Industry Leaders Use Forum to Weigh up Challenges to Making Money from Films Online
Online video websites will charge users for films broadcast online, which will bring additional income to both film producers and websites, speakers told the forum "Looking for New Mode: Cinema and New Media, the Second Wedlock" yesterday.
But the whole industry had to stand together to fight piracy and solve payment problems, panelists told the forum, a part of the 15th Shanghai International Film Festival.
"I have to say, though, many probably disagree that online films should not be free for a healthy and sustainable business model," said Gong Yu, iQuyi\'s CEO.
The copyright cost of films broadcast online is 10 times that of online TV series but the advertising income generated is similar. That forces online websites to cash in through charging consumers directly, according to iQuyi, an online video subsidiary of Baidu.com.
Gong\'s opinion was echoed by Youku and Sohu.com. Youku now
provides paid online film services, charging users 5 yuan (79 US cents) for viewing within 48 hours. "We set up the price to fight against piracy as it costs only five yuan in the street," Youku\'s spokesman said.
On the other hand, all websites complained about the payment methods. Sometimes consumers had to wait one hour to complete payment before watching a micro-film that lasted 20 minutes, Gong said.
Through industry cooperation with facilitators like China Mobile and banks, the payment methods will be greatly improved, meaning stronger potential for paid Chinese online film services, said Liu Chun, Chairman of Sohu.com\'s Video Department.
Yu Dong, Founder, Chairman and CEO of Bona Film Group, welcomed new media\'s entry into the film distribution sector.Chinese films, especially low-cost films without many special effects, can\'t directly compete with Hollywood blockbusters in cinemas, Yu said, adding new media is a nice platform for investors to gain some income from the market.
Shanghai Municipal Administration of Culture and Tourism
