Cinemas are a popular form of entertainment among Vietnamese youth, showing strong signs of recovery after the COVID-19 pandemic was brought under control.
Although online video-on-demand (VOD) platforms had the opportunity to expand and gain widespread popularity when many cinemas were forced to close due to the pandemic, traditional cinemas remain the preferred model. This is largely due to the unique experience they offer, such as watching films in a large space, enjoying dynamic sound, and the lively atmosphere of a crowd. As a result, the demand for going to the cinema has seen a sharp increase, following the period of "pent-up" demand during the height of the pandemic and social distancing.
Revenue recovery has been strong post-pandemic, but the sector's profitability remains a major concern.
The cinema market has rapidly recovered after COVID-19 and quickly returned to growth in 2022. The industry's total revenue is expected to maintain this impressive growth momentum, with a projected compound annual growth rate (CAGR) of around 10% over the next eight years.
The growing demand for entertainment services in Vietnam is highly regarded, driven by a youthful demographic structure. Young people, particularly Generation Z, tend to prioritize mental well-being more than previous generations, leading to a high demand for wholesome entertainment services. This group is willing to spend money on services that cater to their mental well-being.
In addition to the success of blockbuster films from abroad making a splash in Vietnam, the growing quality and investment in Vietnamese films are also drawing large audiences and generating breakthrough revenues, such as Bố Già (VND 395 billion), Nhà Bà Nữ (VND 465 billion), and Chị chị em em (VND 61 billion). These successes contributed to the highly profitable 2022-2023 Tet film seasons, presenting promising growth opportunities for the cinema industry in Vietnam.
However, overall business efficiency in the cinema service sector remains a challenging issue. Particularly since the pandemic, many domestic cinema chains have continued to experience sustained losses, despite a strong recovery in revenue.
Current Market Share of Cinemas in Vietnam
According to the latest 2022 statistics from Statista in collaboration with Q&M, CGV currently dominates the cinema market in Vietnam with a 45% market share. This is followed by Lotte Cinema, holding a 26% share. With their strong financial backing, these two South Korean brands, CGV and Lotte, have developed and almost completely dominated the cinema market in Vietnam.
With the remaining 29% market share, Vietnam's cinema market witnesses fierce competition among domestic players such as Galaxy Cinema, BHD Star, Cineplex, Cinestar, Cinebox, Mega GS, and Beta Cinemas. Galaxy holds 10% market share, while BHD accounts for 5.5%. Another Vietnamese cinema brand that has recently emerged is Beta Cinemas, with an 8% market share. Meanwhile, state-owned cinema systems only account for about 2%. These brands are gradually closing the gap with the two industry giants, CGV and Lotte while providing more options for moviegoers.
CGV Cinemas
CJ CGV is the largest multiplex cinema chain in South Korea, with branches in various countries such as Vietnam, China, and the United States. It is part of CJ Group, one of the largest diversified conglomerates in South Korea, with operations in 21 countries worldwide.
Headquartered in Seoul, CJ CGV commands over 50% of the market share in South Korea and has been recognized as the best cinema brand by consumers for eight consecutive years. In Vietnam, CGV similarly dominates the market with 84 cinema locations nationwide.
Before the COVID-19 pandemic, CGV Vietnam experienced relatively stable revenue growth. However, the years 2020 and 2021 were a dark period for many cinemas, including CGV, due to the pandemic. CGV's revenue plummeted from VND 3,700 billion in 2019 to VND 1,400 billion in 2020, and further dropped to only VND 900 billion in 2021.
Despite the recovery following the social distancing period, with revenues climbing to nearly VND 2,700 billion in 2022, CGV has continuously reported significant losses since the onset of the pandemic.
Galaxy Cinema
Galaxy Cinema currently ranks as the third-largest cinema chain in Vietnam, just behind the two South Korean companies, CGV and Lotte. Launched in early 2005, Galaxy Cinema was the first cinema system in Vietnam built to international standards, featuring massive screens and vibrant digital sound systems. By creating a new lifestyle in entertainment culture, Galaxy Cinema pioneered the trend of investing in and operating multiplex cinema complexes.
While the revenues of most cinema chains plummeted during 2019-2021, Galaxy Cinema presented a contrasting picture. It recorded nearly VND 500 billion in revenue in 2020, continued to grow throughout 2021, and reached VND 700 billion in 2022. Notably, Galaxy was one of the few cinema brands to report positive profits in 2022, though modest at VND 1.8 billion.
Lotte Cinema
Lotte Cinema is a leading brand in the South Korean cinema industry and entered the Vietnamese market in 2008. After nearly 15 years, Lotte Cinema Vietnam has expanded to nearly 50 cinema complexes across the country.
After achieving over VND 900 billion in revenue in 2019, Lotte Cinema saw its revenues plummet over the next two years due to the impact of the COVID-19 pandemic. Despite a decent recovery post-pandemic, revenues have yet to return to pre-pandemic levels. The financial difficulties have resulted in Lotte Cinema accumulating losses of over VND 2,900 billion and negative equity as of the end of 2022.
Beta Cinemas
Beta Cinemas is the most promising cinema brand in the market when it comes to franchising potential. Leading the mid-tier segment, Beta focuses on a youthful, modern cinema concept with affordable ticket prices, cutting-edge technology, and well-maintained, modern facilities. Established in 2014, as of July 2023, the brand has expanded to 15 cinema complexes nationwide.
Recognizing the fierce competition in the cinema industry with major players like CGV, Lotte, and Galaxy, Beta Cinemas chose to differentiate itself by adopting a franchise model. As the first cinema franchise in Vietnam, Beta Cinemas offers low investment costs starting from VND 3 billion per screening room and reasonably priced tickets. This model is optimized for operations and costs while still ensuring the core standards of service quality and the cinematic experience.
Beta Cinemas has demonstrated consistent growth since its inception. Despite the impact of the COVID-19 pandemic, the chain quickly recovered and achieved impressive milestones. In 2022, Beta Cinemas' revenue surged to nearly VND 240 billion, marking a 50% increase compared to the pre-pandemic year.
BHD Star Cineplex
BHD Star Cineplex is a smaller cinema chain compared to its industry peers. Founded in 2010, the chain currently operates only 10 cinema complexes across the country, with most located in Ho Chi Minh City. Its revenue in 2022 was approximately VND 130 billion.
Cinestar
Starting with two cinemas, Cinestar Quốc Thanh and Cinestar Hai Bà Trưng in Ho Chi Minh City, Cinestar has since expanded to 10 complexes nationwide. Although Cinestar has the same number of theaters as BHD Star Cineplex, its revenue is slightly smaller, estimated at VND 96 billion in 2022.
Mega GS
Mega GS Cinemas officially launched its first cinema chain in Ho Chi Minh City in August 2015 at 19 Cao Thang, District 3, featuring 6 modern screening rooms with nearly 1,000 seats, including 2 3D screens and 4 2D screens.
Despite holding a small market share in the industry, Mega GS harbors significant ambitions, aiming to expand its cinema network across Ho Chi Minh City and other provinces nationwide. Its mission is to deliver unique cinematic experiences and the best quality service to customers. In terms of revenue scale, Mega GS recorded over VND 35 billion in 2022.
Cinebox
Cinebox is operated and managed by MCV Network, under MCV Group, which handles content protection and exploitation. Cinebox cinemas are equipped with large screens that meet international picture quality standards. Additionally, the chain features 2D and 3D screening rooms with modern projection technology, designed to enhance viewer experience and supported by a DOLBY Digital sound system.
Although Cinebox holds a small slice of the market, its revenue decreased from VND 15 billion in 2019 to approximately VND 8 billion in 2022. However, Cinebox stands out as one of the few cinema chains to achieve positive profits amid a challenging market environment, which is a noteworthy achievement.
Source: Vietdata's 2022 Vietnam Cinema Market Report
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