Movie tickets costing more.

Sky City has finally found a buyer for its cinema business after turning the division around following years of disappointing results.

The entertainment company revealed today it had entered an agreement with ASX-listed Amalgamated Holdings to acquire its core cinema businesses in New Zealand, including its joint venture interests in the Rialto group and in Fiji.

Sky City will net $59 million from the sale, with the transaction due to be completed by mid-February, provided all the necessary regulatory approvals are met.

Buoyant times at the box office and flood of popular and critically well received movies in recent years have prompted the Hollywood Academy Awards to double the number of best-picture nominees from five to 10.

Academy President Sid Ganis says the decision by the academy's board of governors will open the field up to more worthy films for the top prize at Hollywood's biggest party.

The change takes effect with next year's Oscars on March 7 (March 8 in New Zealand).

Casino operator Sky City believed it could run its cinema business profitably, after announcing today that a potential purchaser had failed to arrange the right financing.

Sky City will keep the asset, New Zealand's largest cinema business, after negotiations fell through at the point of signing a deal, Sky City chief executive Nigel Morrison said.