Fifty billion yuan (US$8.2 billion) has been invested in film studio projects across China and more are planned despite 80% of existing studios posting losses, Guangzhou's Times Weekly reports.
Tianshi, a Yunnan-based group, is one of the companies opting to join the trend as it began construction of its five-year, 10 billion yuan (US$1.6 billion) studio in August in the southeastern province. There are now more than a dozen studios in Yunnan, following the province's aim to become "Hollywood in the East", but none of theese facilities have made a profit, the paper said.
There are not enough local productions in the works to support these studios, film director Yin Dawei said, adding that the studios fail to attract movie producers because of the kind of sets and facilities they offer.
A Peking University professor said that investors often put money into studio projects to acquire property and resources or to develop an area's tourism business, especially when the Chinese government plans to establish cultural industries as a pillar of the country's economy by 2020.
The situation is such that losses posted by the studios are often shouldered by the government, while investors pocket profits made from property speculation or other sources, according to Beijing-based consultant Jiang Hua.
On the other hand, Hengdian World Studios in eastern China's Zhejiang province has been the odd example of success, with 20,000 daily visitors and the ability to host 20 to 30 movie production teams at the same time, the paper said. Hengdian, which opened in 1996, has established a complete industrial chain for the TV and movie business, and the large number of productions and stars working there helps draw visitors and boost local tourism.
However, Yin said China only needs four studios of Hengdian's size to cater to the different scenery requirements of each production team. According to a report compiled by Peking University, there are already over 1,000 studios across the country, though only 5% of them are profitable.