True Group in film-making JV to cash in on local, foreign demand
True Group is diversifying into film-making through a joint venture with M Pictures Entertainment, Bangkok Film Studio and Matching Studio Plus to serve increasing domestic demand with releases of four to six movies a year.
To cash in on foreign demand, the new firm, called Transformation Films, is discussing with Beijing-based companies the co-production of titles targeting Chinese moviegoers.
True Group’s wholly owned subsidiary True iContent, M Pictures Entertainment and Bangkok Film Studio will invest Bt50 million each in the new company, while Matching Studio Plus will chip in Bt25 million.
The first three parties will own 28.6 per cent each of Transformation Films, while Matching Studio will hold 14.3 per cent.
Birathon Kasemsri Na Ayudhaya, managing director of True iContent, said yesterday that there was substantial room for growth for local movies as they account for only 30 per cent of the market, while the lion’s share belongs to foreign films, particularly Hollywood flicks.
Thai films more popular
However, local films are becoming more popular among Thai audiences, so the company aims to drive the local portion to half of the market in three to five years, he said.
Major Cineplex Group also has aggressive ambitions to double its movie theatres to 1,000. It is already the market leader with 70 per cent of the Thai cinema business.
Thanakorn Puliwekin, chief executive officer of M Pictures Entertainment, which is wholly owned by Major Cineplex Group, said that despite the new JV, his company would still pursue its existing businesses such as film production and distribution both at home and abroad.
Transformation Films will have an edge in production-cost management as it has Bangkok Film Studio and Matching Studio Plus behind it.
Bangkok Film Studio is one of the country’s leading moviemakers. It was made famous by box-office hits like “Bangkok Dangerous”, “Fah Talai Jon” and “Bang Rajan”. Matching Studio Plus is a top player in film and TV production services.
Birathon said that in its first year, Transformation Films would see Bt100 million in revenue from each movie. That does not include contributions from other distribution channels such as pay TV, satellite TV and Internet-protocol television.
Besides the home market, which will be the first priority in the first year, Transformation Films is holding talks with China Film Group and Beijing Media Group to co-produce two separate films, CEO Sangar Chatchairungruang said.
The two works might be either romantic comedies or the humorous type. The production budget per film is about US$2 million (Bt64 million). Transformation Films will also invest evenly with its Chinese partner.
Pre- and post-production work including film shooting would be done in Thailand but the films would be screened in both countries.
“The deals are expected to be sealed by next year,” he said.
