SkyCity gives multiplex to competition

By Nick Smith

Thursday 5th February 2004

SkyCity Leisure, a 51%-owned subsidiary of the casino company, has bought a new cinema complex, Cinema City 5 in Whangarei, and promptly handed the management to one of its few competitors.

Berkeley Cinemas general manager Brian Eldridge confirmed he had signed a deal with SkyCity. But he refused to comment on speculation Berkeley, which with partner US cinema giant Reading Entertainment is SkyCity's only real competitor, was about to enter into a joint venture, a move that might have Commerce Commission implications.

SkyCity already has joint ventures in Auckland with Hoyts and the Rialto group, and if Berkeley entered into a similar arrangement it would leave only independent minnows the Bridgeway in Northcote, the Lido in Epsom and the inner city's Academy competing against a virtual monopoly.

SkyCity spokeswoman Delwyn Lewer said the move "in no way signals any particular strategy regarding cinema management."

"Any decision on a new operation is considered on individual merit," she said.

On handing management of Cinema City 5 to a competitor, Ms Lewer said SkyCity was a theatre owner, not manager, and "it makes sense that a cinema management company such as Berkeley takes that role."

Cinema City 5 is owned outright by SkyCity, whereas its other operations are a joint venture with Village Roadshow.

Mr Eldridge said the deal was "purely a commercial arrangement" and "it's not part of a greater scheme it's a one-off."

Berkeley operates its three Auckland cinemas, the Courtenay Pl multiplex in Wellington and the Palms multiplex in Christchurch, with Reading. That partnership is building a new complex in Manukau's Botany Downs suburb. Mr Eldridge said the development was on track for a pre-Christmas opening this year.

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