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20 Aug 2013

International Economy

Blooming Show Business in China, Great Opportunity for Thailand (Current Issue No. 2394 Full Ed.)

China has seen a rapid growth in its entertainment industry in radio, television and motion picture production. In 2012, the business value in China was 0.67 percent of the national GDP, at CNY347 billion (approximately THB1.7 trillion), soaring 20.1 percent YoY. This trend implies exciting prospects for their entertainment industry, which is expected to continue booming.
KResearch forecasts that growth momentum in Chinese entertainment business will be constant, driving toward impressive development that probably makes China the world's largest market by 2020. Supporting factors include digitalization of distribution infrastructure; urbanization policy that brings about higher income as well as the government's easing on controls over entertainment business, e.g., higher quotas for foreign cinematic releases. We project that China's entertainment industry market value will total over CNY400 billion (THB2 trillion) in 2013, rising 17 percent YoY.
This suggests that there could be excellent opportunities for Thailand there since our dramas are well-received by Chinese viewers, due to casting, craftsmanship and familiar cultural references between China and Thailand that make it easier for Chinese viewers to connect. KResearch estimates that copyright royalties for Thai dramas showing in China could reach THB100 million per year. As for large screen productions, international film festivals are usually great venues for the Thai filmmakers to find new distribution channels.
Thai government agencies should initiate negotiations with Chinese officials to facilitate the screening of Thai screen productions, especially to increase quotas for Thai dramas and other cinematic releases; we might also seek to revise joint-venture regulations with them. Meanwhile, Thai producers should develop their products by studying Chinese viewers' tastes so that we may enrich our own genre/content and enhance our scriptwriting.

Also, because of the restrictions imposed on screening of our dramas and movies in China, the Thai government and private sector should focus on promoting Thailand as a location for Chinese productions. This would in turn cultivate more business for our local film-making services such as equipment and studio rentals, as well as other production services. The appearance of Thai locales within Chinese cinematic productions would also benefit our tourism and related businesses, e.g., tour operators, hotels, restaurants and souvenir trade.

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International Economy