Kazakhstan wants to change the rules for cinema operations

Tengrinews.kz — Kazakhstan is looking to bring order to the relationship between cinemas and distributors.The Agency for Protection and Development of Competition (AZRK) has proposed introducing unified rules for film distribution and a standard contract for cinemas to acquire films.
Why the AZRK is proposing to change the rules
The initiative follows a market analysis covering 2024–2025. The AZRK analyzed the activities of 63 market participants in Astana, Almaty, Shymkent, regional administrative centers, as well as the Almaty and Turkistan regions. The agency concluded that competition in the industry remains limited. This is particularly evident in the regions, where the cinema market is sometimes represented by only one or two players.
It should be noted that these rules have not yet come into effect. The Agency has only proposed their development and sent its recommendations to the Ministry of Culture and Information.
According to AZRK data, the film distribution market in the studied regions over the two-year period totaled approximately 76.2 billion tenge: 36.2 billion tenge in 2024 and 40 billion tenge in 2025. The Agency describes the market itself as highly concentrated.
Kinopark-Kinoplexx Theatres remains one of the largest players. Other major chains include Chaplin, Aru Cinema, Cinemax, Arman 3D, and Cinema Park. Meanwhile, many small cinemas operate in only one city and lack resources comparable to those of the major chains.
In some cities, the situation is even more concentrated, with one major participant holding the bulk of the market. In other locations, only two or three cinemas compete.
The problem: Access to films
One of the reasons the AZRK is proposing to change the rules involves how cinemas obtain films.
Distributors grant screening rights to cinemas, and the parties negotiate terms, the number of screenings, and other conditions. Revenue from ticket sales is then split between the cinema and the distributor according to the contract.
In practice, operating conditions can vary, and there are currently no clear, unified rules of engagement for the entire market. The Agency believes this can create additional difficulties for smaller cinemas.
Access to films is a critical issue for any cinema. A theater's repertoire and its ability to compete for audiences depend directly on which premieres it can schedule and under what terms.
Consequently, the AZRK is proposing to establish common rules for all participants.
What they want to change
The Agency is proposing several measures.
First, the development of formal regulations for film distribution activities.
Second, the creation of a standard contract between distributors and cinemas. This document would establish clear, general principles for cooperation between the parties.
Finally, the Agency suggests improving market monitoring.
The AZRK expects that these measures will provide cinemas with more equitable access to films and reduce the risk of individual participants gaining unjustified advantages.

"The development of the proposed rules and a standard contract (...) will create unified approaches to the interaction between cinemas and distributors," the Agency's conclusion states.

It further notes that this should ensure "equal and non-discriminatory access for market participants to film content."
The Agency has already investigated a controversial situation involving Kinopark. The analysis materials include a specific example illustrating why questions regarding market operations have arisen.
Following a request from the League of Cinematographers of Kazakhstan, the AZRK examined the situation surrounding Kinopark-Kinoplexx Theatres. Specifically, the issue involved requirements for additional advertising payments when accepting a film for distribution.
The Agency reported that, following its review, a notice was sent to the chain demanding an end to the imposition of advertising and mandatory fees for film releases, as well as the establishment of a uniform procedure for including films in release schedules.
According to AZRK materials, the chain ceased the practice of charging mandatory release fees and imposing advertising as of March 16.
This case essentially demonstrates why the agency wants to universalize the rules: to ensure that film release conditions are more transparent and do not depend on deals with specific players.
Why it is difficult for new cinemas to enter the market
High concentration is not the only problem identified by the agency.
Opening a modern cinema requires significant investment in projectors, server equipment, content protection systems, sound, screens, software, ticketing systems, and auditorium furnishings. Furthermore, a substantial portion of these investments is specialized: in the event of a closure, it can be difficult to fully recover the capital invested.
Fixed costs—such as rent, payroll, utilities, maintenance, and marketing—create additional pressure. Large chains, however, benefit from economies of scale, leveraging existing infrastructure, unified IT systems, loyalty programs, and centralized management.
Another factor is the shortage of attractive locations. Most high-demand venues are located in major shopping and entertainment centers where established operators already have a presence. As a result, new entrants must compete for a limited number of suitable spaces against chains with recognizable brands and proven footfall metrics.
There are also specific screening requirements: a distribution certificate is necessary for commercial exhibition, and legislation mandates dubbing, subtitling, or voice-over translation into the state language.
Next steps
For now, Kazakhstani cinemas do not need to make any changes. The rules proposed by the Agency for Protection and Development of Competition (AZRK) have yet to be reviewed.
The agency submitted its proposals to the Ministry of Culture and Information on June 29, 2026. According to the conclusion, the ministry is already considering the preparation of amendments and additions to cinematography legislation.
The final version of the rules still needs to be discussed with market participants. This is critical because many distributors work with international rightsholders and major film studios. Their terms also depend on the decisions of foreign partners, such as global release dates and licensing conditions.
Consequently, the AZRK announced the need to discuss the changes with cinemas, distributors, businesses, and other market stakeholders.
If implemented, these proposals will establish unified operating rules for cinemas and distributors. Meanwhile, viewers will not face any new requirements when purchasing tickets or visiting the cinema. The primary goal of the changes is to ensure that market participants operate under clearer and more comparable conditions, preventing film access from becoming an exclusive advantage for certain major players.