China's Film Distribution Shift – Shanghai Leads Reform

China's film distribution landscape is undergoing a major shift with Shanghai at its center.

Previously, China Film Group held exclusive rights over foreign movie releases, but a new Shanghai-led entity will now share that power.

The change follows Shanghai Film & TV Group’s trial run distributing “Jurassic Park III,” which authorities viewed as a success.

Though the film faced piracy and competition from “Harry Potter,” it still earned $1.5 million.

Shanghai’s group will hold a 15% stake in the new distributor—the largest share—while China Film’s stake is capped at 8%.

Other regional film groups and an exhibitors’ association will also participate.

The new entity is expected to launch by July 1 and split annual foreign film imports equally with China Film.

However, challenges remain, including bureaucratic regional distributors and unreliable box office reporting.

Some industry insiders question how quickly real reform can take place.

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