The growth in movie theaters is frenetic, with plenty of room for expansion. According to “China Film Industry Report 2011”, In 2010, the number of digital screens in China exploded and was what ensured the possibility of 10 billion RMB in box office revenue. Approximately 2,500 new or upgraded 2K screens were added in 2010, bringing the total number to 4,100, second only to the United States, putting China in the number two spot globally.
China is currently experiencing the fastest rate of growth of 3D screens in the world and is second only to the United States in terms of numbers. As of the end of 2010, the number of 3D digital screens in China had passed the 2,000 mark and it is estimated that 49.3% of all screens are 3D. As of December 2010, the total number of 3D screens had reached 2,020.
The release of Avatar at the beginning of the year ensured that 3D movies were the new favorite for 2010, which in turn pushed the growth of 3D screens. The high rate of attendance and ticket sales at the box office were far higher than traditional 2D movies and the fact that the cost of upgrading digital screens to 3D screens was rather low was one of the major reasons for the aggressive growth of 3D screens in China in 2010.
Our analysis shows that 3D screens will continue to grow in China, but because the proportion of 3D movies of total films released is rather low and the cost of upgrading a digital screen to a 3D screen is between 200,000-600,000 RMB, we expect that the growth of 3D screens will slow over the next two years. The overall push for 3D screens has yet to reach small and medium sized cities and conservative estimates are that the number of 3D screens will reach 4,800 in 2011 and 7,200 in 2012.
Methodology
This report adopts both quantitative and qualitative methods, and combines revenue figures of the film market to conduct the research on the Chinese film industry. The statistics used in this report is primarily from the figures announced on China Film News, gathered from the Computer Ticketing Network Centre of National Film Special Fund Office, while the market ranking data was obtained from the China Film Exhibition & Distribution Association, as well as data provided by main film circuits in the country. The above data were cross-examined by interviewing major cinema circuits and distribution companies. All the figures and statistics used in this report were obtained from more than one source, and they were cross-examined repeatedly and were analyzed comprehensively, to ensure the greatest accuracy and authenticity.
