By Bridget O’Donnell
More and more Hollywood Studios are attempting to establish partnerships with China to create films. Just yesterday, Disney announced it would be co-producing “Iron Man 3” in China. But as The Wall Street Journal notes, Hollywood’s still got a long way to go in the Middle Kingdom.
Because of restrictions on how many films were allowed to enter the Chinese market, six of the top ten grossing films in China came from Hollywood. The films tend to make a fraction of what they make back in the States, and even less so when you consider how much of the revenue China gives back to the studios (roughly 13.5-17.5%).
But that could change this year with those restrictions being loosened. The government has increased the number of foreign films permitted in the market from 20 to 34 and is allowing studios to take up to 25% of the revenue from Chinese releases.
Here’s a comparison of the Top 10 films in China and the US from 2011: