Market Insight

GDC agrees digital cinema conversion deals in CinemaCon

March 28, 2014

Xin Zhang Xin Zhang Senior Research Analyst, Cinema
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Hong Kong-based digital cinema solution provider GDC Technology has unveiled a number of digital rollout deals during CinemaCon in Las Vegas (24-27 March 2014). For the Latin America market, US-based media and entertainment company National Amusements has selected GDC and Barco for the digital rollout of its 240 screens across Brazil (UCI Cinemas) and Argentina (Showcase Cinema). Third party Xenon Servicios and Kelonik do Brasil will install and integrate Barco DLP Cinema projectors with GDC Technology’s SX-3000 Standalone IMB in this rollout. National Amusements currently operates more than 900 movie screens worldwide under brands Showcase Cinemas, Showcase Cinema de Lux, Showcase SuperLux, Multiplex Cinemas, and UCI Cinemas.


Chilean cinema exhibitor CineHoyts has signed a VPF deal with GDC for digital conversion over its 157 screens across 23 sites. The deal comes along with the deployment of SX-3000 Standalone IMB and Portable Storage, and the installation and integration is expected to be completed by August 2014. Also under the VPF scheme, GDC has sealed agreements with two Peruvian exhibitors Cinestar Muticines and UVK Multicines for their digital conversion. Another VPF deal signed with Caribbean Cinemas, the leading exhibitor in Puerto Rico and the Caribbean, covers 148 screens in 20 cinemas across the Islands including the Dominican Republic, Trinidad, Aruba, St. Lucia and Antigua. Caribbean Cinemas will become fully converted when the deal is completed.


The deals in Latin America are significant as they will help GDC to further push up its server market share in the region. Its competitor Doremi is the market leader in the region with 68.7 per cent market share at end of 2013 (based on equipment installed). GDC overtook Dolby (10.2 per cent) in Q4 2013 to become the second largest with an 18 per cent market share. Mexico has GDC’s largest presence in the region thanks to the deal with Cinemex for 1,500 screens, agreed in late 2013. By end of 2013, Latin American’s digital penetration reached 68.7 per cent. The remaining 31.3 per cent now is the target for the manufacturers. To further break down the market, 85.2 per cent of the screens in Mexico have already converted to digital, and the same penetration for other major Latin America countries are 49.9 per cent in Argentina, 47.9 per cent in Brazil, 49.7 per cent in Chile, and 78.7 per cent in Colombia.


For the Asian market, Indonesian exhibitor Cinemaxx has chosen GDC and Barco to digitize its new cinema chains across the country. The deployment features the supply of digital projectors from Barco and a wide range of digital cinema equipment and services from GDC Technology, including servers, Theatre Management Systems (TMS), Network Operations Center (NOC) as well as total system integration support. Cinemaxx also committed a deal with Dolby to install 100 Dolby Atmos sound systems over the next threeyears, which will be a milestone for Dolby Atmos; 30 of the committed 100 screens are expected to be installed by the end of May 2015. Cinemaxx is a new exhibitor in Indonesia owned by property developer conglomerate Lippo Group.  The cinema exhibition industry in Indonesia has been dominated by two exhibitors, Cinema 21 and Blitz Megaplex, for a long time. Lippo Group just entered the exhibition business in 2014 and plans to open 1,000 screens in the next five years. The Cinemaxx deal is important to GDC as although it is the market leader in the Asia Pacific region, it was comparatively weak in the Indonesia market where Doremi dominates.

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