The Hollywood blockbuster "Avatar" generated gross revenue of Bt310 million in Thailand, but the Krungsri IMAX theatre alone snatched 10 per cent of this amount.
In photo: Major Cineplex Group chief executive Vicha Poolvoraluck, far right, is bullish on the prospect of the investment in the five new IMAX theatres
In revealing this IMAX success, Major Cineplex chief executive officer Vicha Poolvoraluck expressed utmost confidence in the company's planned investment of US$10 million (Bt313 million) in five new IMAX theatres.
"We're now in a transformation period. 3D movies are drawing people out of their homes. As moviegoers want more excitement, moviemakers are considering new formats," he said. "IMAX is the best technology in the world. It's a dream come true for theatre owners."
Vicha acknowledged this as a global trend, as 35mm films are conŽverting to digital and then to the IMAX version for more immersive sound, brightness and contrast quality. From initially focusing on educational themes, the theatres are now featuring more Hollywood films.
In the US, it is expected that non3D theatres, currently two-thirds of the total, will be turned into digital complexes within three years.
There are 441 IMAX theatres worldwide, including 65 in Asia.
According to Don Savant, manŽaging director of IMAX Asia Pacific, Asia will be a key driver of success, as 40 per cent of IMAX orders now come from the region.
Propelling this growth is the studios' readiness to produce films for IMAX screening since 2008. From "Batman: Dark Night", "Alice in Wonderland" and "Toy Story 3" this year, IMAXformat offerings next year include many blockbuster movies such as "Spiderman 4", "Pirates of the Caribbean 4", "Transformers 3", the latest in the Batman series and the final part of the Harry Potter saga.
From more than 20 IMAX releases this year, nine films have already been confirmed for 2011. Savant expects the rollout of 1416 movies annually.
IMAX boxoffice movies generate six to 10 times more revenue than the average, he said, adding that although they account for just 12 per cent of worldwide screens, IMAX theatres account for 812 per cent of overall revenue.
In Thailand, from the current tiny ratio, 40 per cent of screens will become digital within three to five years. The company has placed orders for 20 digital projectors.
Major currently operates more than 350 screens and has about 88,250 seats under five brands.
"Digital theatres will accommoŽdate mainly Hollywood films as more become available in the digital verŽsion. The remaining theatres will then screen Thai movies that are still in the 35mm format. We have started discussing digital format with some studios," Vicha said.
Of the group's five new IMAX theatres, the first will a screen converted at Ratchayothin for an undisclosed amount. Major is finalising where the other four will be located, with one of them likely to be upcountry.
The conversion programme is slated for completion with four years.
From its current sole screen, Major expects IMAX blockbuster revenue to rise from Bt25.8 million in 2007 to Bt60 million this year. Non-blockbuster revenue will increase less impressively, from Bt28 million to Bt36 million.
This has convinced Vicha that the investment of $2 million for an IMAX projector and the conversion of each theatre is worthwhile, even though it is 78 times costlier than establishing a normal theatre.
With more moviegoers going to theatres, Major has witnessed 100-percent growth in ticket sales this month. Year to date, revenue has expanded 19 per cent from the same period in 2009.
Vicha believes this year's ticket sales should grow by at least 10 per cent to more than Bt4 billion.
The CEO said that to offer the digital experience to a wider audience, in the near future Major's multiplexes would accommodate at least 27 digital screens.
Whatever the future holds, despite the huge technology investment, Major is thriving to continue with physical investment in theatres, even though good locations become rarer and rarer, he added.