Film
Hong Kong Top 10 Films in 2011
Rank |
Title |
Country of Origin |
Gross Receipts |
1 |
Transformer 3 |
U.S. |
10.8 |
2 |
Harry Potter and Deathly Hallows (Part Two) |
U.S. |
9.8 |
3 |
You Are the Apple of My Eye |
Taiwan |
7.9 |
4 |
Pirates of the Caribbean: On Stranger Tides (3D) |
U.S. |
5.8 |
5 |
Mission Impossible – Ghost Protocol |
U.S. |
5.3 |
6 |
3D Sex and Zen – Extreme Ecstasy |
Hong Kong |
5.2 |
7 |
Kung Fu Panda 2 |
U.S. |
5.0 |
8 |
I Love Hong Kong |
Hong Kong |
3.4 |
9 |
Sherlock Holmes: A Game of Shadows |
U.S. |
3.3 |
10 |
X-Men: First Class |
U.S. |
3.3 |
Source: Hong Kong Motion Picture Industry Association
According to the Motion Picture Industry Association, Hong Kong’s total box office grew slightly, by 3.5% over the last year, from US$172 million in 2010 to US$178 million in 2011. Despite the growth in the box office, there were 15 fewer films released during the year, from 286 films in 2010 to 271 in 2011. Revenue for foreign films hit US$141 million (79% of total Hong Kong box office revenue) and local productions grossed US$37 million (21% of total revenues).
The United States is the dominant supplier of films to Hong Kong, constituting over 75% of total film imports. With box office receipts of US$10.8 million in Hong Kong, Transformer 3 was the highest-grossing film of the year. While 3D was a key driver in the strong results for U.S. films with Pirates of the Caribbean: On Stranger Tides grossing US$5.8 million, 2D releases, including Harry Potter and the Deathly Hallows (Part Two) and Mission Impossible-Ghost Protocol, also performed well, grossing US$9.8 million and US$5.3 million, respectively.
The gross revenue of the film industry is expected to expand in the coming years because of the opening of new multiplexes and 3D cinemas, and also strong government support. The opening of new 3D cinemas has helped grow box office potential in Hong Kong. The number of screens equipped with 3D projection systems reached 80, out of a total of 201 of screens as of March 2010.
The Hong Kong government has also demonstrated support for the film sector with the establishment of the Film Development Council and Create Hong Kong within the Commerce and Economic Bureau. Create Hong Kong is intended to integrate existing policy and funding initiatives across government departments to boost the development of Hong Kong’s creative industries. Hong Kong’s film sector is also benefiting from the Closer Economic Partnership Arrangement (CEPA) with China where Hong Kong firms in film distribution and production enjoy preferential access to mainland China.
On the film technology front, Hong Kong Cyberport’s Digital Media Center implemented the Digital Cinema Exchange (DCX) Pilot Scheme in March 2010 thanks to US$1.7 million in funding from the Hong Kong Film Development Fund. A total of 10 local cinemas under major circuits have participated in this 18-month pilot scheme, which helps them to directly download overseas film files via the Internet. The pilot is designed to prove DCX’s feasibility in the Hong Kong market and to provide an opportunity for analytical evaluation. Eventually, the system will provide a 1G link to all theaters in Hong Kong, decreasing movie delivery time and costs for cinema operators. It is estimated that digital distribution will cost only about 10% of 35mm distribution.
Opportunities for U.S. firms go beyond the box office to include film production technology, multi-media content, and related services. Best Prospects in Hong Kong and Macau are:
- U.S. independent feature or documentary films and videos that Hong Kong firms can distribute in Asia, especially mainland China;
- Co-productions between U.S. and Hong Kong firms for distribution in China and Asia;
- U.S. technology products used in movie theaters in China and elsewhere in Asia;
- Cooperative agreements with U.S. film education and training institutions;
- U.S. film financing and deal-structuring techniques and services.
Content Distribution. U.S. exporters should consider selling content licenses to TV stations in the region, as well as to Hong Kong agents for both Hong Kong rights and broader Asia regional rights. For example, The Office of the Telecommunications Authority (OFTA), Hong Kong's telecoms regulator has granted a license for China Mobile to provide Mobile TV Service in mid-2010. The license requires that China Mobile must use at least 75% of its transmission capacity to deliver mobile TV content and extend its service coverage to at least 50% of the city's population within 18 months after the issuance of the license. This presents business opportunities for U.S. companies to sell films and TV programs to the Mobile TV Service Providers. U.S. companies interested in this opportunity should consider producing programs that cater to Hong Kong viewer preferences.
Co-production. Co-production and co-funded projects with Hong Kong companies offer another set of opportunities. With the full implementation of the Closer Economic Partnership Arrangement (CEPA), Hong Kong’s position as a center for Asian co-production with international companies was reinforced. Under CEPA, Hong Kong-China co-productions are treated as local productions in China. By cooperating with Hong Kong producers, U.S. firms can enjoy local production treatment for enhanced access to the China market.
Non-cinema production. U.S. film companies should consider Asia’s growing market for multi-media properties. Local consumers are keen to see new content and related applications for games, comic books, and mobile phone downloads, in addition to traditional films and TV programs. In-flight entertainment is also a growing niche that should not be overlooked.
3D Movies. As mentioned earlier, the opening of new 3D cinemas has helped grow box office potential in Hong Kong. The number of screens equipped with 3D projection systems reached 80, out of a total of 201 of screens as at March 2010. Thus, 3D movies are expected to continue to do well.
Major Trade Shows
Filmart 2012
Dates: March 19-22, 2012
Venue: Hong Kong Convention and Exhibition Center, Hong Kong
Website: www.hkfilmart.com/filmart/index.htm
Hong Kong - Asia Film Financing Forum 2012
Dates: March 19-21, 2012
Venue: Hall 1, Hong Kong Conventional and Exhibition Center, Hong Kong
Website: www.haf.org.hk/haf/
Trade Associations
Hong Kong Film Development Council: www.fdc.gov.hk/en/home/index.htm
Hong Kong International Film Festival: www.hkfilmart.com/filmart/chi/buyreg.htm
Motion Picture Association: www.mpa-i.org/index.html
U.S. Commercial Service Hong Kong
Contact: Ms. Fanny Chau, Commercial Specialist
Tel: (852) 2521-3721
Fax: (852) 2845-9800
Email: fanny.chau@trade.gov
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