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Cinema Business

The "Cineplex" concept was first introduced to the Thais in 1995 when Mr. Vicha Poolvaraluk, the founder of MAJOR, built standalone "Cineplex" concept with typically built on a long-term leasehold land (20-30 year). A Standalone Cineplex is about 7-10 story building combines customer experiences of Cinema & Entertainment complex That means, moviegoers are offered; not only a wide range of films selection in the multiplex cinema format, but also a vast variety of restaurants, gift shops, bookstores and many other lifestyle shops in one stop with a strong "movie culture" which ensures continuous flow of moviegoers traffic every week, the retails space in the Standalone Cineplexes has been able to sustain a high occupancy rate in access of 90% and above at all time. By year 2013, Major has got 5 branches Standalone Cineplex located surrounding Bangkok, Pinklao (The first standalone in Thailand), Sukhumvit, Ratchayothin, Major Rangsit and Esplanade Ngamwongwan – Kaerai

Besides the Standalone Cineplexes, MAJOR also deploys three other expansion models to populate Cineplexes around the country:

  • Shopping mall model
  • Lifestyle neighborhood mall model
  • Hypermarket model

The shopping mall model was used more in the past when the shopping malls were sprouting up rapidly & practically everywhere. It was a handy growth vehicle as Cineplexes could ride on their historically high growth phase without too much capital outlay as for the Standalone Cineplex model.

As an alternative vehicle for growth, the lifestyle neighborhood mall model was created in 2004 when MAJOR took a stake in a lifestyle-neighbor-mall developer, Siam Future Development Plc. (Siam Future). A lifestyle neighborhood mall is typically built on a smaller plot of land (3 - 5 acres) next to the residential areas. Because of its compact size, it takes only 6-12 months for a lifestyle neighborhood mall construction to complete, thus serving as an excellent vehicle to populate Cineplexes in the metropolitan areas as well as more urbanized areas around the country.

With the strong movie culture and having Cineplexes as anchor tenant, Siam Future has grown exponentially with retails space increased by over 10 folds to over 240,000sqm. in the past 4 years. The synergy is extremely well pronounced. MAJOR could rapidly penetrate into the residential areas providing an enhanced convenience access to the moviegoers. Siam Future, on the other hand, could fill up its retail space easily having cinema & bowling anchoring in its lifestyle neighborhood malls.

The hypermarket model is used to populate the Cineplexes in the provincial areas. MAJOR builds cinemas & bowling in the hypermarket structures as an anchor tenant. For the provincial dwellers, hypermarket or discount store supercenter serves as a perfect destination, not only for shopping but also for family entertainment, in a very similar fashion as shopping malls are to the urban people. MAJOR joins with two hypermarket operaotrs, Tesco Lotus & Big-C.

Currently MAJOR commands nearly 80% market share of the Thai cinema industry's admissions revenue, in year 2004 MAJOR was due to the acquisition of EGV Entertainment Plc., the #2 player at that point with about 23% share.

Subsequent to that M&A activity, there was no foreign cinema operator left in the Thai cinema industry.

At year-end 2013, MAJOR operated 7 different brands:
  • Major Cineplex
  • EGV Cinemas
  • Paragon Cineplex
  • Esplanade Cineplex
  • Paradise Cinneplex
  • Mega Cineplex
  • Hatyai Cineplex

with a total of 68 branches, 479 screens and about 114,750 seats. MAJOR continues to add about 30-40 new screens in year 2014 and another 20 – 30 new screen in expansion plan in the next year. Thailand is still in the "underscreened" situation. MAJOR deploys the 4 expansion models discussed above as the growth vehicle depending upon the demography of each location.

Major concentrate every segment of customers and provide all kind of innovation to serve customers as of RealD, 2D, 3D, 4DX, IMAX to complete customer's entertainment and experiences.

MAJOR offers cinema services covering the full spectrum of the customer segments. The mass-segment cinema, "Major Cineplex" brand, is used for the geographical expansion & tapping the new markets. Various international designs are adopted for the customer experiences, unlike what the global cinema operator's offer. For example, Las Vegas style interior design is adopted for the local mass-segment customers to experience.

On the high-end, plenty of service & product innovations are created and installed for the "Future of Entertainment Civilization" customer experiences in the "six-star" ambience at the "Paragon Cineplex." For example, the "Bangkok Airways Blue Ribbon" at the Paragon Cineplex is equipped with nothing but fully-reclined, genuine leather seats in cubicles along with pillows & blankets for the entire auditorium seatings.

Another product innovation at the Paragon Cineplex is the "ENIGMA: the Shadow Screen", a luxurious movie club exclusively for members only. Thirtyfour exclusive seats, resembling living room couches adjacent to an exclusive club equipped with full bar services, are perfect for private parties. The venue has become very popular, not only among the high net-worth individuals, but also the corporate customers who prefer using the ENIGMA for entertaining their VIP customers in an exclusive atmosphere.

In year 2011, the state-of-the-art 4DX Theater is available only at Paragon Cineplex. With specially designed seats, 24 types of incredible effects and the 3D digital screening system, this celluloid innovation exposes movie-goers to all sensational experience of motion pictures, light, sound, tactility, and scents. All effects—3 degree-of-freedom movements, air blows, scents, vibration and leg tickler—will excite the audiences with new flavors of movie-watching. Via special 4D glasses, audiences will enjoy lively motion pictures shown on silver screen of Masterimage 3D system, by year 2013, MAJOR operated 4 locations of 4DX theater: Paragon, Ratchayothin, Central festival Chiangmai, Central festival Hatyai.

Major Cineplex #screens #seats
Rangsit 16 3,465
Ratchayothin 15 3,740
Pinklao 13 3,850
Samrong 12 2,228
Fashion Island 11 2,401
Central Pinklao 11 1,973
Central Festival Chiangmai 10 2,431
Bangkapi 10 2,256
Bangna 10 1,954
Future Rangsit 10 1,701
Rama 3 9 2,596
Rama 2 9 1,710
Udonthani 8 2,120
Pattaya 8 1,748
Sukhumvit 8 1,746
Ramkhumhang 7 2,114
Chiangmai 7 1,843
Central Ubonrajathani 7 1,566
Nonthaburi 7 827
Petchakasem 6 1,746
Samsen 6 1,505
Robinson Saraburi 6 1,317
Chachoengsao 5 1,711
Baanpong 5 1,442
BigC Chantaburi 5 1,338
Amatanakorn 5 1,310
BigC Roi-Et 5 1,277
Srinakarin 5 1,259
Chiangrai 5 1,231
Central Pisanuloke 5 1,169
Mahachai 5 1,168
Nakornsawan 5 1,138
Changwattana 5 1,003
Salaya 5 1,003
Ubonrajathani 5 826
Hua hin 4 1,404
Ayutthaya 4 1,313
Lotus Navanakorn 4 1,194
Petchaboon 4 1,144
Krabi 4 1,134
Saraburi 4 1,100
Lotus Klaeng 4 1,079
BigC Suphanburi 4 1,068
Pisanuloke 4 1,067
Chonburi 4 1,063
Thanyaburi 4 1,020
Kamphaengphet 4 1,008
Lotus Nongbualumphu 4 994
Lotus Nakornsawan 4 972
Nakornsrithammaraj 4 971
The Sky Ayutthaya 4 951
Robinson Sakonnakhon 4 856
Samui 3 918
BigC Navanakorn 3 417
EGV Cinemas #screens #seats
Seacon-Srinakarin 14 3,311
Seacon-Bangkae 10 1,833
Korat 8 2,628
Ladprao 7 908
Khon Kaen 5 1,228
Aomyai 5 1,224
Maesod 4 1,184
Sriracha 4 2,181
Paragon Cineplex #screens #seats
Siam Paragon 16 4,476
Esplanade Cineplex #screens #seats
Ngamwongwan-Kaerai 12 4,200
Ratchadapisek 16 2,725
Mega Cineplex #screens #seats
Mega Bangna 15 3,445
Paradise Cineplex #screens #seats
Paradise Park 8 1,550
Hatyai Cineplex #screens #seats
Central Festival Hatyai 10 2,435
Total 479 114,750