China: ancillaries in a nutshell

The evolution of Chinese production continues at a ferocious pace, transforming ancillaries and confronting piracy.
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Baida’s Iqiyi streaming website – part of the expanding ancillary market.

Matthew Alderson is an Australian lawyer who lives and works in Beijing, and a key figure for many producers trying to work in the Chinese context. As far as we are concerned, his perspective is rolled gold.

He has now published four parts to a meditation on the evolution of ancillaries in the Chinese screen industry. At the moment it seems that a mere ten percent of the income earned by a film in China comes from ancillaries, which is a collective noun for every form of revenue except cinema release. So 90% of that income comes from box office. In Hollywood, it is generally presumed that only a quarter of the income comes from box office, and three quarters of the dosh taken by a particular title comes from ancillaries.

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