The Financing And Investment Mechanism Of Film Industry: International Comparison And Its Inspiration To China

This article will start with the discussion of film industry’s chain, then investigatethe current situation of China film industry and investment/financing system. After that,the article will take America and South Korea as examples, take a glimpse of theinnovation of investment/financing system, and comparing new systems with thetraditional ones. After comparing and analyzing the difference of different financingsystems and different environment of these countries, the paper will try to find out thekey element, such as society environment and legal environment, which is important tothe development of industry, or will lead to the innovation. In the end, the paper willaim at China’s existing problem, and put forward feasible suggestions. We will discusshow to build a better circumstances for the development of investment/financing system,therefore to make China’s film industry better.Take year2013as an example, the capital phase of Chinese film industry isrelatively optimistic, we can see many activities in capital market. However, theChinese film industry’s investment and financing activities are also have its problems:large-scale film company mastered the vast majority of resources, but many small ormedium sized film company is difficult to find investment. At the same time, investorshave difficulties in finding a good project, ordinary people can’t be invested into thethreshold of investing a film. The traditional film financing models will lead toinefficient result. The developed countries and regions, gradually developed a variety ofinnovative new film financing models, which can control the risk, and made everyonehave the opportunity to invest a film. These new film financing models are worthlearning by Chinese film industry.One focus of this paper, is on the detailed comparing and analyzing of financingmodels in different countries. The innovation of America film financing model, ismainly on the copyright, especially the future value of it. In order to measure the risk ofproducing a film, the completion guarantee companies are also created. The innovationin South Korea film financing model, used internet as the tool, which can makeeveryone invest for a film. Financing through internet is also a good way to propagate a film. In these years, the film industry in China have tried these new financing model.However, due to the immaturity of the investment and financing environment, thepractice of new investment and financing model can’t be fully carried out. Therefore,China should construct the financing environment first. By building a more favorableinvestment environment form the social, legal and economic infrastructure, China canimprove the film industry.According to the existing literature and research point of view, it is widely believedthat today’s China’s film industry financing model is far too behind, so that hindered thedevelopment of China’s film industry; in the end, the paper will re-examine this point ofview. According to the summary of the survey results, this paper make this conclusion:although Chinese financing model in film industry is still immature and needs to beimproved, but under the current situation, investment and financing model in China isno longer a factor which ‘severely restricted the development of the film industry’. Thesociety should take attention to the problems both in financing model and other aspects,and gradually solve these problems, until then, the China film industry will get better.