Cineplex and film producer Galaxy decided to switch business to online education via investing in Education Services and Investment JSC which operates the Hocmai platform to capitalise on tailwinds to online education stemming from the global health crisis.
|Film producer Galaxy was diverted by COVID-19 towards online education |
Galaxy made its decision as the entertainment and amusement sector has sustained heavy impacts from the pandemic.
Notably, during the nationwide social distancing, Galaxy’s cinema system suspended operations, with four theatres shutting down. Even after social distancing, the customer volume saw a plunge of 50-60 per cent compared to the time before the pandemic.
Galaxy did not disclose the valuation of its investment in Education Services and Investment JSC, however, it has been confirmed that it will hold a controlling stake in the e-learning platform.
Luong Cong Hieu, general director of Galaxy said that the investment will boost Hocmai’s growth and help it meet the increasing demand for online learning. Along with this investment, Galaxy will also pour money into another online learning platform.
In 2008, IDG Ventures Vietnam became a strategic partner of Hocmai.vn. As of October 2019, Hocmai had the largest market share in online education for grades 1-12 in Vietnam.
In the online education sector for secondary and high schol students, Hocmai has become a formidable contender. Founded 13 years ago, Hocmai has attracted 4 million students and 200 teachers with more than 1,000 courses and 30,000 lessons a year. However, in past months, Hocmai has been having a tough time to maintain operations because of the COVID-19 pandemic.
Galaxy JSC was the first Vietnamese private company to enter the cinema scene and is the official distributor of Hollywood studios like Sony, 21st Century Fox,and Warner Brothers and has produced various films, such as “Girls with long legs” and “Dreamy eyes”. After closing three cinemas, Galaxy operates 18 cinemas across the country.
Galaxy operates in five major verticals including publishing, movie production, movie distribution, cinema exhibition, and digital content. It is the first private equity company participating in the entertainment market in Vietnam since 2004. The number one online entertainment service Galaxy Play and MoMo are two remarkable investments of the company at present.