HMVCurzon, Multiplexes and the future of cinemas
April 4, 2010
So HMV and CurzonAE’s experiment of partnering up to offer Curzon cinemas in HMV stores has been a success in a Wimbledon and will be the forerunner of up to 20 more city centre “HMVCurzons” around the country, as reported by Variety
What’s interesting here is the seeming reversal of cinema trends over the past 20 years. Once, all cinemas were in town and city centres, and then the multiplexes started springing up in shopping centres and parks out of town and city centre cinemas started closing down. Whilst multiplexes continue to spring up as part of the big cinema chains, usually connected with the latest big shopping mall (a recent new VUE opening in the Westfield shopping centre in London) CurzonAE are now bucking this trend and going back to the town-centres. So why?
When multiplexes first started appearing, it was a wise business move – rather than pay expensive rent, and employ 1 team of staff to operate 1 or 2 screens, multiplexes could open several screens on cheap land out of town, and employ not much more than the 1 team of staff to operate several screens at once, thus making considerable savings. This co-incided with a social move to large out of town shopping centres and malls and the increase of the large supermarket chains.
Now however, we’re starting to see a reversal in social habits, underpinned by the recession, with many of the large shopping malls unable to fill all their retail outlets. The cost too of opening in the Westfield for VUE must have been relatively expensive too in terms of rent. Witness Tescos and Sainsbury’s with the spread of Metros and Expresses in town centres as opposed to the large out of town superstores.
So for CurzonAE, looking to expand and open more cinemas, they have gone to where the cheaper rents are now – not in the new shopping malls, but in the declining city centres, and specifically in the larger retail stores that due to changes in technology are no longer as big or successful as they once were and as a result, have space to spare. This is a smart move, not only just financially, but in recognition of the Curzon target audience – much older and cultured than the teen multiplex audiences and a target audience that have been falling out of love with the out of town shopping centres and malls due to their social impact.
So in terms of connecting with their audiences desires and combining this with the more economical overheads from linking up with town centre HMVs, CurzonAE appear to be making a very smart move at the right time.
