Page 370 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China

Mongolia, for example, created a major called Electronic perspective, the increasing co-production Chinese
Competitive Sports and Management. Students are film production has shaped by both global pressures
required to comprehend the theories and operating and local goals. The development of Chinese national
skills of the most popular international video games. cinema in global contexts is not merely a mixing of
Surprisingly, around 30 percent of students failed the first local and foreign elements but involves a deeper
midterm exam. The most recent school to adapt to the interrogation of modes cultural production. Local
online gaming culture is the Communication University identities are not simply blurred but the process of co-
of China, which opened a new digital entertainment produced films challenges the assumptions of the core/
major called E-Gaming. During a CCTV interview, Chen periphery model that has essentially generated a newly
Jingwei, Director of the Department of Game Design, cultural identity (Chu).
mentioned that the major doesn’t only test the student’s
ability to play games but also a wide scope of skills. Compared to the United States, where the average
These abilities include designing character graphics, age of those visiting cinemas is currently over 30,
directing a new game’s narrative, and running a firm in China’s demographic is much younger. A recent survey
the industry. “We’re looking for talents who will become put the average age at around 22. Chinese moviegoers
the brains of this industry. They would be creating the typically view cinema outings as social activities, with
next big thing on the market, and their education would groups of friends watching movies together is a highly
prepare them not only for the eSport industry, but also communal experience. They also spend more money
other areas on digital entertainment,” Chen said (Facio). each time they visit the cinema. A 2016 survey by FT
Confidential Research found respondents spending
Media and Entertainment an average of about $10 per visit. About 30 percent of
that money went to food, beverages, or movie-themed
Traditionally, the film industry in China was supported merchandise. Catering to China’s tech-savvy millennials,
financially by the state. In addition, the government the Chinese online ticketing industry is flourishing.
had strictly controlled the film industry with censorship According to a report from Beijing-based entertainment
and entry barriers, just as it controlled other media research outfit EntGroup, over half of the Chinese movie
industries, such as newspapers and broadcasting. Film tickets sold in 2015 were bought online—compared to
had been used as a “propaganda” tool to educate the about 20 percent in the U.S.—and 90 percent of those
public. The China Film Import and Export Corporation were purchased with a smartphone (Allen).
had the monopoly as the only agent for all national
and imported films in production, distribution, and After averaging yearly growth of 35 percent for more
exhibition. In 1994, the state government decided to than a decade, China’s movie ticket revenue expanded
break China Film’s monopoly on the distribution of just 3.7 percent in 2016, clocking in at 45.7 billion yuan
domestic films. The new policies encouraged Chinese for the year, according to official data from China’s State
businesses to invest in film production. The government Administration of Press, Publication, Radio, Film and
also directly involved itself in negotiations with Television (SAPPRFT). Growth of 3.7 percent like this
Hollywood companies like Disney and Sony in order to would be considered a healthy for developed nations,
set up the film business between China and the United but was a drastic deceleration from China’s 48 percent
States. In an age of neoliberal globalization, the Chinese expansion rate in 2015. The forces behind China’s
government initiated the growth of the domestic film slowdown were a regular subject of debate: weaker
industry. The swift growth and change of the Chinese local films, a crackdown on box-office fraud, cutbacks
film industry in recent years signaled a parallel major in 2016’s generous ticket subsidies from fast-growing
growth of the co-production with foreign producers, online platforms, overall weakness in the Chinese
especially from Hong Kong, Taiwan and the U.S.. For the economy and increased consumer discernment among
foreign investors, such collaborative relationship reflects China’s new moviegoers. Perhaps, as China’s state-
the attraction of a large potential Chinese market. On backed international radio station said, it was the “New
the Chinese side, these collaborations appear driven Normal.” The SAPPRFT data shows that the number of
by an urgent need to reconstitute local markets after movie tickets sold in China in 2016 was up slightly to 1.37
the long-term decline of audiences. Film producers are billion, an increase of about 8.9 percent year-on-year.
forced to negotiate their political and artistic visions The average ticket price was down, however, reflecting
in accordance with the commercial demands. In this the expansion of cinema construction into provincial

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