locations also offer premium drinks such as caffè mocha or caramel macchiato. Tim Hortons is available as a full-service restaurant in five locations,[58] with Brossard being the only location to offer both Tim Hortons and Starbucks.[59] The previous incumbent provider was Van Houtte, which is now phased out at all but two locations.[60]

Other current partners include Panago and Pizza Pizza (replacing Pizza Hut). Chocolates and candies from Mars is available throughout the chain, replacing the previous supplier, Hershey. M&M's Mini are available as candies in kids' combos used to promote a kids' movie. Taco Bell was previously available at some Cineplex locations acquired by Famous Players.

Corporate governance

The current Chief Executive Officer and President of Cineplex Entertainment is Ellis Jacob. Alongside with Jacob are Jordan Banks who serves as a Facebook executive, Robert Bruce, Joan Dea, Ian Greenberg, the founder of Astral Media, Sarabjit S. Marwah, Anthony Munk, Edward Sonshine, Robert J. Steacy and Phyllis Yaffe, who serves as its chair.

Logo history

See also

Notes

  1. ↑ The Canadian "Paramount Theatre" chain was not affiliated with the American chain with the same name.

References

  1. 1 2 3 4 5 "Cineplex Inc. Announces fourth quarter and annual results" (PDF). Retrieved April 29, 2018.
  2. ↑ "Company Profile for Cineplex Galaxy Income Fund (CA;CGX.UN)". Retrieved October 14, 2008.
  3. ↑ Cineplex Entertainment (January 18, 2012). "Cineplex Celebrates 100 Years of Movie Memories". Retrieved June 27, 2013.
  4. ↑ Moore, Paul S. (Fall 2003). "Nathan L. Nathanson Introduces Canadian Odeon: Producing national competition in film exhibition" (PDF). Canadian Journal of Film Studies. 12 (2): 22–45. Retrieved November 11, 2010.
  5. ↑ "The Allen Family". Silent Cinema in Quebec.
  6. ↑ Wise, Wyndham (May 2001). "From The Editor". Take One. Canadian Independent Film & Television Publishing Association. 10 (32): 7. ISSN 1192-5507. Retrieved November 11, 2010.
  7. ↑ Cineplex buys 4 AMC theatres in Canada, including Yonge-Dundas location | Toronto Star. Thestar.com (June 22, 2012). Retrieved on 2013-12-09.
  8. ↑ "Introducing Cineplex Entertainment A New Name for Cineplex Galaxy LP" (Press release). Cineplex Entertainment. October 3, 2005. Retrieved November 11, 2010.
  9. ↑ "Cineplex adds to theatres portfolio". Toronto Star. Toronto: Toronto Star. Canadian Press. June 29, 2007. Retrieved August 31, 2010.
  10. ↑ http://www.newswire.ca/en/story/1191181/empire-company-announces-sale-of-empire-theatres
  11. ↑ Empire Company Limited | Empire Company Announces Sale of Empire Theatres. Newswire.ca (June 27, 2013). Retrieved on 2013-12-09.
  12. ↑ http://mediafiles.cineplex.com/_att/495a9313-0f42-443d-a3d7-81c0a196f2e8/Competition%20bureau%20approval%20press%20release.pdf
  13. ↑ Concerns Result in Changes to Proposed Movie Theatre Merger. Competition Bureau (October 10, 2013). Retrieved on 2013-12-09.
  14. ↑ http://mediafiles.cineplex.com/_att/cef449a0-7014-48f4-8fcc-47e621f336bf/Empire%20Acquisition%20Press%20Release%20102413.pdf
  15. ↑ http://www.empireco.ca/site/media/Empireco/Empire%20Theatres%20Sale%20Closing%20-%20FINAL.pdf
  16. ↑ "Cineplex VIP Cinemas Don Mills: Canada's first adults-only multiplex opens Friday". Toronto Star. Retrieved June 1, 2018.
  17. ↑ "First standalone VIP cinema in Canada for Don Mills". Toronto Star. Retrieved June 1, 2018.
  18. ↑ Daniszewski, Hank (June 27, 2017). "Cineplex plays catch-up with Landmark". The London Free Press. Retrieved December 19, 2017.
  19. 1 2 "Cineplex's premium-seating options providing big boost to box office revenue". Financial Post. December 29, 2015. Retrieved June 2, 2018.
  20. ↑ "Why don't movie theatres eliminate the front row?". Toronto Star. Retrieved June 2, 2018.
  21. ↑ "Cineplex's premium-priced seats get two thumbs up". Macleans.ca. May 24, 2014. Retrieved June 2, 2018.
  22. ↑ Cineplex (December 19, 2014). "IMAX Locations". Retrieved December 19, 2014.
  23. ↑ "SilverCity Windsor Cinemas & IMAX". LF Examiner. Cinergetics, LLC. Retrieved March 6, 2016.
  24. ↑ "Cinema Cineplex IMAX aux Galeries de la Capitale". LF Examiner. Cinergetics, LLC. Retrieved March 6, 2016.
  25. ↑ "EXPERIENCE DUNKIRK IN IMAX 70MM FILM AND IMAX WITH LASER". IMAX.com. June 27, 2017. Retrieved December 7, 2017.
  26. ↑ "Cineplex to upgrade movie theatre seats at Windsor's Devonshire Mall". Windsor Star. March 3, 2017. Retrieved June 2, 2018.
  27. ↑ Siebert, Amanda (February 9, 2016). "Photos: Eat, drink, and recline at the new Cineplex Cinemas at Marine Gateway, the city's first VIP movie theatre". The Georgia Straight. Retrieved December 17, 2017.
  28. ↑ "New motion seats add excitement to movies at Cineplex Odeon Windsor". Windsor Star. June 23, 2016. Retrieved June 2, 2018.
  29. ↑ "How Montreal-based D-BOX Technologies' seats are rumbling their way into more cinemas". Financial Post. December 29, 2015. Retrieved June 2, 2018.
  30. ↑ "Lansdowne VIP Cinemas: An adults-only experience". Ottawa Citizen. April 13, 2015. Retrieved June 1, 2018.
  31. ↑ "Cineplex opens new adults-only VIP theatres at Queensway". Toronto Star. Retrieved June 1, 2018.
  32. ↑ "Cineplex VIP theatres coming to Saskatoon". CBC News. Retrieved June 1, 2018.
  33. ↑ "Effects you can see, feel and smell at Canada's first 4DX cinema". Toronto Star. Retrieved June 1, 2018.
  34. ↑ Marshall, Pat (September 30, 2017). "2017 Third Quarter" (PDF). Cineplex. p. 45. Retrieved December 6, 2017.
  35. ↑ "The XSCAPE factor: Cineplex offers even more fun with entertaining centres". Film Journal International. Retrieved March 27, 2017.
  36. ↑ "Cinescape Games". Cineplex. December 6, 2017. Retrieved December 6, 2017.
  37. 1 2 "Roundhouse to get Cineplex 'social destination' for dining, entertainment". Toronto Star. Retrieved April 20, 2016.
  38. ↑ "Entertainment and eats emporium the Rec Room opens in Toronto". Toronto Star. July 1, 2017. Retrieved July 1, 2017.
  39. ↑ "Second Rec Room location almost ready to go in West Edmonton Mall". Edmonton Journal. July 6, 2017. Retrieved August 29, 2017.
  40. ↑ "Be a virtual Ghostbuster at Toronto's new Cineplex Rec Room". Toronto Star. Retrieved July 3, 2017.
  41. ↑ "Cineplex at Edmonton's South Edmonton Common opening The Rec Room". Edmonton Sun. Retrieved April 20, 2016.
  42. ↑ "Cineplex unveils big plans for Deerfoot City". NewsTalk770. Corus Radio. Retrieved April 20, 2016.
  43. ↑ "Cineplex's 'Rec Room' opening slated for summer 2017". Calgary Herald. Retrieved March 3, 2017.
  44. ↑ Rosella, Louie (2017-11-06). "'Perfect spot': Here's what's coming to the old Target store at Square One". Mississauga.com. Retrieved 2018-06-01.
  45. ↑ "The Rec Room in Avalon Mall promising games, drinks, and a dose of nostalgia". CBC News. Retrieved 2018-06-01.
  46. ↑ "Future of retail? Cineplex to open massive entertainment centre at Winnipeg's Seasons of Tuxedo". CBC News. Retrieved 2018-06-01.
  47. ↑ "Cineplex eyes Burnaby for Rec Room entertainment complex". Vancouver Sun. 2017-05-17. Retrieved 2018-06-01.
  48. ↑ "Player One Amusement Group". Replay Magazine. Retrieved October 3, 2017.
  49. ↑ "Cineplex's New Playdium Concept Caters To Canadian Teens And Families; First Will Open In Late 2018 In Ontario". VendingTimes. Retrieved October 3, 2017.
  50. ↑ "Toronto's new IMAX VR arcade shows how virtual reality can shape your local theater". The Verge. Retrieved May 3, 2018.
  51. ↑ "Virtual Cineplex: Canada's leading circuit unveils a new entertainment reality". Film Journal International. Retrieved May 3, 2018.
  52. ↑ "Cineplex signs deal to open 30 to 40 VR installations across Canada". The Globe and Mail. Retrieved 2018-09-13.
  53. ↑ Yogen Fruz Goes to the Movies YogenFruz.com
  54. ↑ Cineplex (January 9, 2014). "Cineplex acquires 50 per cent stake in YoYo's Yogurt Cafe" (PDF). Retrieved January 3, 2014.
  55. ↑ Yoyo's Yogurt Cafe. "Locations". Retrieved January 5, 2015.
  56. ↑ Li, Anita (July 20, 2012). "Building a better movie theatre". TheStar.com. Toronto Star. Retrieved January 24, 2016.
  57. ↑ "Starbucks". Cineplex Entertainment. Retrieved January 24, 2015.
  58. ↑ "Tim Hortons". Cineplex Entertainment. Retrieved January 24, 2016.
  59. ↑ "Cinéma Cineplex Odeon Brossard et VIP". Cineplex Entertainment. Retrieved January 24, 2016.
  60. ↑ "Van Houtte". Cineplex Entertainment. Retrieved January 24, 2016.
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