NEW YORK -- Lionsgate and Mexican media giant Televisa formally unveiled Pantelion Films here Tuesday, a venture that will release eight to 10 movies annually targeting U.S. Hispanic moviegoers.
Under a five-year deal, the two companies plan to succeed in an area where several previous ventures failed in the past.
During a presentation here, executives outlined the business opportunity, pointing out that 26 million U.S. moviegoers are Hispanic, and this group represents the fastest-growing part of the overall audience and over one-fourth of all frequent moviegoers. A video package highlighted that Hispanics accounted for $1 billion in 2008 movie ticket sales.
Former Telemundo boss and current Panamax Films head Jim McNamara, who serves as chairman of Pantelion, later told THR that the new venture has only about eight permanent employees, but can draw on the staffs and resources of Televisa and Lionsgate, which will make a difference compared to previous efforts at reaching out to Hispanic film fans.
"Other companies that have tried to do this either did not have enough staff, because they couldn't afford it, or the business was such that it never allowed money to come in fast enough" to keep it going, he told THR. "This is a low overhead development and distribution company."
The company has also worked to get support from exhibitors, including AMC Theaters, Cinemark and Regal.
AMC CEO Gerry Lopez at Tuesday's event said his chain will dedicate one to three screens at 52 theaters in markets with strong Latino audiences and try to "consistently market to an audience that's already coming." He said Hispanics on average make up more than 20% of AMC guests, but about a third in some areas.
Cinemark president and COO Tim Warner later said in a statement that his firm is in discussions with Pantelion as well. "The U.S. Hispanic audience is increasing in importance to our business every day," he explained.
Paul Presburger serves as CEO of Pantelion, whose name is made up of the starting letters of the company names Panamax, Televisa and Lionsgate.
One of the themes that his team heard in their research was that U.S. Hispanics want to be better represented on screen, said Presburger. "The want to see themselves on the screen the way they see themselves," McNamara told THR. "They want to see [their own] as an ad exec or government employee, not just as drug dealer or maid." At the same time, Pantelion wants to avoid giving off an "I feel your pain" vibe or pander to Hispanic audiences.
During a morning press conference here, Jon Feltheimer, co-chairman and CEO of Lionsgate, said Pantelion is a natural evolution for his firm, referencing the studio's focus on African-American and other audiences. "One of Lionsgate's core values is directing content to underserved audiences," he said. "The Hispanic audience is the most under-served."
Emilio Azcarraga, chairman and CEO of Grupo Televisa, who flew into New York for the day, referenced the 50 million-strong U.S. Hispanic population and its buying power, predicting that this year's census will show further growth.
How will the partners messure the success of Pantelion? Feltheimer cited its ability to make money, build a brand and fill screens as key criteria.
Pantelion's slate kicks off in late January with Wilmer Valderrama comedy "From Prada to Nada."
The venture is shooting for a 50:50 split of produced and acquired films, with many of the latter expected to come from Televisa's film slate. However, executives said they will also look elsewhere, including outside of Mexico. Pantelion expects to release both English- and Spanish-language movies across various genres, which will also have different target demos. Family films, comedies and romantic comedies are genres that were described as being of particular appeal.
– The Hollywood Reporter