The report profiles the cinema distribution and exhibition sectors, the film production industry, DVD and home entertainment sectors, regulatory development, overview of population and other factors, digital cinema development, consumer behaviour and attitudes into cinemas, ticket pricing, film preferences, film information sources, DVD buying behaviour, price sensitivity and much more. This study also includes  a full series of market data and forecasts on the Chinese cinema and home entertainment sectors from 2000 to 2010.

The Chinese film industry has experienced a period of rapid growth since the government began relaxing its regulations in 2001, with box office revenues tripling to $336m in 2006 as more and more people go to the cinema. Screen Digest forecast that by 2010 these revenues will exceed $720m. The number of modern, or silver, screens will increase in line with the revenue growth – almost doubling from 2,940 in 2005 to 5000 in 2010.

The report also includes a detailed analysis of the findings from a new study conducted by Nielsen NRG and AC Nielsen in China. The research was conducted online and focused on residents living in Guangzhou, Beijing and Shanghai.

The first major obstacle mentioned in the report is that the Chinese government has only partially liberalised the market to allow foreign investment; a full relaxation of restrictions is going to be a crucial part of realising the potential of the market. Warner Bros International Cinemas invested heavily in China when it entered in 2003 only to pull out three years later having conceded the battle against the challenges of government control and investment regulations. However, on the flip side, the relaxation of restrictions has allowed the Chinese film production industry to experience a boom, and China is now the third-largest film producer in the world, after India and the USA.

David Hancock, co-author of the report and Screen Digest senior Analysts comments: "This report is the first time that Screen Digest and Nielsen NRG have collaborated to bring a unique insight into both the market conditions, regulatory advances and consumer behaviour of what could be one of the major global media markets over the next decade. The consumer research underlines the potential of China. However, investment in this market needs to be seen as a long term strategy given the possible pitfalls along the way".

Table of contents

Executive summary
Cinema
Home entertainment
Consumer tastes

Methodology
Cinema
Video
Statistical methodology
Hardware methodology
Software methodology
Exchange rate methodology

NRG Background
Sample composition
Report Notes

Introduction

Territory overview
Population
Gender
Age
Urbanisation of China
Geography
23 provinces
5 Autonomous regions
4 Municipalities
1 Special Autonomous Region
Population centres Incomes

China and World Trade Organisation entry
Sources of data
The cinema class
Urban population
Consumer class
Brands and affluence
City populations
Geography
Mobile phone ownership
DVD/VCD ownership
The Cinema class in China

Cinema exhibition in China
From monolith to free market
Admissions and box office
Cinema screens
Ticket prices
Screen density and growth rates
Copyright theft
Leading exhibitors and international players
Large format screens

Theatrical distribution in China
Distribution market structure
Leading distributors
Theatrical Releases
Distributor market shares
Films released
Nationality
Market shares
Genre split
Film marketing

Digital cinema in China
D-cinema screens
D-cinema content
Projector manufacturers and resolution
Servers

Film production sector
Moving away from the State
Film Production in China
Film Studios
Leading Domestic Producers
China as a production centre
The US majors in China
Warner China Film
Disney
Sony
Viacom
Chinese films abroad

DVD and other video formats in China
The move to disc
Royalties, rows and local formats
Hardware penetration analysis
Pricing
Hardware pricing
Software pricing
Market growth in volume sales
Analysis of rental sector

Video distribution in China
Distribution
Leading distributors
Copyright theft
Anti-piracy initiatives
Government Policy
WTO entry
Market Liberalisation

Understanding the behaviour of the Chinese movie consumer

Executive summary
Attendance patterns
Decision making process
Motivations to attend
Chinese vs. western films
Most important factors in watching in cinema
Preferred genres
Future opportunities

Cinemagoing behaviour
Cinema attendance
Decision making/motivation to attend cinema
Preference for Chinese or 'western' films
Most important factors to see film in the cinema
Favourite genres
Sources of information
Viewership of 'western' films
Overview: DVD-related behaviour
DVD Ownership
DVD Rental
VCD Ownership

Appendix - timelines
Cinema
Digital Cinema
VCD and DVD

Tables and Charts
Executive summary

Methodology

Introduction
China: Key cinema data
China: Key cinema data
China: Key cinema data
China: Population growth
China: Population forecasts

Territory overview
China: Population growth
China: Age breakdown by gender
China: Age breakdown by gender
China: Age and gender breakdown
China: Population breakdown according to dwelling
China: Population breakdown according to dwelling
China: Cities with populations greater than 1,000,000
China: Cities with populations greater than 1,000,000 (cont.)
China: Cities with populations greater than 1,000,000 (cont.)

The cinema class
Determining the cinema class in China

Cinema exhibition in China
Box office (in local currency)
Box office development
Box office growth rates
Screens in China
Screens in China
Growth in silver screens %
Ticket prices
Average ticket price bar chart
Average ticket price growth rate %
Screen density
Top 10 cinemas
China Film cinema circuits
Warner China deals
Exhibitors by screen
Exhibitor market profiles 2006
Warner Bros International theatres circuit in China
IMAX
Box office nations 2005 vs 2010

Theatrical distribution in China
China: Leading theatrical distributors
China: Distributor market shares
China: Distributor market shares
Market share by origin

Digital cinema in China
Number of d-cinema screens ranked by networked operator
Leading world cities by d-screens 2005
The development of d-screens in China
The development of d-screens in China
Digital releases in China 2000-2005
Digital versus all releases
Digital releases by distributor
Projector market shares in China
Territory breakdown by projector manufacturer
Digital cinema servers installed by manufacturer

Film production sector
Film production in China
Top 10 films of the year 2005
Leading film production entities in China
Highest-grossing Chinese films abroad

DVD and other video formats in China
China: Hardware
China: Hardware forecast
China: Video hardware penetration of TV households
China: Video hardware installed base by format
International: DVD Video player/recorder penetration of TV households by country 1997-2005
International: DVD Video player/recorder installed base by country 1997-2005
China urban: Video hardware penetration of TV households
China urban: Video hardware installed base by format
China: Video hardware pricing 1996-2005
China: Average consumer price of legimate retail software by country of origin 2005
China: Average consumer price of pirated retail software by geographic region 2005
VCD video market (volume, value and average price)
VCD video market forecast (volume, value and average price)
DVD video market (volume, value and average price)
DVD video market forecast (volume, value and average price)
China: Legitimate DVD sales by location 2005

Video distribution in China
China: Video distribution by studio
China: Estimated level of piracy

Understanding the behaviour of the Chinese movie consumer

Executive summary
Paid cinema visits over the last 6 months (mean)
Cinema-going frequency

Cinemagoing behaviour
Decision making for attendance timeframe (%)
Decision making for attendance timeframe
Primary motivation to attend cinema (%)
Primary motivation to attend cinema
Chinese vs. western films (%)
Chinese vs. western fi lms (%)
Reasons for preferring western movies (%)
Reasons for preferring non-western movies (%)
Reasons for preferring non-western movies (%)
Cinemagoing frequency
Summary of "very important" (%)
Genre preference (%)
Genre preference (%)
Information sources used (%)
Sources used most often
Buy or rent DVDs (%)
Summary of "yes" (%)
Ratio of western movies vs. "other" for
DVD purchases (%)
General DVD purchase locations (%)
DVD Ownership breakdown (%)
Premium & catalogue DVD purchases (%)
"Special features" influence on DVD purchases (%)
Ratings of special feature options (%)
General DVD purchase locations (%)
Mean number of DVD's rented in past 6 months
Special feature ratings (%)
No. of DVD's rented in past 6 months (%)
Average amount paid for DVD rental
Mean amount paid for DVD rental
VCD Ownership
Gender profile (%)
Age profile (%)
Parent profile (%)
Average amount paid for DVD rental (%)
No. of DVD rentals that are western/Hollywood (%)
Leisure hours during normal weekend days (%)
Own in household (%)
Whether currently purchase movies on VCD (%)
Marital status (%)
Occupation (%)
Leisure hours during normal weekdays (%)

Appendix - timelines