Peter Chan: The Market on Mainland is the last Oasis

Since the "Warlords", Chen said he has been pondering on and illustrating the direction and mode of Chinese epic films. To him, he has made big-budget films. Because in the epoch of multi-entertainment, only those big-budget films with grand scenes can attract people go back to the cinemas. It is not his purpose to make those films, on the contrary, he is using the big-budget films\' influence to activate the market: "to expand living space for more low/medium- budget films."  

SIFF Daily News: Several years ago, in audiences\' eyes, you were a director of love stories, then you became a producer and made the experimental try "Perhaps Love" (2005), a musical film. Later in 2007, you cooperated with China Film Group corporation and Media Asia film company, made the film "Warlords". Is the track in your plan?

Chan: I think what I have seen is a general direction. Hong Kong film industry has been declining since 90s in last century, so I went to Hollywood, where has a complete and systematic film industry. But its maturity leads to its extreme conservatism. And then I found my new direction and moved back to make the "Pan-Asian films". The Mainland market then was not mature, so I looked for partners mostly in South-east Asia and Korea, and we made co-production among Pan-Asia, imitating European mode. But in recent years, the Mainland film market is increasing; the box-office receipts of big-budget films are especially high. If making "Perhaps Love" is a experimental and learning process for me, then in the "Warlords", I have already have a clear idea of what I want to do: to face to the Mainland market. The market of the whole world is shrinking; it is true that most people see films through internet or DVDs. But, people of my generation will never make films for DVDs. So, we must hold on to the Mainland market, which is our "last oasis".      

SIFF Daily News: During the forum "New Hotspot: Explore the Chinese Capital Market", you analyzed quite thoroughly the status quo of Chinese big-budget films, one key point you noted was to decrease the cost. Is it concerned with Mainland market?

Chan: Yes. The big-budget film costing over 100 million is hard to make profits in Mainland market alone. Actually, as a Chinese film, a budget of 70 or 80 million is considered huge, besides this high cost is hard to call back in Mainland. Now, many big-budgets emphasize on the overseas income. But, in fact, it is already too hard to please Mainland, Hong Kong and Taiwan at the same time. For example, "The World Without Thieves" of Feng Xiaogang, although starring Andy Liu, Hong Kong audience still regard it as a Mainland film. It is similar in international market. So in order to please the overseas market, we began to make costume films, which are not regional. We have to change the situation and face the Mainland market. We have to remember the way is to depend on the story, and the theme must be verified. Only in this way, will our market will no longer filled with magical kung fu costume films. "Assembly" and "Cj7" is successful examples.     

SIFF Daily News: But how to decrease the cost? Take "Warlords" for example, the money paying for the film stars composed a big part of the whole budget.

Chan: The mode of shooting a budget is to invite stars in its primary stage, we need stars to activate the market. Also, we need them to attract the sponsors. A film without stars is hard to get a good budget. Only when we managed the market through god stories, can we bargain with the stars. In domestic market, if the film is good enough, though the budget is under 100 millions, it still can be a megahit of 200 or 300 millions. If we calculate the budget carefully, we can decrease the cost, that is the problem we film workers have to discuss about. We need the films facing the Mainland market, with the budget about 80 million. We need more modern films not always the costume films. The former is cheaper than the latter. The good story is the premise. The capacity of Mainland box office is growing fast, the box office receipts of big-budgets can reach as high as 200 million. I predict 200 million is only a medium number in two years, the number may rise to 500 million or higher. If the number of medium-budgets reaches a level high enough, the market would be in a virtuous circle.

SIFF Daily News: There are few medium-budget productions in the market, maybe it\'s because of the brain drain. Han Sanping, President of China Film Group Corporation and Yu Dong, President of PolyBona both said there are about only 20 odd Chinese directors with good market records. What is your view on this?

Chan: Until now, we still don\'t have a healthy circulating system of talents, especially for young directors who has few systematic and order channel to get into the film industry. In Mainland, only Lu Chuan and Ning Hao have succeeded. Actually, Mainland market never lacks of funds or shooting chances. But the good producers are scarce, thus there are few marketing guidance for young directors. A good producer can lead a young director into the field systematically. I am a producer myself, as a producer I hope young director should pay more attention to the market, we are truly in short of professional marketing people. In fact, the commercial films can have high art values.

SIFF Daily News: You have two identities, as a director and a producer. How do you view these two different roles? And what programs are in your schedule?

Chan: I\'m a stubborn director, and I think I am a producer more than a director. In the future I would also focus on the producing part. Now, I am examining extensive screenplays, and I cannot reveal my next program. I can only tell you that there would be 6 big-budgets of medium scale, and many other small-budgets. In the eyes of a producer, the big-budgets are like umbrellas which can shelter the medium ones. A successful big investment can help more medium or low budget films get in to the market.

SIFF Daily News: You use the simile "The Last Oasis" as the Mainland market, and your work has focus on the Mainland. Will you look for stable partnerships in Mainland? As a producer, what\'s your view on the relations with the investors? 

Chan: Sure, I build a subsidiary in Beijing this year, and a producing department. The Mainland market is definitely my focus. The healthiest mode is having a stable and professional partner. Because our advantage is producing, so if there is a Mainland company who has fund, good publishing channel or even good in every sector of the management, it would be a good partner. As for investment, my principle is never cooperate with a total foreign company (for example, rich private companies). I never feel the scarce of money, what I concerned is the strategy coming with the money. I only cooperate with "professional moneys", which can ensure the common field between the both sides.