China Film Industry Report 2010-2011

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China Film Industry Report 2010-2011

China Film Industry Report 2010-2011


Brief Version

China Film Industry Report 2010-2011

Contents
1.

OVERALL TRENDS IN CHINAS FILM INDUSTRY .8

1.1.

Analysis of Chinas Film Industry in 2010 8

1.1.1 Policy: film as a national strategic industry 8


1.1.2 Financing: hot money flowing into the film industry 8
1.1.3 Society: the formation of movie-going habits 8
1.1.4 Technology: digitalizing a necessary trend for film development 9
1.2. Film Industry Chain in China 10
1.2.1 Box Office Revenue Sharing System in China 11
1.3.

Analysis of the Scale of Chinas Film Industry 11

1.3.1 The Scale of Chinas Film Industry 11


1.3.2 Domestic Box Office Revenue in China 13
1.3.3 Film Copyright in China 13
1.3.4 Movie Advertising in China: huge potential that needs to be standardized 13

2.

THE PRODUCTION SECTOR.15

2.1. Introduction of the Production Process for Chinese Films 15


2.2. Overview and Analysis of Movie Production in China in 2010 15
2.2.1 Analysis of Quantity of Movies Produced in China in 2010: 526 total movies 15
2.3. Analysis of Financing Channels for Chinese Movies 17
2.4. Analysis of Investment Returns 18
2.5. Co-production in 2010 19
2.5.1 Definitions and Patterns 20
2.5.2 Co-production Patterns 20
2.5.3 Co-production Policies and Development Trend 20
2.6. Future Trends of Chinese Film Production 20
2.6.1 The Emerging Profits for Small to Mid-Budgeted Genre Films 20
2.6.2 Co-productions Seek more Overseas Territories 21

3.

THE DISTRIBUTION SECTOR21

China Film Industry Report 2010-2011

3.1 Summary of Film Distribution Market in 2010 21


3.1.1 Highly concentrated market. 21
3.1.2 Quarterly fluctuated performances of private companies 22
3.1.3 Investment Patterns 22
3.2 Market Performances of the Major Distribution Companies in 2010 23
3.2.1 China Film Group Corporation: remaining a monopoly situation 23
3.2.2 Huaxia: Steadily increasing the distribution volume of domestic films 23
3.2.3 Huayi Brothers: Quality production of high value 23
3.2.4 China Film Digital: Steadily improving 23
3.2.5 Bona Film Group: High quantity and scale effect 23
3.3 Case StudyAftershock 23
3.4 Case StudyLet The Bullets Fly 23

4.

THE EXHIBITION SECTOR CINEMA CIRCUITS IN CHINA 201024

4.1 Introduction to Cinema Circuits in China 24


4.2 Market Landscape of Cinema Circuits 24
4.2.1 Introduction 24
4.2.2 Market Analysis 25
4.3 Major cinema circuits in China 25
4.3.1 Wanda Cinema Line 25
4.3.2 China Film Stellar Theater Chain 25
4.3.3 Shanghai United Circuit 26
4.3.4 China Film Southern 26
4.3.5 Beijing New Film Association 27
4.3.6 Guangzhou Jinyi Zhujiang Movie Circuit 27
4.3.7 Zhejiang Time Cinema Chain 27
4.3.8 Guangdong Dadi Digital Cinema 28
4.3.9 Sichuan Pacific Cinema 28
4.3.10 Liaoning Northern Cinema 28
4.4 Market Features and Future Trends 29
4.4.1 Fast Developments and Wider Gaps 29
4.4.2 Imbalanced Development among Different Regions 29
4.4.3 Seeking Better Management 29

China Film Industry Report 2010-2011

5.

THE EXHIBITION SECTOR -- CINEMAS IN CHINA 201030

5.1 The Development of Cinemas in China in 2010 30


5.1.1 Number of Cinemas and Screens 30
5.1.2 Development of Digital Screens in China 30
5.1.3 Development of 3D Screens in China 30
5.1.4 Development of IMAX Screens in China 30
5.2 Overview of Chinas Cinema Market in 2010 31
5.2.1 Data Different Box Office Levels for Chinese Cinemas in 2010 31
5.2.2 Top 100 Selling in China in 2010 31
5.2.3 Operational Efficiency of Top 100 Cinemas in China in 2010 31
5.2.4 Top 10 Grossing Cinemas in China 32
5.2.5 Beijing Box Office Sales in 2010 32
5.2.5 Shanghai Box Office Sales in 2010 34
5.3 Analysis of Cinema Investment 36
5.3.1 National and Local Support Policies for Cinema Investment 36
5.3.2 Major Cinema Investors 36
5.4 Cinema Investment and Management Companies 36
5.4.1 Overview of Cinema Investment Companies 36

6. 2010 STUDY ON CHINAS MOVIE CALENDAR.36


6.1 2010 Market Analysis of Movies on a Monthly Basis 36
6.1.1 Trend of Yearly/Monthly Box Offices in 2010 36
6.1.2 Distribution of Months for Milestone Movies in 2010 37
6.2 Analysis of China Milestone Movie Release Calendars 37
6.2.1 Summer Movie Release Calendar 37
6.2.2 Movie Release Calendar on Mid-autumn and National Day 37
6.2.3 Release Calendar the New Year period 37
6.3 Analysis of the Development of Chinas Movie Release Calendar 37

7. ANALYSIS OF MAJOR PLAYERS IN CHINAS FILM INDUSTRY38


7.1

Analysis of the Competitiveness Edge of Sophisticated Players in the Film

Industry 38
7.1.1 A Six-year Journey of China Film Group IPO Efforts to Be Finalized 38

China Film Industry Report 2010-2011

7.1.2 Shanghai Film Group 38


7.1.3 Huayi Brothers 38
7.1.4 Bona Film Group 38
7.1.5 Orange Sky Golden Harvest Ltd. 39
7.1.6 Stellar Film Group 39
7.2 Analysis of Competitiveness of New Film Companies 39
7.2.1 Enlight Picture 39
7.2.2 Galloping Horse 39
7.2.3 Dadi Movie 39
7.2.4 LETV Pictures 39
7.3 Analysis of competitiveness of placement advertising company before movie
release

39

7.3.1 Filmore-media. Incorporated Company 39


7.3.2 Jingmao Film Media 40

8. INTRODUCTION AND EXPORT OF OVERSEAS FILM COPYRIGHT41


8.1 Introduction of Overseas Film Copyright for Chinese Film Market in 2010 41
8.1.1 Overview of Box Office of Imported films in 2010 41
8.1.2 Analysis of Market Features of Imported films in 2010 41
8.2 Export of Domestic Films in 2010 41
8.2.1 Overview of Chinese Film Export in 2010 41
8.2.2 North American 42
8.2.3 Asian-Pacific region 42
8.2.4 Europe and Other Regions 42

9.

MOVIE-GOING SURVEY CHINA IN 2010.43

China Film Industry Report 2010-2011

I.

Research Background

Looking back at 2010, despite global economic recession, Chinas film industry
performed exceptionally well with leaping advances.

Based on interviews and

in-depth research and analysis of the film industry, EntGroup presents 2010-2011
China Film Industry Report.

II.

Research Scope

Using data from in-depth research and analysis, this report will focus on the Chinese
film industry in 20102011. In this report, the Chinese film industry refers to mainland
China film industry, and does not include the industries in Hong Kong, Macau and
Taiwan.

III. Methodology
This report adopts both quantitative and qualitative methods, and combines revenue
figures of the film market to conduct the research on the Chinese film industry.

The

statistics used in this report is primarily from the figures announced on China Film News,
gathered from the Computer Ticketing Network Centre of National Film Special Fund
Office, while the market ranking data was obtained from the China Film Exhibition &
Distribution Association, as well as data provided by main film circuits in the country.
The above data were cross-examined by interviewing major cinema circuits and
distribution companies. All the figures and statistics used in this report were obtained
from more than one source, and they were cross-examined repeatedly and were
analyzed comprehensively, to ensure the greatest accuracy and authenticity.

IV. Introduction to online survey


Concept Definition
Chinese movie-goers refer to audience who watched at least one movie in a cinema in
China during the past year (excluding Hong Kong, Macau and Taiwan).

The audience

in this report refers to cinema movie-goers only.


Research Method
The survey was conducted by Internet survey, with Internet survey group iResearchs
iClick survey community network to obtain related data and results.
Period of survey
From Nov 5, 2010 to Nov 30, 2010
Survey Sample

China Film Industry Report 2010-2011

The total number of sample is 9242, among which 3299 are samples from eight major
cities. The 8 major cities are selected from the top 8 cities that have their 2008 box
office revenue grossing over RMB100m.

The sample audience is then weighed valued

based on the distribution of Chinese movie-goers in major cities, as well as the


distribution of Chinese Internet users in major cities.

V.

Definitions

Production Company
Companies that engage in film financing, shooting and post-production work of a film
project which includes film production companies and post-production companies.
The production company owns the original copyright of a film, and sells within a certain
time frame of the copyright to a distribution company or distributor of other channels.
Distribution Company
Companies responsible for setting up and executing marketing and promotional
strategies for the films, as well as negotiating with cinema managers on release scales
and the number of film prints or opening-day screens.

Distribution companies

purchase or represent a films distribution rights, then release the film in the
partnering cinema circuits on flat-fee or revenue-sharing basis, or in other forms of
partnership.

Often times the production and distribution of a film is managed by the

same company.
Cinema Circuits
Cinema

management company that is responsible for communicating with the

distribution company to schedule screenings of a film.

A cinema circuit consists of

several cinemas; cinema circuits provide films prints, schedule screenings and manage
cinemas under the circuits.
prints of the movies.

On a revenue-sharing scheme, cinema circuits obtain

Cinema circuits normally schedule screenings of major

productions, whereas distributors of medium or low budget films need to strive for
support from the cinema circuits to secure screening possibilities.
Cinema
The actual place where the films are screened, and where box office revenue go to;
except for the share of box office revenue, a cinemas revenue also includes the sales
of concession such as popcorn, drinks and other additional products, as well as
derivative commodities of the films, which account for approximately 10 -16 of a
cinemas total income.
Digital Film/ Digital Print/ Digital Screen
Digital film refers to films that are filmed, produced, stored with digital technology, with
the signals transmitted through satellite, optical fiber, disk, Compact Disks or other
forms of physical transmitting forms, then transformed into audio and visual data that

China Film Industry Report 2010-2011

conforms with film technology standards, and presented on cinema screens for viewing.
Digital prints refer to film prints distributed in digital formats; currently in China, digital
prints are normally delivered in hard drives.
Digital screens refers to cinema screening rooms installed with digital projectors and
can project digital films onto the screens.

The number of digital screens is a main

index used to evaluate a regions capacity of showing digital films.


3D Films/ 3D Screens
3D films are films that are shot with cameras of stereographic technolody or are shot
with in normal cameras but added with computer generated 3D stereoscopic images.
3D screen refers to cinema screens that are equipped with a 3D projectors, and that are
able to present 3D stereoscopic images for viewing.
IMAX Films/ IMAX Screens
IMAX films are films shot in 70mm film format or produced through computer
technology to display images of extra large resolution, to be projected onto IMAX
screens; an IMAX screen is a screen to project an IMAX film; a standard IMAX screen is
22 meters wide and 16meters high, but the actual sizes IMAX screens vary in different
cinemas and regions.
Product Placement
Product placement refers to the placement of a product or its iconic visual image or
even its service into a the images of a film, TV drama or television program.

Product

placement is a marketing and advertisement strategy which aims to give the viewers
impression of the product or brand through scene arrangements to let the product or
image reappear in the program, thus creating the effect of advertisement
Cinema Advertising
Advertisements especially produced to be broadcasted along with the screening of a
film in cinemas; normally they are broadcasted before the actual film begins.

China Film Industry Report 2010-2011

VI. The Report


1.

Overall Trends in Chinas Film Industry

1.1. Analysis of Chinas Film Industry in 2010


1.1.1 Policy: film as a national strategic industry
With the release of the Cultural Industries Stimulation Plan in 2009, Chinas cultural
services industry was elevated to the national strategic level. In 2010, the State Council
and nine other ministries issued additional guidelines, giving new life to Chinas film
industry.

Guidelines on Stimulating Film Industry Development

Guidelines on Financial Support for the Promotion and Development of Cultural


Industries

1.1.2 Financing: hot money flowing into the film industry


In 2010, there was an increase in risk in traditional investment sectors like construction
and the stock market, which resulted in a portion of that money coming into cultural
industries. Investment in film over the past few years has been limited to 400-500
companies, but this year, that number broke 1,100. While outside investment in the film
industry has resulted in an increase in the number of movies and the overall level of
investment, the influx of so much hot money has resulted in an overheating of film
investment. Many outside investors have only a limited understanding of the industry
and blind investment may lead to increased risk. At the same time, the influx of too
much hot money is not necessary beneficial to the healthy development of the industry
as a whole.

1.1.3 Society: the formation of movie-going habits


As the number and quality of movies steadily increases, the number of cinemas has also
increased. The appearance of event-focused movies like Avatar and Let the Bullets Fly
has brought Chinese viewers who havent seen a movie in years back to the cinemas.
For young people, going to the movies has become a set leisure activity. In 2010, the
number of movie goers in mainstream Chinese movie markets was 286 million, this is a
40% increase from 204 million in 2009.

China Film Industry Report 2010-2011

1.1.4 Technology: digitalizing a necessary trend for film development

Digital Screenings

As of the end of 2010, of the 6,200 screens in China, around 4,100 were digital or 66% of
the total number, second only to the United States. 2,500 new digital screens went
online in 2010.

3D Screenings

The screening of Avatar sparked a wave of construction of 3D screens in China. As of the


end of 2010, China had 2,020 3D screens, a number second only to the United States.

Changes in the Number of 3D and Digital Screens 2007-2012


2007

2008

2009

2010

2011E

2012E

No. of 3D Screens

82

130

700

2020

4800

7200

No. of Digital Screens

700

800

1600

4100

7408

10030

Total Screens

3527

4097

4723

6256

8925

11800

Percentage of Digital Screens

20%

20%

34%

66%

83%

85%

2011.2 EntGroup Inc.

www.entgroup.cn

Table 1-2: Changes in the Number of 3D and Digital Screens 2007-2012

China Film Industry Report 2010-2011

Film Industry Chain in China

Figure 1-2: Film Industry Chain in China

10

China Film Industry Report 2010-2011

1.2.1 Box Office Revenue Sharing System in China

Box Office Revenue for Share: Actual Box Office Income Operational Taxes/Fees
NFDF Fund Contribution

Operational Taxes and Fees: Actual Box Office Income x 3.3%

NFDF Contribution: Actual Box Office Income x 5%


Table 1-3: Box Office Revenue Split Ratios

1.3.

Analysis of the Scale of Chinas Film Industry

1.3.1 The Scale of Chinas Film Industry


In 2010, the total income of Chinas film industry was 15.36 billion RMB, up 53% from
2009. This can be categorized into domestic box office revenue, domestic non-box
office revenue and international sales revenue. In western countries with developed film
industries, domestic box office revenue usually makes up less than 30% of total revenue,
but in China, this number is closer to 70%.

11

China Film Industry Report 2010-2011

Figure 1-3: Revenue of Chinas Film Industry 2005-2012

12

China Film Industry Report 2010-2011

1.3.2 Domestic Box Office Revenue in China: 27 films over 100M, imported
films comprise 43% of box office revenue
Box office revenues sky rocketed in 2010, reaching 10.17 billion RMB, up 63.9% over
2009.
Also in 2010, there were 27 films that brought in over 100 million RMB, compared with
only 8 in 2009. Four of these, Avatar, Aftershock, Let the Bullets Fly and Inception
passed the 400 million mark, one more than in 2009. Avatar brought in a massive 1.39
billion RMB in box office sales, becoming the first film in mainland China to break the 1
billion mark.

1.3.3 Film Copyright in China

Copyright of Film and Television in China: small-budget films one saving grace

New Media Copyrights of Chinese Films: prices rising rapidly, gradually replacing
DVD rights

1.3.4 Movie Advertising in China: huge potential that needs to be


standardized

13

China Film Industry Report 2010-2011

Figure 1-8: Movie Ad Industry Chain in China

1.3.4.1 Product Placement in Chinese Movies: placement should be primary


concern
1.3.4.2 Pre-Screening and Film-attached commercials in China: must be further
standardized
1.3.4.3 Tie-in Promotion: a new ad format waiting to be developed

14

China Film Industry Report 2010-2011

2. The Production Sector


2.1.

Introduction of the Production Process for Chinese Films


Pre-production Stage

1. Creation of Script
2. Budget Creation
3. Cast/Crew Selection
4. Selection of Location and Props, etc.
5. Review of Script and Obtaining of Filming License

Filming

Post-Production

Review

2.2.

Overview and Analysis of Movie Production in China in 2010

2.2.1 Analysis of Quantity of Movies Produced in China in 2010: 526 total movies
Starting in 2002, the number of movies produced in China began a period of rapid
growth that averaged about 20%. 2008 saw a slight decline, but strong growth was seen
again in 2009 and 2010. There were 526 movies produced in China in 2010, making the
country the third largest maker of films in the world.

15

China Film Industry Report 2010-2011

Figure 2-2: Number of Domestic Movies Produced and Shown in China, 2003-2010

16

China Film Industry Report 2010-2011

2.2.2 Number of Chinese Films Produced in 2010 by Genre: romance and action
films top list
Of the domestically produced films that garnered considerable box office sales,
romance and action films had the highest production numbers, respectively making up
25% and 20% of all films. Following these were comedies and dramas with 17% and 11%
respectively. In terms of box office market share by genre, action, drama and romances
with market shares of 33%, 20% and 15% respectively.
2.2.3 Cost Analysis of Chinese Films in 2010
2.2.4 Number of Digital Films in China

Digital Movies a Strong Trend

Profitable Trials in 3D

2.3. Analysis of Financing Channels for Chinese Movies


With increased policy support for movies from the government and a resurgence in the
movie market, a great deal of capital has flowed into the film production sector. This
report believes that the problem of financing for film production has initially been
resolved and that financing resources for Chinese film production will be more
abundant in the future.
2.3.1 Bank Loans and Classic Examples
2.3.2 Product Placement
2.3.3 Film Funds
2.3.4 Financing in the Stock Market

2.3.5 Government Funding

17

China Film Industry Report 2010-2011

2.4. Analysis of Investment Returns

2.4.1

Main Risks of Film Investment

This report divides the risks of film investment in Chinese film industry in 11 categories.
Each of the below category may be influential and be a deciding factor for a films final
box office result and its social impact.

Main Risks of Film Investment


Risks

Definition

Example

If the script can pass the censorship and

Policy Risk

Over-budget

secure a shooting permit


Is the production over-budgeting and
causing the shooting to halt

Shanghai
Red Cliff

Does the filmmaker and the investor


3

Risk of Crew

agree

on

the

narrative

style

and

direction, and finish the shooting on

Empire of the Deep

time
4
5

Joint

Disagreement between two sides of the

Liang Ge Ren De Ji

Investment

joint investors

Jie

Accidents and hazards in production

Red Cliff

Safety

of

Filming

Reign of Assassins
6

Overlapping

Films of similar subjects or genres

vs

Detective

Dee

Subjects

screened on the same week

and the Mystery of


Phantom Flame

7
8
9
10
11

Risks

of

Distribution

Access to secure a theatrical release as


scheduled, or a good time slot
Pirated copies of film available before

Piracy

screening

Adaptation

Has the production company purchased

rights

the adaptation rights

Public

Does the production company maintain

Relations

a good relation with the media

Word
Mouth

of

Driverless
Let the Bullets Fly
Royal Tatoo
Confucius

Does the film have good word-of-mouth

Just

after release

Nobody

2011.2 EntGroup Inc.

Call

Me

www.entgroup.cn

Table 2- 1 Main Risks of Film Investment

18

China Film Industry Report 2010-2011

2.5.

2.4.2 Analysis of Investment Returns

Aftershock

Detective Dee and the Mystery of Phantom Flame

Go Lala Go

Midnight Beating

Chongqing Blues

Co-production in 2010

In 2010, 95 films have applied to China Film Co-production Company for co-production
or assisted-production, and 63 of them were approved.

19

China Film Industry Report 2010-2011

2.5.1 Definitions and Patterns


The EntGroup Report defines co-production films as films jointly produced by Chinese
and foreign production companies.
The application and procedure of a co-production film is described as below:
Look for Chinese partner, applying for a co-production permit through
1

China Film Co-production Company


Receiving a shooting permit, and signing co-production contracts with

co-production companies
Production
Sending the film to China Film Co-production Company, to be reviewed

by film censors
Passing the censorship, receving a screening permit

International film festivals or distribution

Figure2-7 Chinese co-production filming procedure

2.5.2 Co-production Patterns


Since Chinese companies do not take part financially in assisted productions and
commissioned productions, they do not have the copyrights of the productions.
Sino-Foreign co-productions, on the other hand, are jointly invested by companies of
different countries, so the copyright and the distribution of the production in each
geographic area may go to the respective companies. Another possibility is the
copyright in each geographic area be collectively possessed by all investors while each
of them is solely responsible for the distribution in their own territory.
2.5.3 Co-production Policies and Development Trend

2.6.

ChinaHong Kong co-production policies

Mainland China -Taiwan Co-production

China-Australia Co-production

China-France Co-production

Future Trends of Chinese Film Production

2.6.1 The Emerging Profits for Small to Mid-Budgeted Genre Films

20

China Film Industry Report 2010-2011

2.6.2 Co-productions Seek more Overseas Territories

3. The Distribution Sector


3.1 Summary of Film Distribution Market in 2010
3.1.1 Highly concentrated market.
In 2010, there are 300 production and distribution companies in mainland China, same
as the number in the past two years. Among them, 90% are privately owned, and more
than one third of them have not met with the requirement to produce films in two
consecutive years. Around 50 of them have business volume of two films or more
annually, and have the ability to keep on running. In general, the market is still highly
concentrated and the top ten companies have taken 85.5% of the market share in the
distribution market.

Figure 3- 1 Market Share of the Top Ten Distribution Companies in China, 2010

21

China Film Industry Report 2010-2011

3.1.2 Quarterly fluctuated performances of private companies


With only a few films to distribute for each companies, the performances of private
distribution companies were seriously influenced by the quality of individual films.
Besides,, as private companies are not allowed to

distribute revenue-sharing imported

films, their market shares changed more dramatically than that of state-owned
enterprises.

Figure 3- 2 Market Share of Major Distribution Companies, Q1-Q4, 2010

3.1.3 Investment Patterns


The analysis of revenue range shows that companies distributed more than ten films
have a more complete film revenue structure than others. The revenue segmentation of
the two biggest companies in China, China Film Group and Huaxia, has very much
reflected the general trend of Chinese film market. Most of their films had the theatrical

22

China Film Industry Report 2010-2011

revenue of 50 million or less, and only a few films can be squeezed into the revenue
range between 50 million to 90 million. According to enbase of EntGroup, among the
148 films exhibited in 2010, 18% of them gained their theatrical revenue of RMB100
million or more, 14% of them gained 50 to 100 million, 32% gained 10 to 50 million, and
36% gained 10 million or less. Major productions and their distributed films were
mainly handled by the top ten distributors (all of the 27 films with the revenue of
RMB100 million or more were most certainly handled by top ten companies). As a
whole, the ratio of 100million films in the distribution list of ten companies is most
certainly higher than ratio of 100m films in the total number of films.

3.2
3.2.1

Market Performances of the Major Distribution Companies in 2010


China Film Group Corporation: remaining a monopoly situation

In 2009, China Film Group distributed a total of 62 films; the total revenue was 4.044
billion yuan, which accounted for 64.5% of the total theatrical revenue in China. Its
market share was 38.4%, a percentage that earned it the first place of the top ten
distributors. In 2010, the China Film Group distributed 90 films and gained a revenue of
8.022 billion, which accounted for 78.43% of the total theatrical revenue in China; the
market share was 36.2%, slightly lower than that in 2009. In 2010, the top ten films
distributed by China Film Group collectively created 4.23 billion in their theatrical
revenue and 64.5% of it was from imported films, much

more than the revenue of

domestic films.
3.2.2

Huaxia: Steadily increasing the distribution volume of domestic films

3.2.3

Huayi Brothers: Quality production of high value

3.2.4

China Film Digital: Steadily improving

3.2.5

Bona Film Group: High quantity and scale effect

3.3 Case StudyAftershock


3.4 Case StudyLet The Bullets Fly

23

China Film Industry Report 2010-2011

4. The Exhibition Sector Cinema Circuits in China 2010


4.1 Introduction to Cinema Circuits in China

Introduction

The cinema circuit system in China was established in 2002. The system ended the old
distribution and exhibition system which was based on geographic regions and was
formed during the planned- economy era. At that time, films were distributed by
administrative unit of a province, city or county.

The cinema circuit system lets the

distributors to go to cinema circuits directly and the circuit is responsible for supplying
films to the subordinate theaters. The cinema circuit system not only simplifies the
procedure of film distribution and enhances the efficiency, but also introduces a
competition mechanism among the cinema circuits, making film exhibition a part of the
market economy.

It has then become the driving force of the development of Chinese

film industry.
For cinema circuits financially owning their cinemas, they can be more efficiently and
effectively manage the cinemas and handle the screening schedules more smoothly,
while for those cinema circuits set up in the form of alliance, their market share tend to
be smaller.

However, from the development of cinemas in 2010, we can see that more

and more cinema circuits choose to take financial control over their cinemas in order to
pursue better management and better branding.

This will be a main direction of

future development for cinema circuits in China.

4.2 Market Landscape of Cinema Circuits


4.2.1 Introduction
Since the establishment of the cinema circuit system in 2002, the Chinese film market
has entered an era of rapid development.

In 9 years, Chinas annual box office

revenue has increased from RMB100 million to RMB 10.2 billion.


system is one of the main factors behind such a rapid growth.

The cinema circuit

The following section

will analyze the Chinese cinema circuits in various aspects such as size, numbers,
concentration rate and operation type, and find out the development features of
cinema circuits in 2010.

24

China Film Industry Report 2010-2011

4.2.2 Market Analysis

Size

Numbers

Revenue

Concentration Rate

Screen Concentration

Operation Efficiency

4.3 Major cinema circuits in China


4.3.1 Wanda Cinema Line
Annual Overview
Cinemas

Screens

Cinema number

67

New cinemas

21

Screen
Number
New
Screens

Box Office
554

200

Gross
Increase
rate

Admissions/Screenings

140m

Admissions

36,350,000

68%

Screenings

740,000

In 24 provinces and cities including Beijing, Shanghai, Tianjing, Inner

Cinema Locations

Mongolia, Liaoning, Jilin, Sichuan, Hubei, etc.

Sourceenbase
2011.2

EntGroup Inc.

www.entgroup.cn

For the second year in a row, Wanda Cinema Line becomes Chinas highest-grossing
cinema circuit.

In 2010, Wanda Cinema Line took in an annual gross of RMB1.4 billion,

leading the second-placed cinema circuit by nearly RMB200m.

4.3.2 China Film Stellar Theater Chain


Annual Overview
Cinemas

Screens

Cinema number

136

New cinemas

32

Screen
Number
New Screens

Box Office
684

185

Gross
Increase
rate

Admissions/Screenings

1.21billion

Admissions

33,410,000

52%

Screenings

1,000,000

Cinema

In 26 provinces and cities including Beijing, Shanghai, Tianjin, Guangzhou,

Locations

Jiangsu, Hubei, etc.

25

China Film Industry Report 2010-2011

Sourceenbase
2011.2

EntGroup Inc.

www.entgroup.cn

China Film Stellar continues to expand its cinema and screen numbers in the form of
contracted alliance.

In 2010 the circuit has gained 32 new cinemas, reaching new

territories where no cinemas were built in the regions such as Liuzhou of Guangxi
province, Huangshai of Anhui Province.

4.3.3 Shanghai United Circuit


Annual Overview
Cinemas

Screens

Cinema number

153

New cinemas

32

Screen
Number
New
Screens

Box Office
599

184

Gross
Increase
rate

Admissions/Screenings

1.07billion

Admissions

26,690,000

63%

Screenings

720,000

Cinema

In 21 regions and cities including Shanghai, Jiangsu, Zhejiang, Anhui, Jiangxi, Chongqing,

Locations

etc.

Sourceenbase
2011.2

EntGroup Inc.

www.entgroup.cn

In 2010, Shanghai United Circuit continue to dominate the Shanghai region as well as
eastern China provinces.

It also expanded its reach to Beijing and allied with one of

the largest cinemas in Asia Jackie Chan Yaolai International Cinema.

4.3.4 China Film Southern


Annual Overview
Cinemas

Screens

Cinema number

119

New cinemas

21

Cinema Locations

Screen
Number
New Screens

Box Office
493

140

Gross
Increase
rate

Admissions/Screenings

950m

Admissions

25,880,000

56%

Screenings

670,000

In 13 provinces and cities including Guangdong, Jiangsu, Chongqing, Fujian, etc.

Sourceenbase
2011.2 EntGroup Inc.

www.entgroup.cn

In 2010, China Film Southern takes in a box office revenue of RMB950m, which is a 58%

26

China Film Industry Report 2010-2011

growth rate.

The impressive growth has also widen the gap between itself and its

competitor, Beijing New Film Association.


4.3.5 Beijing New Film Association
Annual Overview
Cinemas

Screens

Cinema number

96

New cinemas

21

Screen

489

Number
New Screens

Cinema Locations

Box Office

200

Gross
Increase
rate

Admissions/Screenings

790m

Admissions

22,170,000

29%

Screenings

670,000

In 15 regions including Beijing, Shanghai, Tianjin, Guangzhou, Sichuan, etc.

Sourceenbase
2011.2

EntGroup Inc.

www.entgroup.cn

4.3.6 Guangzhou Jinyi Zhujiang Movie Circuit


Annual Overview
Cinemas

Screens

Cinema number

56

New cinemas

19

Cinema Locations

Screen
Number
New Screens

Box Office
325

110

Gross

Admissions/Screenings

680m

Admissions

17,910,000

57%

Screenings

470,000

Increase
rate

In 15 regions including Guangdong, Beijing, Tianjin, Chongqing, Jiangsu, Hunan, etc.

Sourceenbase
2011.2 EntGroup Inc.

www.entgroup.cn

4.3.7 Zhejiang Time Cinema Chain


Annual Overview
Cinemas

Screens

Cinema number

81

New cinemas

22

Screen

361

Number
New Screens

Cinema Locations

Box Office

126

Gross
Increase
rate

Admissions/Screenings

420m

Admissions

12,260,000

61%

Screenings

410,000

In 4 regions: Zhejiang, Shanghai, Jiangxi and Anhui

Sourceenbase
2011.2 EntGroup Inc.

www.entgroup.cn

27

China Film Industry Report 2010-2011

4.3.8 Guangdong Dadi Digital Cinema


Annual Overview
Cinemas

Screens

Cinema number

108

New cinemas

59

Screen

399

Number
New Screens

Cinema Locations

Box Office

229

Gross
Increase
rate

Admissions/Screenings

370m

Admissions

13,530,000

190%

Screenings

390,000

In 19 regions including Guangdong, Shanghai, Beijing, etc.

Sourceenbase
2011.2

EntGroup Inc.

www.entgroup.cn

With its strategy to fast expand in 2nd and 3rd tier cities, and its successful branding
and management, Dadi Digital Cinema in 2010 has a high-speed growth and for the
first time entered the top 10 list of cinema circuits.

With such a pace of development,

Dadi is likely to reach a higher growth rate in 2011.

4.3.9 Sichuan Pacific Cinema


Annual Overview
Cinemas

Screens

Cinema number

47

New cinemas

12

Screen

263

Number
New Screens

Cinema Locations

Box Office
Gross
Increase

75

rate

Admissions/Screenings

3.50m

Admissions

12,090,000

72%

Screenings

340,000

In 4 provinces: Sichuan, Gansu, Guangdong and Shanxi

Sourceenbase
2011.2

EntGroup Inc.

www.entgroup.cn

4.3.10 Liaoning Northern Cinema


Annual Overview
Cinemas

Screens

Cinema number

58

New cinemas

12

Cinema Locations

Screen
Number
New Screens

Box Office
256

75

Gross
Increase
rate

Admissions/Screenings

320m

Admissions

10,780,000

35%

Screenings

400,000

In 3 provinces: Liaoning, Shandong and Heilongjiang

28

China Film Industry Report 2010-2011

Sourceenbase
2010.12

EntGroup Inc

www.entgroup.cn

4.4 Market Features and Future Trends


4.4.1 Fast Developments and Wider Gaps
The fast development of cinema circuits started in 2009 and continued in 2010.
However, the fast development was driven mainly by a few leading cinema circuits.

As

major cinema circuits are growing faster and faster, smaller circuits have seen more and
more difficult situation.

This can be seen from the figures of top 10 cinema circuits.

The highest-grossing circuit Wanda Cinema Line in 2010 has 200 new screens, while the
10th placed Liaoning Northern only has 47 new screens in 2010.

The gap between

No.1 and No.10 has been widened as such, not to mention the gap between Wanda
and the rest of smaller cinema circuits.

4.4.2 Imbalanced Development among Different Regions


Because of imbalanced economic development and different consumption habits,
cinemas are unevenly distributed in China. For example, cinemas in big cities, eastern
coastal areas, southern region and developed areas outnumber those in small and
mid-sized cities, mid-western area, northern region and less-developed areas.

4.4.3 Seeking Better Management


As many of the cinema circuits are established in the form of contracted alliance.

For

managers of those circuits, the relation between the circuits and cinemas is merely
relied on the sharing of box office revenues.

The circuit does not have management

power over the cinemas in the alliance.

Many cinema circuits lack effective

management for cinemas under them.

More and more managers, however, have

acknowledged the issue and have begun to invest in or taking majority stakes of the
cinemas in their alliances, hoping to build up stronger financial ties between the circuit
and the cinemas, so as to set up a better management for the cinema circuit.

29

China Film Industry Report 2010-2011

5. The Exhibition Sector -- Cinemas in China 2010


5.1 The Development of Cinemas in China in 2010
5.1.1 Number of Cinemas and Screens
In 2010, the number of cinemas and screens in China continued to maintain a rapid rate
of growth. Within the national circuit of cinemas, there were 313 new venues opened in
2010, bringing the total number to 2000 venues. There were also an additional 1,533
screens in 2010, an average of 4.3 additional screens per day, bringing the total number
of screens nationwide to 6,256. Along with the rapid overall development of the market,
this report has found that, under policies of guidance and encouragement
implemented by the government, the next few years will be a peak period of growth for
the construction of new cinemas. The growth of the number of cinemas and screens will
see rapid growth and it expected that an additional 1,300 cinemas and 10,000 screens
will be added to current levels by 2012.
5.1.2 Development of Digital Screens in China
In 2010, the number of digital screens in China exploded and was what ensured the
possibility of 10 billion RMB in box office revenue. Approximately 2,500 new or
upgraded 2K screens were added in 2010, bringing the total number to 4,100, second
only to the United States, putting China in the number two spot globally.
5.1.3 Development of 3D Screens in China
China is currently experiencing the fastest rate of growth of 3D screens in the world and
is second only to the United States in terms of numbers. As of the end of 2010, the
number of 3D digital screens in China had passed the 2,000 mark and it is estimated
that 49.3% of all screens are 3D. As of December 2010, the total number of 3D screens
had reached 2,020.
5.1.4 Development of IMAX Screens in China
As of the end of February 2011, there were a total 35 IMAX screens in China, of which 5
were film-based and 9 were in technology and science museums. There are 403 IMAX
screens worldwide, of which 280 are for commercial showings and 123 are used in
museums or other non-profit venues.

30

China Film Industry Report 2010-2011

5.2 Overview of Chinas Cinema Market in 2010


5.2.1 Data Different Box Office Levels for Chinese Cinemas in 2010
In recent years, as the numbers of cinemas and screens increase, the box office sales for
individual theaters have also increased dramatically and the number of those with high
box office sales numbers has been especially noticeable. The leader in Chinese box
office sales has been the Guangzhou Feiyang Cinema, increasing its ticket revenue from
56.21 million RMB in 2007 to 67.45 million RMB in 2008 and eventually reaching 82.20
million RMB in 2009.

In addition, the total number of cinemas with box office sales of over 20 million RMB in
2010 was 87, and while these only made comprised 5.2% of nationwide cinemas, total
ticket sales revenue reached 2.76 billion RMB, or 44.5% of nationwide sales, showing
that the revenues from ticket sales has risen to a higher level overall.

5.2.2 Top 100 Selling in China in 2010


Cinema rankings in China changed considerably in 2010. Guangzhous Feiyang
Cinema fell to number six because its two branches were counted separately and it just
so happens that list was topped by the previous years number six, Beijings UME
Cineplex, whose box office sales for the year pushed nearly 100 million RMB. Meanwhile,
the level of the top ten cinemas rose from 50 million RMB to 60 million, a range newly
entered by Shanghais Peace Cinema and Fuzhous Jinyi Cinema.
The total box office of these top 100 cinemas was 3.98 billion RMB, or 39.4% of all box
office sales nationwide, indicating that the cinema market is relatively concentrated.

5.2.3 Operational Efficiency of Top 100 Cinemas in China in 2010

Average Ticket Prices

According to data collected on ticket prices of the 100 top grossing cinemas in China,
the average price of tickets was 40.4 RMB.

Average Number of Screens and Seats

According to data collected, all of the 100 top grossing cinemas are relatively large with
an average of 8.6 screens and seating reaching 1,500.

31

China Film Industry Report 2010-2011

5.2.4 Top 10 Grossing Cinemas in China


Cinema rankings in China changed considerably in 2010. Guangzhous Feiyang
Cinema fell to number 15 because its two branches were counted separately and it just
so happens that list was topped by the previous years number six, Beijings UME
Cineplex, whose box office sales for the year pushed nearly 100 million RMB. Meanwhile,
the level of the top ten cinemas rose from 50 million RMB to 60 million, a range newly
entered by Shanghais Peace Cinema and Fuzhous Jinyi Cinema.

5.2.5 Beijing Box Office Sales in 2010


Beijings cinemas saw rapid growth in 2010, maintaining the citys top position in
terms of box office sales. Of the top 100 grossing cinemas, 14 are located in Beijing and
the top 20 cinemas had average box office sales of 39.5 million RMB. However, there is
also a wide range of differences in revenue with a gap of 83 million RMB between the
top selling cinema and the worst selling. This shows that there is a wide gap in the
development of the Beijing market. However, from a strictly numbers perspective, while
Beijing has nearly 90 cinemas and the number of screens per person is on par with
developed nations, there is still room for improvement.

Top 20 Grossing Cinemas in Beijing in 2010


Cinema

Box Office
Revenue

Y/Y Change

Average Ticket
Price

UME Cineplex

9,824.40

115%

60

Capital Huarong Cinema

7,466.70

33%

47

5,990.40

20%

44

Beijing Stellar International Cinema


(Jinyuan)

Beijing Wanda Cinema (CBD)

5,764.80

25%

49

Beijing Wanda Cinema (Shijingshan)

5,612.00

177%

52

Beijing UME Cineplex (Shuangjing)

4,975.70

60%

48

Beijing Megabox (Zhongguancun)

4,279.80

20%

43

Beijing Megabox (Sanlitun)

4,275.40

67%

46

Jackie Chan Beijing Yaolai

3,367.90

31

10

Beijing Wanda Cinema (Longde)

3,146.50

50%

44

11

Wangjing Stellar International Cinema

3,081.50

21%

42

2,890.10

36%

55

12

Beijing Huaying Tianying Chuanqi Shidai


Cinema

32

China Film Industry Report 2010-2011

13

Beijing UME Cineplex (Anzhen)

2,884.80

27%

39

14

Beijing Jinyi Cinema

2,849.00

25%

46

15

Beijing Huashi Broadway Cinema

2,480.20

12%

41

16

Beijing China Film Cinema (Yongwang)

2,363.90

7%

32

17

Beijing New Century Cinema

2,312.00

48

18

Beijing AMP Cinema

2,162.90

8%

41

19

Beijing Capital Times Cinema

1,767.90

9%

39

20

Beijing Showmax Cinema

1,512.70

19%

45

Source: enbase entertainmentdatabase

Table 5-6: Top 20 Grossing Cinemas in Beijing in 2010

33

China Film Industry Report 2010-2011

5.2.5 Shanghai Box Office Sales in 2010


Shanghais cinemas also grew rapidly in 2010 and out of the top 100 cinemas
nationwide, 9 were in Shanghai and average box office revenue for the top 20 cinemas
in Shanghai was 29.35 million RMB, slightly behind Beijing. This gap shows is due to the
fact that there are a limited number of mid-range cinemas in Shanghai. In terms of
high-range cinema options, Shanghai is just as impressive as Beijing, but the box office
revenue for mid-range cinemas is quite low, centering around 30 million RMB, while
box office revenue for a cinema in a similar area of Beijing would be around 40 million
RMB.

Top 20 Grossing Cinemas in Shanghai in 2010


Cinema
1
2

Shanghai Peace Cinema


Shanghai Yonghua Movie
City
Shanghai Stellar Zhengda
Cinema
Shangahi Wanda Cinema
(Wujiaochang)
Shanghai Pudong New
Century Cinema
Shanghai CGV Xinzhuang
Cinema

Box Office
Revenue

Y/Y Change

Average
Ticket Price

7070.7

102%

68

6069.8

22%

47

5528.8

57%

50

5341.7

44%

45

5000.6

26%

51

3585.8

25%

48

3363.5

45%

54

2956.8

81%

43

2689

29%

38

2555

51%

35

2218.7

33%

43

2158.5

22%

43

Xinghui Shangying CGV


7

10

11
12

Daning Cinema

Shanghai Ever Shining


Cinema
Shanghai Kaiyuan
Mediterranean Cinema
17.5 Shanghai Youyicheng
Cinema
Shanghai Wanda Cinema
(Zhoupu)
Shanghai Film Arts Center

34

China Film Industry Report 2010-2011

13
14
15

16

17

18
19
20

Shanghai Xintiandi UME


Cineplex
Shanghai Qingchun Cinema
Shanghai Century
Dashanghai Cinema
17.5 Shanghai Zhonghuan
Cinema
Shanghai Qixin
Entertainment Co., Ltd.
Shanghai Jiading Robinson
Square Digital Cinema
Shanghai Huanyi Cinema
Shanghai Stellar
International Cinema

1764.9

29%

76

1742.2

31%

33

1530.9

22%

42

1438.4

9%

37

1109.2

41

1102.8

37%

33

865.9

23%

51

626.3

18%

36

Sourceenbase entertainment database

Table 5-7: Top 20 Grossing Cinemas in Shanghai in 2010

35

China Film Industry Report 2010-2011

5.3 Analysis of Cinema Investment


5.3.1 National and Local Support Policies for Cinema Investment
A series of policies were released on the national level between 2009-2011 to promote
the development of cultural services and push the growth of the industry. In terms of
the construction of cinemas, the following are the most important:

Summary of 12th Five Year Plan for Social and Economic Development of the
Peoples Republic of China

Guiding Opinions on Promoting Film Industry Development

Notice on Subsides for the Installation of 2K and 1.3K Digital Projecting Equipment
in Cinemas

5.3.2 Major Cinema Investors

5.4 Cinema Investment and Management Companies


While cinemas under professional cinema investment and management companies
may be under different cinema circuits, they retain a controlling share and complete
operational control in their theaters.

5.4.1 Overview of Cinema Investment Companies


Data in this report shows that, in terms of the number of screens over which investors
have operational control and controlling interest, Wanda tops the list with 554 screens.
Guangdong Dadi Cinemas was ranked second with 255 screens and Jinyi Film placed
third with 229 screens.

6. 2010 Study on Chinas Movie Calendar


6.1 2010 Market Analysis of Movies on a Monthly Basis
6.1.1 Trend of Yearly/Monthly Box Offices in 2010
The box offices in Mainland China kept increasing in 2010, with the yearly record of over
RMB 10 billion, indicating a year-on-year growth rate of 61%. The entire movie industry
features the fast development. And the entire market presents the following distinctive
features:

Significant Increase of the Average Monthly Box Offices with Obvious Advantages
of the Movie Release Calendar for the New Year period

Single Movie as the Essential Factor to Fuel the Box Office

Market to indicate

36

China Film Industry Report 2010-2011

the one-to-one and W Layout


6.1.2 Distribution of Months for Milestone Movies in 2010
The movies put on in 2010 exceed 120 and the average number of movies put on in
each month exceeds 10.
6.2 Analysis of China Milestone Movie Release Calendars
6.2.1 Summer Movie Release Calendar

Analysis of Box Offices and Viewer Persons/Time

Analysis of Distribution of Monthly Box Offices

Analysis of Weekly Box Offices

Analysis of Movie Release

Share of domestic films

6.2.2 Movie Release Calendar on Mid-autumn and National Day

Analysis of the Total Box Offices and Viewer persons/time

6.2.3 Release Calendar the New Year period

Analysis of Total Box Offices and Viewers persons/time

Analysis of Weekly Box Offices

Analysis of Released Movies

Share of Domestic films

6.3 Analysis of the Development of Chinas Movie Release Calendar

Arranging first, scheduling later

In terms of release calendar e for 2010, the over-concentrated movies from frequent
release calendar remains distinctive. In particular, many movies were put on during the
National Day holiday period inthat year. However, except for Detective Dee, it is hard for
other movies to achieve desirable records inbox offices.

37

China Film Industry Report 2010-2011

7. Analysis of Major Players in Chinas Film Industry

7.1 Analysis of the Competitiveness Edge of Sophisticated Players in the Film


Industry
7.1.1 A Six-year Journey of China Film Group IPO Efforts to Be Finalized

Liquidate the Non-performing Assets for IPO

Establishment of China Film Co., Ltd.for IPO and the Future Business as Well

China Film Group to Separate the Monopolized Assets for IPO with the Fear of

Halving the Distribution Earning


7.1.2 Shanghai Film Group

Speeding up the corporate restructuring for IPO

Comparable Profits to the Listed Company but with Lower Profitability

Focus on Establishment of cinemas while expanding to the overseas market

7.1.3 Huayi Brothers

Develop and Plan the Entertaining Kingdom of the Entire Industry Chain for 2010
Low Expectation of Earning from Movies for the Year, while TV Series likely to be its

Primary Business

Movies, brokers are the star business for Huayi Brothers

The pyramid layout of nine businesses can be established steadily after the

gradual improvement of the layout of industry chains.

Diverse types of new movies for 11 years and sequel movies as the majority

Actively expand cinemas and accelerate the process of cash flow

To be a shareholder of Ourpalm Co., Ltd for access to the new media platform

Acquisition of Huayi Giants and Getting into the Game Field

Being the Owner of Huayi Music, also for the Performance Mark

7.1.4 Bona Film Group

Main Businesses of Bona Film Group

The Average Distribution Ability Increased, Market Share Stabled

Stabilize the Business Revenue and Accelerate Investments in Cinema

Introduction of International Partners to Strengthen Film Production

38

China Film Industry Report 2010-2011

7.1.5 Orange Sky Golden Harvest Ltd.

Acquire Legend Shares, Expect More Cooperation

7.1.6 Stellar Film Group

Cinema construction as the most important one in the major businesses of Stellar

Film Group
7.2 Analysis of Competitiveness of New Film Companies
7.2.1 Enlight Picture

Brand-oriented film operations

Relying on the big platform to produce films

No focus on establishing cinemas to create asset-independent entertainment

companies with all the efforts


7.2.2 Galloping Horse

Participation in the establishment of cinema to ,accelerate the layout of industry

chains
7.2.3 Dadi Movie

Background Information

Rapid expansion of the cinema line making it essential for Dadi to construct

terminals for business

Introduction to the Past Movies

2010-the Outbreak of film business for Dadi Times

7.2.4 LETV Pictures

Expected increase of Talents and Fortune in the film industry

7.3 Analysis of competitiveness of placement advertising company before movie release


7.3.1 Filmore-media. Incorporated Company
Founded in1998, Filmore-media Incorporated Company is one of the film media
companies with the longest history and the largest scale in China. Screen matrix is the
core of business. Filmore-media IncorporatedCompany applies itself to provide
professional integrated media consultingand solutions to film operators and customers
based on the entirefilm industry, including placing advertisement, authorizingservices,
Screen matrix, publicizing position, bundlingmarketing, developing post-product,
movieaudient data services, PR support based on film events, etc. It involves every
aspect of the film industry.

39

China Film Industry Report 2010-2011

The major forms of advertising include:

Regular launch

Creative launch

Theme cinemas, private cinema use

7.3.2 Jingmao Film Media


Established in 2008, Jingmao Film Media isa rising star of the film advertising market.
From 2009, JingMao Film Media was authorized by China Film Group/Huaxia Film
Group and other film makers, to jointly promote the development of the film
advertising before the show time, and provide customers with marketing services for
integration of the entire industry chains.
The main products of Jingmao Film Media are flim advertising for the first screen and
Movies for the World. The methods for operation of the first screen include film
implantation, film authority, film debut and cinema show.

40

China Film Industry Report 2010-2011

8. Introduction and Export of Overseas Film Copyright

8.1 Introduction of Overseas Film Copyright for Chinese Film Market in


2010
Taking the population, earnings, demands of culture and entertainment, and film
terminal construction into consideration, the Chinese film market still has great
potential for further expansion. As required by WTO, the Chinese film market in 2011
begins to be further open to the imported films. It is estimated that domestically
produced films and imported films would compete fiercely for the market share.
8.1.1 Overview of Box Office of Imported films in 2010
There are 62 films imported by China in 2010, with the total box-office standing at CNY
4.448 billion, accounting for 43.7% of the annual box-office in the Chinese film market.
Due to the outstanding performance of Avatar, Inception and others, the box-office
earnings of imported films in 2010 are up by 65% over 2009, much higher than the 27%
average growth rate in recent years. Compared with the relevant data in 2002~2010,
the proportion of imported films total box-office earnings fall slowly, and the
proportion of 2008~2010 is lower than 45%. The reason is that competitiveness of
domestically produced films is enhanced continuously. In particular, more and more
Sino-foreign collaborative films are breaking the box office records, thus increasing the
market share of domestically produced films.
8.1.2 Analysis of Market Features of Imported films in 2010

The box office is highly concentrated, with top 10 films accounting for 75%

The office-box of foreign movie whose earnings distribution is based on a


proportional basis accounts for 83% of gross earnings of all the office-box, which
the office-box of 3D has the highest earnings.

Films that distributing company has exclusive rights to show break CNY 100
million.

8.2 Export of Domestic Films in 2010


8.2.1 Overview of Chinese Film Export in 2010
Based on the statistics of Entgroup enbase, although export volume of Chinese films is
decreased a little,

the total overseas earnings are CNY 3,517 million, increasing by 27%

from a year ago. The earnings of movies cooperated with other countries have been on
the rise from 58.8% in 2006 to 99.96% in 2010. There are 47 films and 204 times that

41

China Film Industry Report 2010-2011

completed export deal in 2010, and there are 46 films that cooperated with other
countries. For Chinese movies, North America, Asia-Pacific and Europe are the
important export regions. There are only 2 movies exported to America, but American
box-office gross of Chinese movies wins the champion with the earnings of CNY 1,220
million. Film times exported to Asia-Pacific ranks first, and accounts for 60%
8.2.2 North American

American participation attributes the success of martial arts/action movie

Famous actors especially Jackie Chan and Jet Li play an important role in the
box-office

Case 1 Kongfu Dreams made by China and America


8.2.3 Asian-Pacific region
Box-office earnings of Chinese films in Asia-Pacific regions have been slashed in 2010.
The total office-box of Chinese films is CNY 1,492 million, contributing to 54% of global
overseas market box-office. However, earnings in the Asia-Pacific decreased by CNY
430 million, and the proportion dropped down to 30%. In recent years, compared with
the relevant data from 2006 to 2010, the box-office earnings in Asia-Pacific regions are
CNY 1,300~1,400 million. Export amount of Chinese films in Asia-Pacific regions is 140
in 2010 up after experiencing decline in 2009.

Kong Kong as the main export region, and strive for Australian market in the future

8.2.4 Europe and Other Regions


The box-office earnings of Chinese films in European regions increase steadily in 2010,
with the total box-office standing at CNY 406 million in 2009 in Europe, accounting for
15% of the overseas box-office. The box office earnings in Europe increase by CNY 210
million in 2010, accounting for 18% of the overseas box-office. Compared with the
relevant data from 2006 to 2010, the box-office earnings of the Chinese films in Europe
increase steadily from CNY 177 million in 2006 to CNY 617 million in 2010 with 42% of
annual growth.
Except above-mentioned regions, the box-office earnings of Chinese films keep surging
in Southern America in recent years. The earnings in 2008, 2009 and 2010 are CNY
46,910,000, 114 million and 281 million. China obtains more box-office earnings in
Mexico and Brazil compared with other regions in Southern America, accounting for
72.7% in the recent years. For the films introduced from China, the countries in
Southern American select the films that have good feedback in North America.
Therefore, four films are showed in the countries of South America, including Kongfu
Dreams, Astro Boy, Mummy 3 and Lust.

42

China Film Industry Report 2010-2011

By contrast, Africa and Middle East are still to be developed. In 2010, only Kongfu
Dreams is exported to the above regions, which grossed CNY 28,030,000 in the seven
countries. United Arab Emirates is listed first with box-office result of CNY 13,640,000 in
the region. In 2009, there are two films named Red Cliff and Mummy 3 showed
in the region, and box-office earnings are CNY 15,470,000.

9. Movie-going survey China in 2010


More information in complete version of 2010-2011 China film industry research report.

EntGroup consulting
Rm.1509, Building C, SOHO New Town, 88 Jianguo Rd.
Chaoyang District, Beijing, P.R.China
Tel:

+86-10-85899985

Webhttp://www.entgroup.cn

contact
Leon Gao| CEO
[email protected]

Amy Liu | Business Director

Vivi Wang| Business specialist

[email protected]

[email protected]

43

China Film Industry Report 2010-2011

Entgroup International Consulting (Beijing) Co.,LTD


Rm.1509, Building C, SOHO New Town, 88 Jianguo Rd.Chaoyang District, Beijing, P.R.China
Tel010-85899985
Fax: 010-85899985-839
http://www.entgroup.cn

44

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