The 2013 global box office hit a record $35.9 billion, fueled in part by China’s spectacular box office totals of $3.6 billion. China is the only market outside of the United States to reach $3 billion in revenue, and with 13 new screens being built every day, is positioned to continue to see remarkable growth. According to MPAA chairman-CEO Chris Dodd, China’s box office revenue enjoyed a 27.5 percent gain over 2012.
Film distribution opportunities in developing foreign markets continue to grow, offering unprecedented economic advantages for film producers and investors. In addition to production rebates that are used to mitigate upfront production cost risk, foreign pre-sales are the largest component of this method of risk reduction. As foreign territories grow their box office receipts, with China being the clear leader, more American feature films will be presented in these markets and will ultimately benefit from a significant increase in foreign sales and pre-sales.