Is it a real trend or a false outlet? Let's talk about the popular LED movie screen this year

The LED movie screen track in 2024 presents a new development outlook. So far, LED theaters continue to light up and use, LED companies work with partners to open up new markets for movie applications, and DCI certified products continue to increase. Both old players and emerging LED representative companies are continuing to increase their investment in the field of LED movie screens... At present, the wind of the LED movie screen market is getting stronger and stronger. Is it a temporary outlet? Or a long-term trend? Today, we will discuss this issue from the perspective of market demand.

LED movie screen is the real trend of market upgrading

It can be said that LED movie screen is the new application with the highest topic in the current industry.

So far, a total of 37 models of LED movie projection systems from 15 brands in the world have passed DCI testing and certification. Among them, 26 models of LED movie projection systems from 10 domestic brands have passed the inspection. In November 2023, the first digital cinema LED theater industry standard DY/T 8-2023 "Technical Requirements and Measurement Methods for Digital Cinema LED Theaters" formulated by the China Film Research Institute (Testing Institute) was released and implemented. In March 2024, the China Film Research Institute (Testing Institute) continued to exert its strength, and the new work project proposal for the international standard "Optical Technical Requirements and Measurement Methods for Digital Cinema LED Theaters" led by China was initially recognized by international experts at the 27th Plenary Session of ISO/TC 36. The proposal has been formally submitted to ISO through the National Standardization Technical Committee.

The number of theaters with LED movie projection systems deployed worldwide has not exceeded 100, while the number of domestic LED theaters has exceeded 50. Domestic LED display screens account for more than 80% of global LEDs, and the matching domestic LED controllers account for more than 90% of global LEDs, with a high global market share. Domestic digital movie LED projection systems are at the forefront of the world in terms of quantity and specifications. my country is the main producer of LED display screens and has the advantage of first-mover competitive production. Domestic research and development can promote the optimization of LED production technology and reduce the cost of raw materials, effectively reduce the production cost of LED projection systems, and attract more theaters to adopt cost-effective domestic LED projection systems, thereby reducing theater installation costs and improving the audience's viewing experience. This also shows that the domestic LED industry chain supply chain is independent and controllable, breaking the monopoly of foreign companies on digital film LED projection systems and achieving digital film projection overtaking.

From the perspective of market demand, a research organization has counted this set of data: from the perspective of the number of domestic cinemas and screens, there will be 14,395 operating cinemas and 86,310 screens in 2023, 857 new cinemas and 4,880 new screens. From the perspective of newly opened cinemas, the number of theaters is mostly between 5 and 7, among which the number of special effect theaters has shown growth, and the overall number of special effect theaters has now exceeded 10%, among which the status of brand giant screen theaters and LED theaters has been further established; according to incomplete statistics, there are more than 50 LED movie projection display devices installed in China, accounting for less than 0.1% of the total screen proportion. Assuming that it can be increased to 5% in three years, the cost of each LED screen is calculated at 1 million, which can bring more than 4 billion new market size.

In summary, whether it is the huge consumption potential of the terminal market for high-end LED movie screens or the favor of LED movie technology, this verifies that LED movie screens are a new trend in market upgrading, and it is enough to show that LED movie screens have sufficient development potential in the future.

A higher test for the strength of LED display manufacturers

In May this year, the official WeChat account of the National Development and Reform Commission issued a statement saying that the National Development and Reform Commission and six other departments issued the "Implementation Plan for Promoting Equipment Updates in the Cultural and Tourism Fields" to promote independent innovation in film projection technology. Vigorously promote the new generation of cinema equipment systems, massively advance the update plan of cinema LED screen projection systems, strengthen cinema equipment brands with independent intellectual property rights, and reshape the business model of film projection, so as to provide audiences with more comfortable, convenient and rich film consumption services. Encourage the upgrading of public welfare projection equipment in rural areas, schools, communities, etc., and improve the quality of film public services.

Undoubtedly, LED movie screens are an inevitable trend. However, in the process of development, they also face certain shackles, and put forward higher tests for the strength of enterprises entering this field.

First of all, the comprehensive cost of LED movie screens is still relatively high. Different from traditional commercial LEDs, LED movie screens need to meet the strict requirements of DCI standards on color gamut, color accuracy, contrast, brightness and other film projection indicators, which will increase more costs from the selection of LED lamp beads, the design of control circuits to later maintenance. For example, a projector can be adapted to screens of different sizes and only needs to be certified once, but LED screens must be certified separately due to different sizes; secondly, in addition to the construction of the screen itself, theaters using LED movie screens also need to consider the costs of supporting audio equipment, installation and debugging, and post-maintenance. For example, from an operational perspective, it is also necessary to consider the cost investment of special decoration, ticketing activities, and possible risks and uncertainties. These factors may become barriers to theaters using LED movie screens.

At present, LED movie screens are still in a small-scale trial stage and are not widely used in the market. The reason is that, on the one hand, theater operators are more cautious about equipment investment, and the current cost of LED movie screens mentioned above is still high, so its market demand has not yet been opened. In addition, some theaters that have installed LED movie screens have not yet opened up a new situation and resource grafting in terms of operational ideas and planning, and have not invested enough in publicity and promotion, so that the scale brand effect of LED movie screens has not yet been formed in the movie viewing market, resulting in limited contribution to box office growth.

In addition, the current online movies have brought an impact on theater movies, and the rise of short video platforms is also an extremely fatal factor. Many of us would rather watch short videos for a few minutes instead of going to the cinema. Even so, LED movie screens are a new development direction, and the market critical point for their large-scale application lies in the further improvement of market awareness and commercial scale operation capabilities. For screen companies, this challenge is not easy. They must not only improve technology and reduce costs, but also have efficient operation capabilities and market promotion capabilities. At the same time, they cannot relax in the construction of market sales channels and after-sales service. There is no doubt that LED movie screens are the general trend. In this new track of LED movie screens, many companies are adding chips. But from the current point of view, LED movie screens are more like opportunities for large companies and challenges for small companies. Faced with the new trend of LED movie screens, companies also need to consider the market foresight, enter the market in advance and accumulate industry accumulation, as well as consider raising brand positioning and brand image.

Shenzhen Shinerave is a leading domestic supplier of LED displays.