Film Industry: American Muscle To Chinese Skeleton
![]() US and China gang-up to save their film industries.
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Piracy by China on IP rights of Hollywood. Cartoonist Clay Bennett takes a swipe at China and Hollywood. Sourece & courtesy – claybennett.com | Click for source.
Davids & Goliaths
The two biggest economies in the world, US and China have at least one ‘threat’ in common. And the threat is actually from much smaller economies.
US and China have allied to ensure that the threat is ‘managed’.
The Chinese and the US film industry have no answer for old warhorse Bollywood and the upstart Nollywood.
Between Bollywood and Nollywood, they occupy the Top-2 positions in the world film industry. Bollywood with little support from mainstream banks, and Nollywood with no support at all have left Hollywood and the Chinese trailing far behind.
Boom Time In China
Even though

Cinema in China is booming. In 2010 box-office revenues grew by 64% to just over 10 billion yuan. | Image source & courtesy – economist.com | Click for image source.
Cinema in China is booming (see chart). In 2010 box-office revenues grew by 64% to just over 10 billion yuan. More than 520 films were made—about as many as in America. Only India produces more. (via China’s film industry: Kung fu propaganda | The Economist).
What The Economist does not mention is that India alone produces as many as China and US together. And that Nollywood comes in at No.2 position.
Globalized and organized Hollywood is finding that Bollywood and Nollywood is increasing their leadership in viewer and production numbers – without the advantages that Hollywood has.
The only relief that Hollywood has, is from China.
Hollywood is already doing well in China. Blockbusters like Avatar have been hugely popular and foreign films – usually big-budget Hollywood fare – account for about half of the country’s box office takings.
For the past decade, China has only permitted 20 foreign films to be shown in cinemas. A new deal agreed last month allows a further 14 movies to be shown in cinemas, provided they are in Imax or 3D formats.
China is certainly rich in potential. Box office takings surged 29% to $2.1bn (£1.3bn) in 2011 and are expected to see similar growth in 2012. While that’s only a fraction of the $10.2bn taken at the US box office, US ticket sales are declining. (via BBC News – Hollywood plays China card as audiences dwindle at home).
In the last ten years, mainland China has promoted its domestic industry – and taken control of it. Using various front companies, the Chinese Government has bought out and put up studios that will increase production along Party lines.
Along the way, Chinese actors and directors have found traction in Hollywood. And Hollywood blockbusters have gained significant market share in China.
Where the Japanese have gone before
In turn China, with its bulging foreign exchange reserves has decided to take a stake in Hollywood. Much like the Japanese bought in Hollywood back in the 1990s. Sony into Columbia Tristar (1989) and Matsushita (in 1990, Matsushita Electric bought MCA+Universal Studios for $6.5 billion)
BEIJING — Hollywood studios, facing steep challenges in the North American movie market, are taking more interest in China.
The Walt Disney Company and Marvel Studios, a division of Disney’s Marvel Entertainment subsidiary, are producing “Iron Man 3” in China. An agreement with Chinese authorities will allow more American companies to distribute more movies and reap a greater share of the box office in China, the world’s fastest-growing economy.
But at least one billionaire businessman is betting that the American movie market is still the ticket to international success. And he is Chinese.
Wang Jianlin, a rags-to-riches tycoon, is taking over AMC Entertainment, North America’s second-largest movie theater chain behind Regal Entertainment. And he is promising to integrate it into a new, made in China, global brand called the Wanda Group.
Wanda is a private company in a nation dominated by state-owned enterprises. But the AMC deal is closely aligned with the Chinese government’s priorities, which include encouraging Chinese companies to “go global,” pushing an overhaul of Chinese media and entertainment properties and placing greater emphasis on consumer spending. Policy makers in Beijing also want to bolster China’s “soft power” capabilities to extend its cultural influence internationally, and the film industry is considered one of the most promising avenues for doing so.
Which raises the question: Why invest in the United States cinema market at a time of weakness, when box office receipts are sluggish and American film producers are looking to China?
Some analysts have suggested that Mr. Wang’s acquisition of AMC was political, an effort to curry favor with Chinese leaders, who are pushing their nation to enhance its influence by exporting cultural products. Others contend that Mr. Wang is eager to establish himself as China’s first global corporate chief.
But to pull off the deal, Wanda needed plenty of that: more than $3 billion in cash, including $500 million it has promised to invest in AMC in North America. In the end, much of the cash came from China’s big, state-controlled banks. (via China Tycoon Places Risky Bet on U.S. Movie Market – NYTimes.com).
Soft Power – China?
China’s expected rise as a global soft-power has been beset with unexpected difficulties and slower if not zero growth. From the time that Joseph Nye coined the term soft-power, China has been positioned, by Western media as the challenger to American (& Western) soft-power. To Western media, India, seemed like an unlikely candidate as Emerging Soft-Power, has been ranked highest among emerging economies.
But curiously, the more China tries to become a soft-power, the more incapable it finds itself. Most recently, the Chinese President, Hu Jin Tao, lamented the lack of Chinese soft-power – and cautioned the Chinese nation of the dangers from Western culture.
To add heft to China’s quest for soft-power, the Chinese film industry has been significantly supported by the Party and Chinese banks. Investments into construction of film exhibition theatres, studios, animation labs, have been liberal and copious. At the same time, severe restrictions have been on import of films – to twenty in a year, from all sources.

On left y-axis read the zero at top as 100. On the right y-axis, percentages are based on 2005 as base year with 1 deal.
In 2009, the State Administration of Radio, Film and Television promulgated the Interim Provisions on the Qualification Access for Operating Film Enterprises, Interim Provisions on the Administration of Chinese-foreign Equity and Contractual Joint Ventures of Radio and Television Program Production and other policies in succession. In the capital operation process, Chinese film industry ushered in the market reform, mitigating the problem of capital shortage and vitalizing the market.
There has been a continuous increase in the number of Chinese home-made films since 2003. In 2009, the number hit 456, up 12.32% on a year-on-year basis. The year 2009 has been a banner year in the output of home-made films since 2006. In certain sense, the year 2009 was a critical period of development for Chinese film industry. In the very year, the gross revenue of the Chinese film market reached RMB10.67B, up 26.47% compared with RMB8.43B in 2008.
Huayi Brothers Media Group and Beijing Polybona Film Distribution Co., Ltd. (Polybona Films) are the leading private film bodies. Take Huayi Brothers Media Group as an example, under the flagship of Huayi Brothers Media Group, Huayi Brothers Pictures Co., Ltd. realized the complete industrial chain system from screenwriting, direction, filmmaking and marketing to distribution.
The films, including the Rabe’s Diary and The Message, which Huayi Brothers Media Group invested in and participated in the operation in 2009, acquired good box-office takings in succession. Furthermore, the film, such as Tangshan Earthquake and You Are the One 2, which Huayi Brothers Media Group invested in 2010, are expected to obtain the good box-office takings and worth waiting for.
On Oct. 30, 2009, Huayi Brothers Media Group listed on Shenzhen’s ChiNext Board. The rapid development of the private film bodies, including Huayi Brothers Media Group, Orange Sky Entertainment Group (International) Holdings Ltd. and Polybona Films, not only aggravated the market competition between state-owned film enterprises and private film bodies but also vitalized Chinese small-and-medium-budget film-making market.
The Chinese film-making market showed a sound development gradually. PE/VC took a wait-and-see attitude towards the Chinese film-making market in general. According to the latest China Film-making Industry Investment Research Report 2010 issued by Zero2IPO Research Center, there were 28 investment deals in Chinese film industry from 2005 to 2009, including 26 deals whose investment amount was disclosed with a total investment of US$256.00M and US$9.85M in average. There were nine investment deals in Chinese film industry in 2009, which has reached the peak since 2005. (via Investment in Chinese Film Market Strong in Words but Weak in Action – PEdaily.cn – Zero2IPO Group).

Since 2004, the number of Chinese animation production enterprises has been on the rise, with the number of enterprises engaged in the production of TV cartoons rising to 200 in 2010 from 15 in 2004. Meanwhile, a host of registered animation film production institutions have emerged, with the figure increasing to 68 in 2010 from 25 in 2008. | Caption & image via Global and China Animation Industry Report, 2011 – ResearchInChina.
Echoes from Japan
Interestingly, animation films in China have been a big success – unlike India. Vastly different from the traditional lines of Chinese films.
Keep in mind, that Japan is a big consumer of anime, gaming, cartoons.
Kung Fu Panda, a 2008 American computer-animated action comedy film is enough proof of this.
“Kung Fu Panda,” the animated movie about a bear named Po with a passion for martial arts is a huge hit in China.
The film, from DreamWorks Animation and Paramount Pictures, has already grossed more than $12 million after less than two weeks in release.
Globally, the movie has brought in $275 million (via ‘Kung Fu Panda’ is a success at the box office in China – The New York Times).
Was the success of Kung Fu Panda and its sequel, in China a flash in the pan?
Kung Fu Panda and its sequel are arguably the most successful Chinese-themed Hollywood movies to date, and the movie’s screenwriter, Glenn Berger, says Hollywood’s China infatuation is not necessarily a passing fad. (via BBC News – Hollywood plays China card as audiences dwindle at home).
Quiet Flows Buddhism
For long the Chinese needed and used Buddhist story props and ideas in Chinese films – especially made by the centurion Shaw Brothers – Run-Run and Run-Me. Based out of Hong Kong and later Singapore, the Shaw Brothers was the global face of Chinese cinema from 1950-2000. Devout Buddhists, their story-lines incorporated Japanese colonialism, Buddhist monks, great belief in the Chinese identity. Some Chinese dynasties like the Manchu, Ching and Mongol Yuan dynasty of the 14th century was a favorite target.
But in the last 10-15 years, the Buddhist monk has disappeared. Instead gangsters and underworld have become dominant themes in Chinese films.
The pre-occupation of Hollywood with death, war, violence, crime is well-known. Is that the way Chinese will ‘progress’?
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- Kung Fu Wanda: China gets Hollywood makeover (rt.com)
- Why a Chinese Company Wants to Own Your Local Movie Theater (theatlantic.com)
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Bollywood in Russia

A Soviet film promotion poster featuring Raj Kapoor for Shree 420 | Image source & courtesy – timeoutmumbai.net | Click for image.
Baby steps to Big Daddy
For 2009, tickets sales for Hollywood films were numbered at 2.6 billion viewers. For Bollywood, the number was 3.6 billion.
More than the film-going population of USA, EU and Latin America put together. Against some 400 films that Hollywood releases each year, Bollywood releases 1200 odd films.
But it was not always like that.
Bollywood was post-colonial India’s first major export. In the 1950s, it had a huge following in the Soviet Union, India’s major ally. When leading man Raj Kapoor, a Charlie Chaplinesque tramp, and his heroine Nargis went to Moscow, they were mobbed by fans who shouted lines of songs from their movies, without understanding a word.
“Some years ago, when we started showing Bollywood movies in Toronto,” says Madeline Ziniak, vice-president of Omni-TV, “we were pleasantly surprised to find audiences in the Canadian Russian, Romanian, Bulgarian, Czech and Central Asian communities. We couldn’t believe it.” (via How Bollywood conquered the world… – Toronto.com).
Look back with surprise
Way back in 1954, when nearly a million Russian turned up at the Indian film festival in USSR, it seemed more like a flash in the pan.
Although Indian films caught on only after Stalin’s death in 1953, small steps to distribute them in the USSR were already being taken in the mid-1940s. Sovexportfil’m set up an office in Mumbai in 1946 to import films from India and ensure that Russian movies were shown here. The early preference was for socialist-themed movies: K Abbas’s Dharti Ke Lal was shown in Russian cinemas in 1949 and Chinnamul in 1951.
The watershed occurred in 1954, when a festival of Indian films, including Awara, was held in Soviet cities. Nearly a million people saw Indian movies within the first four days of the festival. From then, Indian movies, mostly in Hindi, were regularly distributed through theatres in the USSR. In all, 210 Indian films were shown in the USSR until 1991, of which about 190 were commercial Hindi movies.
Indian movies were embraced for a cluster of reasons. The “melodramatic genre’s explicit juxtaposition of exaggerated good and evil personages found a sympathetic audience”, she writes. The colourful characters, costumes, songs, dances and locations that typify the average Hindi film allowed viewers to indulge in “cinematic tourism”. Indian movies were “skazkas”, or fairy tales; they epitomised “byt” or personal space. Rajagopalan writes, “Byt was the realm of everyday life that remained untouched by ideology and was removed from if not opposed to the glorified realm of Soviet society.” An affinity seemed to exist between the Indian and the Soviet “dusha”, or inner world. Viewers felt that the situations depicted in Indian cinema were far closer to their own than those depicted in other foreign movies.
Over the years, Indian movies raked in the roubles. Love in Simla was the third biggest box-office hit in the USSR in 1963. In 1984, Disco Dancer had the highest audience turnout. Even as debates raged between fans and critics on the worthiness of Indian cinema, Soviet distributors knew that commercial films would guarantee financial returns.
Some explanations for this behaviour can be found in Sudha Rajagopalan’s engrossing book Leave Disco Dancer Alone! Indian Cinema and Soviet Movie-going After Stalin. Through research, interviews and questionnaires, Rajagopalan reveals the impact that Indian cinema had on the cultural life of (Soviet Russia). The book maps the period between 1954, the year after dictator Josef Stalin died, and 1991, the year the Soviet Union was disbanded.
“What inspired the book was really the fact that historians who have studied the former Soviet Union have looked at Hollywood and its reception among Soviet audiences, but it was news to many in my field that Indian films were an important feature of cultural life in the Soviet Union,” said the 37 year old historian. “So it was clearly a lacuna in historiography that needed to be filled.” (via Byt the bullet – Time Out Mumbai – parts excised for brevity. Supplied text underlined).
Most accounts of Bollywood in USSR seem to imply that Bollywood gained access to USSR because of political patronage. The official attention paid to India by the Soviet Bloc, aroused a mix of concern and envy from the West.
In fact, commercial success was the main reason. While the success of Awaara has had many tellings, Bollywood’s other successes are not known – at least in India.
After Awaara,
came the Indian saga about twin sisters, Seeta Aur Geeta (1972), a marvelous reminiscence of distant childhood. Children in Moscow courtyards tried to repeat the circus tricks of the brave heroine, Hema Malini. They copied her tightrope act and her daring manner of behaviour and speech. Indian cinema fans here still remember how one of the twins taught her wicked aunt a lesson. Songs from Indian movies were especially popular in the Soviet Union in the 1980s. The fashion for disco dancing forced young Russians to view Indian cinema differently after the appearance of Disco Dancer (1982). The rags-to-riches story of an ordinary young Indian boy who manages to become a famous singer once again staggered the imagination of Soviet moviegoers. Mithun Chakraborty, the film’s star, replaced Raj Kapoor in the eyes of the new generation. Disco Dancer earned close to 60 mn roubles at a time when movie tickets cost 20-50 kopecks. The dance halls at Soviet summer resorts in the `80s resounded with the sounds of “I Am a Disco Dancer”. Some fanatics were capable of requesting the song ten times over. (via Bollywood returns to Russian screens | Russia Beyond The Headlines).
Problems in ‘paradise’
Financed and controlled by party bureaucrats of Soviet Russia, Soviet film production was seriously limited. But the demand for filmed entertainment from the paying Soviet public was greater than the domestic film production in Russia.
Unable to deal with commercial uncertainty, Soviet government resorted to imports of ready-made products. Imported films accounted for about 35% of ticket sales at the height of Brezhnev regime in 1970s.
Masha Salazkina, a writer who has covered Indo-Soviet film trade lists many co-productions with

Mithun Chakraborty and Shabana Azmi present for Mrinal Sen’s film “Mrigayaa” – exhibited at the X Moscow International Film Festival. Event date – 07/01/1977 | Source & Credit: RIA Novosti | Click for source image.
equal representation from each county in all functions, even up to the point of having two directors, one from each country. These coproductions were “meant to create films that would hybridize each culture’s favored motifs and narrative structures, in the hopes of creating truly popular films.” Here are all the Soviet-Indian coproductions she lists: Pardesi (Khozhdenie Za Tri Moray, 1957); Black Mountain (Chernaya Gora, 1971); Rikki Tikki Tavi (1975); Eastward, Beyond the Ganges (Voshod Nad Gangom, 1975); Alibaba and the 40 Thieves (1980); Sohni Mahiwal (Legenda O Lyubvi, 1984); Shikari (Po Zakonu Dzhunglei, 1991); and Ajooba (Chernyj Prints Adzhuba, 1991). Mere Naam Joker (1970) and Mother India (1957) are not listed because they were not full coproductions like the above films (via Minai’s Cinema Nritya Gharana: Indian Dances in Western Films about India: Part 4 (Coproductions).
Instead of large capital outlays that Hollywood and Russian films needed, Indian films earned profits for the Soviets.
Russians have been enjoying popular Indian melodrama and musicals since the first festival of Indian films in Moscow in 1954. In fact, box office statistics suggest that Indian movies were more popular than any other foreign films shown in the Soviet Union. In the period between 1954 and 1989, for example, while forty-one American and thirty-eight French movies attained “blockbuster” status (defined as selling more than 20 million tickets) in the Soviet Union, fifty Indian movies did the same. (via INDIAN FILMS IN SOVIET CINEMAS reviewed in Slavic Review).
For India, cultural exports were an unexpected feather in the cap. Even recently, till a few years ago, exports to Soviet region accounted for between 10%-15% of Bollywood’s overseas revenues.
Significantly, this was the largest source of revenues from non-Indian viewers.
Till around early the 1980s, the USSR accounted for export of up to 150-odd movies each year.
“However, after the disintegration of the country, Hollywood movies took over our market. We now send just four or five movies each year to these countries,” says a Mumbai-based distributor. With increase in interest in Indian movies in Russia in recent months, Parmeshwaran is confident of doubling exports to that country over the next one year. A major delegation of film-makers and producers from Russia is expected to visit the country in November this year. (via Entertainment industry targets new shores – Economic Times).

Unlike Hollywood, Bollywood’s growth is based on attracting viewers with a mix of values and vision, a huge talent pool, savvy business minds. Not imperial military might or overwhelming ‘special effects’, powered by raw money power | Image source & courtesy – tribune.com.pk | Click for larger source image.
With success comes envy … and imitation
After the break up of Soviet Russia, Bollywood remains a big draw in the Central Asia. All this success has also drawn its own share of backlash – like in Pakistan, Bangladesh, etc.
The Express Tribune (from Pakistan) reports
Indian movies are shipped to Uzbekistan from India and are translated into local languages. These movies are not just being showcased in cinemas but are also taking up airtime on local TV channels. “We watch Indian movies at home on TV and listen to Indian songs on the radio all the time,” he says.
Uzbeks are still drawn to the choreography and bright cinematography of Indian cinema. The proliferation of this infectious Bollywood glitz and glamour that continues to embed itself in the hearts of Uzbek women, men and youth is not going unnoticed by the government.
The government strictly controls the entertainment industry and has take measures to try and protect the industry.
President Karimov’s government is currently chalking out strategies to promote Uzbek movies at home over Indian movies. The government has written scripts and engaged the entertainment industry in its effort to reintroduce Uzbek youth to the country’s indigenous culture.
Today there are more than 50 private film studios in Uzbekistan that produce about 50 films a year.
The personality that seems to be embedded in the minds of most of today’s Uzbeks is that of Indian actor Mithun Chakraborty, who came to the country in 1980 to shoot Ali-Baba and the Forty Thieves. The movie, shot by an Uzbek film studio in collaboration with India, was one of the biggest international projects filmed in Uzbekistan during the Soviet era.
Obid Karimov, a local in Tashkent, says the ‘great movie’ also starred legendary Uzbek comedian Asomov and was one of the best-selling movies of all times in the Soviet Union in the 80s, and was watched by millions of viewers in USSR alone.
Although the country always embodied aspects of different cultures, what seems to be gaining popularity today are Bollywood hits.
“Bollywood is fantasy, and we love being a part of the journey, even if it’s just for a few hours,” says Obid. The Uzbek film industry, in an attempt to keep its audiences’ interest, has in fact started to elements of Indian films in their own productions. “The characters [in some recent Uzbek films] are larger than life just like in an Indian movie, but the ending is usually sad like a Russian drama,”adds Obid.
An official from the Pakistan Embassy in Uzbekistan says that the influence of Bollywood is “huge” (via Bollywood calling: The fall of Uzbekistani cinema – The Express Tribune).
In Russia (like in Pakistan), there are indications that families and women are more loyal to Bollywood films. With Bollywood busy promoting itself at Cannes, Canada and USA, stronger markets have been ignored by Bollywood.
In Brazil, a Bollywood style tele-novela, Caminho das Índias (Road to India), a TV soap opera based on Indian themes became a huge success – and stirred some controversy. Similarly in Russia, too, a prominent media group, Red Media has launched a Bollywood channel, which will air Bollywood-style content that the Russian studio will produce on its own.
Russia continues to love Indian cinema classics from the 1960s and 1970s.
These are the films most talked about on Internet forums, where fans lovingly collect photographs and stories of their idols. They constitute a retrospective of Indian cinema that is regularly shown on Russian television, especially the Domashny channel, which is aimed at women and promotes family values. For Russian fans of Indian films, there is even a special satellite channel called India TV. Russia’s love of Indian films has now spilled over into a mass passion for Indian dance. Every self-respecting sports club in Moscow teaches yoga and the art of Indian dance. Russian girls array themselves in saris for these lessons, which are more popular even than traditional European fitness classes. (via Bollywood returns to Russian screens | Russia Beyond The Headlines).
And Russian leaders too
President Dmitry Medvedev, on his visit to India, made time to meet up with some Bollywood biggies – and tried to re-ignite the old Indo-Russian fires.
Soviet directors like Bondarchuk, Tarkovsky moved to Hollywood. This move, assuming endless financing for their creative output, did not quite turn out like that. The studio system worked pretty much like Soviet bureaucracy to limit their production – as evidenced by their limited output in the West.
Within the Soviet film industry itself, there was much admiration for Hollywood and Western film genres and styles. Interestingly, Indian critics have seen Bollywood films as sub-standard – much like Bollywood sees itself, also.
But the viewers aren’t paying attention to carping critics and ‘superior’ art-film ideologues.
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- Singing Hindi in the Rain (nytimes.com)
- Indian Movie Audiences Debate Over American Adult Star Acting In Their Films. (examiner.com)
- Success of 3 Idiots breaks China’s Bollywood Great Wall (thehindu.com)
- Shekhar Kapur: ‘Bollywood films limit creativity’ (digitalspy.co.uk)
- Bollywood looks east to tap Chinese market (vancouversun.com)
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