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The Implications Of America's Success In Film And Television Trade To China

Posted on:2011-12-26Degree:MasterType:Thesis
Country:ChinaCandidate:J WuFull Text:PDF
GTID:2155330332982830Subject:International Trade
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In the context of economic globalization and China's accession into WTO, cultural trade develops rapidly and changes traditional economic model, becoming an essential factor in promoting economic growth and heightening international competitiveness. In many developed countries, the developing speed of cultural industry exceeds traditional manufacturing industries and cultural industry as a sunrise industry is a leader and pillar in economic development. Even for many developing countries, the cultural industry becomes new economic growth point. Film and television industry as the most international media industry its proportion in international trade is not only related to the development of cultural industry but also plays an essential role in economic growth throughout the country. Video products as a typical cultural product not only brings huge economic benefits for the exporter but also spread a country's values by its vivid form and content leading the development of related industries.The United States makes remarkable success in film and television trade controlling 75% of the production of television programs and seizing more than 50% of global film screening time though its film production accounting for 6.7% of the world's total. The trade volume of American video products makes up 45% of the world's total for a long time. Although Chinese economy accomplished resounding achievement after 30 years of reform and opening up, the development of film and television industry is seriously backward which is not commensurate with China's identity as the historic country with five thousand civilization. Basing on the above, this paper compares the international competitiveness between China and the US by using the theory of industrial competitiveness, implements America's successful experience in film and television trade to China and puts forward suggestions to expanding film and television trade.In the first part, the paper introduces the background and significance of this paper and the current research status in both home and abroad. Under the background of economic globalization and the advent of cultural orientation era, cultural trade holds a significant position in international trade and its strength plays an important role in measuring a country's comprehensive strength. As the country of profound culture, China should rely on cultural advantages and spread the culture to the world. Film and television trade will be the most effective way to broadcast culture between different countries. America as the most advanced country in cultural trade especially in film and television trade has much excellent experience for China to learn. American film and television industry was studied maturely by European countries and has formed a scientific system. With China's accession to WTO and the development of film and television industry, the study on American film and television industry is a hotspot. Some universities and scholars have engaged in this field and have published many books and theses.In the second part, the paper introduces the concept and characteristics of the film and television industry as well as its position in world economy. Film and television industry belongs to video industry in cultural industry and is the integration of the competition and cooperation of making, screening and distributing film and television products. Comparing to other industry, film and television industry is specialized in several characteristics:higher capital investment; knowledge concentration and high entrance conditions; cultural discount in international trade; profound external effect.The third section elaborates the film and television industry in the United States including the history, current situation and trade conditions, and analyzes the causes of the success of American film and television industry. Television industry in American began with the opening of the nation's first television station in 1939. With several decades of developments, American television industry is matured and becomes the leader around the world. In international commercial activities, American television industry plays an important role. It is not only a greatest importer but also the biggest investor and collaborator in world market. In 1893, Edison invented the Kinetoscope and created "Black Maria". Since then, American film has the history of over 100 years. Although America is not the biggest film producer in the world, it is the largest exporter and Hollywood blockbusters win great popularity around the world.The success of American film and television trade is caused by several reasons:high degree of industrialization, international marketing methods, and government support. The film industrial structure is composed by six major film companies and many independent film companies of different sizes. The television industrial structure is mainly composed by five major TV networks. On the other hand, American film and industry chain is expanded to spinoff industry including video, VCD, music record, the auction of garments and properties, tourist development of film and television location and the related industries like broker agency, advertising and film channels etc., which are main sources of the income of film and television industry. International marketing is another factor of the success of American film and television trade. Firstly, American film companies often enter other markets by joint ventures. Secondly, Hollywood tries to meet the needs of audiences around the world. When promoting new films, Hollywood will contrive different trailers to different countries. Thirdly, the US has complete independent global distribution systems for film and television industry. Meanwhile, the United States Government creates a favorable external environment for developing cultural industry not only provides financial support but also seeks protection in world market:The third section introduces the film and television industry in China including the history, current situation and trade conditions, and analyzes the causes of the trade deficit of Chinese film and television industry. Communications in China were founded in the early 1950s and developed rapidly in the following year except the Great Leap Forward. Presently, there are total 3000 television stations across the country. Chinese television programs formally entering world market started late. In 1996 the government held the first TV programs trading fair which intrigued much attraction from overseas and the foreign media reviewed that it indicated Chinese TV programs entered into global market formally. In recent years, the exhibitions for trading television programs are increasing year by year and the trade volume goes up steadily. As to film industry, the Chinese film industry didn't commence until 1913 when Zheng Zhengqiu and Zhang Shichuan shot the first Chinese movie "The Difficult Couple". Chinese film industry was halted by wars for several times and its trade also experienced different periods. Since China's accession to WTO, Chinese film industry has developed rapidly and the trade volume increases largely year by year.Although Chinese film and television industry develops rapidly these years, the trade situation is less than satisfactory:huge trade deficit, over-concentration of trade partners and product type, and low industrialization. The reasons that cause the trade deficit are as follows. First of all, Chinese film and television industry is deficient in international competitiveness. As a latecomer flourished in 1990s, Chinese film and television industry is relatively in a low level and have not been completely industrialized. Besides, Chinese film and television industry has not formed economics of scale. The large number of producing and distributing institutions are small size and yet cannot fully use the resources and equipments, let alone reinvestment and scale-up. Furthermore, the production and distribution system of film and television industry is not in perfect with the gap between production and distribution. In addition, the professional talents are in shortage, especially specialized technicians, marketing talents, and the playwright and director with market and modern sensitivity. Presently, the industry lacks international marketing concept and strategies and the marketing channel is not smooth. Secondly, the film and television products are dissatisfied with the market demand, most of which take much emphasis on nationality and are with huge cultural discount. Thirdly, Chinese film and television industry lacks the proper investment and financing system and do not have a reasonable capital platform. Last but not the least, government's insufficient support is also a big hindrance for developing film and television industry.In the fifth part, by using Michael Porter's diamond thesis the paper compares the industrial competitiveness between China and the United States in several aspects: demand conditions, operating conditions, financing channels, related industries, industrial policy and legal environment and export competitiveness. In aspect of demand conditions, China as the most populous country has the largest audience and the market demand is considerable. America, only second to China, has the second largest audiences but it is the largest market for film and video.As to operating conditions, America is the largest film exporter and the leader of box office revenue, taking up two-thirds of the world's total box office revenue and the income of the spinoffs is also in the lead position. Besides, the screen density in America is the highest in the world, which is 20 times than Chinese. Due to lack of screens, the market demand cannot be satisfied by large number of audience. In financing channels, American film producing, distributing and marketing are supported by large amount of funds, which is the momentum of Hollywood's development. A series of financing tactics such as stocks, securities play a crucial role in film development. Without the development of complex financing methods and the intervention of capital market, Hollywood film industry cannot be so successful. In China, film and television financing started late and has little experience about capital management. In 2009, the Chinese film industry has also begun to seek financing from the capital market. Huayi Brothers Media went public in Shenzhen Stock Exchange in Oct 2009 and becomes the first film company listed in China's stock market. After Huayi Brothers, China Film Group, Shanghai Film Group and Bona International Film Group and Enlight Media have also announced their plans in the stock market in the next few years.In aspect of industrial policy and legal environment, the US advocates liberal economic policies providing economic base and policy support for cultural industry. The government mainly provides easy external environment and strict legal protection. The US takes diversified investments and operation way, encouraging foreign investment and the investment from non-cultural sectors. Besides, the US government does not neglect policy support for cultural industry. In comparison, Chinese policies on film and television industry have to be further improved. The original policies and regulations were inadequacy:too many restrictions on financing, production and other aspects of film and television industry. As a result, the creativity and the competitiveness of Chinese cultural industries are not a patch on other countries. Presently, Chinese government is to reform this situation, putting forward a series of related policies to specify policies for developing film and television industry. When comes to export competitiveness, the United Stated is among the minority that can keep constant trade surplus and strong international competitiveness in global film and television market. Comparatively, Chinese film and television products make up a small part in world film and television market and falls far behind the US in export, nearly 100 times less than the US.In aspect of related industries, two thirds of the income of American film and television industry is from related industries. The development of the related industries and spinoffs is quite mature in the US. In China, the income of film industry mostly depends on box office, while the most commercially valuable products-spinoffs are still underdeveloped. After entering the 21st century, the film and television industry develops rapidly. Some experienced Producers adopt the strategy of developing film-related products to explore the social and economic value of the film and television industry. According to the above analysis, it is obvious that competitiveness of China's film and television industry is in a low level. There is a huge gap between China and the US in the development of film and television industry. Among the above competitive elements, China only has obvious advantage in demand conditions but other elements is still locating at the first step, especially in financing, industrial policy and legal environment.Finally, drawing on American successful experience in film and television industry the paper gives some suggestions on Chinese film and television industry, such as improving the international competitiveness of the entire film and television industry, reducing cultural discount, developing film spinoffs and enhancing government support. There are several ways in improving the international competitiveness. Firstly, the industry should compose large-scale companies to improve its international competitiveness. Secondly, the film and television industry should optimize industry structure and establish diversified revenue model. Besides, taking full advantage of international resources and cultivating professional talents are another effective way in improving the international competitiveness of film and television industry.As China has profound culture, some cultures cannot be even totally understood by Chinese audiences let alone foreign audiences, which results in cultural discount. Reducing cultural discount is essential in expanding international market for Chinese film and television products. Firstly, it is necessary to export products with low culture discount. Secondly, the industry can export products with foreign audiences' familiar culture. Thirdly, when the local culture cannot be total understood by overseas consumers, the combination of localization and internationalization is undoubtedly an effective strategy.In film industry chain, developing spinoffs is the most effective way to explore the value of film industry to the maximum extent as the income of spinoffs is limitless. Chinese filmmakers perceived the necessity of exploring spinoffs and paid more attention to develop spinoffs in recent years. In addition, government support is the key factor contributing to the success of American film and television industry. Chinese government can take several measures like subsiding, reducing or exempting tariffs on exported film and television products and expanding investment channels for film and television industry.In conclusion, as a country of ancient civilization, China should exert its cultural advantage and tries to be a power nation in cultural industry. While the industrialization process of film and television industry is directly related to build a strong cultural industry. In recent years, film and television industry is developing rapidly and will certainly be a new growth point of national economy in the future. However, in China, the film and television industry is still in a low level and falls far behind the world's advanced level. Therefore, it is crucial to find out the reasons that impeding the developing proceedings of Chinese film and television industry and resolve these block, and promote the international competitiveness of the film and television industry.
Keywords/Search Tags:Film and Television Industry, Film and Television Trade, Diamond, Industrial Competitiveness
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