Top 10 Characteristics of China Film Industry in 2011

According to the State Administration of Radio, Film and Television (SARFT) China’s annual boxoffice gross topped RMB 13 billion Yuan ($2.1 billion) mark at the end of 2011, which figure includes tickets sales in urban cinema chains, cinemas in the second tier cities and rural areas. That is an increase of 28.93% when compared to year 2010. Total admissions tumbled 27% to around 370 million in this year, increased by 80 million from year 2010. With an additional 800 new-built cinemas and 3000 new-set silver screens, China has witnessed a mushrooming of modern cinemas nationwide in recent years, with an average daily increase of 8.3 screens.

The boom of China film industry is closely integrated with the fast development of movie theaters, which is regarded as terminal of film industry. The cinema circuit system in China was established in 2002. After gone through an adaptive phase from 2002 to 2004 and a period of Mergers and Acquisitions from 2005 to 2008, the reform of China cinema chain system has entered a fast-growth phase back to 2009. We saw that it is fully developed throughout the business of the film industry, and the industrialization of the film business has emerged in year 2011.

According to the upcoming China Film Industry Report 2011-2012 which is set to be issued by EntGroup Consulting in very short future, China film market appeared the features as below:

Film production: It is getting unbalanced between in-put and out-put in mainland film market.

In 2011 more than 230 films got screened on big screen in mainland market, among these 38 films gained over RMB 100 million Yuan for each at boxoffice which in total grossed RMB 9.2 billion Yuan. These 38 films took 16% in quantity of films released but enjoyed 70% market share in boxoffice revenue. That indicated an increasingly polarized film market with Hollywood blockbusters and high-budget domestic films take the most boxoffice income, in which market film producing and boxoffice profit is seriously out of balanced.

According to EntGroup analysis, when it comes to content and producing quality, local films still have long way to go comparing to Hollywood blockbusters. For domestic films producers, they could barely benefit from either the State’s protection policy or the huge amount of films, due to audiences’the strong favor to imported films. With an additional 14 foreign-made films allowed into China every year, native producers are facing a huge challenge of gaining boxoffice profit. The key points for local filmmakers to survive in this fierce competition are content quality enhancement and film subject well selection.

Sourceļ¼šEntGroup Consulting