2013-2014 China Film Industry Report: Abstract III

2014/10/22 11:29:00(Beijing Time)    by: Entgroup Consulting

The State Council of China issued successively in 2010 a series of guidelines for film and cultural industries, giving strong support for the development of China’s film industry at the macro policy level. At the end of the same year, it also made a clear announcement that the cultural industry be developed as a pillar industry for the national economy. The politically favorable environment has made it possible for China’s film industry to develop rapidly.

Looking back at 2013, China’s film industry advanced exponentially, with box office gross exceeding RMB20 billion, starting a golden period of development. While this new phase witnessed a continued rising in the number of moviegoers with film screens approaching 20,000, statistics indicate a declining occupancy rate that told a real story of operations of the movie theaters.

Meanwhile, film technology renovations and rapid growth of its viewer‐base have been accompanied by significant changes in the constitution of moviegoers, their viewing preferences and ways to access information in comparison with previous years. On the other hand, a series of challenges the industry faces have surfaced: i.e. how to enhance the business of cinemas in the rapidly growing market; how to improve competitiveness of domestic films and how to understand accurately the tastes of audiences. To help industry players including investors get a comprehensive understanding about the status and features of China’s film industry, EntGroup presents China Film Industry Report 2013‐2014 based on interviews, in‐depth research and analysis. This is the 6th such annual report by EntGroup since 2009.

Analysis of market shares among Chinese film distributors

In 2013, China Film Group took the largest market share of more than 30% of the national market, followed by Huaxia and Huayi Brothers. This year, Wanda Media’s blockbuster New Police Story has made it a newcomer to the Top 10 list. Also listed as new members are SMG Pictures and Beijing Union Pictures.

Of the Top 5 distributors with the most market shares, China Film Group was the only one to have a film in each and every box office gross group. Huaxia and China Film Group were the only 2 distributors with films in the top group of box office gross of RMB500 million or more. The overall distribution of the TOP 5 was disproportionate, with too many films in the bottom group of RMB50 million or less but too few films in the top group.

Most of the films distributed by Huayi Brothers, Enlight Pictures and Le Vision Pictures belonged to the middle 3 box office gross group ranges, suggesting a higher potential for growth.

Figure 3‐1: Market Shares of China’s Film Distributors in 2013

Overview of film marketing in China in 2013

Total marketing expenditures for China’s film industry in 2014 are expected to total RMB330 million, a nearly quintupling growth since 2007, culminating in 2011. Following film production, distribution and release, film marketing is becoming a fourth sub‐sector in the film industry, propelling the growth of box office revenue to a new level.

Figure 3‐2: Marketing Expenditure Total and Growth Rate

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About EntGroup

EntGroup Consulting is the leading research and consulting company focusing on China’s entertainment industry. A member of ComInsight Information Alliance Group, EntGroup focuses on providing data and information, conducting market research, industry research, consulting, and organizing media conferences. We serve a wide range of clients in areas of film, TV, new media, entertainment marketing and animation.

EntGroup also operates an online portal for the entertainment industry— http://english.entgroup.cn

About EBOT

EBOT EntGroup Box Office Tracker is a database focusing on the entertainment industry. Created and managed by China's leading entertainment industry research institute, EntGroup, it provides statistics and analysis on film and TV industries, as well as insight on market trends and consumer behaviors. It is an essential tool for entertainment investors, financiers, film production companies, distributors and advertisers. EBOT integrates Box Office data and analysis, moviegoer surveys, advertising insight, buzz tracking and industry research reports.

For more information, please visit: http://english.entgroup.com.cn/enbase.html or contact
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