Kantana Group, a leading media and entertainment group, introduced its community cinema concept yesterday that will create a series of small low-cost theatres in the provinces and other countries in Asean.
A model of Kantana Cineplex. The 50-seat community cinemas are planned in several provinces and other Asean countries. The ticket price for Kantana Cineplexes will be set at 30 baht.
Called Kantana Cineplex, the 50-seat community cinemas are a 50:50 joint venture between Kantana and local investors. They are projected to take five years to break even.
Jaruek Kaljaruek, chairman of Kantana Group, said its new subsidiary, Asia Cinema Network (ACN), already recruited 540 local investors to jointly develop 1,000 cinemas in many provinces, which are due to be finished within 12 months.
"We're expanding our film business to reach local communities by using motion pictures as an attraction to blend local culture with community cinema. It's the concept of one frame, one culture," he said.
The community cinema is meant to deal with piracy, as many people in the province cannot afford cinema ticket prices.
The ticket price for Kantana Cineplexes will be set at 30 baht. Industry research suggested a suitable ticket price would be 10% of the minimum wage of 300 baht per day.
The US has over 40,000 cinemas with a population of 260 million, while Thailand has 1,000 cinemas with 67 million people.
Each cineplex will require an investment of 1.2 million baht, excluding 200 square wah of land, depending on the location.
Movies may have a later release date at cineplexes than at big cinemas, depending on movie agents and the two giant cinema operators (Major Cineplex and SF Cinema).
Kantana plans to have 1,000 cinemas nationwide and allotted a budget of 1 billion baht for the next couple years.
"We expect 70% of total revenues from community cinema projects will come from advertising, and 30% from ticket sales," said Mr Jaruek.
Local cinema investors will share 40% of ticket sales, Kantana will get 10% and movie producers 50%.
Local investors can generate additional revenue from property management activities such as weekend markets, community exhibitions and meetings.
Movie signal transmission will be sent from a control centre via dedicated satellite links, which prevent copyright violation using a progressive watermark technology system.
This cinema project is also receiving good feedback and cooperation from investors in Indonesia, Malaysia, Vietnam, Myanmar, Cambodia and Laos. Expansion in these markets will mimic the Thai model, he said.
About the author
- Writer: Saengwit Kewaleewongsatorn
Position: Business Reporter