Archive for November 16th, 2009

Regal Entertainment Corp., which is owned by CA (a Cayman Islands-based venture capitol fund), is seeking to own a stake in a German-based production company whose name has yet to be disclosed.

“Owning a European company ‘allows direct access to multiple public funds,’ Cohen said. ‘Independent films in America are courting European companies for co-production and, primarily, financing. So why not invest directly in an anchor in Europe by having a stake in those same companies that provide financing and co-production services?’ Cohen said a stake in a German distribution company would allow Regal to fire up theatrical distribution there. Also, the company and Zip Films [a Spanish production company which Regal now owns 75% of shares] would look to co-produce movies, playing off substantial public funds available in Spain and Germany for quality films.” – Variety

Also, the company is looking to open 150 new screens in Spain.

Source: Variety

Quick Opinion: Regal’s actions seems to be a sign of the economic times. With independent films looking more and more to foreign production companies for financing, it shows that finding financing for independent films has become as difficult as ever – perhaps more difficult than ever. And Regal’s exhibition expansion in Spain indicates that other exhibition companies like Regal are relying more than usual on foreign ticket sales. Places such as Europe have been vital for Hollywood, as domestic ticket sales have gone down significantly since the beginning of the recession (with only a handful of exceptions such as Star Trek). Foreign revenue usually always overshadows domestic sales, but it seems more than ever the popularity of Hollywood outside the states needs to remain high. So far so good (case in point: Roland Emmerich’s 2012 made only $65 million domestically its opening weekend but made $225 million worldwide).