Wed­nes­day Movie box of­fice falls af­ter sub­sidy cuts

China Daily (USA) - - NEWS CAPSULE -

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The coun­try’s box of­fice dropped 4.6 per­cent in the sec­ond quar­ter of 2016 due to a sub­sidy re­duc­tion, ac­cord­ing to sta­tis­tics from the Na­tional Film De­vel­op­ment Funds Man­age­ment Com­mit­tee. This com­pared with a record $6.6 bil­lion box of­fice for the same pe­riod last year.

The box of­fice de­cline, the first in half a decade, has weighed down the stock per­for­mance of the ma­jor listed film com­pa­nies.

Movie­go­ers can usually buy film tick­ets at a dis­count, and pro­duc­ers will sub­si­dize the re­main­der of the full price, which can be re­garded as a pro­mo­tional ac­tiv­ity. How­ever, if there is no real de­mand to see the film but pro­duc­ers buy the tick­ets in ad­vance, this is con­sid­ered il­le­gal.

“Af­ter the sub­sidy de­creases, the au­di­ence will not buy as many tick­ets as they did be­fore. This will show their real con­sum­ing ca­pac­ity. In fact, the ticket price may be a lit­tle bit higher for them,” said Wang Chang­tian, CEO of En­light Me­dia Co Ltd, one of China’s top film com­pa­nies. (Photo 3)

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