China’s CMC granted licence to run nationwide cinema chain
- Shanghai-headquartered CMC will operate its new cinema chain licence through its subsidiary company UME
- China to overtake the US as top market for box office receipts by 2020, according to Deloitte
Chinese state-backed media group China Media Capital (CMC) has been granted a licence to run a cinema chain across the mainland, making it one of the beneficiaries of restrictions lifted in December.
Shanghai-headquartered CMC will operate its new chain licence through its subsidiary cinema company UME, the company announced on Tuesday. Other, offline entertainment, such as music festivals and exhibitions, will also be explored, it said.
CMC bought UME in September 2017 from Shanghai Siyuan Entertainment in a deal reported to be worth 3 billion yuan (US$460 million).
UME currently operates 53 cinemas in 25 Chinese cities, and last year boasted revenue of almost 1 billion yuan, according to CMC.
As ticket sales gain, more cinema screens are being added across the country. A total of 9,000 screens opened last year, according to consultancy IHS Markit.
“The ever-evolving technology of the film industry and a new generation of viewers is driving consumption, while there is a huge gap in domestic cinema penetration,” said CMC’s chairman and chief executive officer, Li Ruigang.