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On the roll for a movie boom On its fastest growth track in decades, the domestic film industry needs to take a step up to compete internationally
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In the early 21st century, the annual output of Chinese films was less than 100, most of which were funded by direct or indirect government investment. The market was depressed and the box office was around 500-600 million yuan annually. Cinemas relied on Hollywood blockbusters to sustain their business, and the only Chinese films that sold well were the so-called "New Year greeting films", made by directors such as Feng Xiaogang. 32359
At that time, film culture was also in low gear, while TV stars, TV shows and dramas raced ahead. On the verge of collapse, China's film industry began to change in 2004.
Eliminating the entry barrier and loosening censorship, the industry started to open up to public corporations and funds. Even the filmmaking process and cinemas were open to overseas capital. Hence, the movie sector was among the most open and advanced sectors of China's cultural industry. Since then, China's film industry has entered a "golden age" with rapidly growing output and increased box office revenues. The industry has also become more influential and attracted sufficient funds to invest, sponsor and support various kinds of movies. Now China's film industry is not only a leader for China's cultural industry, it has also aroused extensive international attention
Last year, China's film industry enjoyed an unexpectedly strong growth, despite the financial crisis. While the government tried hard to stimulate the economy to achieve 8 percent growth, box office earnings increased by nearly 50 percent over the same period in 2008. Compared to the average global film industry growth of 8 percent it has been a great performance. China has become one of the most rapidly growing film markets in the world.
Facing fierce competition from big budget Hollywood blockbusters, such as Transformer, Harry Potter and the Half-Blood Prince in 2009, domestic films still accounted for over half the market share. Moreover, 12 domestic movies have each taken more than 100 million yuan at the box office.
The Founding of A Republic was the first domestic film in China to gross over 400 million yuan at the box office and, for the first time, there have been five domestic movies taking over 200 million yuan each.
Besides the three internationally renowned directors, Feng Xiaogang, Zhang Yimou and Chen Kaige, some young directors have also shown their talent. These include Ning Hao, the director of Crazy Racer; Lu Chuan, who directed City of Life and Death and Gao Qunshu, co-director of The Message.
China's film industry is transforming from one with only a couple of movies and film makers at the top, to one which is based on perse creative talents and a variety of genres, backed up by mainstream blockbusters supplemented by low-cost movies. I believe that the film industry will enter a fast-growing period after this "golden age".
The development of China's film industry is amazing because it has flourished within such a short period of time. China is the largest market for free TV channels and shows, and it is one of the world's biggest pirate markets. You can easily get movies or other entertainment content in a convenient, cheaper way. Despite this, more people are willing to pay for a cinema seat regardless of the time and money it costs. This may be why the box office in China has sustained an annual growth rate of 30 percent for the past seven years.
However, though the industry is growing rapidly, it has a weak foundation and is still facing fierce competition from Hollywood movies, TV shows and pirated videos. As a rising industry, some obstacles need to be overcome to ensure its future development.
One obstacle is that undeveloped cinemas may influence the expansion of the market. In the past, the development of cinemas could not fully meet the needs of audiences. As the property prices continue to soar, the construction of new cinemas is restricted by rising costs. The local governments should provide some space for cultural facilities, otherwise, cinemas built at market rates will have difficulty surviving in the long run.