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In the remainder of this series, we adopt the term in this broader sense, including the production and distribution of mass media. Recently, however, these have given way to targeted liberalization measures. It is therefore critical that companies carefully plan their business scope prior to initial incorporation in China, else undergo the onerous and time-consuming process of changing this later.
Doing so can often trigger a review by the China Cultural Bureau and lead to additional licensing requirements for the company and heightened scrutiny of the visa applications of its workers. Next, we detail some of the most important issues for foreign investors to be aware of, including legal, regulatory, and tax considerations specific to the industry. To revive its movie business, China brought in its first foreign film in — Warner Bros.
The Chinese began importing more American films and today allows an annual quota of 34 a year. Moreover, the average Chinese citizen goes to the movies less than once a year while the average American goes almost four times a year. Extending movie runs to second-, third- and fourth-tier cities should further propel box office receipts. Now they bring the movie stars to do promotional appearances in more than 20 cities, not just in major urban centers.
The infrastructure for movie-going is also on the rise. Adding movie screens and building cinemas, especially in the smaller cities, will spur growth of the entertainment industry in China, adds Shen. China is building at a rapid rate of 15 new movie screens daily in new and existing cinemas, up from more than three screens a day in , according to the U.
China currently has 31, screens while North America has approximately 39, screens, according to The Hollywood Reporter. Bloomberg reports that China is expected to have 53, screens by Rising disposable incomes among the growing ranks of the Chinese middle class also boosts the entertainment industry. China Eyes Hollywood China is also eyeing Hollywood to bolster its entertainment holdings and forge creative collaborations. But China looks beyond financial reasons in inking deals.
It is the first time that a Chinese company invests in a multi-year slate deal. It is the first Chinese company to buy a big U. Making international acquisitions can accelerate their ability to do so. The public announcement of the studio included appearances from actors Leonardo DiCaprio and Nicole Kidman as well as movie studio executive Harvey Weinstein.
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