Competition among luxury cinemas in Thailand is expected to intensify as more entrants tap growing demand for premium movie theatres.
The operator of Embassy Diplomat Screens expects rising competition among high-end cinemas as more players enter the market.
Jim Patterson, managing director of Executive Cinema Corporation, the operator of the six-star Embassy Diplomat Screens, says the number of filmgoers who opt for premium standards has been rising alongside the growth of luxury department stores.
With the number of such high-end department stores on the rise, an opportunity has arisen for cinema operators to cash in on this customer group.
Mr Patterson refers to these customers as the high-tier group: not just billionaires, but also professionals, expats and high-salary workers who demand a first-class experience.
Right now at least three cinemas focus on the high-end market, including Bangkok Airways Blue Ribbon and Enigma at Siam Paragon, SFW First Class at Central World, and Embassy Diplomat Screens at Central Embassy.
More luxury cinemas are planned.
SF Group, the leading cinema operator, recently launched a new brand called Emprive Cineclub at The Emporium shopping complex on Sukhumvit Road, focusing on those who can afford an exclusive experience.
The cinema provides a home environment with luxurious decoration and executive seating, plus a gourmet bar and popcorn. The price range is 700-800 baht a ticket for first-class seats.
Mr Patterson cautions that the luxury cinema business poses challenges such as high costs and a narrow market segment.
As a result, operators could wait a long time to see a return on investment.
"For Embassy Diplomat Screens, the investment in each seat is around 500,000 baht, which is the highest investment per seat in the world," he said.
To increase cinema attendance, Embassy plans to find more speciality films, keep prices at a good value via sponsorships and partners, and communicate better with regular customers.
In Mr Patterson's view, the cinema's ticket prices are reasonable in light of the quality of service.
To attract more business, Embassy Diplomat Screens has launched a promotion with sponsors to trim ticket prices by 20-50%.
The sponsors include Advanced Info Service, Bank of Ayudhya, Noble Development, Mercedes-Benz, Bangkok Bank and Emirates.
Embassy Diplomat Screens expects to earn 90 million baht this year after generating 60 million baht in the six months since launch.
