The domestic film industry is developing at a furious pace. By 2015, excluding the three special administrative regions, the country boasts more than 5,000 cinemas and over 25,000 screens. The total annual box office has reached 48 billion, accounting for half of the Asia-Pacific market, second in scale only to the United States.
Within the domestic market, the three major theater chains—Wanlong, Next Generation, and Meichen—divide up the primary shares of the film market. Wanlong alone owns more than 400 cinemas, making it the undisputed industry leader.
The profits generated by operating theater chains are quite staggering. According to the domestic box office revenue-sharing ratio, out of every 100 yuan at the box office, 5 yuan must be paid to the film fund, 3.5 yuan goes to taxes, and of the remaining 91.5 yuan, cinemas take 45 yuan, theater chains take 15 yuan, leaving a mere 31.5 yuan for the producers and distributors.
Chapter 400