It can be said that LED movie screens are the hottest new application in the industry.

So far, a total of 37 models of LED movie projection systems from 15 brands around 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, my country's first digital movie LED theater industry standard DY/T 8-2023 "Technical Requirements and Measurement Methods for Digital Movie LED Theaters" was formulated by the China Film Research Institute (Testing Institute) and released and implemented. In March 2024, the China Film Research Institute (Testing Institute) continued to make efforts, and the China-led new work project proposal for the international standard "Optical Technical Requirements and Measurement Methods for Digital Cinema LED Theaters" was initially recognized by international experts at the 27th Plenary Session of ISO/TC 36, and the proposal has been formally submitted to ISO through the National Technical Committee for Standardization.

There are less than 100 theaters in the world that have deployed LED movie projection systems, while the number of domestic LED theaters has exceeded 50. Domestic LED display screens account for more than 80% of the global LED, and the supporting domestic LED controllers account for more than 90% of the global LED, 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 first-mover competitive advantage of LED. Domestic research and development can promote the optimization of LED production processes 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 and supply chain are autonomous and controllable, breaking the monopoly of foreign companies on digital movie LED projection systems and achieving overtaking in digital movie projection.

From the market demand side, a research organization has compiled 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 effects theaters has shown growth, and the overall proportion of special effects theaters has now exceeded 10%, among which the status of branded giant screen theaters and LED theaters has been further established; according to incomplete statistics, there are currently more than 50 LED movie projection display devices installed in the country, accounting for less than 0.1% of the total screen proportion. Assuming that it can be increased to 5% in three years, and the cost of each LED screen is calculated at 1 million, it can bring more than 4 billion in new market size.

To sum up, whether it is the huge consumption potential of the terminal market for high-end LED movie screens or the preference for 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 of the strength of LED display manufacturers

In May this year, the official WeChat account of the National Development and Reform Commission stated that the National Development and Reform Commission and six other departments issued the "Implementation Plan for Promoting Equipment Updates in the Field of Culture and Tourism" to promote independent innovation in film projection technology. Promote the new generation of cinema equipment systems, implement large-scale cinema LED screen projection system update plans, strengthen independent intellectual property cinema equipment brands, reshape the film projection business model, and 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 constraints, and put forward higher tests on 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 movie projection indicators, which will increase 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 later maintenance. For example, from an operational perspective, it is also necessary to consider the cost investment of special decoration, ticketing activity operations, and possible risks and uncertainties. These factors may become barriers for theaters to use LED movie screens.

At present, LED movie screens are still in the small-scale trial stage, and the market penetration is not high. 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 the 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 operation 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, online movies are now impacting theater movies, and the rise of short video platforms is also an extremely fatal factor. Many of us would rather spend a few minutes watching short videos 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 and marketing 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, many companies are increasing their stakes. However, from the current perspective, LED movie screens are more like opportunities for large companies and challenges for small companies. Facing the new trend of LED movie screens, companies still need to consider the market prospect, enter the market in advance and accumulate industry experience, as well as consider improving brand positioning and brand image.