Business / Industries

All change at China's cinemas

(China Daily) Updated: 2015-05-04 10:58

Annual growth from 2004 to 2014 was approximately 40 percent per year, making China the world's second-largest cinema market, only after North America.

In fact, Chinese Internet companies started to display their ambitions regarding the movie industry as early as 2011 when joint purchasing, then the most common form adopted by online ticket-selling platforms, ignited consumers' enthusiasm for movies and cultivated their habit of purchasing online.

But after several years of cash-burning, some ticketing websites came to the conclusion that group buying is not a long-term strategy.

Liu Yong, CEO of Gewara, said that instead of providing the lowest price, it aimed at offering a package of services to customers.

"Booking seats in advance, offering route-mapping and providing detailed information about restaurants and parking lots nearby have become prerequisites rather than bonuses to attract audiences," Liu said in an interview with iheima.com, a website helping startups connect with venture capital investors.

However, facing mounting competition, not all cinemas welcome the entry of Internet players. Market experts say that although group-buying draws a large number of people who would otherwise be kept away by high prices, it could leave cinemas overstretched.

Cao Yong, deputy manager of Beijing UME International Cineplex's Anzhen branch, said: "Some cinemas that rely on ticketing sites to lure film-goers are often poorly equipped and unable to provide proper services."

"Lacking the capacity to handle the influx of visitors, they choose to sacrifice the audience's viewing experience," Cao added, citing examples of cinemas without air conditioners, having limited resting places and dirty toilets.

But as an increasing number of people flood to the Internet for movie tickets, Cao said: "UME cinemas have also partnered with online platforms on the condition that the tickets can't be sold at prices lower than what our VIP members enjoy."

Ma Si contributed to this story.

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