China Film Industry Experts Weigh Up the Costs of a Flood of Capital Investment

The guests are discussing actively on the forum.
 

　　Industry experts acknowledged the positive role of capital investment in film production but they warned a forum during the 2016 Shanghai International Film and TV Festival yesterday that overheating could be harmful.

　　The forum, titled "On Capitalizing the Chinese Film Industry -- Communication or Confrontation," discussed how film production could better leverage the power of capital to fuel industry growth.

　　Film company executives worried that investors with less experience of film production would disrupt the industry and negatively affect the booming sector.

　　"Capital injection and more investment in the segment certainly could promote good film productions and film-making capability in general," said Jerry Ye, CEO of Huayi Brothers Pictures.

　　"But if the only purpose is to squander away money and seek quick investment return, it could produce a \'bubble\' and even hurt the industry in the end," he added.

　　Yu Dong, founder, Chairman and CEO of Bona Film Group, said there\'s been a constant battle between the film industry and capital and it requires effective coordination and partnership from both sides to make the industry more globally competitive.

　　The support of capital could help to internationalize China\'s film industry, but industry practitioners should also consider how to merge their overseas assets with existing business operations, Yu said.

　　That requires industry know-how and critical insight into the market, he added.

　　The film industry in China in the next three to five years offers enormous opportunities but also confusion and bewilderment and the right strategic direction is essential for all parties involved, Yu noted.

　　The forum also was told that if China was to have its own status in the international film market, more capital investment was required to support content producers as well as distributors.

　　Senior Wanda executive Zeng Maojun said China\'s annual film production costs were about 15 billion to 20 billion yuan and expressed similar concerns at the overheating of capital in the industry. Zeng is President of Wanda Cinema Line and Vice President of Wanda Culture Industry Group.

　　"We\'ve seen a recent shift in investors\' mindsets and some are seeking quick money, resulting in a lack of focus on content. And film viewers have limited access to high quality film productions," Zeng said.

　　Alibaba Pictures executive director and CEO Zhang Qiang said capital investment in China\'s film industry had been extremely active in recent years.

　　"Venture capital firms have been playing a vital role in the creation of start-up companies and private production houses," he added.

　　Alibaba Pictures will stick to its investment strategy, which, he said, is leveraging Internet technology to help industry players increase their efficiency and allowing easier access for film viewers through its online platform.

　　Yesterday, Alibaba Pictures inked a deal with Paramount Pictures, Twentieth Century Fox Film Corporation and Tsuburaya Productions to sell film derivatives through its crowd-funding platform Yule Bao.

　　But Huayi Brothers Pictures\'Jerry Ye warned that investors should also realize there\'s a huge risk in film production."It requires industry know-how and continuous efforts for a good idea, an online novel or online video game to be turned into a good movie," he added.