Certain blockbusters in Hollywood, which have positive feedback from moviegoers are affected by a tradition in China. This is called the Hollywood blackout, an annual movie season for the country. It is when foreign films are not being released to prioritize local movies for a duration. Sometime in the summer is when this usually occurs, also in the months when students are on vacation. In this year, it was in effect for the months of July and August. This is a concern for the American entertainment since China is somehow uninterested in being a consumer of the industry. As a matter of fact, the US film and television industry supports almost two million jobs in the country, being the largest to provide the opportunity. It amounts to more than $130 billion in wages. In the year 2016, China contributed $1.8 billion of revenue from the total sales of $11.4 billion.
It was not concluded that the blackout creates a major impact on the revenues of the Hollywood blockbusters. A number of moviegoers in the mainland create an impression that there are delay and decrease in revenue for the producers. While this may be helping their local film industry, it has also been a welcoming strategy to more competitive players from Hollywood. The Hollywood blackout implemented in China began in 2004 and has been yearly regulated by the Chinese government. However, it is a fact that even when local movies are aired during the Hollywood blackout, there is no guarantee that success is achieved. Removing foreign competition does not quantify that produced movies domestically would perform better. When foreign movies are released with local movies, 90% of revenues are gained by the former. Whereas when the blackout is implemented, local films share the market.
Although the American film industry can be hurt for the Chinese tradition, it is not a sign for the producers to limit the audience and exclude Chinese audiences. Piracy is an enemy for this but the foreign production and the people behind it are more accepting of the presence of the Hollywood blackout. The market is also evolving for the Chinese consumers; people are shifting towards gaining experiences. As a result, moviegoers are more keen on choosing movies to watch, making sure that they spend on quality films. The foreign movies then take into account the factor that people are quite demanding. Films that have a good reaction are the only ones that are able to reach the Chinese silver screen. The Hollywood blackout is not announced and Western producers have only worked and strategized around the timing.
The relation between China and the US became different during the Nanking Massacre. Since Chinas economic reforms began to elevate their condition as a nation, there have been a lot of factors to consider. Additionally, China is a good market because of the population and consumers. Another is that the country was able to show strength as China made its way to becoming the second largest economy in the world. Foreign studios can do no more than comply the Hollywood blackout. As long as the film companies are able to strategize and create a market even when the movies are not yet released in China. It is a matter of developing effective business approach and arrangements. The film and television industry can get competitive in itself. Timing is of large consideration for Chinas Hollywood blackout. Even though there are uncertainties in the result of foreign film releases in the country, selecting the right movies that satisfy the Chinese audience is also key. Blaming the policy must be minimized because the approach leans toward the business aspect.
