SET-listed Major Cineplex Group Plc (MAJOR), Thailand's biggest cinema chain, has formed a new film studio with South Korea-based CJ E&M Corporation to produce films for the global market.
Major holds a 51% stake in the new film studio, CJ Major, with CJ E&M owning 49%.
CJ Major will export its films to the international market with help from the experienced Korean film manufacturer and distributor.
"Thai films still have potential to grow and I believe CJ E&M will help us to grow to the next level of success," said Major chairman Vicha Poolvaraluck.
Major decided on the collaboration because of the Korean company's expertise in managing entertainment and media services.
CJ Major plans to launch 15-20 movies the next five years and generate 600 million baht per movie as they will be exported to Asean and other parts of the world. Each movie production is projected to cost 50 million baht.
The company hopes to release its first movie, Miss Granny, in the last quarter of this year, generating 150 million baht in revenue.
Mr Vicha said the Thai movie industry has not been in a decline as many critics have stated, rather it is in dire need of quality content and more cinemas. Major is moving to construct new cinemas both locally and in the region while teaming up with international film producers to improve the industry.
Major allotted a big investment budget to construct more cinemas in Bangkok and major provinces in Thailand as well as in neighbouring countries.
Tae-Sung Jeong, chief executive of CJ E&M, a subsidiary of CJ Group, said the Thai film market is larger than that of many countries in the region.
CJ E&M is confident its partnership with Major can produce Thai movies that will be easily distributed to the global market.
"The Thai film industry will continue to grow for both local and foreign movies in the near future. We believe Thai films will overtake Hollywood films, ranking at the top of the box office in many countries," said Mr Jeong.
Major has 92 cinemas with 606 screens, of which 594 are in Thailand, seven in Cambodia and five in Laos. Of the screens in Thailand, 253 are in Bangkok and 341 in other provinces.
The company set a target to have 1,000 screens by 2020, with 900 in Thailand and the remaining 100 in Cambodia, Laos, Myanmar and Vietnam.
MAJOR shares closed unchanged yesterday on the SET at 28.75 baht in trade worth 21.5 million baht.
