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Hollywood looks east
Publication Date : 04-03-2013
US film companies are seeking partners in China to co-produce films so they can get around the restriction on the number of imported movies each year
Shanghai Calling. But nobody was answering.
That was the situation American screenwriter and director Daniel Hsia found himself in as he tried to find a producer to make a co-production in China of his film Shanghai Calling, so it could qualify as a "domestic film" and bypass the Chinese restriction of only 34 imported movies released in China every year.
Enter co-production veteran Janet Yang, who served as Steven Spielberg's eyes and ears in China for the filming of Empire of the Sun (Warner Bros 1987) and also represented major Hollywood movie studios as they reintroduced films to China after a two-decade hiatus.
Yang helped secure financing for the movie in the US and China and got talent in both countries to work on the script and film shooting. He did this while engaging China Film Group, China's largest film producer and distributor and the main importer of foreign films, to assist with regulatory matters, distribution and post-production.
After three years, Shanghai Calling was released last July in Shanghai and this month in the US.
"American and Chinese filmmakers are now like lovers," Yang says.
"They are actively dating, getting to know each other, checking each other out. Some of them are getting engaged, and some will be married."
What's motivating Hollywood to do co-productions is money.
It wants to capture part of China's US$2.75 billion box office.
A co-production agreement between a US and Chinese film company offers the best opportunity for doing that because it guarantees a movie will be released in China.
Co-production also spreads the financial risk and makes available Chinese talent, shooting locations and production services.
China's 2012 box office of $2.75 billion may seem big, but it represents only an average of 0.3 admissions per-capita movie attendance in the country, according to China Media Monitor Intelligence. The US box office total for last year was $10.8 billion, according to CNN.
The Chinese domestic film category accounts for 55 per cent of China's annual box office on average.
To qualify as a co-production and be labeled a domestic film, a movie usually needs at least one Chinese actor, some scenes filmed in China, content somehow related to China, and co-financing and revenue-sharing with a qualified local partner.
Movies also must be reviewed by the State Administration of Radio Film and Television, which prohibits violence, pornography and content that may "incite ethnic discrimination or undermine social stability".
"Chinese audiences are flocking to the movies to watch Chinese films (and) Hollywood fare and co-productions and appear eager for more," says Kate Bedingfield, Motion Picture Association of America spokesperson.
New cinema screens continue to be added at an average rate of eight screens per day in 2012. The total number of cinema screens in China now stands at more than 14,000 and is expected to more than double by 2015, she says.
Some co-productions have been major box office hits.
Journey to the West achieved the biggest opening day ever in China, grossing 76.85 million yuan ($12.3 million) on February 10 - the biggest single-day gross for any film released in China, grossing 122 million yuan on February 14, and the highest weekly gross for any film released in China with its opening week gross of 583 million yuan. It took the movie only eight days to reach a $100 million box-office take, the shortest time yet by a film to reach that mark.
Journey to the West
Written, produced and directed by famed Hong Kong director Stephen Chow, Journey to the West was jointly financed and co-produced by Chow's Hong Kong based company Bingo Movie Development, Village Roadshow Pictures Asia, the Greater China division of Los Angeles-based Village Roadshow Entertainment Group, Edko Films of Hong Kong and China Vision Media Group of Hong Kong. Huayi Brothers Media Group was the film's co-production partner and distributor on the Chinese mainland.
"Our VRPA team vetted the project concept, provided funding and advised on investment and distribution arrangements," says Ellen Eliasoph, president and CEO of VRPA. "We also assisted with marketing and publicity for the film, and, through our affiliated companies, are handling its marketing and distribution in Singapore, Australia and New Zealand."
Eliasoph, a graduate of Yale University and Yale Law School who speaks fluent Mandarin, became the first Hollywood executive based in China when she established Warner Bros' Beijing office in 1993, importing The Fugitive to China as the first Hollywood revenue-sharing film.
VRPA's second release, Say Yes!, a Chinese-language remake of the hit 1991 Fuji Television drama 101st Marriage Proposal, opened on Feb 12, 2013, and set a new China record for a romance film screening on Valentine's Day, earning 47 million yuan. The movie was jointly financed and co-produced by VRPA, New Classics Media, Fuji Television Network and Asia Times Cultural Media.
With the success of its two film releases in the same week, VRPA captured the lion's share of the Chinese New Year holiday box office, peaking at 85 percent on Valentine's Day, and becoming the first foreign co-producer to have the No. 1 and No. 2 films at China's box office at the same time.
Eager to gain access to Chinese consumers, some of Hollywood's biggest names - including DreamWorks Animations and 20th Century Fox parent News Corp - are making deals with local partners.
DreamWorks announced a joint venture last year with three government-backed companies in China: China Media Capital, Shanghai Alliance Investment and Shanghai Media Group (SMG).
The joint venture will make Shanghai's western bank of the Huangpu River a new cultural district with theaters, clubs and a studio that will be the home of Oriental DreamWorks, where co-production movies will be produced.
In May 2012, News Corp acquired a 19.9 per cent stake in Beijing-based Bona Film Group, after Bona's 2011 3D release Flying Swords of Dragon Gate took in $68.9 million in China, ranking ahead of Harry Potter and the Deathly Hallows (Part 2) that year.
Fox teamed up with Huayi Brothers, China's leading non-state sector film group, for several films, including the 2011 release Snow Flower and the Secret Fan, which was co-produced in China by Wendi Deng, the China-born wife of Rupert Murdoch, founder, chairman and CEO of News Corp.
While some Hollywood studios are doing co-productions, the film industry also saw Wanda, China's largest enterprise investor, spend $2.6 billion in 2012 to acquire AMC theatres in the US. The new ownership means US audiences will have more chances to see movies made by Chinese producers in AMC theatres.
While involved in co-productions, Chinese producers and directors are also seeking Hollywood's help to duplicate the success of big-budget US films.
Lost in Thailand, a low-budget slapstick comedy, became China's highest-grossing domestically produced movie in December, drawing 32 million people to theaters.
Its US opening-week box office gross in February 2013 was only $57,397, according to IMDB, the Internet Movie Database of information on films, television programmes and video games.
Stanley Rosen, director of the East Asian Studies Centre at the University of Southern California, says subtitled films don't do well in the US. They make up about 1 per cent of the market and are seen as "art" films by distributors.
"They can't compete for screen time at the multiplexes with the 'big films'. Films like these won't have much of a budget for prints, advertising and marketing," says Clayton Dube, president of USC's US-China Institute.
Among a handful of Chinese movies that have been successful in the US was Ang Lee's Crouching Tiger, Hidden Dragon, which made $128 million. Another is Zhang Yimou's Hero at $55 million, Rosen says.
Yang, who grew up on New York's Long Island and studied Asian studies and Mandarin at Brown University, says being bilingual and bicultural help her understand the US and Chinese markets as a movie producer.
"Some Chinese directors want to make international movies, but they have not spent enough time abroad," she says.
"It's about sensibility. It takes an international person to make an international movie."