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About KARO FILM

About KARO FILM

Today Karo Film is the leading Motion Picture Exhibition Company in Russia

28 modern movie theatres in Moscow, Moscow region, St-Petersburg, Nizhniy Novgorod, Samara, Kazan', Kaliningrad and Yekaterinburg.

16 movie theatres in Moscow

189 movie halls

over 28 248 seats

around 1 450 000 movie goers per month

MOSCOW

  • KARO FILM Atrium
  • KARO FILM Oktyabr'
  • KARO FILM Tepliy Stan
  • KARO FILM Kirgiziya
  • KARO FILM on Vernadskogo
  • KARO FILM Schuka
  • KARO FILM on Sheremetjevskaya
  • KARO FILM on Kashirka
  • KARO FILM Zvezdniy
  • KARO FILM on Sevastopolskiy
  • KARO FILM Matritsa
  • KARO FILM Altuf'evo
  • KARO FILM Yuzhnoe Butovo
  • KARO FILM Iridium
  • KARO FILM Podolsk
  • KARO FILM Mytishi

ST-PETERSBURG

  • KARO FILM on Kolomyazhskiy
  • KARO FILM Varshavskiy Express
  • KARO FILM na Dybenko
  • KARO FILM in Kontinent
  • KARO FILM on Baikonurskiy
  • KARO FILM Atmosphera
  • KARO FILM on Ligovskiy
  • KARO FILM Zvezdnaya

SAMARA

  • KARO FILM in Moskovskiy

KALININGRAD

  • KARO FILM Kaliningrad Plaza

KAZAN

  • KARO FILM Koltzo

YEKATERINBURG

  • KARO FILM Raduga Park

SURGUT

  • KARO FILM Aura
History

Chairman Ogorodnikov L.V.



The Karo Film theatre chain began in 1997 with the grand opening of the Pushkinskiy cinema. In addition to being the "country's main theatre", it also established new standards in movie theatres. Specialists agree that at that time it was the best movie theatre in Eastern Europe. Karo Film completely reconstructed the building, creating a new entertainment centre. In the year 2000 the first ever Russian multiplex Karo Film 1 opened its' doors. This movie house was also the first in a long-lasting cooperative relationship between Karo Film and Ramstor hypermarkets. In 2001 Karo Film moved out to the regions and opened a newly remodeled Kolizey cinema in St-Petersburg and Rossiya movie theatre in Nizhniy Novgorod. In December, 2005 the fifth regional movie theatre (in addition to four in Nizhniy Novgorod and St-Petersburg) opened in Samara.

The positive experience of opening state of the art multiplexes defined Karo Film's strategy for business. In May, 2002 a brand new 9-screen movie theatre was opened in the Atrium shopping mall; then in August, 2003 the company surprised the inhabitants of Novogireevo region - the Kirgiziya multiplex reopened after being completely rebuilt from 1to 5 auditoriums. In December of the same year the Ramstorcenter in Podolsk welcomed, for the first time ever in a Moscow region, an ultramodern cinema complex. In Septenber, 2005 the famous Oktyabr cinema concert hall re-opened after a complete and amazing renovation.

At the moment,the Karo Film development strategy is to open new movie theatres in entertainment centres and shopping malls. The priority is given to multifunctional centres. In 2006 Karo Film plans to open additional movie theatres in St-Petersburg and in the new market of Mytischi.

The end of the 1980's saw a sharp decline in the popularity of cinema. The advent of VCRs in Russia, new entertainment alternatives, and more varied television programs all dramatically affected movie attendance. This was compounded by the poor quality of auditoriums, film presentation and repertoire.

In less than a decade, average cinema attendance in the former USSR dropped 30-40 fold (from 12-13 cinema visits a year at the end of the 1980s to 0.25 in 1996). An improving situation resulting in growth in the industry over the last few years has been made possible by rising incomes, an increased amount of free time as well as expanding demands for enhanced quality entertainment. In 1996, Kodak became the first modern cinema to open in Moscow. Long lines at the box office in spite of rather high ticket prices proved that Russia had entered an era of new leisure standards. A cinema theatre was again the place for romantic meetings and a visit to the movies became an indispensable feature of modern life. The Kodak's success story triggered the opening of other modern cinemas. The centrally located Moscow cinemas, historically the most popular with Muscovites, were renovated and refurbished.

An increase in cinema attendance figures and box-office revenues over the last few years testify to the high potential of the Russian film distribution and theatre market.

The Karo Film Chain was established in July 1997. The first Cinema of the Chain became "The main Cinema of the Country" - Pushkinsky, the largest not only in Moscow, but in all of Eastern Europe in the late nineties. The Karo Film chain was the first to introduce multiplex cinemas into Russia. In 2000, the company inaugurated the first four-screen cinema Karo Film at the Ramstor Hypermarket. A diverse range of films, a perfect location, a cozy atmosphere and a flexible pricing policy made Karo Film 1 the favorite entertainment venue among Muscovites and the capital's guests. In 2001, the Chain began work in other Regions of Russia: the two screen Cinema Coliseum was renovated in St. Petersburg and the three screens at Cinema Rossia was re-opened in Nizhniy Novgorod.

The positive experience resulting from the introduction of the multiplex determined the further development strategy of the Karo Film Chain. In May 2002 in the famous Complex Atrium the company opened the first modern nine screen multiplex. In August 2003 in the district Novogireevo the company remodeled (from a single screen to five) and reopened the Cinema Kyrgizia. In December same year in the hypermarket Ramstor-Podolsk the company opened the first cinema in a Moscow region. The booming of the modern Cinemas, situated in the Centre of Moscow, led to an expansion of the number of high-end Cinemas. The cost of an admission ticket of $10 or more has drastically reduced the potential number of cinema- goers. Not all levels of society could afford these pleasures.

Taking this factor into consideration, Karo Film has made an attempt to make Cinema going more affordable for all citizens. In the year 2000 the company began the development of the suburbs of the capital. Since 2000 the company has renovated single-screen Cinemas in the following suburbs of Moscow: Pervomaisky in the Eastern district and Elektron in the neighboring City of Zelenograd. At the present time Karo Film Cinemas offer to their customers a wide spectrum of additional services and are fast becoming the leisure Centers of choice. In all Karo Film Cinemas one can find bars, cafes and restaurants, and,in some, Cinema souvenir shops. So the unified concept of a multifunctional Leisure Center is being realized in all new and renovated Cinemas.

When it comes to the construction of new Cinemas, the primary focus is upon the large Trade and Leisure Centers. The Karo Film Chain plans in years 2005-2006 to build new Cinemas in Moscow (12 screens), Saint- Petersburg (15 screens) and large regional Centers (12 screens).

The History of Development

(Quoting Chairman Leonid Ogorodnikov) "In the early Nineties no one believed that the Cinema industry could recover: all Cinemas were empty. Some were Furniture Parlors, in others - Car shops. We landed in the Cinema Business by chance. We felt there was growing interest in society after the period of time when no one wanted to visit the Cinema. In 1996 the company Karo started the reconstruction of the ROSSIA Cinema. We have turned it into a great Concert and Cinema Hall.

"Additionally, we have equipped it in the most modern way", says Ogorodnikov. The official opening of ROSSIA took place in 1997 as part of the XX International Moscow Cinema Festival. From the reopening the new Cinema was named PUSHKINSKY. "We've organized several concerts in the Pushkinsky. and we dated the exclusive premiere of the movie 'Romeo and Juliet' by Baz Luhrmann,"comments Mr. Ogorodnikov. " We've analyzed the financial results and came to the conclusion that exhibition could be more interesting and lucrative. We've decided to focus only on theatres. It took less than two years for Pushkinsky to become the first Cinema of Russia: it has been visited by over 4 million people."

Another look shows that in 1998-99 the Box-office of the rest of Russia was equal to the Box Office of Pushkinsky. "Therefore we've decided to build more Cinemas. As a result the Karo Film Chain was born. We didn't study this business: no one in the country held such knowledge. But in several years Karo and its partners have remodeled and built 15 Cinemas in Moscow, Nizhniy Novgorod and Saint-Petersburg. This includes the first multiscreen Cinema, KARO FILM 1 in supermarket Ramstor in Sheremetievskaya Street, and the 9-screen Multiplex in the trade and leisure center Atrium. All these theatres now are integral to the Karo Film Chain."

Chain's Scheduling Policy

"While choosing the repertoire for our Company- first we look at the commercial expediency and commercial potential of the movie. Since 1997 our chain has conducted the exclusive premieres of such leaders of the American Cinema as: "Titanic", "Gladiator", "Pearl Harbor" and many others", continues Ogorodnikov

In September 1999, after signing an agreement with Hollywood film studio Warner Bros., Karo opened the distributing company Karo Premiere. This company handles the rights in Russia of such Trilogies as "Matrix", "Harry Potter" and "The Lord of the Rings".

"To our pleasant surprise there are more and more commercially attractive Russian Movies every year. During the past year we've shown over 20 Russian Movies", says Leonid Ogorodnikov, "now the Russian Movies have reached the potential level of Hollywood films. For example - 'Night Watch'; the Box-office revenue of this movie has out paced all American blockbusters of the season. It was shown in Pushkinsky for a two weeks run and in the multi-screen Cinemas for a month or month and a half".

"I hope that the increase of the number of screens in the Country will allow the other half of the Russian films coming to the market in the near future to get on the screen. Under such conditions it should be easier for Russian movies to get to the public", concludes the Karo Film Chairman.

Chain's Scheduling Policy

"While choosing the repertoire for our Company- first we look at the commercial expediency and commercial potential of the movie. Since 1997 our chain has conducted the exclusive premieres of such leaders of the American Cinema as: "Titanic", "Gladiator", "Pearl Harbor" and many others", continues Ogorodnikov

In September 1999, after signing an agreement with Hollywood film studio Warner Bros., Karo opened the distributing company Karo Premiere. This company handles the rights in Russia of such Trilogies as "Matrix", "Harry Potter" and "The Lord of the Rings".

"To our pleasant surprise there are more and more commercially attractive Russian Movies every year. During the past year we've shown over 20 Russian Movies", says Leonid Ogorodnikov, "now the Russian Movies have reached the potential level of Hollywood films. For example - 'Night Watch'; the Box-office revenue of this movie has out paced all American blockbusters of the season. It was shown in Pushkinsky for a two weeks run and in the multi-screen Cinemas for a month or month and a half".

"I hope that the increase of the number of screens in the Country will allow the other half of the Russian films coming to the market in the near future to get on the screen. Under such conditions it should be easier for Russian movies to get to the public", concludes the Karo Film Chairman.

Forecast

"The Cinema Pushkinsky will also be re-built into a Multiplex. We have already obtained the Moscow Government's Permission for this project and further construction, says Leonid Ogorodnikov. But it is still undecided how many screens there will be. Of course, such a large auditorium as it contains at present time is a wonderful experience, but Moscow has plenty of theatres and the public appears to prefer the cozy ones with many auditoriums, where one can watch movies with the entire family", Ogorodnikov concludes.

In the near future the Karo Film Chain plans to open several Multiplexes in trading Centers in the largest cities of Russia: in Moscow and Saint-Petersburg.

Technical Infrastructure

The Company has an up-to-date and state of the art telecommunications and information infrastructure. Its cinemas and offices share a single corporate information system which is the basis of the corporate computer network and the IP Telephony-based telephone network. The automation of our major business - film presentation - is provided by the Premiera information and ticketing system. Catering and concessions is automated by the R-Keeper computer system.

Both informational systems represent distributed BackOffice systems which guarantees their high reliability. The data from these systems enter the management system created on the basis of the Axapta ERP. Both of the Company's information systems allow it to provide additional services to customers.

The theatres feature the latest film projection equipment by leading producers such as KINOTON (Germany), Cinemeccanica (Italy) and Meopton (the Czech Republic). Enhanced listening experiences are provided by Cinema and Theater Sound Dolby Laboratories processors (USA, Great Britain) combined with acoustics, amplifiers and crossovers by Electro-Voice and JBL (USA). The sound format is Dolby Digital Surround EX. The Company's repertoire policy focus is on bringing maximum satisfaction of the viewing demands of the general public.

Karo Film aims at creating an optimal repertoire at its cinemas and works with all film distribution companies operating in the Russian market. Film scheduling and prices are established in accordance with each cinema's special features. The cinemas fall into the following groups: central locations, residential districts, or outside of town, as well as multiplexes and single-screen cinemas. The other factors taken into consideration include the population of each particular district and their preferences, as well as the availability of competing cinemas in the locality. Our pricing policy excludes ticket discounts for privileged categories. However, low ticket prices for morning and afternoon shows make our cinemas affordable for the general public.

The Concessions Department works hard to offer the cinemagoers' favorite combination - popcorn and Cola - as it has now become an indispensable feature of a modern Russian cinema visit.

Our company adheres to two concession concepts. The first one, based on fast food principles, involves cinema bars offering quick service for those who would like a light refreshment before the film or a snack to take into the auditorium to enjoy while taking in the movie. The other concept involves the cinema cafes catering for the customers who believe that leisure and comfort must be accompanied by delicious cuisine, elite alcohol, a wide range of desserts and a traditional choice of ground coffee or fine tea.

The Company works with the largest suppliers operating in the Russian market (Pepsi Cola, Heineken, Master Distribution and others) and enjoys exclusive food purchase prices due to large sale volumes.

Maintaining and expanding attendance levels has become one of the Company's major goals as it faces increasing competition in the cinema market.

To achieve this goal, the Company is continuously expanding its range of additional services. In particular, this involves providing accurate information on the cinema repertoire to potential customers, as well as ticket reservations, etc. The Company has created the corporate website www.karofilm.ru, an automated information telephone service , as well as Internet and SMS ticket reservation services for mobile phone users. Receantly the company expanded it's Call Center operations to include live operators to answer customer questions during key business hours.

Also we have introduced special customer programs which help to form the audience's loyalty to our cinema chain. Such a program was developed and successfully launched in October 2003. One of the KARO FILM MANAGEMENT Company divisions is the Kino Media advertising agency which pursues two distinct lines of work:

  • Purchase of advertising space for cinema and film promotion. The Agency has long-term agreements with all of its media partners. Due to large volumes, the Agency enjoys the most beneficial conditions for advertisement placement in the mass media.
  • Sale of cinema advertising space (foyers, ticket offices, screens,facades, etc.) The Agency's main clients feature such leading brands as Pepsi Cola, Samsung, Marlboro, LM, Kenzo, Ballantains, Renault, Peugeot, BeeLine, Heineken, Tuborg, Nevskoe and others. On the one hand, KARO FILM cinemas fall within the group of the largest advertisers (first of all, outdoor advertising and the radio), on the other hand, they offer wide-ranging opportunities for advertisement placement.