SAN DIEGO, Calif. and CHANGSHA, China - August 15, 2013 - UltraStar Cinemas, a U.S.-owned movie theater group, and Letian Entertainment, a subsidiary of China's most influential broadcast network, announced the formation of a joint venture to develop and operate theaters in China. Representing one of the first and most wide-reaching collaborations of its kind, UltraStar and Letian will work together in the design, development, construction and operations of digital cinemas and related entertainment facilities throughout China. The partnership is intended to advance the country's cinema industry, bring more screens to Chinese audiences, and leverage advanced cinema technologies for the highest quality movie going experience. Hunan Broadcasting Station, parent company of Letian Entertainment, is the second largest broadcast network in China with 2012 revenues of 16.3 billion RMB ($2.6 billion USD).
The companies are currently on track to complete construction of three cinemas by the end of 2013, with plans to build an additional 40 cinemas by the end of 2016. The theaters will be located in the Changsha area of the Hunan province and comprise approximately 10 screens each with all-digital projection, 3D capabilities and concessions. In addition to traditional movie fare, the theaters will offer additional entertainment options via alternative content. Chinese audiences will be able to enjoy concerts, sporting events, musicals, operas and other cultural events on the big screen utilizing digital cinema capabilities.
"With the growing urbanization trend, the Chinese population continues to move from rural areas to densely populated cities," said John Ellison, president of UltraStar Cinemas. "This presents a long-term opportunity to grow the movie industry in China as a whole and implement cinema technologies and concepts that have been successful here in the United States. We are thrilled to be working with Letian Entertainment, long recognized as one of China's entertainment industry leaders, as their U.S. partner in this groundbreaking initiative."
"UltraStar Cinemas is a well-established American theater group with over 50 years of history, a wealth of industry resources, and global leadership in digital cinema technology," said Huidong Liu, Chairman of Letian Entertainment. "Letian Entertainment is a new Chinese cultural enterprise that spans across the film and television industries. Our unique and revolutionary business model in China has enabled exponential growth and rapid expansion of the national cinema market. The collaboration between Letian and UltraStar is a visionary one, following the trend of globalization. The Chinese film market is growing rapidly as an industry, enabling UltraStar to bring capital, technology, and branding from a highly saturated market to a high-growth market. Both parties are committed to leveraging complementary resources, capabilities, and interaction between Chinese and American industry to create a competitive edge in the market and the global film sector."
This collaboration brings together the talent and resources of two industry leaders. UltraStar has over 50 years of experience in cinema design, development and operations, while Letian offers local market knowledge and expertise as one of China's most successful entertainment companies. UltraStar is recognized as an early adopter of digital cinema and was the first theater group in the world to be fully equipped with Pure Digital Cinema® powered by DLP Cinema® technology in all of its locations. The company continued to adopt cinema innovations such as D-Box motion seats, luxury theater concepts including in-seat dining and alcohol service, and multi-tainment centers that incorporate numerous entertainment amenities and venues into the traditional movie-going experience.
About UltraStar Cinemas
UltraStar Cinemas is headquartered in San Diego County and has operated theaters throughout Southern California and Arizona. Recognized for pioneering the digital age of cinema, UltraStar was the first theater group in the world to be fully equipped with Pure Digital Cinema® powered by DLP Cinema® technology in all of its locations. In 2009, the company also became the first to offer D-BOX motion seats, which use motion effects specifically programmed for each film to create an immersive experience for movie goers. For more information, visit www.ultrastarmovies.com.
About Letian Entertainment
Letian Entertainment is a multimedia company engaged in film and television production, film distribution and cinema operations. In its four years of operation, annual growth is over 70%, and share value increased 660%. Letian's parent company, Hunan Broadcasting System (HBS) is the second largest broadcast network in China. HBS currently owns four satellite TV channels, eight terrestrial TV channels, eight radio channels and 43 enterprises. To leverage its platform, content and audience advantages, HBS has been involved in a wide variety of businesses, including cable TV networks, venture capital investment, talent brokerage, movie and TV drama production and distribution, cultural performances, real estate and hotels, conventions and tourism. In 2012, the total revenue of HBS amounted to $2.6 billion USD.