Cinema is an essential form of entertainment for Vietnamese people and is showing vital signs of development after the epidemic was controlled. Because people's demand for enjoyment tends to increase sharply after a stressful epidemic period.
Although VOD online cinema platforms have the opportunity to develop and spread widely when cinemas were forced to close due to the epidemic. However, traditional cinema is still a necessary model thanks to its advantages such as enjoying movies in a large space, vibrant sounds, and the bustle of the crowd.
The bright signal for the Vietnamese film industry
The movie theater market has recovered strongly and quickly grown in 2022. Total revenue is expected to grow at a CAGR of ~10% over the next 8 years. The demand for entertainment in Vietnam is currently very large due to the direct influence of the high young population structure, young people are willing to pay a certain amount of money to use services for their spiritual life.
In addition to foreign blockbusters that resonate when imported to Vietnam, Vietnamese films with increasingly sophisticated investment also attract large audiences and bring in huge revenue streams like Bo Gia (VND 395 billion), Nha Ba Nu (VND 465 billion), Chi chi em em (VND 61 billion),... All contribute to creating the Tet 2022 - 2023 film seasons with big wins, full development opportunities, and promises for the movie theater industry in Vietnam.
Market share of cinemas in Vietnam
According to the latest statistics of Statista cooperating with Q&M in 2022 on cinema market share in Vietnam, CGV is currently the dominant theater cluster with 45% market share. Next is Lotte Cinema with 26% market share. Thus, with strong financial potential, two Korean brands: CGV and Lotte have developed, expanded their scale, and become the main cinema market in Vietnam, capturing 71% of the cinema market share.
The remaining market share belongs to other businesses such as Galaxy Cinema, BHD Star, Cineplex, Cinestar, Cinebox Mega GS, and Beta Cinemas. Accordingly, two Vietnamese private companies, Galaxy accounted for 10%, and BHD accounted for 5.5%. Beta Cinema, another Vietnamese cinema brand that has grown in recent times, holds a market share of 8%. While the State cinema system only accounts for about 2% of the market share.
CGV Cinemas
CJ CGV is the largest multiplex cinema chain in Korea, with branches in many places such as Vietnam, China, and the US. This is a unit of CJ Group - one of Korea's largest multi-industry economic groups present in 21 countries around the world.
CJ CGV is headquartered in Seoul, holds more than 50% market share in the country of Kim Chi, and has been recognized by consumers as the best cinema brand for 8 consecutive years. With the Vietnamese market, CGV also dominates the Vietnamese market with 84 cinemas nationwide.
Before the Covid-19 epidemic, CGV Vietnam's revenue grew relatively steadily. However, the two years 2020 and 2021 are dark times for many cinemas, including CGV when the Covid-19 pandemic takes place. In 2020, CGV Vietnam's revenue reached more than 1,400 billion VND, down more than 60% compared to 2019 with a loss of 600 billion VND.
In 2021, CGV revenue decreased by VND 400 billion, but the loss also reduced to nearly VND 200 billion in 2020. In 2022, the economy developed again after Covid-19, CGV also achieved a strong increase in revenue with nearly 2,700 billion, an increase of 170% compared to 2020. In terms of profit, the brand has not yet brought in a positive profit, but the loss level has decreased significantly compared to 2021 and 2020 by 2.12 times and 3.03 times, respectively.
Galaxy Cinema
Galaxy Cinema's market share is currently ranked third in Vietnam, behind only two Korean companies, CGV and Lotte. Launched in early 2005, Galaxy Cinema is the first cinema system built according to international standards with a huge screen and vivid digital sound system. By creating a new lifestyle in entertainment culture, Galaxy Cinema has opened up a new trend in investment and cinema business under the model of a complex theater complex.
In terms of income, Galaxy Cinema brought in close to 500 billion VND in 2020. With VND 554 billion in 2021 and VND 700 billion in 2022, Galaxy's revenue increased year over year while other theater brands saw revenue fall in 2021 and rise sharply in 2022.
In terms of profit, after 2 years of bearing a loss of nearly VND 100 billion in 2020 and VND 65 billion in 2021. In 2022, Galaxy Cinema brought in a positive profit of nearly VND 1.8 billion. Although this is not a high number compared to the revenue achieved, this is also one of the few cinema brands to bring in positive revenue in 2022.
Lotte Cinema
Lotte Cinema is a leading brand in the Korean cinema industry and was present in Vietnam in 2008. After nearly 15 years of market penetration, Lotte Cinema Vietnam has expanded the scale of nearly 50 cinema clusters. all over the country.
Lotte Cinema's net revenue will reach nearly VND 1,400 billion in 2020, this figure will decrease by 30% compared to 2021 and increase again by more than 170% in 2022 with a revenue of nearly VND 2,700 billion.
Although the revenue reached trillions of VND, Lotte Cinema is also facing many difficulties in terms of profit. During the period 2016 - 2022, Lotte Cinema has never been profitable. Specifically, in 2016, Lotte Cinema reported a loss of over 60 billion VND; in 2017 reported a loss of over VND 100 billion; in 2018 loss of nearly VND 270 billion; in 2019 a loss of more than VND 750 billion; In 2020 it reported a loss of more than VND 650 billion, in 2021 it reported a loss of more than VND 450 billion and in 2022 it reported a loss of nearly VND 400 billion. Thus, after 7 years of operation since 2016, Lotte Cinema reported a loss of more than VND 2,000 billion.
Beta Cinemas
Beta Cinemas is the cinema chain with the most potential franchise policy in the market. Beta aims at a youthful and modern cinema concept leading in the mid-end market segment, with a price suitable for standard equipment and spacious and modern facilities. Established in 2014, until now 7/2023 the brand has 15 cineplexes nationwide.
Realizing the fierce competition in the movie theater field with many big players such as CGV, Lotte, Galaxy,... Beta Cinemas chooses its way of developing under the franchise model. With the first cinema franchise model in Vietnam, Beta Cinemas has a low investment of only 3 billion VND per Cineplex. This model is optimized for operation and cost while maintaining the core cinematic experience and service quality standards.
Beta Cinema's revenue in 2022 is nearly VND 240 billion, a strong growth of more than 200% compared to 2021 and nearly 160% compared to 2020. In terms of profit, Beta Cinema is like many other brands with a profit margin. negative profit. However, the error level also decreases year by year, specifically the loss in 2022 is at 10 billion VND, down 3 times compared to 2021 and down 4 times compared to 2020.
BHD Star Cineplex
BHD is a cluster of cinemas with a much smaller scale compared to competitors in the same industry, with only 10 cinema clusters across the country, most of them in Ho Chi Minh City. As a result, BHD's revenue is much less than that of other brands.
In 2020 and 2021, BHD's net revenue decreased from about 10 billion VND from 47 billion to more than 36 billion, the gross profit of these two years was negative 31 billion and 21 billion respectively. In 2022, the revenue of the owner of these 10 cinemas nationwide increased sharply by 260% compared to 2021 and 180% compared to 2020, to more than 130 billion VND. Despite the strong increase in revenue, BHD still reported a loss of 260 million.
Cinestar
Starting from 02 cinemas Cinestar Quoc Thanh and Cinestar Hai Ba Trung in Ho Chi Minh City. Up to now, Cinestar has expanded and developed 10 cinema clusters spread across the country.
From 2020 to 2021, Cinestar's revenue decreased from 47 billion dong to 36 billion dong and this theater's profit recorded a loss. However, the level of loss decreased more than 2 times compared to 2021.
By 2022, after being operated again, the demand for viewers increased, so the business had a high revenue of 96 billion VND, an increase of nearly 200% compared to the same period last year. Although the profit is still negative, the loss ratio has decreased significantly by about 40% compared to 2021.
Mega GS
Mega GS Cinemas is a chain of cinemas officially launched for the first time in Ho Chi Minh City in August 2015 at 19 Cao Thang, District 3 with six modern screening cineplexes, the total number of seats is nearly 1,000, including two 3D projection cineplexes and four 2D projection cineplexes.
Despite capturing a small market share in the industry, Mega GS's future goal is to develop more cinemas in Ho Chi Minh City and across the country. With the motto of bringing customers different cinematic experiences and the best service quality.
In terms of revenue, Mega GS recorded the latest revenue of more than VND 35 billion in 2022. Revenue in 2022 increased by nearly 240% compared to 2021 and nearly 150% compared to 2020. This result shows that Mega GS is receiving the attention of the audience. In terms of profit, like other cinemas, Mega GS has not yet recorded a positive revenue. However, the loss ratio also tends to decrease from a loss of nearly 6 billion in 2020 to more than 2 billion in 2022.
Cinebox
Cinebox is managed, operated, and exploited by MCV Network under MCV Group. Cinebox's theater system is equipped with large screens with international standard picture quality. In addition, this theater cluster also has a 2D cinema cineplex and a 3D cinema cineplex equipped with modern movie projection technology specifically designed for each vision and a modern DOLBY Digital sound system.
Occupying a small "pie" in the cinema market share, Cinebox's revenue was only about 6 billion in 2020 and increased by more than 31% in 2022 reaching 8 billion. This revenue is very small compared to the revenue of trillions of VND of CGV or nearly one trillion VND of Lotte or Galaxy. However, in terms of profit, in 2020 and 2021, Cinebox recorded a negative profit. By 2022, the profit was positive with more than VND 400 million. Although this profit figure is not high, Cinebox is one of two cinema brands with positive revenue in 2022.
Cinemas are one of the industries that were severely impacted by the pandemic, but now that consumer demand has risen once more, most firms' income increase significantly in 2022. In terms of profits, brands continue to be unprofitable, but the loss rate is also steadily declining. This gives filmmakers and theater brand owners a strong expectation in terms of both revenue and operating profit in 2023.
Source: Vietdata's 2022 Vietnam Cinema Market Report