Three of Canada’s top entertainment industry figures are joining forces to launch a $50-million national movie theatre chain which will see multiplexes opening in 20 small- and medium-sized communities over the next three years.

Investors in the new venture, named Galaxy Entertainment, include the head of Serendipity Point Films, Robert Lantos, Alliance Atlantis Communications Motion Picture Group chairman Victor Loewy, and longtime Cineplex Odeon senior executive Ellis Jacob. The amount each invested is unavailable.

Gerald Schwartz, chairman of Onex Corp., has thrown the considerable weight of his company behind the venture as well and will hold the majority stake in Galaxy.

Jacob, Galaxy’s ceo, says their mandate is to build and manage a chain of theatres in smaller cities across Canada and offer an exciting venue and full range of films for residents in these communities.

‘We just felt the smaller markets were being neglected,’ he says. ‘We felt there was a real opportunity there because they were usually owned by smaller circuits or by individuals who did not want to reinvest in the business.’

These communities, he says, also missed the massive expansion and consolidation of theatre chains in the major urban centres which took place over the last two years.

‘Our strategy is restricted to the small and medium-sized markets. We have absolutely no interest in going into towns like Montreal, Toronto, Edmonton, all those sorts of places. We are really a very niche player. We feel this market has been totally underserviced and I think a lot more people would go to the cinema if we provided them with a reasonable venue.’

Jacob, who held the post of coo at Cineplex Odeon for 11 years, estimates Galaxy will post $60 million in revenues in three years.

Galaxy already has a foothold in several Ontario communities following its purchase of seven movie houses from the Ontario Theatre Group.

otg owner Norman Stern is Galaxy’s new president while former Cineplex cfo Steve Brown has joined the company as cfo.

Galaxy’s first three venues, former otg properties in Peterborough, Sault Ste. Marie and Cornwall, are slated to open in late April. Plans are also in development for a multiplex in Brantford. The present theatres will be renovated or rebuilt, Jacob says.

The theatres, each with up to 10 screens, will be modeled on Famous Players’ Silver City multiplexes, with stadium seating, 18-inch risers, large screens and digital sound systems, Jacob says. ‘Albeit, the auditoriums might be slightly smaller because we can’t afford to build them with 5,000 seats. The population doesn’t warrant them.’ Instead, the multiplexes will consist of theatres with seating capacities ranging from 125 to 500.

Jacob estimates a $7-million to $10-million expenditure in each community to build the theatres.

As for the demographic in Galaxy’s sitelines, Jacob sums up simply: ‘Really what we are looking at is a market draw of 100,000. Most of the time we will find that we are in a town with a university. Also, it appears that in most of the towns we are going into, there appears to be a Wal-Mart.’