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Subsidiary to make three films a year
Major Cineplex Group Plc, the country's largest cinema chain operator, plans to produce its own films. The decision follows the completion of a share swap between Major subsidiary M Pictures and SET-listed Traffic Corner Holdings Plc (TRAF), a media and content provider. TRAF raised its capital to 360 million baht from 120 million baht by issuing 240 million shares to existing shareholders.
Major Cineplex is now the largest shareholder in Traffic Corner, with a 40.81% stake. Traffic Corner, through a new subsidiary, holds a 99.99% stake in M Pictures, the film import subsidiary of Major.
Suraphong Triamchanchai, the new CEO of Traffic Corner and M Pictures, said that Traffic Corner planned to produce three films this year that would be screened in the last quarter of the year. Each film will cost between 20 million and 40 million baht to produce.
Mr Suraphong, who founded Traffic Corner but stepped aside a couple of years ago, said that having more players in the Thai movie market would increase both quality and variety.
Vicha Poolvaraluck, the chairman of Major Cineplex, said co-operation between Major and Traffic Corner would help independent movie makers distribute films, thanks to its nationwide screen network. It is willing to co-produce film with other filmmakers.
Traffic Corner will distribute films in all non-cinema channels, through DVD and VCD, free-to-air and satellite TV, and digital media. It will also manage merchandising and marketing. The services would also be available to other filmmakers.
Mr Vicha said he believed the Thai film industry would grow continuously in the next few years. That was why Major began building more cinemas in the countryside last year.
Thailand's film market measured by ticket sales was worth five billion baht last year, of which 1.7 billion was generated by Thai films, up from 1.1 billion baht the year before.
He said working with Traffic Corner would create an integrated business model similar to Hollywood studios. The group would produce, market and distribute the films.
An analyst said movies would strengthen Major's bargaining power and increase media exposure. Traffic Corner has experience in media, so it can promote movies through other channels from TV, print and cinema advertising.
Major shares closed yesterday on the SET at 17.70 baht, down 60 satang, in trade worth 16.4 billion baht, while TRAF shares closed at 8.50 baht, down 95 satang, in trade worth 79.23 million baht.
Source: Bangkok Post by Woranuj Maneerungsee
Thursday February 07, 2008