A massive reshuffle in China's film distribution sector is
slated to begin in June, creating more favorable market conditions
for domestically made movies.
"Although the Chinese film industry achieved historic
breakthroughs last year, much still remains to be done to
revitalize the local industry that plays only a minor role in the
national economy. At the top of the list is further reform in the
cinema circuits business," Tong Gang, head of the State
Administration of Radio, Film and Television's (SARFT's), Film
Bureau, said at a press conference on Wednesday.
China's feature film output scored a historical high last year,
totaling 212, of which 202 were in conventional film format and 10
in digital format. In 2002, just 100 films were made, rising to 140
in 2003.
But only about one-third of domestically produced movies show up
in cinemas across the country each year. Many are sold to
television film channels such as China Central Television's Film
Channel (CCTV-6) and the Dragon TV Movie Channel of Shanghai Media
Group.
Some films went directly to viewers via online screening or in
DVD format, on which the low royalties make it impossible for
investors to recoup their money.
The absence of powerful cinema circuits has severely
bottlenecked growth in the industry, Tong said.
Since June 1, 2002, 37 cinema circuits have been set up across
the nation.
Most were reconstructed from state-owned, provincial, or
regional film distributors and cinema networks, except for the
privately run Century Hero Cinema Circuits, China Film Star Cinema
Chains, and Dalian Wanda Cinema Circuits, a joint venture between
Dalian Wanda Group and Warner Bros. China.
The three-year contract between the former state-owned
distributors and exhibitors expires on June 1, 2005, when
distributors and cinemas will be permitted to reorganize or
establish partnerships freely.
To prevent local protectionism and create a larger market for
domestic films, SARFT is encouraging partnerships between
distributors and exhibitors in different provinces or regions.
In 2003, a new policy gave private and overseas investors
greater access to film production, distribution and construction
and management of cinemas. Kodak and Warner Bros. of the United
States are among the early birds teaming up with local film
distributors and movie theatres.
(China Daily January 6, 2005)