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By April 18, 2015, China's box office takings had reached 11.8 billion, and the number of cinema screens had reached 2,700. Many industry insiders say that the rapid expansion of China's film market is in accordance with expectations, and there is more space for imagination.

The spending power of Chinese moviegoers has grown substantially. In addition to strong support from industrial policies and rapid growth in cinema building, the Internet has played an importance role in changing the traditional film pattern.

For the film industry, the Internet is no longer just a platform for marketing and product sales, but a complete absorption, transformation and reconstruction of the film industry supply chain including distribution, production, creation, capital and service.

Rao Shuguang, Secretary-General of the China Film Association, points out that the film industry has become the primary means for the Internet to participate in the culture and entertainment industry. The Internet is not satisfied with just providing technical channels; it has rapidly transformed the traditional pattern of film industry through financing, mergers, acquisitions, and strategic partnerships.

However, along with the rapid expansion and development of China's film market, what should also be noted is that China's film industry is regarded as a high-risk because of its high investment cost, slow capital return and high level of uncontrollable risk. At present, 50 percent of China's film investments lose money, 40 percent break even, and only 10 percent make profits. In addition, China's film market relies too much on the box office; more than 85 percent of the income comes from the box office, while the number is only 20 percent in the U.S.

In the European film financing system, a highly professional insurance called completion guarantee can help ensure a movie is screened in accordance with the budget and the planned deadline.

Ye Heqing, China CEO of the Film Finances Inc., believes that completion guarantee can be introduced into the financial security system of China's film industry.

This article was edited and translated from 《中國電影市場產(chǎn)值一天一億 2015年票房已達(dá)118億》, source: Economic Information Daily.