The Impact of China's Selective Distribution System on Hollywood's Entry into the Chinese Market

October 26, 2023, at the 24th National Film Promotion and the First National Film Exhibition, 24 films were officially signed for online distribution. China's online film distribution model officially kicked off, adhering to the principle of "one-time release, one-time screening," exploring a new market-oriented, flexible negotiation transaction form. Market-oriented Selective Distribution helps to revitalize cinemas, boost the confidence of creators and investors, and enrich the content of local films, making them more diverse in subject matter.Since 2012, the acceleration of Hollywood movies has boosted domestic film spending, and the rapidly expanding Chinese market has become a driving force for Hollywood movies.Between 2012 and 2017, Chinese box office sales rose from 17 billion yuan to 55.9 billion yuan, and the number of imported movies grew from 8.8 billion yuan to 25.8 billion yuan, according to the National Film Bureau.In 2019, Chinese box office rose to 64.2 billion yuan, but the number of imported movies remained at around 23 billion yuan. That is to say, Hollywood films, as the world's largest source of foreign movies, have ceased to grow in the Chinese market. By 2021, Hollywood movies' box office in China has fallen to $900 million, and their market share has fallen from more than 30 percent to 12.3 percent.This indicates that Hollywood movies have been losing market share in China. The best way to overcome this dilemma is to understand the latest Chinese movie policies and to make targeted changes.