A Research On Chinese Film Industry Development Based On The Analysis Of Market Structure

The reform of system in Chinese film industry has greatly speeded the development of itself. Now, the output of Chinese film is top3in the world and the number of screens is also in the top class, besides, the domestic box office income has exceeded that of import films recent years. However, comparing with some big film-producing countries like America, Chinese film industry is now facing many problems like weak in size, competitive power and creativity which are caused by many factors. Under the basis of western industrial economy theories about market structure, this article will have a research on the influence of film market structure to the innovation of film enterprise technology and the production performance of theme and non-theme film from the perspective of the changes on market structure caused by system reform of Chinese film industry. The research has three parts logically. The first part is about some basic theories of film industry market and film innovation. An empirical study on current Chinese film market situation, influence of Chinese film market structure to the innovation of film technology and the production performance of theme and non-theme film will be taken in the second part. The last part will raise some thoughts and suggestions of Chinese film industrial policy under the basis of the empirical study.Film product is a kind of content product, as well as a kind of information product. Therefore, most countries have classified film industry into new emergent industry like cultural industry and content industry. Due to its specialty, film has economy nature, art nature and ideology nature at the same time. China, as a developing socialism country, is facing a large foreign culture input, it is important to have good coordination of the three natures. So apart from the analysis of influence of Chinese film market structure to the innovation of film technology, this article will classify film into theme film and non-theme one and inquire into the influence of film market structure to them individually.Film product is a kind of cultural product which has the production character of information resource. Film production is not totally bonded by the limitation of natural resource; meanwhile, film is a kind of copyright product, which has the character of extremely low marginal cost and decreasing average cost. Film industry market should be a competitive monopoly market according to its consisting factors. However, with history method and quantization empirical research method, this article draw a conclusion that Chinese film market structure is not the kind of competitive monopoly market yet, but just a pre-competitive monopoly market. This is mainly because current Chinese film market still has certain administrative barriers and monopoly behavior and the core of market competition do not lie in film innovation. In the pre-competitive monopoly market structure of Chinese film, the concentration degree of production output deviates from that of the box office income. Though a few film production tycoons like China Film Corporation show certain scales, scale economy effect of most issuing companies and theaters is not obvious. Chinese film products show more diversity, but problems still come out:new type film develops slowly; same type film tends to repeat in content and style; theme films development is restricted in mold. Chinese film market barriers gradually turn lower, but the entry of issuing and theater market is still in a certain height. The market barrier that is caused by the high cost of content review and film commenting hinder the development of competition in some way.This article suggests that market concentration degree term of Chinese film output does not have positive relationship with film industry technology innovation, but shows negative relationship. The conclusion does not support the opinion that the higher the market concentration degree is, the higher the efficiency of enterprise technology innovation will be. However, from the view of the booking office income concentration degree of film, the conclusion supports the positive relationship between film industry technology innovation and market concentration degree. On the surface, it seems to be a contradiction, but actually, it reflects the current situation of Chinese film market structure and technology innovation. Chinese film market has some partial excessive competition and the large scale film corporations handle the core digital film technology, which makes it difficult for many little companies’ product enter into theater. It is obvious that low market concentration degree leads to excessive competition and this will make certain side effect on the long term development of Chinese film technology innovation. From the perspective of enterprise scale, large scale film enterprises have overwhelming superiority no matter in technology innovation or products innovation and small and medium scale companies overall are weak in creativity ability. According to the research of changes in film market that are taken by the decrease of market barrier, the conclusion of the article supports that the decrease of market barrier will benefit to the technology innovation of film industry no matter analyzing from the perspective of changes in the number of film and theater or changes in the number of import film.In the research of influence of film market to non-theme film, with history research method, this article holds the opinion that due to much administrative strength, too high or too low film production market concentration degree both are not favorable to innovation of non-theme film. From the perspective of film enterprise scale, the scale has certain positive relationship with non-theme film production. The article also supports the opinion in economic theories that scale economy effect of large enterprise results in large production efficiency. The conclusion shows that the decrease of market barrier will attract more private and oversea capital and this will not produce "replacing effect" or "extrusion effect", on the contrary, it can give an impetus to the development of Chinese non-theme film. The conclusion supports that the decrease of market barrier and the entry of private and oversea capital will be advantageous to Chinese non-theme film production.Chinese film production has a high concentration degree before2003, but this cannot prove its positive influence to Chinese theme film because it is a special phenomenon in the initial period of Chinese film system reform and the fast development of Chinese theme film is attributed by the support of government. After2003, concentration degree decreased very in a large extent, benign competition did not come out, while excessive competition is produced and it gradually became the main obstacle of the development of Chinese theme film. The conclusion of this article supports that large scale film enterprise and medium and small film company play the same effect to Chinese theme film. The strong strength in finance, risk assisting and brand effect of large scale enterprise benefits to the production of theme film. The diversity and creation of theme film also need to the participation of medium and small film company. The decrease of Chinese film market barrier can promote the diversity of the main creation body of Chinese theme film, attract more private and oversea capital coming into Chinese film production market and push the development of Chinese theme film production.According to the above research, this article has a brief analysis of the industrial policy of main foreign film countries and suggests that the adjustment of Chinese film industry policy should base on protecting the benefit of the country and nation, conduct under the purpose of optimizing film market structure and conform to international rule. Firstly, film market barrier should be lower in advance; besides, related policy to prevent excessive competition should be carried out. Secondly, the support to the scale enlarging of film enterprise is needed, at the same time; measures should be taken out to assist the development of medium and small company of innovation type. Thirdly, anti-monopoly policy of film should be set up to standardize the order of film market competition. Lastly, the article suggests that film review system can be brought into film industry policy system and proper assisting policies to theme film are also necessary.