Blockbuster to Launch a Multiplex in Mexico

I'm from Mexico (specifically from Guadalajara, probably the most movie addicted city in the country) and let me tell you that Blockbuster is very popular down here. Many people like to rent movies there because of the great variety of films you find. Since services such as Netflix are still not very popular, Blockbuster has almost no competition. On the other hand, movie theaters are also a great bussiness. Most malls here have a multiplex, and in some cases it is the only reason a mall continues to gain profit. So Blockbuster's decision doesn't surprise me. The question now is if it will be able to build the multiplext to the standards of other companies here in Mexico.

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I'm a little confused and was hoping that Jette could explain his comment about traditional movie theaters being on the way out. I'm not an industry expert by any stretch of the word, but it was my understanding that not only revenues were up this year, but also attendance. So if more people are buying tickets (despite the fact that tickets cost more than ever) why would multiplexes be forced to change? Not a sarcastic comment, I'm genuinely interested. Thanks

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As a person in the theater biz, I can tell you that attendance is up from PY as is film revenue. This summer looks to be the biggest ever, and probably by a wide margin. There are tentpole releases nearly every week even into August.

After analysis, NATO concluded that the reason for the recent slump was the crap that the studios were trying to pass off on the public as cinema worth going to see.

Sure, the industry is changing, with digital projection and the possibilities of 3D coming along with that being an important driver. James Cameron, Pixar, and Lucas have all expressed massive interest in this area, and will be pushing for the rollout of this tech in the very near future. All one has to do is look at the per screen grosses on Robinsons 3D vs the regular Robinsons grosses to see how interested the public is to be part of an immersive experience that really is creative and engaging.

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I'm also from mexico! I totally agree with Mr. Gori however, I think Blockbuster is entering a very competetitive market. In case you didn't know, us mexicans watch ALLOT of movies. And despite what you might think (that we're all in the stone age and have no descent cinemas), we have one of the greatest cinema chains in the world. A ticket only costs 49 pesos (that is less than 5 USD) in the leading chain cinema but for that you enter an amazing cinema!!! On wednesdays you even get 2x1 (that's less than 3 USD). I'm not kidding. Our largest chain "CINEMEX" provides allot for your buck. All seats are leathered, spacious and very comfortable, all screens are certified dolby digital and also THX (LucasFilms had no problem screening any of their movies in mexico). I've gone to the movies in the US, Australia (i'm currently living in sydney) and Brasil. Trust me, Mexico´s theatres are way better. I can't believe I pay 11 AUD for a movie in sydney!!!! In mexico there's a thing called VIP where for 100 pesos (less than 10 USD) you enter a cinema which doesn't have rows and rows of seats, but instead it has a handful of very comfortable seats (i'm talking laying-back-completely-and-sleep-like-a-baby comfortable) and coffee tables in the middle. There are a handful of waiters around who will take your order and bring you anything from the usual popcorn and hot dogs to sushi or a full meal. I'm not kidding, you can check this service out on their webpage. Honestly, go see the cinemas we can go to (go to the link... then tour through the VIP tour and click on the door to the the actual screen room... you'll see what i'm talking about):

http://www.cinepolisvip.com/cinepolisVip2004/VirtualNuevo/FrameVirtual.htm

and also check out the price of a ticket there (second link... i've linked to the purchase page for cinepolis. VIP).

http://www.cineticket.com.mx/cineticket_web/index.jsp

First click on "Reservar o Comprar" then on the next page Select ciudad "MEXICO D.F."..... CINE "Cinepolis VIP perisur" (that's where they have VIP). Now click on any time for any movie and it will take you to a purchase page... you can see the price there at 100 pesos per ticket. That's about 9 USD. That's less than 10 bucks. AND DID YOU SEE THE CINEMA YOU GET FOR THAT??!!! (link above)

I haven't seen any cinemas in sydney or the U.S. that can compete with our offerings. If we payed as much as you do for a regular cinema, we get waiters, comfy seats, and a lounge area to chill before the movie starts. Nobody usually goes to the VIP though... he!

Let me put it this way, In mexico, having a cinema is what makes or brakes a shopping mall. Shopping malls without cinemas are pretty much dead.

Cinemas in mexico are a BIG deal. After the U.S., Mexico is usually the greatest revenue collector for many major films (spiderman, superman returns, etc.). Not to mention that we also have quite a few IMAX theatres (at least 5 in Mexico city and others in small towns even like cuernavaca...) Going to the cinemas every friday is very common. But that's the thing; It's really affordable and very entretaining. If Blockbuster is going to compete against our local offerings then it'll probably have to bring it's price way down from what it would usually charge in other markets. We expect allot from cinemas so blockbuster entering the game should be interesting because mexican standards for cinemas can be very high (we want low price and a GOOD CINEMA!)

I'd like to know what you guys think.

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