As China\'s box office broke the 10 billion RMB level in 2010, more film industry people at home and abroad started reconsidering the value of Chinese films. These returns come at a time when China\'s film industry has been undergoing a digital technology transformation, making movies more available on more screens and therefore increasing profitability. The president of Antaeus Group, Zhang Baoquan, is an important figure in the digital revolution and talks about what it means for the industry.
Daily News: What was the role of digital technology in the huge jump in Chinese box office revenues last year?
Zhang Baoquan: The significant effect of digital display technology is reflected in the contrast of box office revenues increasing 63.9 percent but the number of screens increasing by only 32 percent. More cinemas can now show first round release movies with this technology which will be operating this year in about 90 to 95 percent of China\'s cinemas.
Daily News: You mentioned that all cinemas could get the first round releases of movies. What does that mean to the market?
Zhang Baoquan: Digital screens make up over 70 percent of the whole box office. Compared to the past, making a digital copy saves lots of time and money. Digitalization in cinemas will attract audiences to see first-run movies, especially in second and third tier cities.
Daily News: So the development of digital display technology will promote the growth of audience in second and third tier cities?
Zhang Baoquan: Yes. In the late 1990s, most of the cities in China couldn\'t get first round copies of new films. And 70 percent of them still have no cinemas. Digital display technology now can offer current movies in these cities at the same time as in Beijing and Shanghai.
Daily News: Will digitalization kill piracy?
Zhang Baoquan: Digital display technology can speed up the number of film sessions and accordingly reduce the price. It can also efficiently reduce piracy.
Daily News: What effects will the technology have on film production in China?
Zhang Baoquan: The movie market will be energized and there will be more big-budget productions, leading to bigger box office returns.
Daily News: What\'s the difference between digital display technology and traditional methods in cinema operations?
Zhang Baoquan: Because of China\'s vast size, the spread of cinemas everywhere causes distribution problems for management. But the cinemas will become easier to operate with digital film platforms and networking. My company spent four years and over 80 million RMB building the system.