A resource consent application for two more cinemas next to the existing single-cinema operation in the former Catholic church on Brownston St was recently lodged with the Queenstown Lakes District Council.
Cinema Paradiso relocated from its former site on Ardmore St last year, following a publicly notified resource consent hearing.
It caters for between 80 and 90 people.
If consent for the proposed extension is granted, a new purpose-built, fully sound-proofed cinema for 50 to 60 people would be established at the rear of a neighbouring property owned by Australian developer Duffy Krook, who also owns the two properties where the existing cinema is located.
A residential house at the front of the adjacent property would be retained and converted into a much smaller cinema for private screenings and other functions and additional car parks would be created.
The development would be funded by Mr Krook, cinema operator Calum McLeod said.
While the number of movie patrons had increased in the past year, having only one cinema had restricted the range of movies which could be screened.
''We're missing out on what I want to see, which is the art-house product, alternative content, plus acoustic artists,'' Mr McLeod said.
The extension of the complex would enable more variety in film and entertainment, while keeping Cinema Paradiso's internationally acclaimed offbeat appeal - including a ''history of cinema'' theme, movie memorabilia, bean bags, couches and other unconventional cinema seats, Mr McLeod said.
''I've managed to secure a dentist's chair, which I think is going to contribute to making dentists more palatable.''
There was some concern from Cinema Paradiso fans the attraction would lose some of its atmosphere when it started operating from the church building midway through last year.
''I think one of the big scares was potentially altering what we had and I think we've managed the transition.
''People still really appreciate it as being quite an iconic thing.''
