Banking on blockbusters
When Hollywood films are seeing increasing box office revenues in China, Americans seem largely unaware of China’s film industry.
“It might take more time for US investors to understand our business better, as there are some differences between film industries in China and the US,” said Xu Liang, Bona’s chief financial officer.
“Co-production will enable the film to have significant box office appeal for the US audiences, and help us gain distribution rights in China,” he said, adding that in China only State-owned film companies have distribution rights for imported films, while co-produced films can be treated as domestic ones.
Industry watchers say Chinese film companies rely too much on box office revenues. “Earnings from box office make up more than 70-80 percent of a film’s total revenues in China,” Gao said. “While ticket sales only account for less than 30 percent in Hollywood film productions, the others mainly come from selling derivative products.”