PROFILENATCHBULLNATCHBULLCurzon Artificial Eye – the UK’s only integratedfilm distributor and cinema operator – has signedan exclusive deal with HMV that aims to bringcinema back to our town centres. The company’sCEO talks to Rhianon Howells about his visionrowing up in a small town in the 1970s and 80s, mylocal cinema was a magical place: everything from thecramped foyer to the scratchy, pull-down seats to theG interval ice creams (a Strawberry Mivvy or perhaps aCornetto) smacked of pure, unadulterated pleasure. Situatedon the high street rather than in a shopping mall or an out-oftowndevelopment, it loomed large in both the fabric of the townand the consciousness of its inhabitants in a way that modernmultiplexes – for all their large screens, state-of-the-art soundsystems and extra leg-room – do not.Now, following a recent deal between the niche film distributorand cinema operator, Curzon Artificial Eye (Curzon AE), andleading music/film retailer HMV, the cinema could soon becomea feature of our high streets once again – without the scratchyseats and with all the advantages modern technology can offer.In a 50-50 joint venture, the two companies plan to launch anew chain of in-store, digital cinemas with 3D capability, underthe brand name HMV Curzon. The concept is set to be trialledin HMV Wimbledon from this September, with 200 seatsacross three screens; if successful, it could be rolled out to upto 20 HMV stores nationwide, and possibly also to Waterstone’sbookshops, which are also owned by the HMV Group.“Mainstream operators build five-, 10- or 15-screen boxes asa centre of a development,” explains Philip Knatchbull, the CEOof Curzon AE, which currently operates nine screens across fivecinemas in the London area. “What we’re doing, in a reversalof policy from 20 years ago, is taking cinemas back to the highstreet by putting them in high-street stores. We believe councils,and people generally, want the high street to be a more sociallyengaging space and we can make that happen.”FLEXIBLE AND ADAPTABLEWhen Knatchbull’s speaking about the film business, a realpassion shines through. His father was peer of the realm LordBrabourne, who, under the name John Brabourne, was a successfulfilm producer, working on classics like Romeo and Juliet(1968), Murder on the Orient Express and A Passage to India.Growing up in the industry, Knatchbull fell in love with it.30 Read <strong>Leisure</strong> Management online leisuremanagement.co.uk/digitalISSUE 3 <strong>2009</strong> © cybertrek <strong>2009</strong>
After graduating from KentUniversity and the LondonInternational Film School, he set upFront Page Films, which he ran until1994, with credits as producer on anumber of features. In 1989, he also became a founder shareholderand chairman of Showcase Cinemas, opening 10 screensacross London, before moving away from the industry into privateequity. It was his desire to get back into the industry heloved that led to the formation of Curzon AE in 2006. “I wantedto combine my film knowledge with my financing knowledge,and I knew you could only enter this industry in one of twoways: from a position of strength, as a market leader, or as aniche player, where you could be more flexible and adaptable.”After an abortive attempt at bidding for the Odeon group(which eventually went to Guy Hands), Knatchbull startedlooking at opportunities within film distribution, and quicklyidentified Artificial Eye – a distributor of art-house and foreignlanguagefilms, with a 350-strong film library – as a leadingplayer in an under-exploited sector. The company also ownedtwo cinemas in London, The Chelsea Cinema and The Renoirin Camden. But knowing that the independent film sector wasfinding it increasingly difficult to access cinemas, Knatchbullcontinued to shop around for other sites too.Founded in Mayfair in 1934, Curzon Cinemas had openedits second site in Soho in 1999. In 2006, its owner RogerWingate signed a deal with Knatchbull to merge the companywith Artificial Eye, as well as a third company, ShowcaseCurzon Artificial Eye has five cinemas,including sites in Soho (picturedabove and on opposite page) andMayfair (opposite page, bottom left).Cinemas (unrelated to the NationalAmusements-run chain of the samename), which owned the RichmondFilmhouse. All five cinemas and thefilm distribution arm were combinedunder a single umbrella: Curzon Artificial Eye, jointly owned byWingate’s Act Entertainment and Knatchbull CommunicationsGroup, a private equity house controlled by Knatchbull.A NEW-STYLE CINEMAUnder the new umbrella, both Curzon Cinemas and Artificial Eyehave remained focused on art-house and foreign-language films.While this market is currently very small and London-centric, it’sunderexploited, says Knatchbull, and he believes there’s an evenwider potential market for less niche independent films.It’s with a view to tapping into this slightly more mainstreammarket, without diluting its existing brands, that Curzon AE haslaunched a second film distribution arm – Chelsea Films – andentered into the deal with HMV. But it was the arrival of newtechnology that actually made the HMV partnership possible, asKnatchbull explains. “With digital technology, we identified earlyon an opportunity to build a new-style cinema using a modular,scaleable approach, which until now wouldn’t have been possible– the idea of building a cinema in a retail store would havebeen unthinkable three years ago.“But with digital cinemas, you don’t need a projection box,you don’t need a box office... you just need a digital projectorand a high-quality sound system and screen and seats. WeISSUE 3 <strong>2009</strong> © cybertrek <strong>2009</strong>Read <strong>Leisure</strong> Management online leisuremanagement.co.uk/digital 31