Is the Chinese film industry really poised to dominate world markets in the next few years? According to research by Deloitte, as well as from other Chinese experts and analysts, this may well be the case. By 2020, the research suggests, China will be the world’s leading film and video market in the world. From now until 2020, the Chinese film industry itself looks to generate upwards of $30 billion in revenue.
With 1.3 billion citizens, China, right now, is the number two worldwide market just behind North America and its economy has been reportedly growing by around 10% a year since 1978. However, research further suggests that all of this assumed growth may not translate into outright domination as there remains several definite barriers to foreign filmmakers and distributors.
The first handful is, of course, the vast distances, the different culture and language as well as unbridled government interference. there are also the challenges with regard to securing local partners that will make entry easier as well as a crushing permit system that constantly feeds the Chinese government’s coffers. Finally, the Chinese government only allows a mere 54 foreign films to be shown in theatrical release in a given year.
Still, all this is the proverbial music to the ears of many American film producers especially in light of falling box office despite the rosy picture painted by Hollywood. A few blockbuster releases have been pulling Hollywood’s hide out of the fire because many films have struggled to find both an audience and a profit. Hollywood may be reporting record earnings this year but it was because of a small handful of ventures.
The research states that different areas of the industry will grow at different rates in China even though movie going will dominate the market by 2020. The research believes that Chinese film consumption has much room for growth and that opportunities for expansion are everywhere in China’s second, third and fourth largest cities. Even a small city in China has a couple of million people living in it.
The commerce giants of China have slowly begun investing in entertainment. Such companies as Baidu and Alibaba have begun throwing billions into the film, video, gaming and entertainment pot. At the outset at least, research believes that the opportunities for co-production will be more plentiful than outright barrier entry. These two companies alone could throw more at entertainment and film than many world countries could. They, alone, will soon change the playing field.
Here is the only time the two Chinese film legends, Jet Li and Jackie Chan, ever performed on screen together. The scene is from “The Forbidden Kingdom” (2008). There was, of course, a disagreement…
www.youtube.com/watch?v=Tx3IZaEJn5E
The Chinese film industry is a pretty wide open place. Much like Hollywood was prior to the early 1930’s when certain government demanded “standards” were introduced. Around 600 films a year are produced in China with more than 70% of them never getting a proper screening. Many of the Chinese film companies are looking at the Disney model as the future as many have begun to plan for merchandise tie-ins, theme parks, books and video games. They tend to site the example of Disney’s Toy Story 3 which did a little over $1 billion worldwide at the box office. However, with all of the other revenue streams connected to the movie, the film actually brought Disney $8.7 billion when all was said and done.
So, as 2020 approaches a mere three years away, China looks, indeed, poised to begin a run of domination that everyone else just may have to accept and then try and get in on.
- NAB Show Will Offer Special Session Taking A Look The Development Of “Games Of Thrones” - April 14, 2017
- GLOOKAST Innovation Continues To Solve The Challenges Of Today’s Broadcast And Media Productions - April 12, 2017
- Samsung Displays Screen Technology At CinemaCon That Could Make Film Projectors Obsolete - March 30, 2017
