The latest work by veteran Hong Kong director Peter Chan grossed RMB 500 billion in 27 days.

“Blockbuster movies over the past decade have drawn people back to cinema as there is no longer any thrill in sitting at home watching TV. But even blockbusters become predictable after a while, which implies that people are back in the habit of going to the movies,” is the opinion of Hong Kong director Peter Chan. He believes that if the public has indeed been wooed back to the cinema, there are many types of films besides blockbusters to be explored and made. One example is his new film American Dreams in China, which was an instant hit upon its première in May.

Enlight Media has participated in all three recent hits, Lost in Thailand, So Young and American Dreams in China. The day So Young premiered, Enlight Media’s stock prices rose 7.61 percent – 48.17 percent higher than only two weeks earlier.

President of Enlight Media Wang Changtian believes that directors today have a better understanding of commercial films. Rather than individual expressions, their works are commercial products that give the audience what it wants, or at least target a specific audience segment.

New Forms Needed

Enlight Media participated in these three movies through the three most prevalent forms of investment and profit-sharing in the Chinese film industry.

First, as investor. Ninety percent of investment in Lost in Thailand came from Enlight Media, making it both the largest investor and profit-earner. Of the RMB 1.2 billion the movie made in box office revenue, after deducting tax, fees and cinema profits more than RMB 500 million went to Enlight.

Second, as investor and distributor. Enlight Media contributed just 20 percent of the total investment in So Young, but as distributor it was entitled to 10 to 15 percent of box office earnings. Profits stemming from distribution and releasing could well compete with those from investment.

Third, as sole distributor, as in American Dreams in China. Having developed from a TV program producer, Enlight Media has a distribution system that encompasses agents in 70 major cities. This immense network ensures the best release dates and maximum screens – a combination that potentially expands box office receipts by 30 percent. This was the case with American Dreams in China, which was seen on 36 percent of all screens the day of its première – more than both So Young and Lost in Thailand.

The top 10 Chinese distributors accounted for 89.2 percent of the total market last year, higher than the previous year’s 85 percent, according to the 2012-2013 Chinese Film Industry Report released by EntGroup, China’s first entertainment industry research institution. This signifies a more concentrated market.

Insufficient investment and bad distribution used to be the two main obstacles facing the Chinese film industry. Today, production and releasing are developing at a rate of knots. Screens have increased from 1,845 in 2002 to 13,118. An average 10.5 screens were installed daily in 2012. This has created room for market growth. At the same time, however, a bigger market and increased production pose a huge challenge to distribution. Many films now compete for a fixed number of screens over similar release periods. It is the distributors’ task to find innovative ways of exploring new markets and satisfying different tastes.