Showbiz Sandbox 426: China Gets A Tighter Grip On Its Entertainment Industry
October 8, 2018
When movie star Fan Bingbing went missing in June there was little doubt that the Chinese government had her in custody for tax evasion. Confirmation came this week when the actress resurfaced, apologizing to the country and begging for “everyone’s forgiveness!”. Chinese authorities have announced Fan will pay at least $70 million in back taxes or face criminal prosecution.
The episode has shined a spotlight on the use of what are known in China as “yin-yang contracts,” wherein two different contracts for different amounts are used; one with the full value of the contract and one with a lower value used with tax agencies. Now that the government seems to have taken notice, the Chinese film and television industry has come to a standstill as everyone restructures their deals to comply with the country’s tax laws.
Speaking of China, Hollywood’s share of the country’s box office for the year is off by roughly $500 million and we wonder why. Back in North America, September grosses nearly set an all time record and October is off to a great start.
Of course we also cover the week’s top entertainment headlines including how Apple is stumbling its way into original TV programming, the RIAA diversifies and Bill Cosby heads to jail.
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Showbiz Sandbox 288: This Summer’s Box Office Is Turning Into A Blockbuster
July 27, 2015
A string of big budget Hollywood sequels and prequels like “Jurassic World”, “Avengers” and “Minions” have driven the 2015 summer box office nearly 15% higher than last year. And not just in the United States. Countries all over the world are reporting strong movie attendance, especially in China where homegrown productions have been the top grossing releases.
It doesn’t hurt that North American moviegoers are currently paying the highest ticket prices on record. Just ask IMAX which just reported the highest quarterly earnings in the company’s history.
It isn’t all good news for Hollywood studios however. The European Union is charging the six major distributors with antitrust violations over what regulators allege are illegal licensing contracts with cable operators. Should the EU prove their case, it could cause havoc by eradicating longstanding entertainment industry business models.
Of course we also cover the week’s top entertainment news including the Emmy Award nominations, the approval of AT&T’s merger with DirecTV, why Neil Young is yanking his music from streaming services.
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