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Arnie's Back with His New Friend, Huaxia

For Zhao Jun, vice-manager of the newly-established Huaxia Film Distribution Co Ltd, it is a meaningful and interesting coincidence that the first ever movie his company releases will be Arnold Schwarzenegger's latest blockbuster, Terminator 3.

"Our company is like a terminator," he jokingly says, referring to the fact that with the entry of Huaxia, the five-decade monopoly in China's imported movie distribution sector has been erased.

 

Jointly established by 19 domestic cinemas and movie groups last month in Beijing, Huaxia is viewed as a milestone in the reform of the movie industry in China and is expected to help boost the movie market by introducing more competition.

 

Previously, only the China Film Group Corp was qualified to distribute imported films in China.

 

The newcomer, with about 30 employees and a registered capital of 60 million yuan (US$7 million), is showing early spark that has made it stand out already.

 

Currently, each of the two companies in the Chinese market get the rights to distribute an equal number of imported films, a rule set by the state movie authority to give both groups equal opportunities.

 

Their performance in distributing films will be crucial for their existence.

 

Huaxia is now making all efforts to ensure that Terminator 3 becomes a hit, adopting a series of commercial methods which are new and innovative to the Chinese mainland market.

 

One of the measures is to collaborate with several brand names, including soft drink producer Red Bull and domestic watch manufacturer Fiyta.

 

Although Zhao declined to reveal the details of the contract, he said Fiyta will invest a "seven-digit figure" to supplement the marketing of Terminator 3.

 

Huaxia is also planning a huge party for today before the movie's premiere on the mainland.

 

Huaxia is optimistic about the film's success. Zhao estimated that it will reap in between "50 million yuan (US$6.02 million) and 100 million yuan (US$12.04 million)."

 

The firm has also got the distribution rights for The Hulk, the latest work of famed director Ang Lee, which is scheduled for local release next month.

 

(China Daily August 26, 2003)

China's Film Industry Faces Four Challenges
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