by CIO Staff

Study: Piracy Hits Chinese Film Industry

Jun 20, 20062 mins
IT Strategy

Sixty-one percent of film producers, exhibitors and distributors surveyed in China believe that piracy will increase, according to a new study announced by the Motion Picture Association (MPA) Monday. No one surveyed believed piracy in China would decrease, while 39 percent believed that it would hold steady, the MPA said.

Those surveyed indicated they believed that legitimate distributors of film and video products in China also sold pirated goods. Because there is no tax or royalty paid on illegally copied material, pirated goods can be offered at a lower price with a higher profit margin.

The survey also noted that based on 2003 statistics, legitimate optical disc-production facilities in China are operating at only 17.7 percent of capacity, based on registered production lines and their reported output.

The survey was done on behalf of the Chinese Academy of Social Sciences and the Center for American Economic Studies under the Institute of World Economics & Politics.

Piracy cost filmmakers in China US$2.7 billion in 2005, according to a separate survey released in May by LEK Consulting and conducted on behalf of the U.S. parent organization of the MPA, the Motion Picture Association of America (MPAA). The MPAA represents the American film, video and television industries on issues including opposing piracy and advocating strong copyright protection.

-Steven Schwankert, IDG News Service (Beijing Bureau)

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