Videoage International October 2019

10 World October 2019 V I D E O A G E won’t dip below 40 percent. Distribution in China is very complex and requires govern- mental approval. China has an official quota allowing a limited number of Hollywood movies per year — it permitted 38 in 2019, up from 35 in 2018. Chinese government officials want to make sure the box office for domestic films is strong and is not overshadowed by Hollywood imports. So they adjust slots so more than half of box office figures come from locally produced films. The Film Bureau and its China Film Group division determine whatmoviesaregivenatheatrical distribution slot, but it comes with 11th-hour authorizations, blackout periods, and other unpredictable elements. Plus, an enigmatic network of regulators oversees the Chinese slots. The Film Bureau also works closely with the National Radio and Television Administration to determine whether movies are deemed “appropriate.” The U.S. cornered itself in a very dangerous financial po- sition, forced to be reliant on Chinese box office numbers to recoup profits. The Chinese market has therefore become increasingly important to Hol- lywood, especially as the count- ry has rapidly increased its num- ber of theaters. It now has over 65,000 screens nationwide. If the trade war continues, it could result in a reduction of studio movie budgets, especially since it’s the Chinese box office that makes Hollywood’s block- buster productions possible. The only entity seemingly unaffected by this predicament is Disney. The Shanghai go- vernment is the majority owner of Shanghai Disney, so Disney is among the few companies gran- ted definite release dates. S everal scenarios are evolving for the U.S. movie industry in the midst of escalating economic tensions with China after a string of U.S. tariffs on Chinese products. This is the situation according to several newspaper accounts in the U.S. and in China. Among other requests, U.S. president Donald Trump is demanding that China do more to protect U.S. intellectual property. China has responded with tariffs on U.S. products, and both sides are promising further barriers to trade. However, the White House has remained silent on the trade war concerning movies since Trump has repeatedly battled with Hollywood (see story on page 40), and China took the opportunity to quietly retaliate against the U.S. entertainment industry. But even this aspect has several dimensions. On one hand, Beijing is now limiting (albeit not officially) Hollywood’s ability to distribute its product in the country. On the other hand, China wants to avoid charges of protectionism, particularly from its domestic theater owners, and wants to make sure that the movie sector does well in the country. For that reason it is expected that foreign box office numbers China Blesses And Curses Hollywood’s Films (Continued on Page 12) (Continued from Page 6) The new compensation model would give Disney the flexibility to move shows from its TV networks — including ABC and Freeform — to Disney Plus without outside bidders driving up the price. Some entertainment industry guild members now fear that U.S. studios may limit residual payments as well. Residuals are paid to writers, actors, and di- rectors whenever a show reruns. Streaming companies have al- ready begun buying out residual payments on some shows. (Continued from Page 6) Residuals Visit us at MIPCOM in the VIP Club 8x60 www.amcstudiosinternational.com AMCStudiosSales@amcnetworks.com