• Wednesday, October 14, 2015

Chinese film industry slumps after opening up to Hollywood

Xinhua 2012-07-27 10:46 (GMT+8)
An extra 14 Hollywood movies can be shown in China each year if they are in a 3D or IMAX format. (File photo/Xinhua)

An extra 14 Hollywood movies can be shown in China each year if they are in a 3D or IMAX format. (File photo/Xinhua)

China's domestic film industry has hit a five-year low despite robust growth in box office sales across the country in the first half of this year, filmmakers say.

The industry is going through a rough patch as ticket sales of domestic films started to fall in the first six months, a time when the country's total box office revenues gained by more than 40% from a year ago.

The box office for domestic films dropped by 4.3% year-on-year to 2.8 billion yuan (US$444 billion), according to the latest data from the State Administration of Radio, Film and Television.

The slump came just months after China amended rules in February to import more Hollywood movies for national distribution.

In the meantime, ticket sales of foreign films jumped by 90.4% year on year to 5.27 billion yuan (US$825 million).

In the January-June period, 14 blockbusters hit Chinese theaters among the 38 imported films screened in the country, and only two of them failed to bring in more than 100 million yuan (US$15.8 million).

In contrast, among the 141 China-made movies screened in the same period, only 5% managed to break even and the rest lost money, industry insiders said.

China had previously allowed only 20 American films — mostly big-budget Hollywood fare — to be distributed nationally each year. In February, the country agreed to allow an additional 14 US films to be distributed each year as long as they are made in the 3D or IMAX formats.

China represents one of the most attractive growth opportunities for the US film industry, which is facing declining theater revenues and slumping DVD sales in North America.

The deal has greatly affected the country's movie market, because movie tickets are relatively expensive in China and audiences are more likely to choose cost-efficient Hollywood blockbusters which are better made and have bigger budgets, said Wang Changtian, president of Enlight Media, the largest independent production firm in China.

Driven by greater economic gains, cinemas tend not to grant peak slots to domestic films. Many Chinese filmmakers complain that less popular domestic movies are given fewer screenings.

The decline in sales will have an adverse impact on investors, and many investment companies have already become cautious and slowed their pace.

"Once the capital chain ruptures, both the quantity and quality of domestic movies will all fall. The competitiveness of Chinese films will weaken," Wang said.

At Hengdian World Studios, the country's largest shooting base, located in east China's Zhejiang province, only 20 films were being shot in June, down from 50 last June.

According to forecasts from industrial insiders, films produced in China will decrease by 30% year-on-year to 500 this year, and the industry is expected to continue to shrink next year.

Who`s who »
Chen Wu (陳武)

Chen Wu was appointed party secretary of Guangxi Zhuang autonomous region in 2013. Born: 1954 Birthplace: Chongzuo, Guangxi Country of Citizenship: China Education: Party School of the ...