Total box office revenues in China rose 27 percent last year to 21.7 billion yuan. The number of screens grew by almost 14 per day to 18,195 as of Dec 31, up nearly 40 percent year-on-year.

"Box office revenues will peak within three years. The room for profit growth generated by movie theater construction will be limited," said Chen Shaofeng, deputy director of the Institute for Cultural Industries at Peking University, "As a result, Huayi Brothers has to diversify its business. The acquisition shows its strategy to expand its capacity in the Internet sector through cross-media content."

At the 20th anniversary of the company, Wang Zhongjun, chief executive of Huayi Brothers, said that the company will divide its portfolios into three categories: the traditional sector of movie and TV drama production and agency work; entertainment facilities such as cultural cities and theme parks, and the Internet world online games, new media and fan networks.

"The purchase of Shenzhen Huayuxun marks an important step by Huayi Brothers into the Internet business," Chen said.

"Even though ticket reservations are a small platform, the services can be greatly diversified through interaction with the audience and fans, social networks and advertisements."

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