New Guidelines on Box Office Profits

2012/1/9 11:18:00 (Beijing Time)   Source:CNTV.cn    By:

2011 was a major shot in the arm for China's movie industry, with box office takings hitting a staggering 13 billion Yuan. The number of cinema screens also jumped, from just over 6,000 to around 9,000. But does a booming industry mean cheaper tickets for film lovers?
Eighty, ninety, or even a hundred yuan for a ticket.

Sometimes cost can be a barrier to enjoying a night at the cinema.

Cinemas traditionally tend to attract youngsters hoping to catch the latest releases. But one Beijing cinema is trying to draw older film buffs to the big screen.

A cinema goer said, "They offered a special price on group tickets, to attract older people like us. "

Group tickets, online group purchasing, and loyalty cards are the sales strategies being used to tempt movie fans of all denominations.

It's why this box office has the biggest takings in the whole of the country.

Luo Ju, Wukesong Branch manager of Jackie Chan Cinema House, said, "We offer tickets at 30 or 40 yuan before six pm, except weekends. It makes our average ticket price very low."

Experts say group purchasing, and on line sales should counterbalance rising prices. And more screens means more competition among cinemas, to attract the public.

Some believe there's always room for more discounts.

Gao Jun, film critic, said, "The high price of tickets is reasonable in some ways. After all, box offices are booming. But I agree there should be some room for dropping down. "

Gao Jun says ticket prices should vary according to different films, cinemas, time slots and audiences.

The distribution of income between production companies and cinemas is another hot issue.

When "The Flowers of War" opened in December, the cheapest tickets were listed at 40 Yuan instead of 35. The production company demanded 45 percent of the takings rather than the normal 43 -- an industry standard since 2009.

Despite the efforts of cinemas to fight the change, they eventually agreed to reduce their percentage.

Gao Jun said, "How the benefits are divided will follow the international trend. A two percent increase for the production side still means cinemas will earn money, if the film is good."

New guidelines issued by the State Administration of Radio, Film and Television say cinemas can no longer demand over fifty percent of profits in the first round of distribution.

The measures are aimed at encouraging producers, as the creative force behind the movie industry, to reap more reward from their investments -- and continue making the movie magic.

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