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saw a drop in profit can be complicated. On one hand, last year’s tax crackdown and tightened regulatory policies in taxes have ce
rtainly struck some major players, costing them both time and money to pay the fine and restructure their上海千花坊
businesses,” said Chen Shaofeng, a professor in culture and entertainment at Peking University.
上海千花坊女神会所”On the other hand, China’s film box office market is heading toward saturation, which m
eans that the profit surge that many entertainment companies saw in the past is less likely to happen,” Chen added.
Data from the National Radio and Television Administration
showed box office revenue in the first half of 2019 in China stood at 31.17 billion yuan, down 2.7 per上海千花坊
cent year-on-year. Cinema visits dropped 10.3 percent year-on-year to 808 million visits within the same period.
Chen believes, though, the companies will bounce back.
上海千花坊女神会所”The industry is still likely to see a boom in the near future as there is more market pote
ntial to be tapped, such as film derivatives (toys and figure models), various genres of intellectual properties or t
rans-media storytelling (presenting the story with multiple platforms like films, TV shows, and games),” Chen said.上海千花坊
“Such approaches to IP development can be an effective way to generate more revenue for entertainment companies,” he added.
Wanda and Huayi said in their statements that losses were due上海千花坊女神会所
to a lack of projects premiering in the first half of the year. Most of Huayi’s film projects such
as The Eight Hundred directed by Guan Hu would premiere in the second half of 2019.
“It’s common that entertainment companies adjust their film distribution plans based on market de上海千花坊
mand, and choose to release their films during a certain period of time to maximize their profits,” Chen said.
“But it is certainly not the reason why a majority of entertainment
companies saw a drop in profit. Although it is common for entertainment companies to premie上海千花坊女神会所
re their major film projects in second-half seasons with peak demand, it is unlikely for most of them to do so at the same
time, as the first half of the year also has many peak movie-going seasons,” said Chen.