Last updated: 27 March, 2008
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Film Entertainment
Overview
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Hong Kong has one of the largest and most dynamic film entertainment industries in the world. In per capita production, Hong Kong ranked first in Asia and second in the world in 2006.
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Hong Kong's films have gained increasing recognition from the international film industry. Apart from buying rights for theatrical distribution, Hollywood is also interested in acquiring rights to remake Hong Kong movies. Hong Kong film talent has managed to make their names known in both Eastern and Western movie market.
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Hong Kong is also one of the world's largest television and film content exporters. There is a big market for film and TV productions within the region. The boom in Asian cable and satellite channels over the last few years has provided a ready market for producers. Hong Kong films and TV content have captured a fair share of the film markets of South Korea, Taiwan and Southeast Asia. Many filmmakers are also turning their attention to entering the North American film market.
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Hong Kong's audio-visual industry has preferential access to the huge Chinese mainland media entertainment market under CEPA, with quota free access to the Chinese mainland of Hong Kong-mainland co-produced films and television programmes.
Industry Data
|
Motion Pictures and Other Entertainment Services |
Sep 2007 |
|
Number of establishment |
2,953 |
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Employment |
19,333 |
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- |
2007 |
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Number of local films released |
50 |
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Box office receipts of local films (US$ mn) |
30 |
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Total box office receipts (including foreign films, US$ mn) |
133 |
Service Providers
Independent filmmakers have emerged since the late 1970s, challenging the dominance of the major film companies. Today, many independent film companies are satellite companies of the majors.
Most local film companies deal directly with cinema chains for local screening on a revenue-sharing basis. Rights will then be sold to distribution companies for other forms of release, including video/laser rental and sales, and television broadcasting. There are also companies which specialise in distributing foreign films in Hong Kong.
The film industry is represented by two major industry associations, the Movie Producers and Distributors Association of Hong Kong Ltd (MPDA) and the Motion Picture Industry Association (MPIA).
Based on statistics complied by Screen Digest, Hong Kong ranked second in the world's per capita film production after Iceland in 2006.
Exports
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Exports |
2006 |
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Audio-visual production and related services (US$ mn) |
257 |
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Contribution to Services Exports (%) |
0.4 |
Source:
Report on Hong Kong Trade in Services Statistics for 2006, Census
and Statistics Department
Film distribution
Hong Kong is among the world's largest film exporters. Hong Kong's film industry as a whole is reliant on overseas revenues, given the limited size of the domestic market. Asia accounts for the majority of the foreign sales income.
Hong Kong's films have gained increasing recognition from the international film industry. Apart from buying rights for theatrical distribution, Hollywood is also interested in acquiring rights to remake Hong Kong movies. For example, Hollywood's "The Departed", which won four Oscar awards in 2007, was the remake of a 2002 Hong Kong film "Infernal Affairs". In 2008, Hollywood's "The Eye" was also a remake based on a 2002 film "Gin Gwai" directed by Hong Kong's Pang Brothers.
Hong Kong has a unique advantage in bridging the Chinese mainland with the Western audiences and opening a window on the world for Chinese audience. Hong Kong film talent has managed to make their names known in both Eastern and Western movie market. Maggie Cheung Man-yuk, one of Hong Kong' s top actresses, won the Best Actress award at the 2004 Cannes International Film Festival. John Woo, Chow Yun-fat, Yuen Wo-ping, Michelle Yeoh, Cory Yuen, Sammo Hung and Ronny Yu are just some of the Hong Kong names that have managed to successfully straddle both Eastern and Western markets. For instance, House of Flying Daggers, the production of which involved film talent from Hong Kong, fetched distribution right sales of about US$10 million and US$13.8 million, respectively for the Japanese and North American markets.
While major film companies have their own distribution departments, smaller independent filmmakers usually rely on distribution companies to sell their films in overseas markets. Key channels for international distribution are the three main film markets in Los Angeles, Cannes and Milan, where producers, distributors and buyers meet to initiate deals for the distribution of films. Hong Kong has hosted an annual film market since 1997 to promote Hong Kong as a film distribution centre in the region. The 2007 FILMART attracted 453 exhibitors and 4,094 buyers.
The Chinese mainland is of increasing importance for Hong Kong's films. Under the signed CEPA agreement, Chinese language films produced by Hong Kong companies can enjoy much wider access to the Mainland market.
Television programmes
Hong Kong TV companies derive a substantial portion of their revenue from overseas markets, targeted primarily Chinese-speaking populations. In addition, some programmes are dubbed into other languages to target the non-Chinese-speaking audience. Hong Kong's television broadcasters sell their products using the following methods: programme licensing, pre-packaged programme content and subscription fees, with satellite distribution and landing rights now becoming an increasingly important source of revenue.
China has the largest television market in the world. With a surge in TV and cable channels, the mainland's demand for quality programme content is huge. Yet the Chinese mainland market is small for Hong Kong television content due to stringent government regulations. Nevertheless, landing rights have been granted to Hong Kong's TV broadcasters to millions of homes in Guangdong, and much wider access of mainland-Hong Kong co produced television programmes are provided under CEPA. Hong Kong's TV industry is expected to greatly benefit from more opportunities from the mainland.
Industry Development and Market Outlook
Digitisation and Multimedia Convergence
One of the most dynamic developments affecting the media entertainment industry is the rapid digitisation of audio-visual content, which affects not only the ways in which audio-visual content is produced, but also how it is distributed. Hong Kong possesses the best design and multimedia capabilities in the region. For instance, Hong Kong-based Imagi International, a digital animation house, has successfully secured a contract from Hollywood giant DreamWorks SKG for computer-generated (CG) animation hit Shrek 2. Imagi has worked on DreamWorks’ digital animation television series Father of the Pride, which debuted in a prime-time slot on the US television NBC in August 2004. Further, Shaolin Soccer and Kung Fu Hustle, record-smashing local movies released respectively in 2001 and 2004 and well-known for their special, inventive visual effects, were created by Hong Kong company Centro Digital Pictures.
Closer Economic Partnership Arrangement between Hong Kong and the Mainland (CEPA)
Existing CEPA provisions include significant market liberalisation measures for Hong Kong's audio-visual services industry, including the production of television drama programmes. CEPA relaxes the scope for Hong Kong companies operating wholly-owned units in respect of business of cinema construction and renovation, allowing them to construct or renovate more than one cinema theatre at more than one location for film-screening business. In 2007, one of the top ten box office cinemas on the mainland was invested by Hong Kong's Golden Harvest in Shenzhen.
In late 2005, Japan's largest publicly-listed entertainment content provider, Kadokawa Holdings took a majority share in Hong Kong's Intercontinental Group Holdings Ltd, in order to explore business opportunities in the mainland's film distribution and cinema market via CEPA.
In addition, the Cantonese version of films co-produced by Hong Kong and the mainland can be distributed and screened in Guangdong Province. Films and television dramas co-produced by Hong Kong and the mainland are free from the annual import quota.
Under CEPA V, which took effect from January 2008, for any proposal of mainland-Hong Kong television drama co-production, the minimum number of words in Chinese contained in the synopsis of each episode is revised down from 5,000 to 1,500. This measure will save the administrative cost and time of the involved production companies, giving them enhanced flexibility while streamlining the production process.
Film distribution
Hong Kong is among the world's largest film exporters. Hong Kong's film industry as a whole is reliant on overseas revenues, given the limited size of the domestic market. Asia accounts for the majority of the foreign sales income.
Hong Kong's films have gained increasing recognition from the international film industry. Apart from buying rights for theatrical distribution, Hollywood is also interested in acquiring rights to remake Hong Kong movies. For example, Hollywood's "The Departed", which won four Oscar awards in 2007, was the remake of a 2002 Hong Kong film "Infernal Affairs". In 2008, Hollywood's "The Eye" was also a remake based on a 2002 film "Gin Gwai" directed by Hong Kong's Pang Brothers.
Hong Kong has a unique advantage in bridging the Chinese mainland with the Western audiences and opening a window on the world for Chinese audience. Hong Kong film talent has managed to make their names known in both Eastern and Western movie market. Maggie Cheung Man-yuk, one of Hong Kong' s top actresses, won the Best Actress award at the 2004 Cannes International Film Festival. John Woo, Chow Yun-fat, Yuen Wo-ping, Michelle Yeoh, Cory Yuen, Sammo Hung and Ronny Yu are just some of the Hong Kong names that have managed to successfully straddle both Eastern and Western markets. For instance, House of Flying Daggers, the production of which involved film talent from Hong Kong, fetched distribution right sales of about US$10 million and US$13.8 million, respectively for the Japanese and North American markets.
While major film companies have their own distribution departments, smaller independent filmmakers usually rely on distribution companies to sell their films in overseas markets. Key channels for international distribution are the three main film markets in Los Angeles, Cannes and Milan, where producers, distributors and buyers meet to initiate deals for the distribution of films. Hong Kong has hosted an annual film market since 1997 to promote Hong Kong as a film distribution centre in the region. The 2007 FILMART attracted 453 exhibitors and 4,094 buyers.
The Chinese mainland is of increasing importance for Hong Kong's films. Under the signed CEPA agreement, Chinese language films produced by Hong Kong companies can enjoy much wider access to the Mainland market.
Television programmes
Hong Kong TV companies derive a substantial portion of their revenue from overseas markets, targeted primarily Chinese-speaking populations. In addition, some programmes are dubbed into other languages to target the non-Chinese-speaking audience. Hong Kong's television broadcasters sell their products using the following methods: programme licensing, pre-packaged programme content and subscription fees, with satellite distribution and landing rights now becoming an increasingly important source of revenue.
China has the largest television market in the world. With a surge in TV and cable channels, the mainland's demand for quality programme content is huge. Yet the Chinese mainland market is small for Hong Kong television content due to stringent government regulations. Nevertheless, landing rights have been granted to Hong Kong's TV broadcasters to millions of homes in Guangdong, and much wider access of mainland-Hong Kong co produced television programmes are provided under CEPA. Hong Kong's TV industry is expected to greatly benefit from more opportunities from the mainland.
Industry Development and Market Outlook
Digitisation and Multimedia Convergence
One of the most dynamic developments affecting the media entertainment industry is the rapid digitisation of audio-visual content, which affects not only the ways in which audio-visual content is produced, but also how it is distributed. Hong Kong possesses the best design and multimedia capabilities in the region. For instance, Hong Kong-based Imagi International, a digital animation house, has successfully secured a contract from Hollywood giant DreamWorks SKG for computer-generated (CG) animation hit Shrek 2. Imagi has worked on DreamWorks’ digital animation television series Father of the Pride, which debuted in a prime-time slot on the US television NBC in August 2004. Further, Shaolin Soccer and Kung Fu Hustle, record-smashing local movies released respectively in 2001 and 2004 and well-known for their special, inventive visual effects, were created by Hong Kong company Centro Digital Pictures.
Closer Economic Partnership Arrangement between Hong Kong and the Mainland (CEPA)
Existing CEPA provisions include significant market liberalisation measures for Hong Kong's audio-visual services industry, including the production of television drama programmes. CEPA relaxes the scope for Hong Kong companies operating wholly-owned units in respect of business of cinema construction and renovation, allowing them to construct or renovate more than one cinema theatre at more than one location for film-screening business. In 2007, one of the top ten box office cinemas on the mainland was invested by Hong Kong's Golden Harvest in Shenzhen.
In late 2005, Japan's largest publicly-listed entertainment content provider, Kadokawa Holdings took a majority share in Hong Kong's Intercontinental Group Holdings Ltd, in order to explore business opportunities in the mainland's film distribution and cinema market via CEPA.
In addition, the Cantonese version of films co-produced by Hong Kong and the mainland can be distributed and screened in Guangdong Province. Films and television dramas co-produced by Hong Kong and the mainland are free from the annual import quota.
Under CEPA V, which took effect from January 2008, for any proposal of mainland-Hong Kong television drama co-production, the minimum number of words in Chinese contained in the synopsis of each episode is revised down from 5,000 to 1,500. This measure will save the administrative cost and time of the involved production companies, giving them enhanced flexibility while streamlining the production process.
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Current Scope of Access |
Access
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Cinemas
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Cinemas |
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Co-productions
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Co-productions
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Imported films
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Imported films
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Televisionprogrammes
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Televisionprogrammes
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As at end-February 2008, the Hong Kong government had granted HKSS certificates to 23 audio-visual companies out of 24 applications.
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