Reading entertains cinema battle

By KARYN SCHERER

United States cinema operator Reading Entertainment signalled yesterday that it was serious about taking on New Zealand's two main cinema chains, confirming that it would go ahead with a $55 million complex in Wellington.

The company, which already has a stake in Hoyts' Whangaparaoa multiplex and in Barry Everard's two Auckland cinemas, indicated more than a year ago that it was keen to develop a big complex .

Work is to begin on the Wellington centre in September.

The complex is being touted as the capital's answer to Auckland's Force Entertainment Centre, and will include 10 screens, 1100 carparks and up to 30 specialty shops. It is due to be ready by Christmas next year.

The move comes as the Commerce Commission threatens legal action against the two main cinema chains, Village Force and Hoyts, over their merger plans.

Independent film distributors and exhibitors strongly oppose the merger, and one player claimed yesterday that distributors would be happy to supply the new complex because they were so upset about the merger.

Reading, which has struggled to establish itself in Australia in the face of intense competition from Village and Hoyts, will again work with Mr Everard in Wellington, and his Berkeley Cinema Group will manage the new complex.

Mr Everard said yesterday the company was keen to open further complexes.

He also lashed out at the big chains, describing most Wellington cinemas as Third World.

"The fact is Wellington might be the last to get a multiplex but it's certainly going to have the best in the country."

Two big distributors, Columbia Tri-Star and United International Pictures, confirmed they were keen to supply the new complex.

Mr Everard said he was unsure whether two distributors with links to Village Force - Twentieth Century Fox and Roadshow - would also provide films.

"We have satisfactory undertakings on supply. I can't tell what they might do."

The Commerce Commission said last August it would fight the merger in court, but a date has yet to be set for a hearing.

The big chains, which now operate under the name Village Force Hoyts, are understood to have told senior staff that they are reconsidering their plans in the face of the commission's opposition.

Force chairman Peter Francis confirmed last week that the merger plan could be dropped if it was unable to reach agreement with the commission.

However, distributors and exhibitors remain sceptical about motives as the chains have already laid off staff and merged their head offices.

Columbia Tri-Star spokesman Andrew Cornwell said the industry was getting impatient.

"We're very keen to see the issue resolved as soon as possible for all concerned. No one likes uncertainty so it would be good to have a bit of clarification."