Tonyboy group in talks with provincial theater chain on cinema project

A group led by businessman Antonio ‘Tonyboy’ Cojuangco has begun negotiations with a province-based theater chain for the conversion of their movie theater into satellite-based movie houses that would use simultaneous digital broadcast using the Aguila network.

Eldon Cruz, president and chief executive officer of Dream Threaters Inc. told reporters over the weekend that the company, together with the Philippine Multi-Media Systems, has initiated talks with the theater chain for the project that would allow their traditional reel-based theaters to show films at the same time they are shown in Metro Manila theaters.

The venture is majority-owned by Cojuangco and the other stockholders are led by former Finance Secretary Jose Trinidad Pardo, Franchise One president and former revenue commissioner Dakila Fonacier, GMA 7’s Menardo Jimenez, Automatic Appliances president Samie Lim, PMMI president Manolo Abellada, PMMI chief Cesar Reyes and Cruz himself.

According to Cruz, there was usually a one to two-week delay in the movie line-up of provincial theaters because they have to rent the actual movie reels after they have been shown all over Metro Manila. "Converting their theaters to this technology would enable them to eliminate this lag," Cruz said.

Cruz said DTI has reached an agreement with local and foreign movie productions allowing them to digitalize their film reels and broadcast the movies using Aguila’s satellite facilities.

Satellite-enabled theaters, Cruz said, would be able to receive the signals and run the movies without the need to rent the actual reels from the movie production outfits and their distributors.

Cruz said the Dream was franchising its operations to province-based investors for P7 to P8 million, allowing them to open theaters with as few as 100 fully-airconditioned seats. He said the company was about to open five company-owned Dream Theater franchises and has initially granted four franchises in Sta. Cruz Laguna; Olongapo, Naga and Camarines Sur.

The company-owned theaters, Cruz said, would open in Malolos, Bulacan; San Mateo, Rizal; Dumaguete City and Cotabato City in Mindanao. Three more were lined up in Ternate, Cavite; Concepcion, Tarlac and Tugegarao.

Cruz said theater tickets would sell for P40 and even for as low as P20 for matinee shows. "We have to bring down our prices because we are also competing with pirated movies," he explained. "But if you can go to an airconditioned theater for P50 or P20, I think we have an edge."

Cruz said the group was optimistic that its negotiations with the province-based theater chain would fall through. "Movie-goers outside Metro Manila do not like being late. That’s why pirated movies are so popular even if their quality is very low," he said.

According to Cruz, theater owners normally rent film reels for $2000 each and these are rotated throughout the chain. In contrast, he said Dream would get paid in terms of a share of the ticket price.

Of the P50 ticket price, net of taxes, Cruz said 40 percent would go to the film producer, 50 percent to the franchisee and 10 percent to Dream. Franchisees would also lease the converter from DTI and the broadcast film would also carry digital signatures to prevent piracy.