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pletoconnectwithmillionsofothersallovertheworld.Therefore,topromotemoviesontheIntercangetaneffectiveresultatthelowestcost.Inthisrespect,China’sfilmindustryshouldpaymoreattentionsonputtingpromotionsontheInterasaresponsetothistrend.Forinstance,filmenterprisescanbuildacooperationrelationshipwiththefamouswebsiteswhichhavealargeamountofbrowsingratestopromoteanewmovie.Moreover,theycanestablishanonlinemunityfortheaudiencestoexchangetheiropinionsaboutcertainmovies,orevenpresentsuggestionsandexpectationsontheindustry.


3.2.4Place

“Placeincludespanyactivitiesthatmaketheproductavailabletotargetconsumers”.Itisanextremelynecessaryelementforaneffectivemarketingprocess.RegardingthesituationofChina’sfilmindustry,tomaintainanunobstructeddistributionchannelforensuringmoviesareavailabletotheaudiencestothegreatestextentisoneofthemostimportantfactorsinoccupyingthefilmmarket.Therefore,filmenterprisesshouldcooperatewithlocaldistributorsindifferentregionstomakesurethatthereisnoobstacleinthisfactor,aswellastoseekfortheirhelptodealwiththeproblemshappenedinotheraspects.Ontheotherhand,filmenterprisesshouldlearnfromtheexpertiseandsuccessfulexperienceofforeigncounterpartsonhowtoexpandthecoveragerateofthefilmmarketaswell.

Chapter4:TheImpactandDevelopmentProspectsofWTOEntryOnChina’sFilmIndustry

ChinaofficiallybecameamemberofWTO(WorldTradeOrganization)attheendof2001.Theaccessionhasbroughtanumberofsignificantopportunitiestothedevelopmentbothineconomyaswellasotherindustries,andthereisnoexceptioninthefilmindustry.However,China’sfilmindustryalsohasbeenconfrontingmanychallengessincethemembershipofWTO.Forexample,inordertomeetthemitmentsofitsWTOentry,Chinesegovernmenthasmadetwoagreementsonopeningupthefilmmarkettotheforeigncounterparts.Firstly,aftertheaccession,20foreignmovieswouldbeallowedtobeimportedforreleaseonthebasisofrevenue-sharingandobeyingChina’sadministrationsonfilms,secondly,foreigninvestorswouldbeallowedtoparticipateinthedevelopmentofChina’sfilmindustry,but,withamarketsharelimitationofupto49percent.

4.1TheImpactofWTOEntryonChina’sFilmIndustry

Firstofall,WTOentrycanhelpChina’sfilmindustryquickenitsstepstowardsindustrializationandglobalization.WithmoreandmoreforeignfilmenterprisesbegantoinvestChina’sfilmmarket,alotofcapital,advancedtechnologiesandmanagerialexperiencehavebeenintroducedtotheindustry.Therefore,itismoreconvenientforChinesefilm-makerstoutilizeforeignresourcesintheprocessofproduction,post-production,distributionandexhibition.

Secondly,theincreasingforeignmoviesallowedtobeshowninChinesecinemashavegraduallybeeamainsourceofChina’sBoxOfficerevenue,whichevenreachedhalfofitinrecentyears.InordertoalterthisoptimisticsituationandenhancethepetitiveforcesofChinesemovies,in2001,anotherthreefilmgroupswereapprovedtobeestablishedbytheChinaFilmBureau(GUOJIADIANYINGZONGJU).Theyrespectivelyare:theSouthChinaFilmGroupwhichiscenteredonGuangzhou-basedPearlRiverStudio,theNorthwestFilmGroupcenteredonXi’anStudioandtheSouthwestFilmGroupwhichiscenteredonChengdu-basedEmeiStudio.

Thirdly,WTOentrymakeChina’sfilmindustrybegantorealizetheimportanceofsteppingupthefightagainstpiracy.AccordingtoasurveybytheChineseFilmArtistsAssociation,percapitaspendingoncinemaadmissionfeeseachyearisonly0.8yuaninlastdecade.MillionsofpeoplechoosetowatchmoviesonVCDorDVDplayers,andalargeportionoftheVCDsandDVDsarepirated.


4.2TheChallengesBroughtbyWTOEntrytoChina’sFilmIndustry

Basically,thechallengesbroughtbyWTOentrytoChina’sfilmindustrycanbesummarizedintothreeareas:

*Howtoprotectthenation’sownculture,

*TheoldChinesecinemasareinthesituationofbeingeliminatedbytheforeigncounterparts,

*Thedistributionsectorneedstobefurtherreformed.

Asakindofculturalproduct,movieisusuallyusedasamediumforexpressinganation’scultureandideology.However,afterbecameamemberofWTO,thenumbersofforeignmovies,especiallytheHollywoodblockbustersthatareallowedtobeshowninChinesecinemashavebeenincreasingdramatically.Asaresult,theWesternculturesaregraduallybeingdisseminatedamongmoreandmoreChineseaudiences,whichhavebroughtbothpositiveandnegativeinfluencestothem.Forinstance,someyoungaudiencesconsideredthattheWesternculturesaremuchmoreattractivethanChineseculture.Theyarefetishisticaboutthefigurescharacterizedinthosemoviesandalwaystrytocopythemasexamples.Therefore,China’sfilmindustryisfacingthechallengeofhowtoprotectthenation’sownculturefrombeingaffectedbytheforeignmovies.

Sincethesecondhalfof1990s,therehasbeenatrendthatmoreandmoreaudiencesfeelreluctanttogototheoldChinesecinemastowatchmoviesduetotheshabbyfacilities,poorservice,fogyishmanagementaswellasalotofinconveniencesgeneratedontheaspectssuchasbuyingticketsorparking.Ontheotherhand,sincethemembershipofWTO,foreigninvestorsgradually

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