January-1999

INTERNATIONAL NEWS BRIEFS
PACIFIC OVERTURES
Notes From the Pacific Rim by Francesca Dinglasan
SOUTH KOREA DEBATES FILM QUOTA
SEOUL—A quota that requires one-third of films played in
South Korean cinemas to be Korean productions has sparked a
debate in the country. Government officials have been at odds over
the regulation, most notably over its possible effect on U.S. trade
relations. U.S. officials have reportedly complained that the quota
is in violation of a bilateral trade agreement between the United
States and South Korea. The U.S. has provided further incentive
for removal of the quota by offering the country $50 million in
foreign investment. The funds would be used to build several
multiplexes throughout South Korea.
Among those objecting to the quota' s removal are South Korea'
Ministry of Culture and Tourism and Korean film producers, actors,
and directors. Supporters of the quota argue that it has contributed
to the increase of revenue for Korean movies, and they urge that
the regulation remain in place until the local film industry has
attained competitiveness in the international market. The opposition
stresses that foreign investment is badly needed to help Korea'
ailing economy, and boxoffice profits generated from American
films could be used to promote Korean productions.
READING AND WAITING
SYDNEY—Reading, a U.S.-based company currently attempting
to develop multiplexes throughout New Zealand and Australia,
has experienced both progress and setbacks in its efforts to establish
itself in those markets. In conjunction with Auckland-based
Westmark Wakefield, Reading has sealed a deal to construct a
12- screen multiplex in Wellington, New Zealand. The theatre will
anchor a retail center and is slated to open late this year. Meanwhile,
Reading is waging a battle to obtain first-run films currently
unavailable to its cinema in Sydnej^. The 800-seat multiplex,
Reading' s first in Sydney, has been denied access to newly-released
films by distributors. John Rochester, the company's CEO, says he
believes local competing chains place pressure on distributors to
withhold the desired products from Reading.
NO ECONOMIC WOES FOR JAPANESE BOXOFFICE
TOKYO—While Japan's recession has negatively affected
most all of the country's industries, movie exhibitors have weathered
the financial storm. In 1997, movie theatres saw a 17.7 percent
gain in attendance over the previous year, with a total of 140.7
million tickets sold. Boxoffice gain increased by 19 percent for the
same period with total earnings of 177 billion yen (US$ 1 .5 billion)
recorded. For most of this decade, Japan's precarious economy has
resulted in decreased attendance at the movies. The boxoffice
comeback is attributed to a growing number of screens and a string
of blockbuster hits.
17-PLEX IN SYDNEY TAKES THE BISCUIT
SYDNEY—A 1 .6 million-square-foot complex that will feature
entertainment, retail and office facilities is being planned for Sydney,
Australia. The design, which incorporates a multiple-use
layout and a multiplex theatre anchoring the complex, will be a
completely new concept to the country. Hoyts, Australia's largest
movie theatre operator, will manage the 17-screen plex equipped
with 4,500 seats and advanced projection and audio equipment.
Developed by JAGAR Property Group of North Sydney and designed
by Newport Beach, Calif.-based Perkowitz & Ruth Architects
Inc., the complex, known as The Entertainment Center at the
Amotts Biscuit Factory, is scheduled to open concurrently with the
2000 Olympics in Syclney.
REVENUE SHARING IN CHINA
CHINA—New Line International and China Film Corp., a
distributor headed by the country's government, have come to a
mutual agreement regarding revenue- sharing distributions. China
Film Corp., which normally pays a flat monetary sum to suppliers
for a given film, entered into its first agreement to pay based on
revenue returns. The deal is significant in that it sets a precedent
for other independent film companies in China to follow the
revenue- sharing system. NLI sealed the deal with "Rush Hour,"
featuring Jackie Chan and Chris Tucker.
HOYTS NETS HIGH PROFIT
SYDNEY—Australia-based Hoyts, which operates 950 screens
in the United States and over 1,500 screens worldwide, earned
AUS$38.7 miUion (US$22.9 million) in profit for the June 30,
1997-June 30, 1998 period. The company's 64 percent gain has
been attributed to the performance of its movie complexes and the
strength of boxoffice hits during the given period. Hoyts is presently
expanding its holdings throughout Europe and Latin America,
but has decided against pursuing interests in Asia because of
economic instability throughout the region.
MORE MONEY FOR SINGAPORE FILMS
SINGAPORE—^The Television Corp. of Singapore has expanded
its operation to include production of feature films. TCS
has established Raintree Pictures as its filmmaking division, and
the company intends to complete a total of eight full-length films
by mid-to-late 2000.
With the solid financial backing of TCS, Raintree will be given
a budget ranging from SIN$550,000 (US$302,500) to SIN$3 million
(US$1.65 million) for each of its productions. This will make
Raintree Singapore's most stably funded film producers.
GOING GAGA
TOKYO—Gaga Communications, a movie distributor based in
Japan, has undergone an internal restructuring. The company has
replaced Kiyoshi Watanabe, the former head of U.S. operations,
with Yoko Asakura, while former executive vice president Aki
Sugihara has been selected to supervise marketing and acquisition
ventures. Gaga has also created a Strategic Administration and
International Department for developing new projects.
PACIFIC RIMSHOTS
A 16-screen AMC Entertainment International theatre is
slated for construction in Nagoya, Japan. AMC plans to open the
multiplex, their third in Japan, by Spring 2000... Berlin-based Hahn
Films, which specializes in animation, has established two more
animation studios in Asia. The first is located in Vietnam, and the
other, in conjunction with DigiMation, has been set-up in Taipei,
Taiwan. ..Australian circuit Village Roadshow Ltd. reported earnings
for July 1, 1998-October 31, 1998 to be "moderately ahead"
of earnings for the same period during the previous year. John
Kirby, chief executive of Village, acknowledged that the economic
crisis in Asia hampered overairprofit...Iwerks will be opening two
new ride-simulation theatres in China. A 100- seat theatre in
Fuzhou, PRC and a 36-seat theatre in the city of Quingdao are
scheduled to open next month. Upon completion, Iwerks will have
increased its presence in China from eight to 10 theatres, bringing
its total installations in the Asia Pacific region to over 80.
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