Chinese Film Authorities Announce New Reward System
on November 26, 2012
China Film Biz's Rob Cain provides an excellent summary of the recent announcement that China's film authorities will reward subsidies to film companies and theaters in order to settle a dispute over profits. The new system goes into place on January 1, 2013. Here are some of the main points according to Cain:
For distributors of domestically made 3D and IMAX films
If a film grosses RMB 50 million to 100 million, a RMB 1 million bonus
If a film grosses RMB 100 million to 300 million, a RMB 2 million bonus
If a film grosses RMB 300 million to 500 million, a RMB 5mm bonus
If a film's box office gross surpasses 500 million, a RMB 10 million bonus
For theater operators
If at least 50 percent of a theater chain's total annual box office gross is earned from domestic films, 100 percent of fees paid during the year by the theater chain to the National Film Development Funds Management Committee (a straight 5 percent of every RMB of ticket sales) will be reimbursed to the theater chain.
If the percentage of box office earned from domestic films is between 45 percent and 50 percent, the NFDFMC will reimburse 80 percent of the fees a theater has paid to it.
If the percentage is below 45 percent, but the domestic film revenue is still more than last year's, the NFDFMC will reimbursed 50 percent of the fees.
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