Hollywood movie studios are concerned they are being short-changed on box office sales from China
Reuters
The Motion Picture Association of America, which represents the six major movie studios in the US, have hired an accounting firm to audit the box office sales of select titles that have been released in China, according to Bloomberg News.
The audit comes on the heels of ticket sales growth slowing last year to less than 3.7% in China after a 35% average growth the previous five years.
China is one of the fastest growing movie markets in the world and has been the savior of numerous big budget releases that flopped in the US, including recent releases like "The Mummy" and "Transformers: The Last Knight." So studios have recently been giving more attention to what returns they are getting out of the region.
And the studios have reason for concern.
Universal
The results of the audit may come as soon as the third quarter of this year, according to Bloomberg. That's ahead of the deadline for the US to renegotiate its film-trade deal with China. Under the current deal, US studios receive 25% of box office sales. The studios export the movies to the county on a flat fee.
A representative for the MPAA did not immediately respond to Business Insider's request for comment.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- Maruti Suzuki Q4 net profit rises 47.8% to ₹3,877.8 crore
- 10 Incredible destinations for backpackers in India
- SC seeks EC's reply on PIL for fresh poll if NOTA gets majority in constituency
- Markets snap five-day rally, Sensex tumbles over 600 pts
- Southern India faces water crisis as reservoir levels plunge to just 17% capacity: CWC