Name Yang Yadi Lilac
University number 2008801826
Sub-class: ECEN 1904 - N
Should More Money Be Invested in Chinese Film Industry?
The Chinese film industry has achieved satisfactory development in recent years. Noticing the large profitability of movies, both Chinese government and individual investors are planning to invest more money in Chinese film industry, whereas meanwhile many potential problems in film development in China have also risen. By analyzing the characteristics of film commodity, the cost and benefit of film production and the problem of piracy in China, this essay argues that China should not raise its investment in film industry, although it may seem profitable to do so. Theoretically speaking, more investment in film industry can bring about tremendous benefit not only to Chinese economy but also to our cultural development. Belonging to the tertiary sector of industry, film industry takes mainly intangible cost and generates immaterial output covering various social aspects including economy and culture. In addition, the peculiar characteristics of the film commodity, such as its “non-diminishable, invisible, indefinitely enlargeable, infinitely reproducible, but excludable nature” and “the slow physical deterioration of the means of its production” (Sedfwick & Pokorny, 2005, p.13), make it a high-profitable commodity attracting sustainable investment flows. Indeed, recent development of Chinese films has proved this. A total of 119 Chinese films were produced and released in 2007 and 144 in 2006. Up until November, 74 Chinese films have been released in 2008, including many blockbusters experiencing both domestic and international box-office booms. For example, the movie “Red Cliff” received gross global box revenue of $33,219,607 the week after its release on July 10, 2008. ( Nash Information Services, 2008). Simply looking at box-office revenue, investing in Chinese film industry is quite beneficial in the long run. On the...
References: Nash Information services (2008). Red Cliff Data. Retrieved November 15, 2008, from http://www.the-numbers.com/movies/2008/WARRC.php.
Nearly $2.7B US lost to Chinese movie piracy, says Hollywood trade group. (2006). Retrieved October 10, 2008, from http://www.cbc.ca/arts/story/2006/06/19/piracy-china-movies.html
Ravid, S. A. (2005). Film productio in the digital age – what do we know about the past and the future? In C. C. Moul (Ed.), A concise handbook of movie industry economics (pp.32 – 58). New York: Cambridge University Press.
Sedgwick, J & Pokorny, M. (2005). An economic history of film. New York: Routledge.
Weinberg, C. B. (2005). Profits out of the picture: research issues and revenue sources beyond the north American box office. In C. C. Moul (Ed.), A concise handbook of movie industry economics (pp.32 – 58). New York: Cambridge University Press.
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