Thursday, October 17, 2013

Non-Middling Revenues in the Middle Kingdom

Big countries tend to lead to big cash flow.

BofA Merrill Lynch Global Research estimates the Chinese box office could yield $5 billion in value potential for Hollywood studios by 2017 vs. approximately $2.2 billion today, including imported and local productions (with this figure potentially doubling under further relaxed regulatory conditions). ...

The expanding exhibition footprint and rising consumer purchasing power are pushing all blockbusters into new territory, as the most successful films are now consistently generating more than $100 million in revenue at the Chinese box office. ...

BofA Merrill Lynch believes that Disney Shanghai is poised to take the Chinese theme park industry to the next level, both from quality and attendance standpoints. After nearly a decade of negotiations, Disney Shanghai is the largest and highest-profile Chinese investment made to date by a U.S. M&E player. ...

There's a reason that Disney ... and DreamWorks Animation ... and other large American companies are heavily involved in China. It's a growth arena and they want to be down in the middle of the sand and sawdust, slicing off their share of burgeoning revenues.

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