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Japanese majors join for digital progress




Territories covered

Asia-Pacific
Japan,

Author/s

Charlotte Jones
Charlotte Jones
Published: 21-Jan-08
Four Japanese exhibitors have agreed to co-operate in two key areas, scheduling and digital cinema, which could finally break the market deadlock on the former topic in the world's second largest box office market. In what appears to be a significant market change, multiplex operators T Joy, Tokyu Recreation, United Cinemas and Warner Mycal are to team up in the field of film scheduling in an attempt to present a stronger negotiating front to distributors. However, whilst the grouping will operate at that level the exhibitors, which represent 104 sites and 940 screens, will also talk individually to distributors. The idea is to be flexible and although some films may play at all sites, some may not. The move is a response to what the exhibitors believe is scheduling of films that does not always respond to the market wishes.
Of more long-term strategic importance, the grouping has launched a study group into the conversion of cinemas to digital projection technology with a view to examining the possible options in front of them, especially as concerns the expense of conversion. The group can also be used to negotiate digital equipment deals.
Our take...
As in the US and Korea, these Japanese exhibitors have decided that bulk is best and that four heads are better than one when it comes to approaching digital cinema. In a way, coming together like this makes the potential coversion to digital less frightening and confirms that there is a psychological barrier to be breached as well as financial and logsitical ones before progress can be made

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