US Studios Reach Deal with China to Curb Piracy, Snatch More Cash
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U.S. movie studios claim the recent agreement made with China to increase the distribution of films in the country will also prove efficient against online piracy
According to a recent CNet post, US studio executives are hopeful that their newly sealed deal with China, which enables film companies to distribute more Hollywood productions in that country, will help to bring down Web piracy.
China’s government now allows for a greater volume of US movies to be screened in that country each year, as pointed out by the White House and the six major Hollywood film studios.
Based on a recently signed agreement between the two nations, US filmmakers are also due to receive a greater share of box-office revenues for each screening. Because of the implications it has on online piracy, this however is only a marginal technology story.
The tech sector has long reprimanded Hollywood for their lack of implication in making films and TV shows more accessible and more affordable in China. As emphasized by the Motion Picture Association of America (MPAA) – the studios’ watchdog – the newly signed deal supposedly envisions positive changes in this respect.
As an added perk, US film companies will benefit from an important increase in profit on ticket revenues, from an initial 13 percent to 25 percent. This rounds up to a nice overall amount, considering China will now cater to the distribution of 50 percent more Hollywood releases in its theaters.
Whether the aforementioned agreement will also require China to carry out specific measures against Web piracy is still unsure. The MPAA has long perceived China as one of the countries with a high-risk for intellectual property theft.
An MPAA spokesperson said the studios are optimistic that the new agreement will encourage theater attendance rates in China while discouraging illegal download over the Internet.
The battle against piracy outside US borders is a top priority for filmmakers. The stringent manner in which the US is currently handling the case of MegaUpload’s founder, Kim Dotcom, further reinforces this tendency. In their efforts to extradite and bring Dotcom and his associates to justice, the US government went as far as calling MegaUpload a criminal enterprise.
DotCom continues to plead innocent and is expected to fight the extradition.