CMX Cinemas:

Expansion to the Kingdom of

Saudi Arabia

By- Neelesh Suteri

 Target Locations
Riyadh is the capital city
and rivals any modern city
Riyadh in the world in terms of
architecture. It is the
largest in area with
Medina biggest population – 4.21
million. These factors
make Riyadh the best
target location.
Medina is the second
holiest city to Islam
followers after Mecca. It is
also home to 1.30 million
people.
Mecca

Apart from having a

population of 1.32 million,
Holy City of Mecca hosts
Jeddah One of the most modern
over 2 million pilgrims each
city of the kingdom, Jeddah year.
is a sea port and important
tourism center. The city
houses a population of
over 2.87 million.
 Market Size in the Kingdom
Present
Since the end of the ban,
investments have started
pouring in for multiplex
businesses in Saudi Arabia.
First cinema opened in just 4
months in Riyadh.
As a theatrical market, Middle
East in 2019 was worth $600
million, of which Saudi
accounted for a $110 million
share. Saudi Arabia’s growth in
Market Size is exponential.
Vision 2030
Saudi Arabia Cinema Market
is expected to be more than
USD 1.2 Billion by the end of
the year 2030..
By 2030, the General
Commission for Audiovisual
Media (GCAM), expects
there to be around 350
cinemas and 2500 movie
screens in the kingdom.
 Mode of Entry
Greenfield Venture
Developing business and setting
operations in a new market from
scratch.
The company can retain high
control on business operations
High risk due to higher investment.
But returns are phenomenally high too.
Requires deep insights into the new
market and employment of host
nation experts.
• Since CMX is a well-established firm in
Multiplex industry, they have sufficient
resources and talent pool to go the
Greenfield way.
• Establishing a wholly owned multiplex
chain is a decision of huge benefits,
because Saudi Arabia’s market is full of
opportunity.
• Greenfield Venture will also allow the
company to adopt the culture of Saudi
Arabia smoothly.
 Revenue Model
The traditional revenue model of multiplex business will work well in Saudi Arabia.

60% 25% 12% 3%

Net Box Office Food & Beverage Advertisements Others

Revenue generated Revenue generated Includes in-cinema Revenue from satellite
from sale of tickets from sale of Snacks advertisement and rights, overseas rights,
and drinks served at other promotional music or video rights
multiplexes activities.
 Competitive Landscape
Saudi Arabia is a hotspot for multiplex businesses as huge opportunities awaits in the country.
Many businesses around the world have approached the kingdom and started setting up cinemas.

MUVI Cinemas
AMC Entertainment Holdings MUVI has good presence in the
AMC was the first to open a cinema kingdom already with several
in Saudi Arabia. It plans to open 40 important partnership. Beautifully
more in the country before 2023. designed infrastructure makes MUVI
special in Saudi Arabia.

VOX Cinemas
Cinepolis
Another big brand, VOX Cinemas
With 2 theatres open in Saudi Arabia,
intend to open 600 IMAX screens,
Cinepolis plans to expand more with
throughout the country, within 5
$300 million investments.
years of lifting of the ban.