Hong Kong financial group invests in low-cost multiplexes

Blue HK and Beta Media goes around competition to target uncontested, lower-scale markets

According to the agreement, Beta Media is valued at VND600 billion ($27.5 million). However, the specific value of the agreement and the stakes to be held by the Hong Kong partner have yet to be disclosed.

Previously, Beta Media received investment from Vietnam Investments Group (VIG)—the investor of Galaxy Cinemas and Galaxy Studios, as well as numerous food brands.

Since 2015, with the launch of the Beta Cineplex chain in northern province of Thai Nguyen, Beta Media has built and opened three other cinemas in Bien Hoa city in the southern province of Dong Nai and two in My Dinh and Thanh Xuan districts in Hanoi. Ticket prices are 60 to 65 per cent lower than high-end cinemas in major cities.

Beta Media general director Bui Quang Minh said that by developing cinema theatres in smaller provinces, the company can avoid the fierce competition with large firms.

In 2017, Beta Media plans to open six more multiplexes in the central province of Thanh Hoa, the northern province of Bac Giang, as well as Hanoi, Nha Trang and Ho Chi Minh City, increasing the number of its total multiplexes to 10. The figure is expected to reach 20 by 2018.

At present, five leading businesses hold 98 per cent of the Vietnamese film distribution market, three of whom are foreign-invested. They include CJ CGV with 43 per cent, Lotte with 30 per cent, Platinum with 10 per cent, Galaxy with 9 per cent, and BHD with 6 per cent.

CJ CGV, owner of the CGV cinema chain, now has 38 cinema complexes in Vietnam alone, with 247 projection rooms, an increase of 20 per cent over 2015.

Lotte Cinema is CJ CGV’s biggest rival, holding 30 per cent of the market share. Owning 29 cinema complexes in the country, Lotte Cinema has a high average growth rate, even higher than CJ CGV’s.

Vietnamese film producers accuse CJ Cinemas of leveraging monopoly South Korean conglomerate CJ’s movie theatre chain CGV is under suspicion of monopoly behaviour disadvantaging Vietnamese movie producers and distributors.

CGV cinemas first to bring the IMAX experience to Vietnam IMAX Corporation and CJ CGV Holdings Limited just announced an expansion of the companies' partnership with the addition of two IMAX® theatres to be located in Vietnam, marking IMAX’s entry into the country.

Vincom suits Platinum Cineplex Vincom Retail Joint Stock Company (VCR) has filed a lawsuit against the M.V.P Group, owner of Platinum Cineplex, after the Indonesian entertainment conglomerate claimed that the closure of its cinemas at three Vincom trading centres early March is illegal.

Theatre chains battling it out over Vietnam While foreign movie theatre chains, with their modern equipment and friendly staff, have long ago taken the market from the hands of low-quality state-owned players, the recent closing of the bulk of Platinum movie theatres shows that the battle for customers is far from over.