Cineplex thinks outside the theater

Ellis Jacob doesn’t see the local multiplex as just a place to see Hollywood movies.

So the Cineplex Entertainment president and CEO has decided to flex his plexes by launching a one-stop entertainment destination in suburban Toronto that combines a 12-screen multiplex with bowling, billiards and other family leisure activities.

Reducing his reliance on over-hyped Goliath movies to keep the turnstiles whirling, Jacob is betting the new SilverCity Oakville Cinemas complex will revolutionize the Canadian entertainment landscape with content apart from that on its movie screens.

‘This won’t take over from the Hollywood films, but it will increase the offering to our market. We want to be able to sell things [to clients] from a three-year-old to a 90-year-old,’ explains Jacob, whose company has a majority share of the Canadian box office.

What’s more, he hopes Cineplex patrons come to the Oakville pleasure dome for a movie and stay the night.

‘One of the things we found with our research is people went into theaters, and then left. There was no reason to stay after seeing a movie,’ he says.

Jacob says creating an entertainment hub with VIP auditoriums, lounges, child-minding services, a game area and party rooms aims to get patrons to stay longer and spend more under one roof.

‘If you want to be on your own without kids, go to the VIP screens, or bowl while the kids watch a movie,’ he says.

Ten years after Cineplex and other Canadian exhibitors introduced costly multiplexes, it turns out stadium seating, theme lobbies and expanded concessions just don’t cut it anymore. 

Cineplex now feels the need to offer simulcasts of alternative entertainment such as concerts, Met operas and Broadway musicals, in part to target Canadians who don’t frequent the local multiplex.

Put another way, it’s not enough these days to provide access to the hottest Hollywood movies.

‘People will go to [movies] and will spend money if you give them the right things that they want,’ Jacob says.

The digital revolution is also driving the push to alternative content. The Oakville multiplex makes simulcasts of TV wrestling specials and NHL hockey games available in nine theatrers via Christie digital projectors, while another three auditoriums will retain traditional 35mm projectors during the transition to digital.

Jacob concedes that the newer content offerings from Cineplex don’t represent a big slice of its annual business, but the exhibitor is building for the future. Selling popcorn to Hollywood moviegoers will continue to be Cineplex’s bread and butter.

But the impetus to change and evolve comes from a number of factors, including Hollywood blockbuster movies often underwhelming audiences. Case in point is The Golden Compass – one of the films that screened at the complex on its Dec. 7 opening night – the box office for which fell way short of expectation. Also, the major studios are closing the gap between theatrical and DVD releases.

In a market where a blockbuster needs to post a $50-million opening weekend in North America or significantly reduce its potential payback to exhibitors, players like Cineplex need to adapt or die.

Jacob hopes the prototype Oakville multiplex will set itself apart with comfortable VIP screening rooms and a sophisticated lounge for adults, along with video games and six lanes of bowling for kids.

If anything, separating noisy kids from adults looking to relax is a big part of the new design for the Oakville multiplex.

‘When you go to the theater, walk up the stairs into the VIP area. You can watch the zoo downstairs and not be involved in it,’ Jacob says.

That’s right. Older patrons want to retreat from the normal theater-going experience.

‘People in our demo want to escape, to not be bothered with cell phones, and to eat and drink and talk about the movies in peace,’ he adds. ‘And they’re willing to pay a premium for that.’

Jacob says it’s still too early to assess the Oakville multiplex’s success, but early reviews have the VIP screens being a hit with adult patrons for their larger seats and premium food offerings and service.

But even if the Oakville multiplex pays off, the model won’t be replicated nationwide.

Jacob says the prototype will be rolled out on a market-by-market basis. If a major urban center can accommodate a high-end multiplex, it may get one.

In smaller markets, on the other hand, existing auditoriums will be retrofitted to accommodate new alternative content.

‘We’ve never had a one-size-fits-all mentality, not in ticket pricing, or food services. We look at everything market by market, and identify what is the right mix,’ Jacob says.