This year, CJ CGV has set a new record of 10 million viewers in the shortest time in Indonesia.
- Showing a variety of content in addition to Hollywood and local movies
CGV Indonesia, a local subsidiary of CJ CGV, surpassed 10 million viewers in the country as of the September 13th. CJ CGV had entered the market as an outsourcing management company of Blitz Megaplex, a local movie theater chain in January 2013, and later switched its brand name to CGV in January 2017. In 2012, before CGV started its management of the chain, it recorded just 4 million viewers, and the number has since risen by almost two times as of 2015 with 7 million viewers.
In December 2016, the movie theater chain achieved another record by reaching 10 million viewers for the first time since its establishment. This year, CGV Indonesia marked 10 million viewers three months earlier than last year, maintaining its explosive growth trend. This rapid growth of CGV Indonesia is attributed to its aggressive expansion into regional cities, programming of local movies and various other content and digital marketing strategies reflecting the latest trends.
Although Indonesia has a population five times larger than South Korea with 260 million, it has a box office that is five times smaller than that of Korea and possesses only around 1,300 screens. This means that this market has strong potential for growth. CGV Indonesia has implemented an aggressive platform expansion strategy that targets the surrounding areas of the country's capital city, Jakarta, as well as many regional cities.
In particular, it has primarily launched movie theaters in regions that currently don’t have any movie theater. As a result, the brand that had only 76 screens throughout nine theaters in 2012 when CGV entered the market is now, after five years since then, ranked second in the local cinema industry with 233 screens throughout 35 theaters. The number of viewers in theaters in regional cities has also consistently grown, and now these theaters record a seat occupancy rate of over 21 percent, which is similar to that of larger cities.
- Contributing to the quantitative and qualitative growth of the Indonesian film industry
CGV Indonesia has also been actively showing local movies, making a significant contribution to the growth of the local film industry. The number of viewers of Indonesian local movies doubled from 17 million in 2015 to 34 million in 2016. The number of local movies that attracted more than one million viewers also rose five times from two in 2013, when CGV made its entry into the market, to 10 in 2016.
It is also worth mentioning that CGV Indonesia focuses on digital marketing given the nature of Indonesian customers, who tend to be sensitive to digital environments; there are over 60 million users of social media in Indonesia. Of note, digital marketing aspects in this market include a charging-based payment method and mobile membership service, which reflected the latest consumption patterns of teenagers and those in their 20s.
CGV Indonesia launched 'CGV Pay' service with a charging wallet service for customers in their teens and 20s, who are familiar with making mobile payments. With CGV Pay, you can book a movie ticket online, through mobile or from a ticket machine, and obtain various discounts from an online shop. Since CGV Pay was launched in January, over 500,000 customers have joined the service.
CGV Indonesia has also carried out various marketing events in which viewers can participate through social media such as Facebook. At present, the number of the followers of CGV Indonesia's social media presence is six million, up 50 percent from a year earlier. This means that 1 out of 10 Indonesian social media users is a follower of CGV Indonesia on social media platforms. CGV Indonesia also launched a mobile membership service for the first time in the market, which adds to convenience with various membership benefits without having to carry a membership card.
CGV Indonesia is also engaged in various CSR activities to contribute to the growth of the local film industry and foster and support local professionals. In July, it opened Rumah Film Indonesia in Yogyakarta in an effort to vitalize the local film community. In addition to operating the center, CGV Indonesia fosters future filmmakers and carries out projects for supporting the production and showing of movies. CGV Indonesia is taking the lead in vitalizing the local film market by, for example, opening the second "CGV Art House", a dedicated independent movie theater.
- Aiming to operate 100 theaters by 2020
"CGV Indonesia is opening up new movie theaters in Jakarta and other regional cities and aims to open more than ten theaters by the end of this year and operate over 100 theaters by 2020," says Kim Gyeong-Tae, the president of CJ CGV Indonesia. "We will strive to lead cinema culture in Indonesia by building special theaters such as ScreenX and 4DX and online service platforms for enhanced customer convenience and contribute to the growth of the local film industry through various CSV activities."
Meanwhile, on September 8th, CJ CGV recorded 30 million viewers in the shortest period ever in China as well. It is the first time since CGV entered the Chinese market that it reached 30 million viewers in just three quarters. Last year, CGV China tallied 30 million viewers as of October 16 and attracted a total of 36.96 million viewers by the end of the year. Given the fact that it reached 30 million this year a month earlier than last year, it is expected that CGV China will be able to record at least 40 million by the end of this year.