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The Chinese film industry once again experienced a boom last year. According to a report released by the State Administration of Press， Publication， Radio， Film and Television on January 5， China’s box office revenue in 2014 reached 29.6 billion yuan （$4.77 billion）， growing 36 percent. Although this sum fell short of the preset target of 30 billion yuan （$4.83 billion）， it more than sufficed to raise a few eyebrows in the international film community， as global box office revenue registered only 4-percent year-on-year growth. In North America， box office numbers actually declined by 6 percent， according to the 2014-15 Chinese Film Industry Report published by EntGroup Consulting， a domestic film industry research firm. It has taken a paltry four years for China’s box office revenue to grow from 10 billion yuan （$1.61 billion） in 2010 to nearly 30 billion yuan in 2014. In 2012， China became the world’s second largest film market， the largest being North America.
The report also pointed out that China has of late functioned as the driving engine for global box office growth. Worldwide box office takings in 2014 amounted to $37.5 billion， with that of the United States accounting for 27 percent and that of China constituting 13 percent. Of the $1.6-billion increase of the global box office in 2014 against the previous year， box office takings in the Middle Kingdom contributed 75 percent.
A booming market
Looking back at China’s vibrant film market in 2014， several tendencies become apparent.
The competitive edge of domestic films against their imported counterparts has sharpened. The box office revenue of home-made films surpassed that of imported ones. The 308 domestic films released in theaters last year raked in 16.16 billion yuan（$2.6 billion）， accounting for 54.51 percent of the total box office revenue and the 80 imported ones grossed 13.48 billion yuan （$2.17 billion）. Among the 20 highest-earning films， Chinese productions occupied half of the spots. “The Chinese film industry has gone through a period of rapid adjustment following the signing of a film agreement with the United States in 2012. As a result， China has been able to register a world-leading growth rate， even in the face of competition from Hollywood blockbusters such as Transformers： Age of Extinction （Transformers 4），” said Hou Tao， Vice President of EntGroup Consulting. According to the 2012 agreement， Hollywood film imports would increase from 20 to 34 per year. With an eye to the opportunities present in the gigantic Chinese market， many foreign film companies are now seeking cooperation with China. The Hollywood action film Transformers： Age of Extinction was co-produced by Paramount Pictures， the China Movie Channel and Jiaflix Enterprises. Some of its scenes were shot in the three Chinese cities of Beijing， Chongqing and Hong Kong， and the film included a number of Chinese actors and actresses in order to appeal to local audiences. Actress Li Bingbing， for instance， was among the film’s top-billed stars.
The movie， which is the fourth installment of the Transformers franchise， raked in 1.98 billion yuan （$319 million）， surpassing previous records for both domestic and foreign movies to become China’s highest-grossing film ever.
By the end of 2014， 10 countries had signed film coproduction agreements with China， such as the United Kingdom， South Korea and Singapore.
An Xiaofen， President of Desen Interna- tional Media Co. Ltd.， a Beijing-based company specialized in local feature film production and distribution， said there are three ways for foreign movies to enter the Chinese market. First， film producers may apply for their film’s inclusion in the yearly quota of 34 imported films， through which they can claim a 25-percent share of the box office sales. Second， domestic distribution companies purchase the rights to show a foreign film. Under these circumstances， foreign producers will have zero share in the box office. Third， Chinese and foreign producers co-produce a film， in which case foreign producers are entitled to a 43-percent share of the box office revenue.
In addition to foreign producers， domestic Internet companies， such as Baidu Inc.， Alibaba Group Holding Ltd. and Tencent Holdings Ltd.， also announced plans to invest in the movie business in 2014.
According to Tianto Info Consulting， Internet companies are likely to reshape the whole film industry. They will be able to take into greater consideration the audiences’ needs， as they possess data on audiences’purchasing and search preferences. In addition， they may expand film distribution channels by making use of the Internet， especially the mobile Internet.
“Every mobile phone can function as a miniature silver screen. The profit film distributors receive from mobile streaming apps will become more stable and lasting. At the same time， the boom in apps of this kind will enable movies with narrower appeal， such as art-house titles， to reach audiences，” said Liu Shuyao， founder and CEO of 100 TV， a video portal exclusively designed for mobile devices.
The report also pointed out that China has of late functioned as the driving engine for global box office growth. Worldwide box office takings in 2014 amounted to $37.5 billion， with that of the United States accounting for 27 percent and that of China constituting 13 percent. Of the $1.6-billion increase of the global box office in 2014 against the previous year， box office takings in the Middle Kingdom contributed 75 percent.
A booming market
Looking back at China’s vibrant film market in 2014， several tendencies become apparent.
The competitive edge of domestic films against their imported counterparts has sharpened. The box office revenue of home-made films surpassed that of imported ones. The 308 domestic films released in theaters last year raked in 16.16 billion yuan（$2.6 billion）， accounting for 54.51 percent of the total box office revenue and the 80 imported ones grossed 13.48 billion yuan （$2.17 billion）. Among the 20 highest-earning films， Chinese productions occupied half of the spots. “The Chinese film industry has gone through a period of rapid adjustment following the signing of a film agreement with the United States in 2012. As a result， China has been able to register a world-leading growth rate， even in the face of competition from Hollywood blockbusters such as Transformers： Age of Extinction （Transformers 4），” said Hou Tao， Vice President of EntGroup Consulting. According to the 2012 agreement， Hollywood film imports would increase from 20 to 34 per year. With an eye to the opportunities present in the gigantic Chinese market， many foreign film companies are now seeking cooperation with China. The Hollywood action film Transformers： Age of Extinction was co-produced by Paramount Pictures， the China Movie Channel and Jiaflix Enterprises. Some of its scenes were shot in the three Chinese cities of Beijing， Chongqing and Hong Kong， and the film included a number of Chinese actors and actresses in order to appeal to local audiences. Actress Li Bingbing， for instance， was among the film’s top-billed stars.
The movie， which is the fourth installment of the Transformers franchise， raked in 1.98 billion yuan （$319 million）， surpassing previous records for both domestic and foreign movies to become China’s highest-grossing film ever.
By the end of 2014， 10 countries had signed film coproduction agreements with China， such as the United Kingdom， South Korea and Singapore.
An Xiaofen， President of Desen Interna- tional Media Co. Ltd.， a Beijing-based company specialized in local feature film production and distribution， said there are three ways for foreign movies to enter the Chinese market. First， film producers may apply for their film’s inclusion in the yearly quota of 34 imported films， through which they can claim a 25-percent share of the box office sales. Second， domestic distribution companies purchase the rights to show a foreign film. Under these circumstances， foreign producers will have zero share in the box office. Third， Chinese and foreign producers co-produce a film， in which case foreign producers are entitled to a 43-percent share of the box office revenue.
In addition to foreign producers， domestic Internet companies， such as Baidu Inc.， Alibaba Group Holding Ltd. and Tencent Holdings Ltd.， also announced plans to invest in the movie business in 2014.
According to Tianto Info Consulting， Internet companies are likely to reshape the whole film industry. They will be able to take into greater consideration the audiences’ needs， as they possess data on audiences’purchasing and search preferences. In addition， they may expand film distribution channels by making use of the Internet， especially the mobile Internet.
“Every mobile phone can function as a miniature silver screen. The profit film distributors receive from mobile streaming apps will become more stable and lasting. At the same time， the boom in apps of this kind will enable movies with narrower appeal， such as art-house titles， to reach audiences，” said Liu Shuyao， founder and CEO of 100 TV， a video portal exclusively designed for mobile devices.