New | THX plans to tap China's film market with its cinema certification business
Hong Kong's declining film industry didn't factor into THX's decision to set up an Asian hub in the city as its main target market is the mainland
THX, a company focused on cinema certification business that was founded by Star Wars director George Lucas, has chosen Hong Kong as its Asian headquarters as it eyes expansion on the mainland, which is on track to overtake the US as the world's largest film market.
Rene-Louis Cacciuttolo, THX's executive vice-president of international business, said it chose Hong Kong as its Asian hub despite declines in the number of movies produced in the city and the number of cinemas here.
There were only 51 films produced in Hong Kong last year, down from 300 a year in the mid-1990s, and the city had only 47 cinemas and 37,420 seats last year, down from with 119 cinemas offering 121,885 seats in 1993.
"We believe Hong Kong is the best place to be our Asian headquarters for its geographical location, which is close to mainland China and makes for easy to travel to other Asian markets," he said. "It also has rule of law and a sound financial system."
The mainland box office topped US$4.75 billion last year, up 40 times from US$120 million in 2003 with an average annual growth rate of 30 per cent.
Transformers: Age of Extinction sold US$320 million in tickets on the mainland last year, more than the US$245 million it grossed in the United States, while this February's mainland box office surpassed that of the US.