AMC Deal Signals Hollywood's New Bond With China

[Anonymous]

I believe this purchase has been in the works for a while and they finally pulled the trigger on it. On a related note, China has limited foreign films to 20 per year (we talked about this in class) but has shown signs of easing these restrictions recently. But now the Securities and Exchange Commission (SEC) is investigating whether American movie studios have paid bribes in order to break into the Chinese film market. According to Reuters, the SEC has sent "letters of inquiry to Dreamworks, Disney and NewsCorp's 20th Century Fox and others asking about improper payments, if any. It's not clear if the studios are aware of any bribery, but it's clear the feds are trying to crack down." I would venture to say the feds are probably on the right track, but it remains to be seen how far they will take it.

[Rob_Hugo@PortNW]

I'm not sure if anyone has posted about this yet; but, China has made a big move into the movie world by buying the movie theater company AMC. As the ticket sales have decreased in the U.S., ticket sales have risen in China--which, of course, becomes appealing to movie theater companies desiring higher profits. Thus, the movie industry wants its chance at the larger audience that China will indefinitely provide. The article details that the Chinese investor group has become the largest owner of a theater chain in the world; and, how this business move will also create more attention to the business practices between China and the U.S.

Upon first hearing about the move, I was not too surprised at the business venture since both desire to make money. China and Hollywood are now openly developing a potentially grand marriage that can affect both parties in unique ways. Hollywood, if it is clever, can find ways to liberally influence the Chinese culture and China, if they haven't already, can begin taking over the world of Hollywood.

http://www.npr.org/2012/05/21/153222961/amc-deal-signals-hollywoods-new-bond-with-china

[Anonymous]

I heard this NPR report as well and automatically thought about the discussion we had in class about the partnership of Dreamworks. So much about the economy of the entertainment industry applies to the larger issues at play.

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