Previously, it took IMAX nearly 65,438+00 years to achieve this goal.
Chen Jingmin first received a cinema owner from Australia, and then met a cinema manager from Jincheng, Shanxi. "They all took the initiative to find cooperation to build a giant screen theater in China."
This made him feel deeply as the deputy general manager of China Film Digital Giant Screen (Beijing) Co., Ltd. (hereinafter referred to as "China Film Giant Screen Company"). Two years ago, he came to the cinema to seek cooperation. Now he just needs to wait for the arrival of the cinema. Behind this role change is the recognition of China's giant screen in domestic and international markets.
Chen Jingmin told Outlook Oriental Weekly that there are currently more than 100 Chinese giant screen cinemas in China, of which more than 90 have been built and100 is under construction. To reach this figure, China's giant screen only took three years, while IMAX took nearly 10 years. "We are very confident about the future performance of China's giant screen."
A budding young man
20 1 1 In August, China Giant Screen began trial operation in Shuangjing Store of Beijing UME International Studios. Eight months later, on April 20 12, the first giant screen cinema in China was officially put into operation in Hefei, Anhui province, which marked that the Chinese giant screen officially entered the commercial operation stage from the initial experimental screening.
On May 17 of the same year, China Film Group announced the completion of the experiment of "China Giant Screen" system at Cannes International Film Festival, which will be introduced to the film market, attracting attention at home and abroad. In July, China Film Xingmei Cinema signed a contract with China Film Giant Screen Company to purchase 18 sets of "China Giant Screen" system, which became the first big order after China Giant Screen was put on the market.
At that time, IMAX, which was famous in China for its movie Avatar, has been deeply involved in the China market for 65,438+02 years. This film technology company, founded in 1967, built an IMAX screen in China as early as 200 1, but its development since then has been tepid. It was not until the hit of Avatar that the audience in China knew about IMAX and its unique viewing effect.
Subsequently, the development of IMAX in China began to enter the fast lane. According to its official data, the number of IMAX screens in China exceeded 50 in 20 1 1 year, and reached 100 in 20 12 year. At present, the number of IMAX screens in China has surpassed the sum of other Asian countries and regions, second only to the United States.
When IMAX was in full swing, the entry of China's giant screen, which has yet to be tested by the market, was regarded as "an egg hitting a stone" and was not favored by people in the industry.
However, some experts expressed confidence, based on the label of "independent research and development" behind China's giant screen. Chen Jingmin said frankly that China's giant screen did not have much confidence when it was put on the market on 20 12, but the prospect was very attractive. "The China film market is in a golden period of development, which is a once-in-a-lifetime opportunity for the Chinese giant screen."
In Chen Jingming's view, the huge potential of China film market can fully accommodate the existence of both. "Every market has its own food."
As he said, China Giant Screen has been deeply impressed since it entered the market in April 20 12. By the end of 20 12, the number of contracted screens had reached 30, and in the following two and a half years, the number increased to 80, "far exceeding our original goal." Chen Jingming said.
Up to now, the number of giant screens built or under construction in China has exceeded 100, doubling annually on average, covering 56 cities in 22 provinces. "We currently occupy one-third of the market and will grow faster in the future." Chen Jingming said that it is estimated that the number of giant screens in China will increase by another 50 in 20 15 years. "More third-and fourth-tier cities will build Chinese giant screen cinemas."
At the same time, IMAX's performance in China has also achieved rapid growth. According to its latest financial report, by the end of 20 14, the number of IMAX cinemas in Greater China (mainland China, Hongkong, Macau and Taiwan Province Province) reached 234, while in 20 13, the number was only173; Its revenue in Greater China also increased from US$ 44.92 million in 20 12 to US$ 78.77 million in 20 14, making Greater China the second largest market in the world after North America.
Low price strategy
Chen Jingmin made no secret that China's giant screen was born to get rid of the monopoly of IMAX in China market and provide more choices for domestic cinemas. But he also knows that if we confront IMAX head-on, China's giant screen has no chance of winning. "Although our technology is relatively mature, the brand is not as good as IMAX. After all, it is an established company. "
For this reason, China Giant Screen chose a completely different business model from IMAX from the beginning. "In the case of brand shortcomings, we hope to win through different business models." Chen Jingming said that IMAX's business model has been criticized at home and abroad. "Because of its monopoly position, there are many unfair terms."
IMAX company mainly makes money by selling, renting IMAX system and sharing with IMAX cinema box office.
According to public information, the sales and rental income of IMAX system in 20 14 was $72.992 million, accounting for 25% of the total income.
In contrast, the price of Chinese giant screen is much lower. The price of buying a complete set of Chinese giant screen equipment in the cinema is 4 million yuan, and the rent will be 5% of the box office share as the rent for the first five years of equipment use. In five years, the total share will be no less than 4.25 million yuan. After that, no rent will be charged, and the annual maintenance cost is only 50,000 to 60,000 yuan.
Sam, who owns five cinemas in Brisbane, Australia, told Outlook Oriental Weekly that he rented IMAX equipment to build an IMAX cinema in 2003, but the cooperation between the two parties did not last long. A few years later, because of the high rental cost, he changed the IMAX theater into an ordinary giant screen theater. "The rental price is 6.5438 million Australian dollars per year, which is too expensive."
What makes cinemas complain most is IMAX's box office accounting model. If the cinema uses IMAX system, it must pay a certain percentage of the movie box office income to the company, and the general contract period is 7~ 10 years. This income was $68,465,438+08,000 in 2065,438+04, accounting for 24% of IMAX's total income, which was nearly 65,438+0 times higher than that in 2065,438+06,5438+03%.
Moreover, IMAX not only charges a conversion fee of $6.5438+0 million for each film, but also earns 654.38+00% ~ 654.38+05% of the movie box office income from the film producers. In 20 14, this income was $8,365,438+$072,000, accounting for 29% of the total income, which was 9 percentage points higher than that in 20 1 1 year.
"IMAX is a two-pronged approach, which requires both the box office share of the theater and the box office share of the producer." Chen Jingmin said.
The person in charge of Shanxi Jincheng Cinema told this reporter that the box office billing system is completely an unequal clause imposed on the cinema by IMAX using its market position. "This is unfair to the cinema and faces great investment pressure."
It is precisely because of the disadvantage of IMAX that China Giant Screen not only minimizes the cost of film production, but also does not charge any box office share to the producers.
In recent years, many imported blockbusters will directly choose Chinese giant screen and give up IMAX, such as Prometheus and Ice Age 4 of 20 12.
"Hollywood movies and domestic movies are cooperating with us more and more." Chen Jingmin said that in the past three years, China Giant Screen has made 220 films, including 96 imported films and 8 domestic films1/kloc-0, with an average of 5 films per month. Six films, such as Speed and furious 7 and The Avengers, which have been popular in China recently, have all produced Chinese giant screen versions.
"China's giant screen and IMAX have obvious differences in technology and business model. This difference is a magic weapon for China's giant screen to open the market. " Lin Minjie, president of the Technical Branch of China Film Distribution and Projection Association, said in an interview with Outlook Oriental Weekly.
Inevitable confrontation
For IMAX accustomed to a monopoly, China's giant screen is obviously an opponent that needs attention, especially in China, the second largest market in the world. In the 20 14 financial report, IMAX specifically mentioned that "increased competition among peers" has become a risk it faces in Greater China.
According to public data, the revenue of 20 13 IMAX in North China decreased by 6.5% compared with 20 12, while that of increased by 26%. In this context, the China market is of greater significance to IMAX.
Richard Geerfang, global CEO of IMAX, publicly stated earlier that China will replace North America and become the world's largest market for IMAX in the next five years. Their ambitious goal is to add 237 IMAX cinemas in China in the next five years, and realize the independent listing of IMAX China business in Hong Kong.
In order to achieve this goal, competition with China's giant screen is inevitable, and the second and third tier markets are the key to competition between the two sides.
Chen Jingming said that the number of cinemas in China's first tier cities is close to saturation, and the market structure has been set, so there will be no major breakthrough. On the contrary, second-and third-tier cities have gradually become hot spots in the future film consumption market, and they are also the places with the fiercest competition.
In Lin Minjie's view, China's giant screen has more advantages in the competition in this market. "Compared with the huge investment cost of IMAX, China's giant screen has small investment and low operating costs, which is undoubtedly the safest choice for cinemas."
A typical example is a cinema in Chengdu that has already signed a purchase agreement with IMAX. Considering the investment cost, it would rather lose the deposit that has been delivered to IMAX than choose the Chinese giant screen.
"Cost control is very important for cinemas. We hope to attract more audiences to the cinema at a lower cost, and the Chinese giant screen provides a very competitive choice. " Sam said.
The person in charge of the theater in Jincheng, Shanxi Province also said that if you invest in the construction of IMAX theaters in third-and fourth-tier cities like Jincheng, the recovery cost cycle will be longer. "And the giant screen in China is much more cost-effective than insurance."
Now more and more cinema owners seek cooperation from Chen Jingming, but they stay away from IMAX. This pressure also prompted IMAX to change its strategy, adjust its original business model, and launch a "joint venture box office sharing" model, which greatly reduced the initial investment and risk of cinemas and was welcomed by cinemas. IMAX's current cooperation with Wanda mainly adopts this model.
In addition to the domestic market, the two sides are also having meetings in foreign markets.
On April 22nd, 20 15, the first giant screen cinema in China opened in Brandon Cinema in Las Vegas, USA, which also has an IMAX cinema. Prior to this, in March, the double "Chinese giant screen" halls of Caravacci Studios in Jakarta, Indonesia's second largest cinema, had already started construction, and in the future, the cinema will invest in building ten Chinese giant screen cinemas in other cities in Indonesia.
In Sam's view, the influence of IMAX is not that great. "Foreign cinemas often hang signs of giant screen cinemas to attract audiences. In addition to IMAX, many cinemas have built their own giant screen cinemas. The audience just wants to see the maximum image and doesn't care if it is IMAX. " He said that if the cooperation between the two sides is successful, the first Chinese giant screen cinema will be built in Australia.
Lin Minjie has a more optimistic judgment on the situation: "China's giant screen is expected to surpass IMAX in the domestic market in two or three years."
The above sources of information.