Prospects for theatrical cinema in Asia remain largely rosy as new building continues and gross box office is expected to grow. Hollywood will have to fight to hold its own in some territories.
That was the verdict of leading exhibitors and distributors at a conference Tuesday, held as part of the annual CineAsia convention in Hong Kong.
Joe Yan, Universal Pictures China executive VP and MD, said that the number of screens in China will likely have increased by a third by the end of the year. Latest data suggests that screen count now exceeds 30,000 and that gross box office so far this year exceeds $6.3 billion.
Yan said that Chinese audience still respond strongly to tentpole movies and to good quality 3D, an area where local Chinese productions such as Tsui Hark’s “The Taking of Tiger Mountain” have become notably more competitive.
New cinema building in third tier and smaller Chinese cities is still largely about bringing the theatrical experience to a larger population, with only theatres in the big cities competing with each other with luxury seating. “The social experience is still an important part [of cinemagoing] in China,” said Yan. He said that 90% of cinemas in China are 3D capable.
At the opposite end of the scale, the Japanese outlook is significantly more mature, though not ex-growth.
Dick Sano, Sony Pictures Entertainmnet Japan’s MD of film distribution, said that the screen count in Japan will likely continue to edge upwards for the next couple of years with cinema renewals exceeding closures and placing an emphasis on improving the quality of theatres. “It is no longer about discounting [ticket prices]. People are happy to pay for a good experience and for luxury,” Sano said. However, he sounded a warning for Hollywood.
"Young adults are not turning out, especially for Hollywood movies. ‘Twilight’ and ‘Hunger Games’ didn’t work in Japan,” he said. “Young people go to the movies to have something to talk about with their friends. Japanese movies are produced by the local TV stations [and connect better]. We are still using newspaper advertising.”
"Netflix has been in Japan since September, and all exhibitors in Japan are waiting to see what impact they will have. But so far it has been quiet,” said Sano.
The smaller markets of Singapore and Taiwan do not trend to the extremes of either Japan or China.
Mark Shaw, executive VP of operations at Singapore exhibitor Shaw Theatres, said that new cinema openings will continue to expand the overall number of complexes and theaters in the country. “We no longer use newspaper advertising. All our promotion is social, on radio or through events. We focus marketing on the cinema, the luxury seating and facilities,” said Shaw.
"We’ve seen the decline of 3D in the past two years. That’s possibly due to some bad 3D. And the upcharge is history with Singapore on the verge of recession.”
"Day and date video-on-demand is the worst problem for releasing,” said Joe Chang, president of Ambassador Theatres, the second largest cinema chain in Taiwan. “Young males are still our key demographic, but increasingly we are seeing females as the decision-makers.”
Chang said that Taiwanese theater chains are currently lobbying government to be allowed to increase the pre-show period for advertising and trailers from a current maximum of 9 minutes, to 12 or possibly 15 minutes. “We need trailers,” he said.