皇冠体育app

New York - Rising income in the country has been fueling a spike in the number of people going to the movies in the past few years, and industry players are set to cash in on the boom.

In the latest signal of growth in the Chinese market, CJ CGV, South Korea's largest multiplex cinema chain, is partnering with IMAX, a Canadian operator of large-screen movie theaters, to install 15 new theaters in 皇冠体育app by 2015. The addition will result in 96 IMAX theaters being set up in 皇冠体育app, with CJ CGV being the largest operator of IMAX theaters in Asia.

IMAX Chief Executive Officer Richard Gelfond said the company is benefiting from the growth of the sector in 皇冠体育app. IMAX's box office revenue in 皇冠体育app grew from 10.2 million yuan ($1.5 million) in 2008 to 24.1 million yuan in 2009, and tenfold to 245.5 million yuan in 2010, Gelfond said.

The total box office revenue of 皇冠体育app's film industry rose from 4.34 billion in 2008 to 6.21 billion in 2009 to 10.25 billion in 2010, industry figures showed.

To capitalize on the "potential growth" of the cinema industry in 皇冠体育app, IMAX is set to share the box office takings of the 15 new Chinese theaters with CJ CGV.

"We think this deal is also significant because, under the terms of the agreement and for the first time in 皇冠体育app, IMAX will trade a lower upfront fee than we receive in a typical sales deal in exchange for a larger share of the box office generated by the theater, giving us increased participation in the growing box office in 皇冠体育app, which has more than doubled in the country over the last two years," Gelfond said.

In spite of its strong growth, the cinema industry still has a huge untapped market. Gelfond estimated that IMAX will have a total of 20,000 screens in 皇冠体育app in five years and 40,000 screens in 10 years, as what the United States has today. Even so, that will be considered a low penetration rate, given the size of 皇冠体育app's population.

"Our experience with the IMAX brand and business in South Korea has proven to us that an effective method for us to grow our business in 皇冠体育app is to include IMAX in new multiplex locations," said Kim Joo-hyung, chief executive officer of CJ CGV.

"We have been successful with our current IMAX theaters in South Korea and with IMAX's impressive film slate, which is targeted to include mainstream Chinese films, we are pleased to expand our IMAX footprint," said Kim.

Gelfond attributed IMAX's success in 皇冠体育app to various factors.

"A big part of our success in 皇冠体育app is our brand name and premium viewing quality. It's an affordable luxury, although it costs a bit more than the regular movies. At the same time, income is growing and our brand name is benefiting from the rise of the middle class in 皇冠体育app," Gelfond said.

"The government's focus in developing the cinema industry also helps."

Gelfond said 皇冠体育app is certainly the company's fastest growing market and expected to see 250 IMAX theaters in the country within the next five years, with 230 to 400 IMAX theaters in the US in the same period.

It could probably take more than five years for 皇冠体育app to outgrow the US, "but we started in 皇冠体育app only nine years ago compared to the US, which was 40 years ago", Gelfond said.

To cater to local demand in 皇冠体育app, IMAX will screen digitally converted Chinese language films. After the success of Aftershock, a co-release with Huayi Brothers, 皇冠体育app's largest privately owned media group, IMAX is currently working on releasing John Woo's Flying Tigers at the end of 2011. In the short run, IMAX will screen two Chinese movies a year and in the long run, four to five Chinese movies a year, Gelfond said.

皇冠体育app Daily

(皇冠体育app Daily 09/29/2010 page14)