China Bans Nine Cinemas From Screening New Films Amid Fraudulent Box Office Reporting

Making good on a promise to get tough with exhibitors who manipulate box office figures, Chinese authorities have banned nine movie theaters from screening new films. The state-controlled Xinhua news agency says cinemas in such areas as Shandong Province and northern Shanxi have been found reporting fake numbers to the government, selling hand-written tickets (or none at all) or interfering with official box office inspections. The news was issued in a statement from the China Film Producers Association and the China Film Distribution and Screening Association, two semi-official bodies that fall under the purview of the State Administration of Press, Publication, Radio, Film and Television. The suspensions are a reaction to what’s believed to be a long-held industry practice of hiding income from the government which takes a 3% value-added tax on revenues as well as a 5% film fund tax. Increased scrutiny should be welcome news to Hollywood studios who are entitled to a 25% revenue share with exhibitors. China‚Äôs reported box office in 2013 was $3.6B, but industry experts believe the real figure is at least 10% higher.

Related: China To Crack Down On Fraudulent Box Office Reporting With New Ticketing System

(more…)

This article was printed from https://deadline.com/2014/02/china-bans-9-cinemas-from-screening-new-films-amid-fraudulent-box-office-reporting-690406/