For a long time, the key words for Hollywood movies were disasters and super heroes!
Now they need to add China!
Why are there more and more Chinese elements in Hollywood movies?
And why are those Hollywood movies being changed?
Right now I am at Shanghai International Film Festival, the most influential film festival
in China.
I am going to meet some of the movie people, trying to figure out how China is influencing
Hollywood and the reason behind it.
Max Michael is the head of Asian Business Development of UTA, one of the top agencies
in America.
In 2014, he helped put the Chinese actress Li Bingbing in Transformers 4.
When they were coming up with what to do with the next transformers years ago, you know,
the studio, and Michael Bay and the producers, they all decided it was really important to
have Chinese elements to that movie because the franchise was already popular here.
They approached us about Li Bingbing.
We talked to them about putting her in the film.
When we originally talked about putting her in the film, there wasn't actually a role.
And so we had them write a role for her.
She ends up meeting Michael Bay.
He loved her and made a really amazing role for her in this film.
And the film ends up grossing a very large amount of money here, specially at the time.
She was a little nervous at first.
We had to convince her, "look! this is something they really focus on.
We know they understand your value and they know who you are and they really want to make
sure that it is an impressive role.
" They added in new scenes to her and fight scenes and cool opportunities within the film.
I talked to some guests at the festival, and I realized that keeping a close eye on China
has become a common Hollywood strategy.
Well there is the motivation now because The market is so explosive.
I truly see that China is the future of the industry.
It is really the frontier.
Then, how big is China's movie market?
China tops the world in terms of the number of screens and has become the second largest
market in terms of box office.
If you take a look at the market performance of Transformers 4, the box office in China
ended up at 291 million dollars, surpassing America's 245 million.
The efforts Hollywood made to cater to Chinese market seemed to be effective, but how are
they received in America?
Some people view it as a threat.
They fear of losing their own control of their business and their industry.
They fear not being able to have an industry that reflects the reality as they see it.
I would argue that was a mistake.
I told people that I speak to in LA that you don't have to do that.
Right?
Just make a great movie, you know.
But do you think all the Chinese audience love that, love the Chinese elements?
I don't think its effective.
I think movies that don't have those elements perform quite well.
This is Christopher Bremble.
He came to China from Hollywood 15 years ago and opened a film company which does special
effects for many Hollywood blockbusters, including Transformers 4.
Chris does not reject the " Chinafication" of Hollywood films, but he thinks the more
important issue is "How?"
Two years ago, we had a project and it was a disaster movie.
This is another example of co-production model not working which is we had to sort of tell
a story in which Liu Yifei was Kevin Costner's daughter.
And we were like, "will the audience believe that?
" So we stopped our preproduction.
We took a deep breath and we reformulated the movie as an all Chinese language movie,
because ultimately what we decided was we have to tell the most authentic version of
the story and that needs to be a Chinese language movie.
Part of this learning process for all of us in the industry is learning to be flexible
with what we are doing.
Currently, there are three models for a Hollywood production to enter the Chinese market: the
import quota film, the strict import film and the co-production.
The quota film model is winning the day even though the system restricts American movie
imports to 34 titles a year, according to the Sino-US film agreement signed in 2012.
The American film-makers share 25% of the box office takings under this model, far behind
the Chinese local film's 43%.
The Sino-American film agreement will expire by the end of this year, which means the numbers
in terms of percentages and quotas will be renegotiated.
What is certain is that in the future more Hollywood films will come to China, but these
Hollywood films are harder and harder to considered as the pure "American" movies.
You know what's behind them?
The Chinese money!
This is Zhongbo Jin, the major principal of TMP's China operations.
In 2015, TMP invested Hollywood film company STX, which agreed to produce films together
in the coming 3 years.
In 2016, TMP acquired major stake in IM Global，the largest independent international distribution
company apart from Hollywood's Big 6 film studios.
TMP was founded in 2015, with headquarters in Los Angeles, and offices in Beijing and
Shanghai.
What's behind it is a group of famous Chinese investment companies like China Everbright
Limited, Tencent, China Media Capital, Huayi Brothers and so on.
TMP is not alone!
Since 2012, Wanda has acquired AMC and Legendary Pictures.
Alibaba took a stake in Spielberg's Amblin Partnership.
Chinese game and TV production company Perfect World invested in no fewer than 50 films to
be produced by Universal Pictures.
Similar business cases have continued to increase, but even if China buys all of Hollywood, it
doesn't mean China related films will make easy money worldwide.
Because the market will finally return to the basic rule of films.
And so the trick to make money in China or America or in film is to see the richness
of the cultures of the stories you are telling.
And if you can do that successfully and the riches will come.
Everyone in the movie business is in the business.
And the business is to create the product the consumer wants, tell a story the audience
wants to consume.
There are numerous reasons for China and Hollywood to tie up together for greater business success,
just like in many other industries between China and America.
No matter in what market it is, no matter who will get more aggressive in this China-Hollywood
relationship, the recipe for success has never changed.
That is to resonate with audiences through really good stories and genuine emotions.
This is China Matters and thank you for watching!
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