Digital cinema is seeing dramatic growth in Latin America. As of September 2010, the region had roughly 830 to 850 3D digital screens (almost double the amount one year ago). Sixty percent are concentrated in Mexico (with a majority 42%) and Brazil.
Compared with last September, the countries with the highest increases in the number of 3D projectors are Colombia (a fourfold rise, from 15 to 60), Argentina (tripled, from 23 to 75), the whole of Central America and the Caribbean (tripled, too: 31 to 90), Brazil (from 75 to 150), and Venezuela (from four to 12).
For films released both in 3D and 35mm, 50% of box office, on average, comes from 3D showings (even when 3D screens account for only 7-10% of the commercial screens in the country).
However, the number of 3D screens is still limited. Mexico, the biggest Latin American 3D exhibition market, has only 23 multiplexes with two 3D screens (and four with three digital projectors). A quarter of the 16 Argentine multiplexes with 3D screens have two in the same theatre (the highest proportion in the region). Central America and the Caribbean as a whole have 15 multiplexes with two 3D screens, and three locations with three digital projectors. Brazil has only five multiplexes with two 3D screens. The rest of the countries have only one or two multiplexes with two or more digital screens.
The combination of the lack of 3D screens and the booming demand for 3D Hollywood blockbusters fosters some tension between cinema distributors and exhibitors in terms of screens for releases, exclusivity conditions, and the length of the run.
Cinemark is the exhibition company with a presence in almost all of Latin America (12 countries), except Venezuela and small markets like Uruguay, Paraguay and Bolivia. Cinépolis has 3D screens in Mexico (its home country), Guatemala, El Salvador, Costa Rica, Panama, Colombia and, recently, Brazil. Peru’s CinePlanet is also in Chile, with subsidiary Movieland, and Argentine-Chilean Hoyts (formerly Australian-American) is located in those two Southern Cone countries.
As for 3D systems, excluding the huge Mexico market (where RealD is omnipresent), Dolby has twice as many Latin American 3D installations as RealD (around 300 versus a little more than 150). XpanD and MasterImage have a small presence: 35 and fewer than 10, respectively. Sony is starting to engage the Latin American market, with a dozen 4K projectors each in Mexico and Brazil.
Offering customers an extra attraction, Cinemark has installed its huge “XD” screens since 2009 across Latin America, but in very limited numbers. Other national chains in Brazil and Ecuador want to follow this idea, but the momentum has just begun.
National owners of 3D screens are a wide majority in the Caribbean region, and in countries like Mexico, Colombia, Venezuela, Peru, Ecuador, Bolivia, Paraguay, and Uruguay. In Brazil, Argentina and Chile, the ratio is around 50-50.
These exhibition companies are the financiers of the digital rollout. In Latin America, there are no virtual print fees, no governmental policies supporting digital-cinema expansion, no banking facilities behind the rollout, no established third parties. Only in Brazil, the government is starting to promote financing the digital rollout through Fundo Setorial and the National Bank of Development (BNDES).
3D content has a strong presence in digital screens in Latin America, except Mexico, where they often project 2D films. (Just recently, the rest of Latin American digital screens began exhibiting 2D movies such as Inception, but digital 2D is still rare).
Alternative content is still seeking a place on Latin American digital screens. Mexico has a little experience in screening operas, sport matches (basically, soccer and football) and rock concerts, and Brazilian, Colombian, Chilean and Argentinean digital screens are beginning to come aboard. The last World Cup was a widespread event on Latin American 3D screens.
3D is also making its mark on the production side. Stronger cinema industries, especially Brazilian but also Mexican and Argentinean, are starting to create important 3D cinema productions.
The following is a country-by country analysis:
Mexico
The Aztec country has around 350 to 370 digital screens (7-8% of total screens). More than 90% of 3D screens are operated by national exhibitors. Some 65% of these belong to Cinépolis, the most important exhibitor in Mexico, while Grupo Mexico–Cinemex and MM Cinemas represent 32%; the rest are run by small exhibitors. Cinemark (as in the 35mm market) is the third important 3D exhibitor, with 6%.
Mexico City represents 30% of all Mexican digital screens. Monterrey has 7% of 3D participation. Tijuana, Puebla and Jalisco each account for 4%.
Mexico has 23 multiplexes with two digital screens and four with three digital projectors each (the highest number in the entire region).
RealD is the most common 3D system in Mexico, with almost 75% of 3D screens. XpanD has 20% of this market, and Dolby 7%. Sony 4K’s presence is still minimal.
Brazil
The big tropical country of Brazil has around 150 digital screens (7% of the total), double the number since September 2009.
60% of these belongs to national companies, but the main 3D exhibitor is Cinemark, with 50 digital screens and the more lucrative 3D screens. The next exhibitors, in terms of number of digital projectors, are Grupo Severiano Ribeiro, with 21, and Grupo Araújo, with 16. However, most exhibition companies in Brazil have no digital screens at all.
Cinépolis, the big Mexican exhibitor, finally entered the Brazilian market in June 2010, opening a multiplex with eight screens (the only Brazilian multiplex with has three digital projectors). The Mexican giant asserts that in half a year it will be one of the main exhibitors in the Brazilian market.
The Brazilian digital exhibition market is concentrated, emulating the 35mm exhibition market. The states of São Paulo and Rio de Janeiro represent 55% of screens, and São Paulo has a quarter of the total Brazilian digital screens. Nevertheless, in the last year, the new 3D screens were opened mainly in the state of São Paulo more than in the homonym city, with a limited number in several states in inner Brazil.
As for the 3D systems, Dolby is used in around 60% of Brazilian 3D screens, while RealD has 35% and XpanD 4-5%.
Because of the huge expenditures for the digital rollout, the 35mm exhibition market in Brazil has reduced its growth
Argentina
The land of the tango has 75 digital screens (9% of the total), tripling its 3D projectors since September 2009.
National companies own 60% of screens. But Cinemark is leading with 12, and Argentine-Chilean Hoyts and America’s Showcase Cinemas have 11 each.
A quarter of 3D screens are located in a multiplex with two digital projectors (the biggest proportion in Latin America).
The Dolby system accounts for 70% of 3D installations. RealD has almost 22% and MasterImage the rest.
Similar to the 35mm exhibition market, half of 3D screens are in the capital city, Buenos Aires, and its metropolitan area. If we add the area called “Pampa húmeda” (the richest region of the country, which includes Buenos Aires, with around one-third of the national territory), we find there 81% of Argentinean digital screens.
Colombia
Colombia has around 60 digital screens, four times more than one year ago.
National companies have 84% of these screens. CineColombia, the big national exhibitor, represents 43%. Other important companies are national Royal Films and Procinal. Cinemark has nine digital projectors.
RealD and Dolby almost divide the market’s 3D systems: 60/40.
Capital city Bogotá has around 40% of digital screens. Adding the most important cities in the country, Medellín and Cali, the proportion grows to 65%.
Central America and the Caribbean
Central America and the Caribbean, taken as a whole, have around 90 digital screens (tripling the number of one year ago).
Puerto Rico is the leading country, with 35% of regional 3D screens. Costa Rica has 13% and the Dominican Republic 12%. The rest are spread over 13 smaller countries and territories.
Mexican Cinépolis and Cinemark are present in all Central America, with around a dozen 3D screens for each company. On the other side, Puerto Rican company Caribbean Cinemas has digital projectors in all Caribbean islands.
Other countries
The rest of Latin America (Bolivia, Chile, Ecuador, Paraguay, Peru, Uruguay, and Venezuela) ranges from 10 to 30 digital screens in each country. Except for Chile, in all of those markets national companies lead the 3D market.
The rule in the above-mentioned countries is that the capital city, plus one or two of the richest cities, have the highest proportion of digital projectors. Dolby is the preferred 3D system.
The Statistics
Digital screens:
830 to 850 (almost 100% with 3D systems) in 21 countries and territories.
60% of Latin American digital screens are in just two countries: 42% in Mexico and 18% in Brazil
2009-2010:
Colombia: four times more digital screens
Argentina and Central America/Caribbean: tripled
Brazil: doubled
Latin American digital screens are:
7-10% of the 35mm exhibition market in their countries.
Except for Mexico and Colombia, Dolby is the preferred 3D system in Latin America.
Roque González is a research analyst for Fundación Nuevo Cine Latinoamericano and a PhD candidate at Universidad Nacional de La Plata. He works with Octavio Getino in Observatorio del Cine y el Audiovisual Latinoamericano and coordinates the regional research Cine latinoamericano y nuevas tecnologías (Latin American Cinema and New Technologies) for Fundación Nuevo Cine Latinoamericano.
-By Roque González, Oct. 7, 2010
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