Korea’s CJ CGV Seeks 10,000 Screens Worldwide by 2020
CJ CGV, the Korean company that is the world’s fifth largest cinema exhibition firm, says it seeks to operate 10,000 screens in 11 countries by 2020. That implies a tripling of its global footprint.
The company made the announcement at a corporate event on Tuesday in Seoul. It implies huge faith in a sector that is no longer growing or is in retreat in several developed world countries.
“Securing 10,000 screens worldwide would mean that 86% of our revenue will come from overseas,” said CJ CGV CEO Seo Jung. CJ CGV currently operates 3,456 screens in 463 venues (including 1,117 at 151 venues in Korea), putting it behind the four market leaders China’s Wanda, the U.K.’s Cineworld Group; the U.S.’s Cinemark, and Mexico’s Cinepolis. By the end of this year CJ CGV expects to operate 500 multiplexes and derive more than half of its revenue from outside Korea. Overseas ticket sales exceeded Korean numbers for the first time last year.
To reach its target, CJ CGV aims to expand into four new territories, adding to its existing seven. These were built up through a mix of organic growth and acquisitions. It bought Vietnam’s Megastar Media Company in 2011. In 2016 it acquired Turkey’s Mars and expanded its stake in Indonesia’s Blitz, since renamed CGV Blitz. It is also operational in China, Myanmar and the U.S.
It aims to refine its brand and operations in its existing territories. “We aim to expand the concept of the cultureplex, a comprehensive entertainment destination spanning film and other forms of culture and entertainment, across the world,” said CGV CEO Seo Jung.