Aside from the increase in box-office share allowed for foreign producers, the agreement increased the number of foreign films allowed to play in China and share in box office revenue from 20 to 34.
Disney is expected to gain market share riding on the success of its animated movies from a global box office market share of close to 8% in 2010.
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With a successful theater run for part 2, Time Warner can gain both domestic and global box office market share.
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Notably, during the time when the second and third Pirates of the Caribbean movies were released, Disney was close to its global box office market share peak.
We anticipate that Disney will gain global box office market share in 2010, and we expect these gains to continue with the summer 2011 release of Cars 2, the animated sequel to its 2006 blockbuster Cars.
News Corp could adopt a strategy of launching films in this category, similar to what Disney has done using Pixar, improving its share in both box office sales and the DVD market.
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When it comes to movie tickets, state-owned distributor China Film Group has recently sought to deduct the cost of the tax entirely from foreign producers' share of the box office, said several people involved in international film distribution.
Independent studios, including the small-budget "specialty" divisions of the major studios, saw their share of box-office revenue decline to 19% in 2010, from 33% in 2001, according to an analysis conducted for The Wall Street Journal by entertainment-research firmNash Information Services LLC.
First, we halved the box office of each film (to approximate the studio's share of ticket sales) and added those numbers to calculate gross box office.
The deal nearly doubles the share of Chinese box-office receipts that movie producers may keep, to 25%, creating a bigger pot for Imax and other theater chains.
Other challenges Hollywood faces as it vies for its share of the Chinese box office -- now the world's second largest -- include rampant piracy and efforts by authorities to protect homegrown films.
Vivendi, by contrast, boasts not only the largest market share in music but, in the third quarter, in films too: its box-office takings were up 93% on the same period of 2000.
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