Taking on Hollywood’s China Challenge

From Business Week:

Hollywood claims China’s strict foreign film quota of 30 films per year thwarts trade obligations and leads to piracy. Is China protecting its domestic film industry or excercising political censorship over access foreign culture? The Motion Picture Association of America’s Chairman, Dan Glickman shares his thoughts in an interview in Business Week.

It was a big night for overseas talent at the Academy Awards on Sunday. Foreigners won the top four acting awards, and many of the other Oscars went to artists from outside the U.S. But as the film industry continues to globalize, one black spot for Hollywood continues to be China. The big studios have been complaining for years about rampant counterfeiting there, where pirated DVDs of newly released movies are easy to find in big cities such as Beijing and Shanghai.

To make things worse, the Chinese government heavily restricts the number of Hollywood pictures the Chinese can see legally. For studios wanting a share of box-office revenue, China has a quota of 30 foreign films a year. The government allows other movies in, too, but only if studios are willing to accept a one-off flat fee, with no revenue sharing.

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