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CGV to transform into multi-entertainment venues

Sep 07, 2023
  • Source by Cine21
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Main takeaways from the 2023 CGV Film Industry Media Forum

 


(Image: CJ CGV)

 

 

CJ CGV announced on August 30th at the 2023 CGV Film Industry Media Forum that they will transform their multiplex cinemas into entertainment and lifestyle centers as part of their "NEXT CGV" strategy. This will entail broadening the reach of their premium large formats (PLF), whether they are technology-based auditoriums like 4DX and ScreenX or service-based premium offerings like private boxes, Tempur Cinema, and Gold Class. CGV explained that this move is in response to recent changes in consumer habits, such as the desire for high-end premium theaters like Tempur Cinema, where you can watch movies in bed-like adaptable seats. 

 

They also intend to program content other than films more frequently, such as sports and e-sport broadcasts or musical/concert documentaries, which are marketed as "alternative content" under the ICECON label. For instance, Lim Young-woong's concert film I'm Hero: The Final drew 250,000 viewers. Furthermore, they intend to convert their multiplexes into multi-entertainment venues by converting some of their auditoriums into various amenities, similarly to the way they set up two climbing gyms and a golf short game practice ground so far.

 

"We managed to return to profit in the first half of this year for the first time since the COVID-19 pandemic," said CJ CGV CEO Heo Min-hoe. "We expect to reach the level of operating profit seen in 2019 in the second half." He added: "With our NEXT CGV business plan, we will establish a new paradigm by achieving 300 billion won in advertising revenue and proceeding with capital expansion."

 

CJ CGV has also presented the changes in audience movie consumption trends that it has identified since the COVID-19 pandemic. First, audiences are more risk averse, preferring to wait until a title's quality has been "confirmed" through early reviews before committing to watching it. The second trend is a result of the first, with some titles posting box office results that defied normal patterns, such as Elemental, which saw its weekly admissions increase every week until reaching its peak in the fourth week thanks to positive word-of-mouth and social media buzz. The film gained traction and eventually surpassed 7 million viewers in its 11th week of release. 

Subcultures are also becoming more visible, as evidenced by the Japanese animation film The First Slam Dunk, for which 28,6% of all tickets sold were for repeat viewings. This film also benefited from special events such as cheer screenings (screenings for musical or sports films where audience participation is encouraged). Finally, audiences prefer experiences that are unique to the cinema and cannot be replicated at home. This can be seen in the growing popularity of PLF auditoriums, as well as in special events such as a "Pink Fan screening" for Barbie and "Extreme Empathy F Hall" screenings for Elemental, where the public could express their emotions. These special events averaged more than 80% seat occupancy.

"With a wider range of age groups driving that can lead to a movie's success and diversified ways of achieving success for different content," CJ CGV Domestic Business Division Head Jo Jin-ho stated, "we will implement differentiated marketing to promote these experiences."


By Lee Woo-been
Republication, copying or redistribution by any means is prohibited without the prior permission of KOFIC and the original news source.
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