Studio executives believe China Film's new policy could reduce by 8% their theatrical revenue in coming years from the world's fastest-growing movie market, potentially costing them millions of dollars.
One movie industry expert in China said that due to the lack of clear rules, the amount of a tax any studio has to pay may depend on its ability to negotiate with China Film Group.
He has put together a joint venture production studio in Shanghai to churn out high-quality animated movies aimed at scoring box office successes both in China and internationally.
Entertainment today announced the studio will begin offering its films nationally On Demand to consumers' television sets in the People's Republic of China (PRC).