Hollywood May Not Be The Biggest Market Anymore
The
film industry knows the largest box office is the United States however, it
seems that all of this going to change to China. For instance, “China’s
box office has already seen 50% growth in 2016 compared to this point last year
(Faze, 2016).” China is currently increasing the demand of theaters demand just
meet the demand of their audience. Currently, in “…the United States has
roughly 100 theaters per million residents, China has only 23 theaters per
million, meaning it has a long way to go before fully reaching its potential
audience (Faze, 2016).” The movie Furious 7 made more money in the China market
of a gross of $391 million and the United States only made $353 million (Faze,
2016). It’s obvious that China wants in on the piece of Hollywood. China has
found a way to get into the Hollywood market by pairing with popular film
studios. Another example, “Wanda Group, run by Wang Jianlin, China’s richest
man, has in the last few months purchased both AMC Theatres and Legendary
Entertainment (Faze, 2016).” Alibaba Pictures actually financed the recent
Mission Impossible: Rogue Nation in 2015 (Faze, 2016). Well the reason for
these Chinese companies wanting to pair with these popular Hollywood studios is
to get around the Chinese government rule. Apparently, “The Chinese government
currently only allows 34 foreign films to be released there each year, making
it increasingly competitive to have an American film get released there…(Faze,
2016).” With only being able to release 34 films a year hinders them to
increase the audience when it comes to films. Chinese companies have found a
way to co-finance films with popular studios to get around the Chinese government
law. Chinese filmmakers really haven’t had success with their films so they are
turning to “global market” to increase their income.
References
Faze, A. (2016, April 17). How China Is Refueling The Film Industry. Retrieved April 24, 2016, from http://www.forbes.com/sites/adamfaze/2016/04/17/china-refueling-film-industry/#4b07fb4e38ae
