Megabox Breaks Through Slump with Premium Auditoriums... 33% of "Avatar 3" Audience Choose Dolby Theaters

Share of Revenue from Technology-Driven Premium Auditoriums Doubled Last Year
Facility Upgrades Accelerate Ahead of "Doomsday" and Other Upcoming Releases

Megabox Dolby Cinema

As the cinema industry struggles to escape from a prolonged slump, Megabox's strategy of upgrading its premium auditoriums is emerging as a key driver for improved performance. While overall audience numbers have not returned to previous levels, there is clear demand from moviegoers willing to pay higher prices for the best possible viewing experience, even if they visit less frequently.

Megabox announced on January 14 that its revenue share from technology-focused premium auditoriums doubled last year compared to the previous year, signaling a qualitative shift in its profit structure. This trend is particularly evident in the box office performance of the film "Avatar: The Fire and the Ashes," which recently surpassed 6 million viewers. According to Megabox data, in the fourth week after release, premium Dolby auditoriums (Dolby Cinema, Dolby Vision + Atmos) accounted for 33.38% of the film’s audience. This is about four times higher than the 8.14% share for the previous installment, "Avatar: The Way of Water." Despite higher ticket prices compared to standard auditoriums, the trend of audience members prioritizing immersive audiovisual experiences and flocking to technology-driven premium auditoriums has accelerated. The seat occupancy rate for the 4D format "MX4D" also more than doubled that of standard auditoriums.

In response to these market changes, Megabox has focused on expanding its infrastructure. The company increased the number of Dolby Cinema locations from five in 2022 to eight, and now has a total of twelve Dolby-equipped venues, including four dedicated "Dolby Vision + Atmos" auditoriums-the first of their kind in Asia. This investment in facilities is expected to be a catalyst for a rebound in performance, coinciding with the release of major blockbuster films scheduled for this year. High demand for advanced screening environments is likely to continue, with VFX- and sound-driven titles such as the Michael Jackson biopic "Michael" and Steven Spielberg’s "Disclosure Day" set for release in the first half of the year, and Marvel Studios’ "Avengers: Doomsday" coming in the second half.

Megabox has also seen strong results by securing exclusive content aimed at niche markets, such as re-releases and live performance screenings. The exclusive re-release of "Love Letter" attracted 110,000 viewers, setting a new record for re-released films, while the musical live screening "Frankenstein" drew about 93,000 people. The VR concert "Enhypen: Immersion" also attracted around 29,000 attendees at the Coex location alone, helping the company return to profitability.

Kim Bongjae, Head of the Multiplex Division at Megabox, said, "Our investment in premium auditoriums is yielding tangible results in terms of profitability. We will continue to drive our recovery by providing differentiated experiences that go beyond simple movie viewing."