New Paradigm in Cinema Industry CJ 4DX : What Is 4DX?
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4DX’s Challenge for Global Hallyu Creation Presenter: Byung-Hwan Choi CEO / CJ 4DPLEX Hallyu, at the Extension Stage 1980s 1990s 2000~ Cultural Hong Kong Japan Korea Trend In Asia Hong Kong Noir Movies Manga, Games, J-Pops Soap Operas, K-Pops, Games, Movies… Initial Before Hallyu stage Leaping Stage Extension Stage Revenue $Bil What is “Hallyu”? Highest Profit 1.2 Hallyu, the Korean Wave, is a Record neologism referring to the increase in the worldwide popularity of 1.0 <Dae Jang Geum> South Korean culture. First Hallyu 0.8 Culture 0.6 Export Culture Import Psy, 0.4 H.O.T Heyday of K-Pop debut in China 0.2 1980 1984 1988 1992 1996 2000 2004 2008 2012 Source: SERI Report (June 19, 2013) 1 CJ, Korea’s Leading Culture Creator CJ’s Hallyu Philosophy as Global Lifestyle company : 3 2 CJ Group, Business Portfolio Global CJ Foodville Global Bio Production Global CJ O Shopping Global CGV 184 stores in 10 countries Brazil, China, Indonesia, China, Indian, Japan, USA, China, Vietnam, Global bibigo Malaysia, USA Philippines, Thailand, Malaysia, Indonesia USA, China, UK, Japan, Turkey, Vietnam Singapore, Indonesia 3 CJ Group, Business Portfolio Sales by Year ($ Bil) 2013 9.2 2012 8.9 2011 8.2 2010 6.9 Weight of overseas sales as % of total sales 4 CJ Group, Business Portfolio Sales by Year ($ Bil) 2017 (exp) 5.0 2012 1.8 2011 1.5 2010 1.2 5 CJ Group, Business Portfolio CJ O Shopping Sales by Year ($ Bil) 2013 2.7 2012 2.5 2011 2.3 2010 1.8 CJ Korea Express CJ O SHOPPING GLOBAL BUSINESS 6 CJ Group, Business Portfolio PR Value from CJ’s Hallyu festivals - MAMA (Mnet Asia Music Awards) 2013 = 2.6 Bil - KCON 2014 = 36 Mil CJ E&M Sales by Year ($ Bil) 2013 1.6 2012 1.3 2011 1.2 CJ CGV & HelloVision Sales by Year ($ Bil) 2013 1.9 2012 1.5 2011 1.2 7 At the Center of Global Movie Industry Global Trends in Movie Industry Global Cinema Industry In Korea, cinema box office and attendance is continuously increasing since 2010. 1.4 1.3 1.1 Global Cinema Box-Office 1.0 21,335 (in billion USD) Sales ($ Bil) 0.9 19,489 15,972 34.7 35.9 Admission (pax) 15,540 14,776 32.6 31.6 29.4 2009 2010 2011 2012 2013 Source: Kobis Statistics (2013) In North America, annual theater attendance has drastically declined since 2012. Annual Attendance Per Capita (US & Canada) Annual Attendance (US & Canada, Bil) 7.1% ↑ 6.7% ↑ 1.8% ↑ 0.9%↑ Source: Box Office Mojo, US Census Bureau, Statistics Canada, Prashob Menon and @LiamBoluk 9 New Paradigm in Cinema Industry CJ 4DX : What is 4DX? Advancing the movie going experience from just watching to living it ! CJ 4DX is the world’s first multi-sensory movie theater for feature films by combining IT and cultural sensibility. 4D Theme Park 4DX Movies 2D/3D Movies Motion Effects Environmental Effects 11 4DX, Global Partner Exhibitors 0 Hong Kong 12 Who Gets Benefits? Exhibitors Moviegoers Studios Success Factors of 4DX 4DX, Global Partner Exhibitors First Run Box Office($) Comparison: 4DX vs. Average North American theater Transformers 4 Hercules Dawn of the Expendables 3 Teenage Mutant The Maze Runner Planet of the Apes 2 Ninja Turtles 2.4X Higher 2.8X Higher 2.5X Higher 3.8X Higher 2.3X Higher 1.8X Higher Period: Period: Period: Period: Period: Period: 6/27 – 7/10 7/25 – 7/31 7/11 – 7/24 8/15 – 8/21 8/8 – 8/14 9/19 – 9/25 Source: Data based on RENTRACK, Comparison is based on Box Office Revenue 13 Success Factors of 4DX 4DX, Moviegoers 4DX audience interview @ Regal Cinemas L.A. Live “It was awesome, really intense. It was really enjoyable, sort of total immersion… Everything was kind of unexpected and so new.” 15 Success Factors of 4DX 4DX, Studio – Directors & Producers 17 4DX Worldwide Recognition International Awards CNN : 10 of the world’s most enjoyable movie theaters <Cinema Innovation of the Year> by I3DS (International 3D & Advanced Imaging Society) Nikkei Trendy: 2013 Hit Product 18 … and What’s The Next? NEXT PARADIGM CULTUREPLEX = CULTURE + MULTIPLEX 3S Fine Dining/Desert Café FoodVille Dining Service Desert Café “Twosome Place” Dining & Premium/ Personalized Cinema/Event Special Cinema Movies a la carte, Personal Celebration Kids Events Cinema Ticketing/Membership Cultural Complex Mobile, Kiosk, Shopping & Logistics Photo Ticketing, Bar & Wine Shop Membership (CJ ONE card) Kids-town (education, play house) VIP program 19 NEXT PARADIGM No.1 Global Cultureplex 2013 2017 2020 Audience 117 mil 411 mil 771 mil Sales ($) 1.0B 2.5B 4.5B Screens 1,192 4,863 9,769 Rank* 10th 5th 2nd KOREA W. EUROPE RUSSIA NORTH AMERICA U.K. E. EUROPE SWITZERLAND JAPAN CHINA United States U.A.E INDIA AFRICA MEXICO VIETNAM SOUTH AMERICA OCEANIA * CGV Rank based on number of screens 20 THANK YOU .