The volatile nature of the cinema industry has claimed a number of scalps across Australia through the rationalisation of the past decade.
The volatile nature of the cinema industry has claimed a number of scalps across Australia through the rationalisation of the past decade.
But in Western Australia, double-digit growth in box office takings for local independent cinema group, Movie Masters, indicates the advent of the home theatre hasn’t signalled the end of cinema.
Incorporating third-generation family business Ace Cinemas and fourth-generation family business Grand Cinemas, the group now has 10 screens under its belt across WA.
The Movie Masters family is poised to add cinema number 11 in the coming weeks, with negotiations for a 10-screen Ace Cinema complex in Rockingham approaching its final stages.
Competing against the industry big guns Greater Union and Hoyts, Movie Masters has developed a niche within the local cinema space, growing to become one of the country’s strongest independent cinema chains.
Ace and Grand Cinemas joined forces in 1997, combining their promotion and marketing programs and broadening their geographical spread.
The group has also maintained a strong regional presence, a section of the market the major chains have largely ignored, with cinemas operating in Busselton, Kalgoorlie and Bunbury.
But, like many in the industry, the two companies have faced their share of challenges, among them the public’s take-up of plasma televisions and home theatres, and movie piracy.
Grand Cinemas chief executive Allan Stiles said it was just a case of history repeating itself. He said technological innovations had threatened to derail cinema over the years, among them introduction of black and white, and then colour, television, and home video systems in the 1980s.
“Everything that comes in, people believe threatens cinema, but we’ve been here since day dot and were still here,” Mr Stiles said.
Ace Cinemas is also experiencing impressive growth in box office sales, particularly at its new Ace Midland, which has had 100 per cent growth in box office takings this year.
Ace chief executive David Pye said cinema operators had evolved to cater for the changing demands of consumers, improving the overall cinema experience with better seats, bigger screens and the introduction of premium seating options.
“It’s the nature of the business; the cinemas need to be up to date and look good. If you don’t keep the standard of the product – the film – and keep the cinema to a certain standard, then [business] will fall off,” he said.
Both say box office takings for the year to date had been helped by the quality of the product.
And with almost 80 years of industry knowledge under their belts, the two companies believe their strengths still lie in their localised and personal approach, and passion for industry.
“It’s an exciting business. It takes you to highs and lows, and at the moment it’s really rocketing,” Mr Pye said.
