Film industry reshuffle slated for June
By Zhu Linyong (China Daily)
Updated: 2005-01-06 09:55

A massive reshuffle in China's film distribution sector is slated to begin in June, creating more favourable market conditions for home-grown movies.

Tong Gang, head of the Film Bureau, which is part of the State General Administration of Radio, Film and Television, was speaking at a press conference yesterday.

"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. Top on the question list is further reforms in the cinema circuits business," Tong said.

China's feature film production output scored a historical high last year, totalling 212, of which 202 were in traditional format and 10 in digital format, he said.

In contrast, the production volume in 2002 and 2003 turned out to be 100 and 140.

He admitted that only about a third of home-grown movies were given the chance to show up in cinemas across the country each year.

Many others were sold to film channels on television stations such as the Film Channel (CCTV-6) of China Central Television and the Eastern Movie Channel of Shanghai Media Group.

Some films went directly to viewers by online screening, or in DVD format, the low copyright fees of which make it impossible for investors to recoup their money.

The lack of powerful cinema circuits in the country has severely bottlenecked a steady growth of domestically made films in the film markets in the country, Tong said.

Since June 1, 2002, as a major step in China's film industry reforms, 37 cinema circuits have been gradually formed across the nation.

Most of them were arranged on the basis of formerly State-owned, provincial, or regional film distributors and cinema networks, except for the privately run Centuryhero 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 previously State-owned film distributors and exhibitors expires on June 1, 2005.

"By then, the film distributors and exhibitors will be allowed to change partners at their own will," Tong said.

"A film distributor has the freedom to decide which movie theatres will remain in and which will be excluded from its new cinema circuits networks. Likewise, a movie theatre may choose to join any other cinema circuit."

To break local protectionism and create a larger market for home-grown films, business partnerships between a film distributor and a film exhibitor in different provinces or regions are encouraged, Tong said.

In 2003, a new film policy allowed private and overseas money greater access in film production, distribution and construction and management of cinemas. Kodak and Warner Bros of the United States are among early birds teaming up with local film distributors and movie theatres.

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