China's theatres, studios protest against deal to stream movie online for free

Huanxi Media

25/01/2020 03:19

BEIJING/SHANGHAI, Jan 25 (Reuters) - Chinese theatres and
film studios are protesting a deal by Huanxi Media Group
 1003.HK  to premiere its new movie "Lost in Russia" on
Bytedance's online platforms, with some saying it was
"trampling" and "destroying" China's cinema industry.
    The week-long Lunar New Year holiday usually sees audiences
flock to cinemas with distributors taking advantage of the
crowds to launch films but the premieres of at least seven
movies, including "Lost in Russia", were postponed due to a
virus outbreak which by Saturday had killed 41 people and
infected more than 1,300 people globally.  urn:newsml:reuters.com:*:nL4N29T345
    But Huanxi Media Group  1003.HK  announced on Friday that it
would show "Lost in Russia" for free on Beijing Bytedance
Network's platforms on Jan. 25, and that the social media giant
would in turn pay it at least 630 million yuan ($91.25
million)for new movies and dramas.
    Financial magazine Yicai reported on Friday on a statement
issued by the film industry of eastern China's Zhejiang
province, which threatened to boycott films made by Huanxi and
one of the actors in "Lost in Russia" if the internet premiere
went ahead. 
    Another letter signed by 23 theatres and films studios was
also circulated heavily in Chinese social media and reported by
media outlets like the government-backed Beijing Youth Daily
newspaper. Two industry sources familiar with the letter
confirmed its authenticity to Reuters.
    The second letter, which was addressed to industry regulator
China Film Administration, said the movie would mark the first
time in history a Spring Festival blockbuster would be screened
for free online, and while it was legal to do so, it would break
the current industry model. 
    "This goes against the payment and revenue model that the
movie industry has cultivated over many years, is trampling and
intentionally destroying the movie industry and premiere models,
and play a lead role in causing destruction," said the letter,
whose signatories include Wanda Film Holding  002739.SZ , Bona
Film Group, and Henan Oscar Theatre Chain.
    Wanda confirmed to Reuters that it had signed the statement
but declined to comment. Bona Film Group and Henan Oscar Theatre
did not immediately respond to calls for comment. Many offices
are shut in China due to the national holiday. 
    A Bytedance spokeswoman said that its cooperation with
Huanxi was a normal commercial deal to benefit the creators,
adding that it also allowed more people to stay at home, rather
than go out, given the virual outbreak situation.
    Huanxi did not immediately respond to a request for comment.
    Many public areas including cinemas in Shanghai, the city's
Disneyland resort and even Beijing's Forbidden City have been
shut due to concerns about the virus. 
    
($1 = 6.9040 Chinese yuan renminbi)

 (Reporting by Pei Li, Lusha Zhang and Brenda Goh; Additional
reporting by Roxanne Liu in Beijing; Editing by Michael Perry)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))