The Dawn of LED Cinema Screens: AOTO Leads the Voyage into Uncharted Waters

"2024 marks the inaugural year of AOTO LED cinema screens' commercial development!" This sentiment echoes throughout the industry following AOTO's feature alongside the Chinese comedy "You Only Live Once" (YOLO), which premiered in February of this year, in a CCTV report. In the report, CCTV lauds AOTO LED cinema screens for having "surpassed the visual limitations of traditional cinema."

Simultaneously, the Guangdong Provincial Film Bureau announced subsidies for theaters upgrading to LED cinema screens and projection systems, signifying a step towards the national initiative of technology refreshment. This convergence of technology, brand, ecosystem, and policy paves the way for a golden era of LED cinema screens. AOTO, having inked a "bulk supply agreement" with cinema giant CFG-Barco, marks the industry's first for LED cinema screens in mass production. Leveraging this unparalleled advantage, AOTO is poised to spearhead the revolutionary transformation in cinematic projection. 

Forging New Productive Forces with LED Cinema Screens

Why transition from traditional projection systems to AOTO LED cinema screens? The answer lies in these three advantages and their commercial expansion potential. 

Absence of Traditional Light Beam Projection Unlike conventional cinema projection

systems, AOTO LED cinema screens eliminate the presence of projector beams, ensuring audiences are not disturbed by shadows or light interruptions during the viewing experience. This significant differentiation enhances viewer immersion, meeting the elevated demands for high-quality cinematic experiences.

Superior Image Quality

With high frame rates, luminance, contrast ratio, and refined color reproduction, AOTO LED cinema screens deliver unparalleled visual fidelity. Their superiority in color range, contrast capabilities, brightness levels, and refresh rates significantly exceeds traditional projection systems. The CCTV segment praised AOTO LED screens for having 'surpassed the visual limitations of traditional cinema.'

Cost Advantage 1: Lower Maintenance Costs

The maintenance costs of LED cinema screens are significantly lower than those of traditional cinema screens. When a traditional screen sustains damage, it requires complete replacement. In contrast, if an LED cinema screen is damaged, only the specific LED display modules need replacing, substantially reducing maintenance costs. This advantage will become increasingly apparent as the industry continues to adopt and implement LED technology. In the future, the cost of using LED cinema screens will be lower than that of using traditional cinema screens. 

Cost Advantage 2: Economies of Scale Will Further Enhance Cost-Effectiveness

Currently, the price of LED cinema screens is relatively high, largely due to existing "scale limitations." According to data from the end of 2023, less than a hundred LED cinema screens were deployed worldwide, indicating that this emerging product is still in its infancy. However, as more LED cinema screens are installed globally, economies of scale will emerge, significantly enhancing the cost-effectiveness of LED cinema screens. 

In September 2023, AOTO and CFG Barco signed the "CFG-Barco CINITY LED Cinema Screen Bulk Supply Agreement," a pioneering contract in the industry. This agreement signifies AOTO's leadership in the market and sets a benchmark for the industry's evolution toward LED-based cinema projection. 

Expanding Commercial Models for Cinemas

Beyond their direct advantages, LED cinema screens offer imaginative "business models," performing well in both dim and bright environments. Theaters equipped with LED screens can double as conference halls, lecture rooms, or multifunctional spaces, diversifying revenue streams for cinema operators. In essence, as a technological innovation, LED cinema screens not only transcend existing viewing experiences but also introduce new commercial possibilities, epitomizing the transformative productive force within the cinema industry. 

Technology + Ecosystem: AOTO's Forefront Position in the LED Cinema Screen Market

As of February 2024, AOTO LED cinema screens had been installed in theaters across five locations, including Beijing, Jinan, and Chengdu, contributing to a historic high in box office revenues. Despite entering the market after giants like Samsung, LG, and Sony, AOTO has rapidly expanded its market share through strategic partnerships and supply agreements, showcasing its robust product and technological capabilities. 

Securing the World's First Bulk Supply Order

As the supplier of LED screens for the CFG-Barco CINITY LED cinema projection system, AOTO has provided substantial support. With its dominant position in the cinema chain market, CFGC boasts unique advantages ranging from content to market operations, from industrial support to proprietary market implementation, and from understanding and applying policies to anticipating demand trends. This close relationship with customers enables both China Film Group and AOTO to deeply understand the needs and patterns of the cinema projection market.

In September 2023, AOTO signed the "CFG-Barco CINITY LED Cinema Screen Bulk Supply Agreement" with CFG-Barco, marking the industry's first bulk supply agreement for LED cinema screens. This agreement is heralded within the industry as the first case of LED cinema screens entering the "blue ocean" era. It not only carved a niche for AOTO in the market but also provided practical guidance for the deeper development of the industry in terms of market operations, ecological application scheme integration, and scenario implementation.

Certainly, AOTO's ability to gain favor from China Film Group and secure the world's first bulk order is a testament to its robust product quality and technological prowess.

30 Years of Research: AOTO's Pinnacle of Technology and Equipment

The true measure of strength lies in product performance, verifiable data, and market validation. The DCI CTP certification represents a global standard in the cinema projection industry. AOTO's LED cinema screens have passed a rigorous 36-item test, securing DCI certification with their outstanding performance and quality, ensuring their position as a reliable choice for comprehensive cinematic and visual applications. 
In developing high-performance and reliable LED cinema screens, AOTO has leveraged three decades of industry research, focusing on high-quality design, materials, and manufacturing processes. This approach ensures exceptional visual performance and durability of their LED cinema screens. 

Among these, its stringent quality control measures include 14 tests for mechanical structure and appearance, 9 for optical performance, and 9 for electrical performance. These high standards ensure that after assembling the LED modules, there is exceptional uniformity and minimal planar deviation. Rigorous testing and careful selection of materials also guarantee high performance and consistency in brightness, grayscale reproduction, and color fidelity; comprehensive electrical performance testing ensures the products’ reliable working life and stability...

The "ecosystem + product" strategy has accelerated the deployment of AOTO LED cinema screens. Industry data shows that the global number of cinema screens is nearing 220,000, with the Chinese market on the verge of breaking through the 100,000 mark. Against this backdrop, the rapid rise of LED cinema screens is poised to accelerate the transformation of the domestic cinema industry from large to strong. By deploying a new generation of LED cinema screens, AOTO has taken the lead in seizing future business opportunities, promoting an upgrade in viewing quality and cinema operations.

AOTO Electronics is rapidly advancing in the integration of LED display technologies within the cinema and broader entertainment industries, promising a future where cinematic experiences are significantly enhanced. Through innovative LED cinema screens and an ecosystem encompassing XR production systems and virtual studios, AOTO is setting new standards in content creation and viewing experiences.