The demand for a raise in profit shares from five major Chinese film distributors has caused strong dissatisfaction with both movie producers and theaters.
On the afternoon of November 17, the China Film Circulation and Projection Association held an emergency meeting in Shenzhen. Delegates opposed to the demand raised by China Film Group Corporation, Huayi Brothers Media Group, Bona Film Group, Stellar Mega Films Ltd., and Enlight Pictures Co., Ltd., asking theaters to lift their box office profit shares from 43 percent to 45 percent.
The meeting finally reached a consensus: the demand from these five distribution companies was deemed unacceptable. To back up this decision, those in attendance gave out some explanations.
Firstly, the five film distribution companies didn't follow the rules and, without any means of consultation, they simply went ahead and informed the other parties involved.
On a second note the meeting found that the proposed raised share rates failed to go through the China Film Circulation and Projection Association. Hence, all five film distributors were deemed to have a lack of industry cooperation spirit.
The five film distribution companies didn't consider the history that lies behind China's movie industry. The industry's current pattern has been formed over an extensive period of trial and error and therefore any change in pattern requires adequate preparation. Big changes can only occur when all conditions are mature enough.
Yet another reason was that both film production companies and cinemas face many difficulties. The five film distribution companies only took into consideration their own interests.
In addition, most cinemas are currently still suffering from a loss of investment. It goes without saying then that the Chinese film distributors' requirement did not meet with the approval, let alone support, of cinemas.
Another reason for their demands proving unacceptable to theaters and producers throughout the nation is that the distributors failed to use the correct method. They could easily take their quest for a raise in profit shares to China's Movie Special Funds and apply for the increase in rates there.
Finally then, the distributors exchanged friendship for profit. China's movie industry has always supported these five major players in film distribution. However, what they did, showed how they have seemingly left behind their integrity when the temptation of personal gain showed its face.