May 08, 2019 (China Knowledge) – State-backed media group CMC Holdings has been given a license to operate a cinema chain across mainland China.
The company which is headquarted in Shanghai will operate this new cinema chain through its subsidiary UME which it acquired from Shanghai Siyuan Entertainment in 2017 in a deal rumored to be worth RMB 3 billion.
UME currently operates 53 cinemas in 25 Chinese cities and is reported to have raked in revenues of nearly RMB 1 billion last year.
At the moment, the Chinese film industry is experiencing a period of rapid growth with Chinese box office revenue expected to overtake the US to claim the top spot globally in terms of revenue and film-goers by 2020.
Last year, ticket sales in mainland China rose by 12% to USD 9 billion to help the Asia-Pacific region record a 5% gain in ticket sales even as sales for films distributed outside the US and Canada fell last year.
As more tickets are being sold, more cinema screens are also being added across mainland China with an additional 9,000 screens being added last year. The new licenses come in a timely fashion, allowing CMC to take advantage of this growing market and the rise of the Chinese film industry.
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