From an investor's point of view, the East Asian film industry is an exciting story: large markets across the region, lower production costs relative to the US and Europe, and the major growth engine of China, where box office has quadrupled to $459m in five years.
Due to the rising box office and the strength of local product in many territories, there is no shortage of deep-pocketed individuals and corporations, both within and outside the industry, willing to invest in production.
Investment is also flowing into cinemas in mainland China and new-media platforms across China, Korea and Japan. Private equity is starting to examine this sector, albeit cautiously, and film funds are sprouting up across the region.
Economic uncertainty in the US and Europe may actually benefit East Asia as global studios and media giants turn eastwards for new sources of finance and talent, and box-office markets that are still experiencing growth.
The region faces competition from the Middle East and India, which are also flexing their muscles as investors and expanding markets. But a post-Olympics China and two top 10 box-office -territories in Japan and Korea are too compelling to ignore. Indeed, a bigger concern should be the fact money is not always enough, and there is still much to be done for the East Asian film industry to grow.
A sustainable regional industry also needs long-term thinking, slate development as opposed to financing one-off projects, investment in new talent and regional distribution networks, and more sophisticated use of equity and debt.
Leading producers and distributors across the region are recognising this and working on initiatives such as film funds to facilitate slate financing. Film companies in mainland China are harnessing stock markets and private equity to raise capital for the next stage of growth.
And despite the entrepreneurial nature of this region, national governments in territories such as Singapore and Korea are also pitching in by examining strategies to support the development of the film industry at both a local and regional level.
There is still work to be done. But as always in Asia, when an industry is in transition, it will reinvent itself much faster than has ever happened in the West.
LIZ SHACKLETON, ASIA EDITOR
Due to the rising box office and the strength of local product in many territories, there is no shortage of deep-pocketed individuals and corporations, both within and outside the industry, willing to invest in production.
Investment is also flowing into cinemas in mainland China and new-media platforms across China, Korea and Japan. Private equity is starting to examine this sector, albeit cautiously, and film funds are sprouting up across the region.
Economic uncertainty in the US and Europe may actually benefit East Asia as global studios and media giants turn eastwards for new sources of finance and talent, and box-office markets that are still experiencing growth.
The region faces competition from the Middle East and India, which are also flexing their muscles as investors and expanding markets. But a post-Olympics China and two top 10 box-office -territories in Japan and Korea are too compelling to ignore. Indeed, a bigger concern should be the fact money is not always enough, and there is still much to be done for the East Asian film industry to grow.
A sustainable regional industry also needs long-term thinking, slate development as opposed to financing one-off projects, investment in new talent and regional distribution networks, and more sophisticated use of equity and debt.
Leading producers and distributors across the region are recognising this and working on initiatives such as film funds to facilitate slate financing. Film companies in mainland China are harnessing stock markets and private equity to raise capital for the next stage of growth.
And despite the entrepreneurial nature of this region, national governments in territories such as Singapore and Korea are also pitching in by examining strategies to support the development of the film industry at both a local and regional level.
There is still work to be done. But as always in Asia, when an industry is in transition, it will reinvent itself much faster than has ever happened in the West.
LIZ SHACKLETON, ASIA EDITOR
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