Multiplex mergers
The wave of mergers continues. After last year’s takeover of the Kinoplex multiplex network by Centrum Filmowe Helios and following the merger of Kinepolis and Cinema City, media group Grupa ITI – who own the Multikino multiplexes – are now buying the Silver Screen network.
Grupa ITI President Wojciech Kostrzewa said: "Grupa ITI’s strategy rests on our ambition to become a leader on the market. This transaction is an additional step towards achieving our goal. It will no doubt contribute to the planned expansion of our group".
However, pole position on the Polish exhibition market is occupied by Israeli company Cinema City, who hold a 43% market share. Multikino occupies second place with a market share of more than 23%, which will be boosted by its buyout of Silver Screen and its market share of almost 11%. Helios is the third major player with a 20.7% market share.
Following this merger, Multikino will have a network of 174 screens, with over 40,000 seats available in 13 Polish cities. The company is also breaking into the Ukrainian market by acquiring a multiplex theatre in Lvov.
This is not necessarily good news for audiences. In fact, the increase in average admission price seems to be a direct consequence of these deals. Since the beginning of the year, increases have reached almost 10%, pushing the average admission price to €3.60, compared with €6.20 in Western Europe.
(Translated from French)
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