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Cinema and Home Entertainment in China
Screen Digest, Jan 2007, Pages: 110
The two leading media and entertainment research companies have joined forces to bring you the most authoritative market analysis and consumer preference study into the Chinese cinema and home entertainment sectors. The report brings together the respective expertise of both companies in market and consumer research to identify the underlying trends in China's media economy since its entry into the World Trade Organisation.
The report profiles the cinema distribution and exhibition sectors, the film production industry, DVD and home entertainment sectors, regulatory development, overview of population and other factors, digital cinema development, consumer behaviour and attitudes into cinemas, ticket pricing, film preferences, film information sources, DVD buying behaviour, price sensitivity and much more. This study also includes a full series of market data and forecasts on the Chinese cinema and home entertainment sectors from 2000 to 2010.
The Chinese film industry has experienced a period of rapid growth since the government began relaxing its regulations in 2001, with box office revenues tripling to $336m in 2006 as more and more people go to the cinema. We forecast that by 2010 these revenues will exceed $720m. The number of modern, or silver, screens will increase in line with the revenue growth – almost doubling from 2,940 in 2005 to 5000 in 2010.
The report also includes a detailed analysis of the findings from a new study conducted by Nielsen NRG and AC Nielsen in China. The research was conducted online and focused on residents living in Guangzhou, Beijing and Shanghai.
The first major obstacle mentioned in the report is that the Chinese government has only partially liberalised the market to allow foreign investment; a full relaxation of restrictions is going to be a crucial part of realising the potential of the market. Warner Bros International Cinemas invested heavily in China when it entered in 2003 only to pull out three years later having conceded the battle against the challenges of government control and investment regulations. However, on the flip side, the relaxation of restrictions has allowed the Chinese film production industry to experience a boom, and China is now the third-largest film producer in the world, after India and the USA.
David Hancock, co-author of the report and senior Analysts comments: 'This report is brings a unique insight into both the market conditions, regulatory advances and consumer behaviour of what could be one of the major global media markets over the next decade. The consumer research underlines the potential of China. However, investment in this market needs to be seen as a long term strategy given the possible pitfalls along the way'.
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