Kazakhstan wants to change the rules for cinema operations

Kazakhstan's Agency for Regulation of Natural Monopolies (AZRK) is proposing significant changes to the rules governing cinema operations, aiming to foster greater competition within the industry. The initiative stems from a market analysis conducted between 2024 and 2025, which examined 63 participants across major cities and regions.

The agency identified that competition remains limited, particularly in regional markets where cinema offerings are often controlled by just one or two entities. This concentration of power can create disadvantages for smaller cinemas, especially concerning their access to films. The film distribution market in the studied regions was valued at approximately 76.2 billion tenge over the two-year period.

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The development of the proposed rules and a standard contract (...) will create unified approaches to the interaction between cinemas and distributors.

Key players in the market include large chains like Kinopark-Kinoplexx Theatres, Chaplin, Aru Cinema, Cinemax, Arman 3D, and Cinema Park. However, many smaller cinemas operate in single cities and lack the resources of these major chains. The AZRK's analysis highlights that distributors grant screening rights and negotiate terms, with revenue split based on contracts, but a lack of unified rules can create difficulties.

To address these issues, the AZRK suggests developing formal regulations for film distribution, creating a standard contract to govern interactions between distributors and cinemas, and enhancing market monitoring. The agency believes these measures will ensure more equitable access to films for all cinemas and prevent any single participant from gaining unfair advantages, thereby promoting a healthier and more competitive industry.

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This should ensure equal and non-discriminatory access.