Cinemark Theatres

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Cinemark Holdings, Inc.(stylized asCineMarkfrom 1998 until 2022 and inall capssince 2022) is an Americanmovie theaterchain that started operations in 1984 and since then it has operated theaters with hundreds of locations throughout theAmericas.It is headquartered inPlano, Texas,in theDallas–Fort Wortharea. Cinemark is a leader in the theatrical exhibition industry with 521 theaters and 5,855 screens in the U.S. and Latin America as of June 30, 2022. It is also the largest movie theater chain inBrazil,with a 30 percent market share.[4]

Cinemark Holdings, Inc.
FormerlyCinemark, Inc. (1984-2007)
Company typePublic
ISINUS17243V1026
FoundedFebruary 6, 1984;40 years ago(1984-02-06)
FounderLee Roy Mitchell
Headquarters,
United States
Number of locations
501 (December 2023)
Key people
Brands
  • CinéArts
  • Cinemark
  • Cinemark XD
RevenueIncreaseUS$3.07 billion(2023)
IncreaseUS$363 million(2023)
IncreaseUS$192 million(2023)
Total assetsIncreaseUS$4.84 billion(2023)
Total equityIncreaseUS$310 million(2023)
Number of employees
c. 17,500(2023)
Subsidiaries
Websitecinemark
Footnotes / references
[1][2][3]

Cinemark operates theaters under several brands, including its flagship Cinemark,Century Theatres,Tinseltown, CinéArts andRave Cinemas.[5]

In May 2021, Cinemark struck agreements to show films from some of its major Hollywood studio partners, includingWarner Bros.,Walt Disney Studios,Paramount,andSony Pictures.[6]The goal of the move is to establish how long movies will play in theaters before being available for home video.[7]

History

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Cinemark 12 Rockwall at The Harbor in Rockwall, Texas in April, 2010. This was expanded in 2019 and is now Cinemark 14 Rockwall and XD.
First policy trailer for Cinemark Theatres.
Former logo used from 1998 until 2022, used on its international branches until 2023

Cinemark was started byLee Roy Mitchellas a chain of theatres inCalifornia,TexasandUtah.[8]It is unclear when Cinemark was first founded. While Cinemark officially claims to have launched in 1984 (and previously claimed a 1983 founding date), online records show Cinemark might have started as early as 1977. The roots of the company date back to the 1960s when brothers J.C. and Lee Roy Mitchell created Mitchell Theatres, Inc.[9]By 1972, the company was named Texas Cinema Corporation. Lee Roy Mitchell then formed a group of theaters under the Cinemark name beginning in 1977. Cinemark Corporation and Texas Cinema Corporation merged operations in June 1979 creating a portfolio of 25 theaters in Texas and New Mexico under the Cinemark brand.[10]On March 26, 1980,Henry G. PlittofPlitt TheatresHoldings purchased the Cinemark circuit of theaters.[11]But Cinemark Corporation continued operations acquiring existing theaters and began to build new theaters. In 1987, Cinemark acquired all of the Plitt Theatres.

With the opening of the Movies 8 on 3912 Hampton Road inTexarkana, Texasin 1987, Cinemark began building theaters with colorful interiors and largevideo gamearcades. Legal advertisements indicate that the company known as Cinemark USA, Incorporated, officially began December 31, 1987.[12]The following year, Cinemark introduced itsFront Row Joemascotcreated bySan Antonio-based independent animation studio Wilming Reams Animation. Thisanimatedcatappeared in policy trailers and on kids' concession products.[13]The mascot was retired in 1998 when Cinemark had begun to openArt Deco-style theatres, and was revived in 2004 for its 20th anniversary, and again in 2018 with a CGI look, darker orange color and the beige color being added. In 1992, Cinemark opened a new theater concept called Hollywood USA inGarland, Texas;this concept was subsequently refined into the Tinseltown USA brand of theaters, which were much bigger than what Cinemark had previously built.

The following year, Cinemark expanded toLatin Americawith the opening of a six-screen theater inSantiago,Chile.The next year, they opened four theaters in Mexico and in 1997 opened their first theater in Brazil. By 2000, it was the largest exhibitor in Brazil (180 screens), Chile (89 screens; 50% market share) and El Salvador (25 screens; 60-70% market share) and had 192 screens in Mexico, as well as theaters in Argentina, Colombia, Costa Rica, Ecuador, Honduras, Nicaragua and Peru.[14]

In 1998, Cinemark announced that it would replace its bright color interiors with what Cinemark characterized as a more classic Art Deco design.[15]Through new theatre construction and acquisitions, it became the third largest theatre chain in the United States and the second largest theatre chain in the world.[citation needed]Mitchell's son Kevin Mitchell worked with the company as an executive until leaving in 2007 to found ShowBiz Cinemas.[16][17][18]In 2013, Cinemark decided to sell all of its Mexican theaters toCinemex.[19]

Cinemark has a deal withUniversalin which movies that gross more than $50 million domestically during their first weekend in theaters will continue to be shown in theaters exclusively for five weekends, or 31 days.[7]After that, while theaters can continue to screen a film, the title becomes available on online rental platforms such asApple TVandAmazon Prime Video.[7]

Cinemark introduced a brand new premium offering, Cinemark XD, standing forExtreme Digital Cinemain 2009. The first XD screen opened at the Century San Francisco Centre 9 theater inSan Francisco, California.This auditorium features a giant, wall-to-wall display,Barco4K digital projection with 2D andRealD 3Dcapabilities, immersive, surround sound audio systems that enabled customers to hear the movies as the filmmakers intended and premium seats with Luxury Lounger electric recliners.[20]Special features include 11.1 layers of multi-layer channel surround sound and 35 trillion colors.[21]On May 4, 2017, it was announced that aTHXsound system would be coming to the XD locations as part of a partnership with Cinemark. TheRazer-owned company was hired to certify over 200 XD auditoriums in the United States andLatin Americato offer a superior audiovisual experience for moviegoers and provide an unparalleled entertainment environment. It took a year to finish the certification update.[22]Finally on May 2, 2018, Cinemark confirmed that the XD screens were now THX certified as the progress was completed.[23]Cinemark Holdings Inc (CNK) Reports Robust Revenue Growth and Solid Profitability in FY 2023.[24]

United States Department of Justice lawsuits

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In the 1990s, Cinemark Theatres was one of the first chains to incorporate stadium-style seating into their theatres.[25]In 1997, several disabled individuals filed a lawsuit against Cinemark, alleging that their stadium style seats forced patrons who used wheelchairs to sit in the front row of the theatre, effectively rendering them unable to see the screen without assuming a horizontal position. The case was heard in El Paso district court asLara v. Cinemark USA,where a judge ruled that the architecture of Cinemark's theatres violated theAmericans with Disabilities Act(ADA). The ruling was later overturned by theFifth Circuit Court of Appeals,which ruled that Cinemark only had to provide an "unobstructed view" of the screen, and that since disabled patrons' view was only awkward and not actually obscured, Cinemark was not violating the law.[26]

In response, theUnited States Department of Justice(DOJ) filed their own suit against Cinemark while appealing the appellate court's decision. The DOJ argued that, while Cinemark was not technically violating the ADA, it was nevertheless discriminating against disabled patrons by relegating them to the worst seats in the auditorium.[27]Cinemark responded by filing a lawsuit against the Department of Justice, alleging misconduct on the DOJ's behalf.[28]Cinemark's lawsuit was thrown out, and the Department of Justice proceeded with its lawsuit. Cinemark ultimately agreed tosettle out of courtbefore the court came to a ruling, agreeing with the DOJ that it was in the company's best interest to end litigation before a ruling was issued.[27]Per the terms of the settlement, Cinemark agreed to renovate all existing theatres to provide patrons who used wheelchairs access to rows higher in its theatres, and also agreed that all future theatres would be constructed so as to allow handicapped patrons better access to higher rows. In turn, the Department of Justice agreed not to bring further litigation against the company in relation to the architecture of stadium seating as it applies to the ADA.[27]

Aurora shooting

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The Century 16 theater, taken on the day after the shooting.

On July 20, 2012, a gunman opened fire during themidnight premiereofThe Dark Knight Risesin a Century theater inAurora,Colorado,killing 12 people and injuring 70 others.[29]The gunman, later identified asJames Eagan Holmes,who was believed to be acting alone, entered the theater dressed inprotective clothing,set offtactical grenades,then opened fire with multiple firearms on the theatergoers. Counting both fatalities and injuries, the attack was the largest mass shooting in terms of number of casualties in United States history at the time.[30]The theater was reopened on January 17, 2013.[31]

The theater was sued by families of the victims, who alleged the theater should have taken greater measures to prevent the shooting. In May 2016, after years of legal debate, a jury took three hours to deliver a unanimous verdict that the theater chain was not liable.[32]As the prevailing party in the judgment, Cinemark sought nearly US$700,000 from the plaintiffs to recover litigation expenses. In September 2016, after objections from the victims, Cinemark dropped all claims for reimbursement of legal fees.[33]A separate group of victims were also dismissed in federal court when US District Judge R. Brooke Jackson ruled: "[James Holmes'] own premeditated and intentional actions were the predominant cause of the plaintiffs' losses."[34]

In the wake of the2018 school shootinginParkland,Florida,Cinemark announced that it would no longer allow bags larger than 12 in × 12 in × 6 in (30 cm × 30 cm × 15 cm) in its theaters as a safety precaution.[35]

2020 temporary closure

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Effective March 18, 2020, Cinemark closed all of its 345 theaters across the United States indefinitely due to theCOVID-19 pandemic.[36]Cinemark released a statement describing the temporary closure "as a proactive measure in support of the health and safety of its employees, guests and communities."[36]In light of the pandemic, a few dozen locations have upgraded their box office stands, replacing them with digital kiosks for ticket purchases, including the lay offs of many ushers working up front-end. Another reason is due to the plunging revenue in Q3 2020. The process of entirely replacing ushers with kiosks has been pushed back to January 1, 2028.[37]

In May 2021, CEO Mark Zoradi said that 98 percent of Cinemark's theaters in the United States had reopened. Due to government restrictions in Latin America, only half of the theaters in the region are operating.[7]More recently, the company signed a new deal with the major movie studios.[38]

Political causes

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In 2008, CEO Alan Stock donated US$9,999 toward the successful passage ofCalifornia'sProposition 8,an initiative restricting the definition of marriage to opposite-sex couples and overturning theCalifornia Supreme Court'sruling that same-sex couples have a constitutional right to marry. An ensuing campaign, launched by opponents to the Prop 8 passage, encouraged patrons to see showings of the filmMilk,based on the life of gay-rights activistHarvey Milk,at a competing theater in protest instead of at Cinemark showings.[39]Others called for a more generalboycott.[40]

Theater chains acquired

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Century Theatres acquisition

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On August 8, 2006, Cinemark purchasedCentury Theatreswith a combination of cash and stock bonds.[41][42]This acquisition added over 80 theatres and many more screens. Some of these theatres were subsequently shut down either being phased out as under performing or replaced with new complexes. The transaction was completed on October 5, 2006. With this purchase, Cinemark heavily strengthened their presence in Northern California and entered Alaska, Nevada, South Dakota, and Washington state, though at the transaction both of their locations in Washington state were still under construction. However, Cinemark retains the Century banner and continues to open new locations under that banner.

Muvico Theaters purchases

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In 2009, in order to save the company from a potential bankruptcy,Muvico Theaterssold four theatres to Cinemark:Arundel MillsEgyptian 24 in Hanover, Maryland; Paradise 24 in Pembroke Pines, Florida; Palace 20 in Boca Raton, Florida; and Boynton Beach 14 in Boynton Beach, Florida.[43][44]Muvico was bought by another theater chain (Carmike Cinemas) in 2013,[45]which was bought by yet another (AMC Theatres) in 2016.[46]

Rave Cinemas purchase

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In November 2012, Cinemark announced it was acquiring Rave Cinemas, the Dallas, Texas–based chain that operates the former Bridge theater with IMAX inCulver City, Californiafor US$240 million. The deal included 32 theaters located in 12 US states, representing 483 screens. Tim Warner, Cinemark's CEO said in a statement "The acquisition of these high quality assets will further enhance Cinemark's diversified domestic footprint, including the expansion of our presence in the New England market".[47]The sale was closed on May 29, 2013, but Cinemark was required to sell the Rave Stonybrook 20 + IMAX theater in Louisville, Kentucky, the Rave Ritz Center 16 in southern New Jersey, and either the Rave Hickory Creek 16 in Hickory Creek, Texas or the Cinemark 14 in Denton, Texas. In addition, Cinemark's chairman Lee Roy Mitchell was also required to sell the Movie Tavern Inc. toSouthern Theatres.[48]On July 18, 2013, Cinemark found a buyer,Carmike Cinemas,for the Stonybrook 20 & IMAX, Rave Ritz Center 16, and the Rave Hickory Creek 16. With this change, National CineMedia has been replaced with Screenvision at the Stonybrook 20 and Ritz Center 16. Screenvision is already at Hickory Creek, Texas at the time of the announcement of the sale.[49]The sale was closed on August 16, 2013.[50]On September 12, 2013,Southern Theatresannounced that they acquired The Movie Tavern from Lee Roy Mitchell after he was required to sell The Movie Tavern after Cinemark boughtRave Cinemason May 29, 2013. In 2018, Southern sold the Movie Tavern chain to theMarcus Corporation.As part of Southern Theatres' long-term deal with National CineMedia, The Movie Tavern switched fromScreenvisiontoNational CineMediain June 2014. Also, Cinemark purchased Rave Cinemas Baldwin Hills Crenshaw 15, inLos Angeles,in June 2014.[51]

See also

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References

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  1. ^"Contact the Cinemark Home Office".
  2. ^"Cinemark Holdings, Inc. 2023 Annual Report Form (10-K)".U.S. Securities and Exchange Commission.February 16, 2024.
  3. ^"Cinemark Holdings".Fortune.RetrievedMarch 17,2019.
  4. ^"Sobre nós - Cinemark Cinemas".Cinemark Brazil. Archived fromthe originalon April 2, 2013.RetrievedApril 12,2018.
  5. ^CinéArts.Archived2008-12-08 at theWayback Machine.
  6. ^Lang, Brent (May 7, 2021)."Cinemark Signs New Theatrical Deals With Five Major Studios".Variety.RetrievedMay 7,2021.
  7. ^abcdGrossman, Dave Sebastian and Matt (May 7, 2021)."Cinemark Reaches Deals With Hollywood Studios to Show Movies".The Wall Street Journal.ISSN0099-9660.RetrievedMay 7,2021.
  8. ^"Cinemark Corporate Office".Corporate Office HQ. April 20, 2014.RetrievedApril 5,2017.
  9. ^"Interstate Purchases New Drive-In Theatre."Waco News Tribune,February 9, 1966, p. 5.
  10. ^"Realty Insight."Dallas Morning News,June 17, 1979, p. 4B.
  11. ^"Cinemark Bought by Plitt Theaters."Fort Worth Star-Telegram,March 12, 1980, p. 28.
  12. ^"Fictitious Business Name Statement."San Bernardino County Sun,October 12, 1988, p. 33.
  13. ^"The Golden Era of Cinema Mascots".Cinelog.RetrievedApril 5,2017.
  14. ^Boros Queiroga, Andrea (March 3, 2000). "Cinemark in Latin America".Screen International.p. 15.
  15. ^"Cinemark USA moving headquarters to Plano".Dallas Business Journal.RetrievedApril 5,2017.
  16. ^"Kevin L. Mitchell".Cambridge Who's Who.Archived fromthe originalon August 16, 2013.RetrievedAugust 15,2013.
  17. ^"Executive Profile: Lee Roy Mitchell".Businessweek.RetrievedAugust 15,2013.[dead link]
  18. ^"Uniting Business Leaders with Altruistic Action for Animal Welfare"(PDF).Creature Causes. February 15, 2013. Archived fromthe original(PDF)on April 2, 2015.RetrievedAugust 15,2013.
  19. ^"Cinemark Selling Mexico Theater Chain".hollywoodreporter.February 19, 2013.RetrievedApril 12,2018.
  20. ^"Cinemark Launches New XD Large Format Digital Auditorium In San Francisco, CA".October 23, 2009.
  21. ^"5 Ways Cinemark XD Creates the Ultimate Immersive Experience".
  22. ^"Cinemark Partners with THX to Certify XD Auditoriums".
  23. ^"THX and Cinemark Announce Certification of Over 200 Cinemark XD Screens in the United States and Latin America".
  24. ^"Cinemark Holdings Inc (CNK) Reports Robust Revenue Growth and Solid Profitability in FY 2023".February 16, 2024.
  25. ^Cinemark Brings Stadium Seating to the ValleyArchived2009-04-21 at theWayback Machine.Cinemark press release, August 13, 1998. Accessed 3 June 2009.
  26. ^"Appellate Court OKs Stadium-style Movie Seating; Cinemark, USA Inc. Wins ADA Case"ArchivedAugust 28, 2018, at theWayback Machine.Business Wire,April 11, 2000. Accessed 3 June 2009.
  27. ^abc"UNITED STATES OF AMERICA V. CINEMARK USA, INC.".Department of Justice.RetrievedApril 12,2018.
  28. ^"Cinemark v United States"(PDF).Department of Justice.RetrievedApril 12,2018.
  29. ^"Officials release complete list of injured victims in Aurora massacre".Fox News.January 10, 2013.RetrievedJuly 4,2013.
  30. ^"Colorado Movie Theater Shooting: 70 Victims The Largest Mass Shooting".Good Morning America.July 20, 2012. Archived fromthe originalon July 21, 2012.RetrievedJuly 21,2012.
  31. ^Lee, Kurtis (January 14, 2013)."Vacant since mass shooting, renewed Aurora theater to reopen Thursday".The Denver Post.RetrievedJanuary 15,2013.
  32. ^"Cinemark Not Liable in Colorado Theater Shooting, Jury Finds".Variety.May 19, 2016.RetrievedSeptember 6,2018.
  33. ^"Aurora theater shooting victims won't have to pay $700,000 in legal costs after Cinemark drops request".The Denver Post.April 7, 2020.
  34. ^"Cinemark Victories Are A Check on Ill-Advised Lawsuits".The Denver Post.July 1, 2016.
  35. ^"Cinemark, citing safety, is banning large bags from its theaters".The Oregonian.Portland, Oregon. February 22, 2018.RetrievedApril 7,2020.
  36. ^ab"Cinemark to Temporarily Close 345 Theaters Nationwide".NBC 5 Dallas–Fort Worth.March 17, 2020.
  37. ^"AMC and Cinemark Q3 losses show the pandemic's toll on movie theaters".CNBC.November 9, 2020.
  38. ^Lang, Brent (May 7, 2021)."Cinemark Signs New Theatrical Deals With Five Major Studios".Variety.RetrievedMay 15,2021.
  39. ^Cieply, Michael."Activists Seek to Tie ‘Milk’ to a Campaign for Gay Rights".The New York Times,November 22, 2008. Accessed 3 June 2009.
  40. ^Moore, Roger."Cinemark CEO donates to 'Proposition Hate': boycott follows"Archived2009-01-04 at theWayback Machine.Orlando Sentinel,November 13, 2008. Accessed 3 June 2009
  41. ^Friedman, Josh (August 10, 2006)."Cinemark to Acquire Century Theatres".Los Angeles Times.RetrievedOctober 13,2023.
  42. ^Kelly, Kate (August 9, 2006)."Cinemark USA to Acquire Rival Century Theatres".Wall Street Journal.ISSN0099-9660.RetrievedOctober 13,2023.
  43. ^bigscreen (March 21, 2009)."Muvico Sells Four Theaters in Florida and Maryland to Cinemark".RetrievedOctober 15,2010.
  44. ^hometownannapolis (March 22, 2009)."Muvico sells lavish Arundel Mills theater".Archived fromthe originalon March 10, 2012.RetrievedOctober 15,2010.
  45. ^"Carmike Cinemas to Acquire Nine Entertainment Complexes with 147 Screens from Muvico Theaters"(Press release). Business Wire. November 4, 2013. Archived fromthe originalon November 5, 2013 – via The Wall Street Journal.
  46. ^Szalai, Georg (December 21, 2016)."AMC Theatres Closes Carmike Cinemas Acquisition to Become Largest U.S. Exhibitor".The Hollywood Reporter.RetrievedAugust 16,2022.
  47. ^Richard Verrier (November 17, 2012)."Cinemark signs deal to buy Rave Cinemas".Los Angeles Times.
  48. ^US and Texas v. Cinemark, Rave, and Adler Wood(D.D.C. 20 May. 2013),Text.
  49. ^"Carmike Cinemas, Inc.: Carmike Cinemas to Acquire Three State-of-the-Art Theatres Totaling 52 Screens from Cinemark".4-traders. July 18, 2013.
  50. ^"Cinemark Completes Required Divestiture of 52 Screens".Daily Finance. August 16, 2013. Archived fromthe originalon December 21, 2013.RetrievedAugust 16,2013.
  51. ^"Southern Theatres Acquires Movie Tavern, Becomes Top 10 Exhibitor".marketwatch.RetrievedApril 12,2018.
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