CINEMAS, FILM PRODUCTION & DISTRIBUTION IN CHINA & HONG KONG - A MARKET ANALYSIS

SUMMARY

This Access Asia report on cinemas in China and HK deals with ongoingdevelopments as cinemas change, adapt and there is a recovery of attendance inHK. Cinemas are changing: China is liberalising its cinema market following WTOand CEPA.

EXTRACT FROM INTRODUCTION

'...Where new cinemas are appearing they are no longer the traditional singlescreen venues but more modern multi-screen venues increasingly located insideshopping malls and larger entertainment venues.

The liberalisation of thecinema sector represents the wider opening of the film production anddistribution market in China.

The growth in personal incomes and the ownershipof at-home entertainment systems, such as VCD and DVD, has meant that cinemaaudience attendance figures have fallen and some cinemas forced to close. Thisat-home market is partly being fuelled by the widespread availability of piratedDVDs/VCDs that allow for low cost viewing of both domestic and foreign films.

However,there is a growth in multi-screen cinemas, new venues and the level of foreignfilms available for Chinese audiences to view

TABLE OF CONTENTS

CHINA CONTACT I

CHINA CONTACT II

CONTENTS III

1 INTRODUCTION

1.1 Executive Summary

1.2 Definitions & Report Coverage

1.3 Glossary

1.4 Related Reports

2 CHINA' S CINEMA MARKET

2.1 Introduction

2.2 China' s Cinema Market Parameters

2.2.1 China' s Cinema Market: Total Market Size

Table 2.1 OVERALL FILM REVENUES (BOX OFFICE RECEIPTS) IN CHINA 1989-2003

2.2.2 China' s Cinema Market: Number of Cinemas

Table 2.2 TOTAL NUMBER OF CINEMAS IN CHINA 1999-2003

2.2.3 China' s Cinema Market: Number of Projection Units

Table 2.3 TOTAL NUMBER OF PROJECTION UNITS IN CHINA 1995-2000

2.2.4 China' s Cinema Market: Attendance Figures

Table 2.4 TOTAL NUMBER OF PEOPLE ATTENDING CINEMAS IN CHINA 1997

2.2.5 China' s Cinema Market: Film Production

Table 2.5 FILM PRODUCTION IN CHINA: BASIC STATISTICS 1996-2001

2.3 The Development of Cinemas & Filmmaking in China

2.3.1 A History of Filmmaking in China

2.3.2 The Current Debate on the Future of Filmmaking in China

2.3.3 The Development of Cinemas in China

2.4 CINEMAS IN HONG KONG

2.4.1 The Hong Kong Cinema Market: Total Market Size

Table 2.6 TOTAL BOX OFFICE RECEIPTS IN HONG KONG 1998-2003

2.4.2 The Hong Kong Cinema Market: Industry Parameters

Table 2.7 STATISTICS OF HONG KONG' S FEATURE FILM INDUSTRY 1998-2002

3 CURRENT ISSUES

3.1 Current Cinema Ownership/Operator Regulations

3.2 Foreign Film Distribution in China

3.3 Market Liberalisation in the Cinema & Film Sectors

3.4 Market Liberalisation of Film Distribution

3.5 State Council Regulation Concerning The Film Industry 2002

3.6 Cinemas, Film & WTO Entry

3.7 The Hong Kong Film Industry & CEPA

3.8 Multi-Screen Cinemas Threaten Single Screen Operations

3.9 The Return of Outdoor Cinemas & Drive-ins

3.10 Film Ratings Systems

4 MARKETING & DISTRIBUTION ISSUES

4.1 Consumer Profile

Table 4.1 FREQUENCY OF CINEMA ATTENDANCE IN CHINA BY GENDER 2003

4.2 Changing Film Tastes in China

Table 4.2 PREFERRED MOVIES BY ORIGIN OF PRODUCTION & GENDER 2003

4.3 The Economics of Film Screenings

4.4 Ticket Pricing

5 FORECAST TRENDS

6 COMPANY PROFILES

6.1 Beijing Radio, Film & Television Group (BRFT)

6.1.1 BRFT: Company Details

6.1.2 BRFT: Company Background

6.2 Beijing Xincang Film & TV Culture Communication Company Ltd.

6.3 Beijing Xinyinglian Film Distribution Company

6.4 Century-Hero Film Investment Corporation Ltd

6.5 China Digital Art Dotcom

6.6 China Film Group Corporation (CFGC)

6.7 China Urban Cinema Development Association

6.8 Eastman Kodak

6.8.1 Eastman Kodak: Company Details

6.8.2 Eastman Kodak: Company Background

6.8.3 Eastman Kodak: China Activities

6.8.4 Eastman Kodak: Recent Developments

6.8.4 Eastman Kodak: Financial Results

Table 6.1 EASTMAN KODAK: FINANCIAL RESULTS 2001/2002*

Table 6.2 EASTMAN KODAK: SALES BY DIVISION 1999/2000

6.8.5 Eastman Kodak: Future Strategy

6.9 E' mei Film Production Company

6.10 Golden Harvest Entertainment (Holdings) Ltd

6.10.1 Golden Harvest: Company Details

6.10.2 Golden Harvest: Company Background

Table 6.3 GOLDEN HARVEST HOLDINGS: FINANCIAL RESULTS 1999/2000

6.10.3 Golden Harvest: Cinema Related Activities

6.11 Imar Films

6.12 IMAX Corporation

6.12.1 IMAX: Company Details

6.12.2 IMAX: Company Background

Table 6.4 IMAX CORPORATION: FINANCIAL RESULTS 2000/2001*

6.12.3 IMAX: Activities in China

6.13 Lark International Entertainment

6.13.1 Lark International: Company Details

6.13.2 Lark International: Company Background & Activities

6.13.3 Lark International: China-based Activities

6.14 Moonstone International Entertainment (China) Company Ltd

6.15 Shanghai East Film & Television Distribution Company

6.16 Shanghai Film Studio

6.16.1 Shanghai Film Studio: Company Details

6.16.2 Shanghai Film Studio: Company Background

6.17 Shanghai Yongle Film Distribution & Exhibition Company Ltd

6.18 United Artists Theatre Circuit Inc. (UA)

6.18.1 UA: Company Details

6.18.2 UA: Company Background

Table 6.5 UNITED ARTISTS THEATRE CIRCUIT: FINANCIAL RESULTS 1999/2000*

6.19 Warner Bros.

6.19.1 Warner Bros: Company Details

6.19.2 Warner Bros: Company Background

Table 6.6 AOL TIME WARNER: FINANCIAL RESULTS 2001/2002*

6.19.3 Warner Bros: Activities in China

6.19.3 Warner Bros: Recent Developments

7 CONTACTS

7.1 Trade Organisations & Associations

7.1.6 China Radio, TV & Film Publishing Association

7.1.7 China Tertiary Educational Institutes Film & TV Society

7.1.8 China Nationalities Film & TV Arts Development Promotion Council

7.1.9 China Foundation for the Development of Film Industry

7.1.10 China Research Institute of Film Science & Technology

7.1.11 Motion Picture Association of America (MPAA)/Motion PictureAssociation (MPA)

7.1.12 Beijing Film Institute

7.2 Government Departments

7.2.1 The State Administration of Radio, Film & Television (SARFT)

7.2.2 Ministry of Culture (MoC)

7.2.3 Ministry of Information Industry (MII)

7.2.4 State Press & Publications Department

8 CHINA' S MAJOR FILM STUDIOS CONTACT LIST

8.1 August First Film Studio of the People' s Liberation Army

8.2 Beijing Film Academy Youth Film Studio

8.3 China Film Co-production Corporation

8.4 Beijing Film Corporation

8.5 Beijing Film Studio

8.6 Beijing Forbidden City Film Company

8.7 Beijing Science and Education Film Studio

8.8 Beijing Xin Ying Lian Film Company Ltd.

8.9 Beijing Xinbaoyuan Film & TV Consult Company Ltd.

8.10 Central Newsreel & Documentary Film Studio

8.11 China Agriculture Film & TV Center

8.12 China Children Film Studio

8.13 Hunan Radio, Film & TV Group (HUNRFTG)

8.14 Nanhai Film Company

8.15 Nanjing Film Studio

8.16 Pexland International (Pictures) Ltd.

8.17 Shanxi Jinhe Film & TV Culture Company Ltd.

8.18 Shanxi Shengtai Television & Film Production Company

8.19 Sixth Production, Shandong Film & TV Series Production Center

8.20 Xiaoxiang Film Group

8.21 Yings Productions Inc.

8.22 Zhejiang Film Production Centre

9 CHINA' S MAJOR FILM DISTRIBUTORS CONTACT LIST

9.1 Beijing Hai Run Film & TV Programmes Company Ltd

9.2 Beijing Perspective Orient Movie & TV Intermediary Company Ltd

9.3 BTV Film & Program Acquisition & Sales Center

9.4 Twenty First Century Aural-Video Company

9.5 Huaxia Film Distribution Company Ltd

10 TRADE FAIRS, FILM FESTIVALS & EXHIBITIONS

10.1 Beijing International Broadcasting & Film Equipment Show

10.2 Beijing International Radio, TV & Film Equipment Exhibition

10.3 Filmart (founded 1997)

10.4 Hong Kong International Film Festival (HKIFF)

10.5 Shanghai International Film Festival

10.6 China Hubei International Photography, Video & Photographic ArtsShow

10.7 China International Photography & Electrical Imaging Machinery& Technology Fair

10.8 China International Video Technology & Photograph EquipmentExhibition

10.9 China Photo

10.10 CeBIT Satellite Broadcast Cable & Networks

10.11 International Film & TV Mart

10.12 Film Festival for University Students

APPENDIX A - CHINA MARKET BACKGROUND

A.1 Fast Facts

A.2 Regions of China

Map A.1 CHINA: PROVINCES AND MUNICIPALITIES

A.3 Demographics

A.3.1 Demographics: Total Population

Table A.1 TOTAL POPULATION, 1996?2003

A.3.2 Demographics: Population by Location

Table A.2 POPULATION BY URBAN-RURAL DIVIDE, 1997?2003

A.3.3 Demographics: Population Breakdown by Location

Table A.3 POPULATION BREAKDOWN BY URBAN-RURAL DIVIDE, 1997?2003

A.3.4 Demographics: Population by Province

Table A.4 POPULATION BY PROVINCE, 2000-2003

A.3.5 Demographics: Population Density by Province

Table A.5 POPULATION DENSITY BY PROVINCE, 2000-2003

A.3.6 Demographics: Population Concentration

Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2003

A.3.7 Demographics: Population by Gender

Table A.6 TOTAL POPULATION BREAKDOWN BY GENDER, 1997?2003

A.3.8 Demographics: Population by Age Group

Table A.7 POPULATION BY AGE GROUP, 1997?2003

Table A.8 POPULATION BY AGE GROUP (PERCENTAGE), 1997?2003

A.4 Consumer Attitudes

A.4.1 Consumer Attitudes: Overview

A.4.2 Consumer Attitudes: Response to Political Change

A.4.2 Consumer Attitudes: Response to Economic Change

A.4.3 Consumer Attitudes: Changes in Lifestyle

Livelihood

Individual loans

Housing

Possessions

Travel

Entertainment

Health and Fitness

Purchasing Influences

Taboos

A.5 Consumer Wealth

A.5.1 Consumer Wealth: GDP and Cost of Living

Dealing with WTO

Confident Shoppers

Table A.9 GDP AND COST OF LIVING INDEX, 1997?2003

A.5.2 Consumer Wealth: Provincial Differences in GDP

Table A.10 GDP RANKED BY PROVINCE, 1997?2003

A.5.3 Consumer Wealth: GDP Growth by Province

Table A.11 GDP GROWTH RANKED BY PROVINCE, 1996?2002*

A.5.4 Consumer Wealth: GDP Per Capita by Province

Table A.12 PER CAPITA GDP RANKED BY PROVINCE, 2000-2003

A.5.5 Consumer Wealth: Concentration of Wealth by Province

Map A.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2003

A.5.6 Consumer Wealth: The Major Cities

Table A.13 LEADING CITIES KEY ECONOMIC INDICATORS, 2003

A.6 Households

A.6.1 Households: Overview of Household Conditions

A.6.2 Households: Total Households by Size

Table A.14 NUMBER OF HOUSEHOLDS BY SIZE, 1997?2003

A.6.3 Households: Total households by Urban/Rural Split

Table A.15 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 1997?2003

A.6.4 Households: Income Earners Per Household

Table A.16 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 1997?2003

A.7 Employment

A.7.1 Employment: Number of Workers by Sector

Table A.17 NATIONAL EMPLOYMENT BY SECTOR, 1997?2003

A.7.2 Employment: Growth by Sector

Table A.18 GROWTH IN EMPLOYMENT BY SECTOR, 1997?2003

A.7.3 Employment: Number of Workers by Gender

Table A.19 TOTAL NATIONAL WORKFORCE BY GENDER, 1997?2003

A.7.3 Employment: Number of Workers by Habitation

Table A.20 NATIONAL WORKFORCE BY HABITATION, 1997?2003

A.7.4 Employment: Urban Unemployment

Table A.21 URBAN UNEMPLOYMENT RATES, 1997?2003

A.8 Consumer Income

A.8.1 Consumer Income: Average Incomes by Sector

Table A.22 AVERAGE INCOMES BY SECTOR, 1997?2003

A.8.2 Consumer Income: Growth by Sector

Table A.23 GROWTH IN AVERAGE INCOMES BY SECTOR, 1997?2003

A.8.3 Consumer Income: Average Incomes by Region

Table A.24 AVERAGE INCOMES BY REGION, 1997?2003

A.8.4 Consumer Income: Growth by Region

Table A.25 GROWTH IN AVERAGE INCOMES BY REGION, 1997?2003

A.9 Consumer Market

A.9.1 Consumer Market: Spending Trends

Table A.26 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES,1997?2003

A.9.2 Consumer Market: Per Capita Consumer Expenditure

Table A.27 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENTPRICES, 1997?2003

A.9.3 Consumer Market: Retail Sales and Consumer Spending

Table A.28 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE, 1997?2003

A.9.4 Consumer Market: Urban Income and Spending Compared

Table A.29 URBAN AVERAGE ANNUAL INCOME/EXPENDITURE, 1997?2003

A.9.5 Consumer Market: Average Urban Weekly Shopping Basket

Chart A.1 AVERAGE WEEKLY URBAN SHOPPING BASKET, 2003

A.9.6 Consumer Market: Average Rural Weekly Shopping Basket

Chart A.2 AVERAGE WEEKLY RURAL SHOPPING BASKET, 2003

A.9.7 Consumer Market: Average Urban & Rural Weekly Shopping BasketsCompared

Chart A.3 URBAN & RURAL SHOPPING BASKETS COMPARED, 2003

A.10 Exchange Rates

A.10.1 Exchange Rates: China

Table A.30 AVERAGE ANNUAL EXCHANGE RATES, 1997?2003

A.10.2 Exchange Rates: Hong Kong

Table A.31 AVERAGE ANNUAL EXCHANGE RATES, 1997?2003

APPENDIX B - NECESSARY DOCUMENTS FOR APPLYING FOR NON-FEATURE FILMSHOOTING IN MAINLAND CHINA