Until the new WTO MOU was agreed early this year, imported films entitled to revenue sharing would receive from 13% to about 17.5% of the total box office receipts of their films, depending on how much the movie actually made. “Total box office receipts” is defined as the amount reported by the Office of China Film Special Funds. This figure is almost certainly always under-stated, for reasons we will see below, and because there is a material amount of skimming that takes place at China’s theaters. Before the WTO MOU, if a revenue-shared Hollywood movie earned less than 45 million yuan at the box office then it would only get 13% of the reported gross. Those films grossing more than 45 million yuan would receive as much as 17.5%. After the WTO MOU was agreed, revenue sharing films now receive a straight 25 percent of all box office receipts. Much simpler, and better for the foreign producers.
China Film and Huaxia Film receive about 22 percent of the gross from foreign releases. The rest, after taxes, goes to the exhibitors, and amounts to roughly 45 percent of the gross.
By way of comparison, local movie producers can distribute their products almost limitlessly and usually they, the producers and distributors combined receive about 43% from the gross. Generally, theaters operators receive slightly more share from Hollywood movies than from local movies.