Movie screenings to be reduced

Movie-goers' appetites will remain unwhetted this year, with political and economic uncertainty further dampening ticket sales and forcing distributors to focus on VCDs and DVDs.

To survive, M Pictures Entertainment, a subsidiary of the country's largest cinema operator, the Major Cineplex Group, this year will focus only on international films, including eight blockbusters, to lure Thai audiences back to cinemas. Moreover, the number of films to be purchased will be cut to no more than 20 this year, from 35 last year, said CEO Padet Hongfa. A budget of Bt300 million has been earmarked for film purchases, while ticket sales are expected to reach Bt400 million.

"Last year, we released 35 films. Most of them lost money, because movie-goers were too discouraged to relax amid the domestic political chaos," he said.

Thai film-maker and distributor GMM Tai Hub said ticket sales for 50 films last year averaged Bt20 million, up 10 per cent from Bt22 million in 2007. Only "The Mummy: Tomb of the Dragon Emperor" and "Ong-bak 2" surpassed the Bt100-million milestone.

Kim Eng Securities (Thailand) and Bualuang Securities expects Thailand's movie-ticket sales to increase this year, thanks mainly to a line-up of several blockbusters. Kim Eng said "Harry Potter and the Half-Blood Prince", "Transformers: Revenge of the Fallen", "Terminator: Salvation",

 "X-Men Origins: Wolverine" and the Thai film "The Legend of Naresuan: Part 3" were expected to have a high box-office gross.

Bualuang Securities analyst Prasit Sujiravorakul believes these films will enjoy more than Bt100 million each in ticket sales.

"The movie line-up should lure movie-goers back to cinemas, but the number of films to be screened should be lower than last year, in line with economic conditions," he said.

GMM Thai Hub chief executive Visute Poolvoralaks, who was unimpressed with last year's Bt1.2 billion in ticket sales, which represented flat growth from 2007, also expects an improvement this year. However, he cautioned this year's situation depended largely on the mood of movie-goers.

Rose Media and Entertainment said film distributors must adapt to the situation by focusing more on selling films on VCD and DVD. The company enjoyed revenue growth of 20 per cent to Bt800 million last year, due to this strategy, plus a policy of screening only some of the films at SF Cinemas. A cut in the number of screens saves money, because at least Bt5 million is needed for the screening at all available cinemas, said vice president Jirath Pavaravadhana.

"The strategy is driven by changing lifestyles, because more people prefer watching movies at home," he said. "Nowadays, only Hollywood blockbusters can draw people out of their homes."

Last year, Rose Media screened only 15 foreign films in cinemas but released 10 live-action and 50 animated features a month on VCD and DVD.

Jirath said amid the poor economic conditions, film distributors have seen an increase in their bargaining power, buying foreign films for 20-per-cent less than before. Thus, Rose Media this year will maintain the number of films screened in cinemas at 15. And thanks mainly to VCD/DVD sales, which have grown significantly despite piracy, revenue is expected to grow 30 per cent this year.

M Pictures' Padet agrees VCD and DVD sales are preferable to revenue from cinema screening. His company sold the rights over purchased foreign films to Pacific Marketing and Entertainment, a VCD and DVD operator.