Mon, Sep 02, 2024, 03:52:00
| Some chains believe offering comedy, musicals, and even sports will help boost their cinema prospects, photo Le Toan |
In early August, AEON Entertainment inked a deal with Beta Media to form a joint venture with a view to building and operating a premium cinema chain across Vietnam. With an estimated investment of around $200 million, the collaboration is poised to significantly influence Vietnam’s burgeoning cinema industry.
Bui Quang Minh, chairman of Beta Group, told VIR, “With plans to establish 50 premium cinemas over the next decade, AEON Beta Cinema aims to meet the increasing demand for luxury entertainment experiences. Vietnam’s cinema market has seen rapid expansion, with the number of screens rising from around 100 in 2010 to over 1,100 by 2023. This reflects a growing audience base, particularly in urban areas where disposable incomes are rising.”
The introduction of more premium cinemas will enhance market diversity, offering consumers elevated viewing experiences. AEON Beta Cinema is well-positioned to thrive and contribute to a dynamic industry, Minh added.
“Vietnam’s cinema market is among the fastest-growing in Asia, driven by a young population, rapid urbanisation, and a vibrant local film industry,” Minh said. “We expect the market to grow multiple fold in the coming years, with more local content being produced with better quality, contributing to sustainable growth.”
With a cinema penetration rate of around 11 screens per million people – well below the global average – there is considerable potential for expansion. The tie-up is expected to further reshape Vietnam’s cinema market, which is dominated by other foreign cinema chains.
According to data from Statista and Q&Me, CGV Cinema had the highest number of cinemas compared to other cinema chains in Vietnam, with 83 branches, accounting for approximately 45 per cent of the market. The runner-up is Lotte Cinema, with a market share of 26 per cent.
When combined, two South Korean companies control over 70 per cent of the Vietnamese cinema market. Three local companies, Galaxy Cinema, BHD Star, and Beta Cinemas, split the remaining figure.
To consolidate its leading position in Vietnam’s cinema market, in mid-August CJ CGV Vietnam announced the launch of the ICECON Vietnam brand to bring a new cinematic experience to the audience. Vietnamese film lovers will have an opportunity to enjoy different types of stage performances, ranging from comedy to musicals, sports events, and e-sports tournaments.
Nguyen Hoang Hai, chief content officer of CJ CGV Vietnam, said, “Vietnam’s cinema market has much potential given that the number of movie goers is about 6-8 million people, which is less than 10 per cent of the population. We should find ways to attract the remaining audience to cinemas and gradually form the habit of entertainment at the cinema. This will create a significant source of revenue for cinema chains.”
Cinema complexes are mainly concentrated in big cities such as Ho Chi Minh City and Hanoi, which have reached saturation point. Meanwhile, there is only one or even no cinema complex in tier-2 and tier-3 markets. There is ample room for cinema chains to tap into these markets to engage local audiences, Hai added.
Meanwhile, Galaxy Cinema launched its new-generation cinema complex Galaxy Sala last December, marking a pioneering investment in the diverse cinematic space. Galaxy Sala is equipped with the first modern IMAX Laser screen in Vietnam. It is the first theatre to provide a culinary experience. Also, the complex boasts themed screening rooms with different concepts and styles.
In 2023, Vietnam’s box office revenue reached approximately $175 million, rebounding strongly from $150 million in 2019.
Besides the opportunities, industry insiders also agree that there are some challenges for cinema chain operators to scale up their presence. In particular, the high operation cost will create a dent in the profitability of the cinema.
Meanwhile, investment costs, land lease fees, and other fixed expenses in Vietnam are higher than regional peers, making it difficult to achieve break-even point or generate profits.
