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The state of Asias film industry and the emergence of Transmedia



- Macau

THE ASIAN SCREEN is an ongoing series of industry reports on the media and entertainment market in the Greater China & South-East Asian region by Haexagon Concepts, a creative intellectual property management & development agency for emerging media strategies.


September 2013


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Analysis of Macau as a city and its economy Differentiation of reality with present/future possibilities Findings over what exists and what can be changed in Macau Interviews



All texts and images are material originally created by Haexagon Concepts and cannot be reprinted without the permission of Haexagon Concepts or the original content owners. The presented text of the entire section Film Based Entertainment in Macau is based upon Diogo Martins academic study within the course Independent Study-Film and Philosophy as part of the Master of Fine Arts studies at Hong Kong Baptist University. The document was titled originally: Film Based Entertainment in Macau - A study on the reality of the Macanese motion-picture based entertainment and the garnering of a broader industry (Hong Kong 15-05-2012). Contents have been updated and/or altered based upon requests by the study participants interviewed.

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Film Based Entertainment in Macau

Analysis of Macau as a city and its economy

What and where is Macau: Analytical view over the past, present and future of the city in its investments and population potential Macau is a small, 28 square kilometer city, in the Eastern (Southeastern) part of the Asian continent, bordering the South China Sea and China. It has a subtropical climate, with marine and cool winters and warm summers, without much variation of temperature throughout the year and, outside of some typhoons during summer season it is a great city location to shoot, much like its neighbor Hong Kong. People mainly speak Cantonese and Mandarin but English, Portuguese, Filipino and several other languages are easily used (amongst their speaking cultures) and/or heard (interdependently among people who have learned other languages other than their own) throughout the city. It has a population of 578,000 inhabitants, most in the working age group of 15-64 years old. It has a Population Growth rate of 0.9% a year but it is projected that with the new expansion plans

from the government (land and sea) till the years 2017/2020 the year (the opening of the Zhuhai-Hong Kong-Macau bridge and the new fast speed trains between Zhuhai-Guangzhou-Shenzhen-Hong Kong will also largely influence this increase), Macau will have around 700- 750,000 inhabitants, most in the working age group and therefore regular consumers of media and film-based entertainment. Until the year 1999 Macau was governmentally controlled by Portugal (a centennial treaty was signed between Portugal and China over the control of the city as a strategic partnership in European/ Asian relations) and it has historically been highly influenced by the Hong Kong (a simple example is that one of Hong Kongs richest men Mr. Stanley Ho, is also Macaus richest and its biggest investor/ entrepreneur) and Chinese economy (50%-60% of Macaus tourists come from China, the CEPA agreement and Macaus dependency on Chinese imports 30%), as well as the U.S. dollar and trade agreements between the 4 locations (not only is the Macanese P ataca backed by the Hong Kong dollar as its foreign exchange reserve, and thus the HK dollar strategically linked to the US dollar at a fixed rate making currency value fluctuations a controlled and manageable incentive for foreign investors to allocate funds to the city but also, the 2 biggest casino stake holders in the world Sheldon Adelson and Steve Wynn contribute to more than half of Macaus gaming profits, and therefore the citys GDP).

Macau has its own law, based in the Portuguese civil law model and has Chinas Hu Jintao as its head of state but, nevertheless, its Mr. Fernando Chui Sai-on that takes the role of head of the Government. This duality in control over the city (the Chinese mandates by the central government and the existence of an internal, differentiated legal and governmental system, gives Macau an unique ability to hastily change and adapt to whatever it needs to change to, although more recently, such changes need to be approved by the Chinese government). The city has a GDP of 22.1 Billion U.S. dollar (the services industry has a 97.1% stake in this number, being the casinos the main source of income) and an inflation rate of 3.9%. The Taxes on revenue (mostly gaming revenue) is in the order of 49.7% and the budget surplus year in / year out is in the order of 30%. It has no external debt and the Macau Pataca is kept at a low rate (similar to the Chinese Renmimbi) to make the city as competitive as possible with its neighboring economies. It also has around 27-29 million visitors a year, a number that rises by the million every year. This combination of inner savings, low diversification of economic investments/structuring, low yielding monetary exchange, high necessity of consumption of content and tourist attractions, and the recent mandate by the Chineses Central Government to diversify and calibrate/control Macaus economy at a world exchange level (Macaus import/export

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business is mainly done with Hong Kong and China, making it a small player in the region for international cooperation) makes Macau a unique location for implementation of tax (although Sales and VAT taxes are 0% of expenditure, if any production wants to set up co-productions with local companies or have local companies working for external productions, they fall inside the umbrella of the corporate and income tax rates, making possible co-operations more expensive, as well as there not being a tax rebate scheme in place for foreign investment in local or coproductions) and legal loopholes and alterations (the implementation of laws abiding to the changes in taxes is one of the first steps into creating tax cuts and/or tax laws), for filming and production companies to shoot and/or produce in the city, directly competing with such places as Hong Kong, Singapore, Indonesia and China.

Issues faced by Macau as a small populated city: An historical contextualization Macau has presently 578,000 people. From this number, only 200,000 are working people and of those 200,000, most are working inside either the government or in the services industry. In what signifies a lowering of the

diversification of the GDP, the amount of people that work for the services industry and for the government, has risen tremendously in the past 10 years and while there is a lowering of people working in the private sector (excluding the services industry connected to the gaming monopoly), there has been an increase in governmental limitations and/or taxation (property taxes around 13%, income tax and corporate tax around 10%). Ultimately, the people that work outside of the main sectors of the Macanese economy, end up floundering their investments in the city and decidedly leaving it rather than invest in it till the point where there is a return on their investment (this can be easily seen by the constantly changing shops and other location based services, sometimes incapable of meeting high rental prices with low selling numbers and with low impact in local communities no sales, no revenue, no revenue, no change in the sector no change in the sector no diversification of the economy). To meet the expectations of the Central Government, Macaus Government needs to diversify its economy in the next 10 years, even if this investment is not immediately apparent. This is something that locally is complicated to convince first, the people and then, the entities that govern them (Macau is a city where the return

of investment is immediate when associated to the gaming industry or, as a foreign but close - example of market stabilization, the direct correlation between spontaneous investment and increasing growth in the Hong Kong economy/industry as seen after the economic downturn of the beginning of the 21st century suggests that people in the area have gotten used to a quick turnover of their investments) . Macau is in an unique position to allocate outside investment because of its gaming exposure (Macau is largely advertised as the gaming capital of the world something that has been exposed in such publications as the New Yorker, Time, or other international papers having surpassed Las Vegas as of 2006), but needs to create governmental policies and/or trade negotiations in order for these investments to flourish in the city. This does not mean that it should invest in local companies without principle and differentiation but rather, much like it was done before the handover, create international placement competitions/recruitments for local sectors (government backed or independent), so as to capture as much of a creatively diversified work force as possible (a variety of ideas and knowledge, is closely associated with creativity and entrepreneurship as displayed in such companies as Google, Facebook, Apple, etc, and the

connection between different cultures inside these companies they all recruit outside of their countries and within different cultures that the only thing that they might have in common is a central language, creativity and the ability to work for the common good is what is making them a beacon of creativity and diversity in the world economic market). The pigeonholing of the local people (as the workforce becomes more and more dependent with the services industry) makes a diversified economy a utopia of unobtainable proportions as they are not capable of breaking the status quo as fast as China dictates (the culture and social standards need to be changed so the people follow suit). If the economy is 97% dependent on the gaming industry, the other 3% are no enough to symbolize a relative diversification of the economy, and thus, what exists and/or is possible to create in Macau, outside of the casinos net of influence over investment in creativity, sectioning of the market and of the supply and demand channels of necessity in trade between them and the city/people is not enough of a change/reference for the future of the city and the demands of the Central Government. Much like what Hong and Singapore have to try and capture famed professionals Kong, China been doing internationally to command

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and direct governmental entities and/or structures and privately run companies, Macau should create subsidies and incentives for outside talent to come to the city (this was largely but sporadically made and accepted by the previous Portuguese government, but has lately been lagging behind). Mortgage and Rental prices have been enormously inflated in the recent present and this makes it difficult for people (other than those coming from China willing to make big investments in the city) to buy or rent local housing. Since a large chunk of the 28 million visitors of the city come from China, even in the tourism, there is not much diversification, and, bearing in mind that some of those tourists end up buying the houses that possibly should be directed/sold to the creative talent that the city should garner, Macaus housing market is mainly seen as an investment for future selling, instead of for the people that should work/labor for the city. This, not only brings inflation to the city, but it also, ultimately does not bode well into enticing foreign talent, as not only the government/institutes would have to spend more money into bringing them to the city (increased housing prices, rental prices, inflation in the city, means a bigger investment for the government) but also the

creative talent that would come to the city, would consequently have to spend more money in their daily lives than they would eventually spend somewhere else (cost of living goes up, artists find cheaper places to live). Macau has never had a booming economy other than the one dependent on the Gaming Industry, and this has not given the city and its people, the capacity to survive in other terms (there was a large import/ export business as well as some manufacturing till the end of the 90s but with the decrease in manufacturing costs on the other side of the border of the city, most investors migrated to China), but the capture of outside talent to lead and maybe revolutionize the economy/creativity of the city, would surely shake up the citys foundation and maybe bring some diversification to the GDP that is so largely needed in the area.

China like the recent 800 million dollar injection from the Central Government in the industry - as well as the loosening up of policies in terms of foreign investment in their entertainment industry, like US studios and film funds)3, making film in all its forms and possible contents, pivotal to the evolution of the country as a powerhouse of knowledge and economic diversity in the world2. Hong Kong, Macau, Shenzhen, Zhuhai and Guangzhou, have been prepared in the past 10 years (after the handover of Macau and Hong Kong) to become the South Eastern Asian capital area for economic and trade market organizations, increasing the quality of logistics, tourism and diversification of investments that China intends to make in the coming 5 to 10 years (this being part of the 10 year plan). This strategic implementation of a selective (and pre-constructed and diversified) focus in these 5 cities, gives Macau an unparalleled strength over its possible future, and possibly its power over the area. Right now, Macaus GDP is almost solely dependent on the rise and possible expansion of the gaming industry but, with the possibility of China implementing other cities as Gaming capitals for different regions (Hainan, and a couple of other cities have been discussed as such), Macau sees its standing threatened, if it does not choose to change its

ways and diversify its investments in local industries entertainment based services (other than casino/gambling focused ones) would be a possible fit for the economy). With the creation of Macau Studio City (a drowning investment from several different companies that was saved recently by the Melco Crown Group that wants to make it a beacon in the area for Film Production, with the creation of a hybrid development lot of casinos, hotels and production studios), with the exposure that projects like House of Dancing Water and the beautiful cityscapes that the city would bring to productions, Macau can be easily directed into becoming a world film production hub for countries which would negotiate/create cooperations with China, but are unwilling (or are not strong enough in the market) to directly enter the country, very similarly to what Hong Kong has been doing in the past 20 years (becoming a port of creativity and trade negotiations of China to the surrounding countries and with bigger countries/investment conglomerates like Europe/US) but utilizing its direct connections to the area (like the coming Hong Kong ZhuhaiMacau Bridge, the high speed train, the trade relations between China and the city, etc). As a possible diversification factor of the local economy, Macau could

The citys influence neighboring areas


One of the bigger mandates of Chinas Central Government for the next 10 years (specifically the next five 2011-2015 by the 12th Guideline)1 is to evolve its country to compete with the worlds biggest markets in import/export and entertainment (the regular influxes of money into the entertainment business in mainland

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become a financial baker for international productions aiming to shoot in China and/or in the neighboring countries, making the government become a strategic economic/trade partner with the production companies that wished to implement structures inside the city (like sub-concessions or even stand-alone companies). There would even be the possibility of the government in becoming a strategic partner in the trade negotiations between China and possible investing countries (much like what is being implemented in the Singaporean film industry where large scale American production houses are financing and creating stand-alone/ brand named companies in the country, while at the same time investing in Chinese productions that are being funneled and technically crafted by the American companies people, residing and working in Singapore4 this is even taken to a newer level of interest when these companies locally train professionals that end up educating and working for, future Chinese, American productions5 giving local people a large influence over the standing of trade and cooperation agreements between the three aforementioned countries).
Notes: 1, 2 3 4 One (of many) companys working in Singapore, catapulting their business to China http://www.widescreen- 5 Programs like the Singapore Media Academy trains local and international personnel in Chinese, to incorporate the interaction of filmmakers from China and Singaporeans who wish to work in China in the future -

Differentiation of reality with present/ future possibilities

The reality of the film centric business in Macau Macau is a gambling centric city, there is no denying this fact. Nevertheless, a lot is done in the city in terms of film creation (or at least the necessity of screening these films for its inhabitants) short film competitions like the The 48 Rush Hours, Macau Indies exhibits/ projections, The Creative Macau Sound & Image Challenge, The IPOs artist showcases on a monthly sometimes weekly basis, the Script Road Macau Literary Festival (small stories, documentaries, etc are created for the exhibit), weekly production pieces for the Sunday News Reels (Portuguese/Chinese channels), the Macau Stories Initiative, the Macau International Film and Video Festival, the Chinese Film Media Awards, Theater and Declamation Events (the amateur Chinese theater in Macau has had a small resurgence in the past years and the Macanese yearly theater plays gather a strong audience around them) and several other exhibitions, showcases, projections and festivals that pop-up sometimes on a yearly basis, sometimes as single showing events. These events, most of them, at least, are almost completely funded by the Cultural Affairs Bureau, the Macau Cultural Centre or the Macau Government Tourist Office, the Fundao Oriente, Macau Foundation and the Casa de Portugal, Creative Macau, Cut Association, Art for All Society, several other cultural/educational entities, and some are funded by private entities like the Melco Crown Group,

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STDM, etc. On online/media channels, little or nothing is done to advertise the creations around the city and, most of the times, these presentations and/or exhibits/festivals, are solely advertised locally in wall posters, TV-channel advertising (which becomes redundant as most Macau mainly consume Hong Kong/Chinese Mainland centric channels) not exposing anyone from outside the city to its creations especially its small story based videos, films and installation works. What is done then, is solely consumed by the well informed, the hungry for art and, most of the time, the friends, family, government officials and/or employees obligated to attend these events, these stories never really reaching its possible audience and therefore being forgotten into history. There is not a database of creative, motion-pictured story based works in an academic and/or governmental capacity, no project is usually uploaded to the World Wide Web (via YouTube, Vimeo, Youku Tudou, etc), there is not an internal (local) distribution of projects through DVD, file based advertising/consumption, and/or exhibition outside of the festival/exhibit circuit and most importantly, most artists only communicate amongst themselves during events, sometimes not coordinating their efforts into cooperative projects that would further

expose the city over its value in the surrounding area (projects like Macau Stories and the local competitions are run by creative living/working around the city, but these projects are few and far between). Most media creation/consumption is developed for the Casinos around town (and its following consortiums) which limits local companies to brief moments of exposure to a wider audience (the millions of tourists that come to the city to gamble), but these moments are usually sponsored and commercialized by the casinos and/ or brands, and are limited to external and wider campaign strategies that end up atrophying Macaus stories, the citys creativity.

Isabella (2006), Exiled (2006), Casino Tycoon 1 and 2 (1992), Love and Tiny Toes (1992 one of the very few full Portuguese productions shot around the city), the Untold Story (1992), Pedicab Driver (1989) and Macau (1952) all take Macau as the main location for the film, most showcasing the beauty and architectonic differentiation and diversity of the city, some, portraying the city as an attractive and modern location to shoot and tell stories. Other films like Johnny English Reborn (2011), Confession of Pain (2006), b420 (2005), The Longest Nite (1998), Young and Dangerous 1 (1996), All About Ah-Long (1989), Indiana Jones and the Temple of Doom (1984), were also shot in Macau but only as sporadic scenes in the films themselves (the city itself is more used as a prop than a location in most of them, sometimes even mimicking other cities rather than playing itself). To this list, projects like, Forbidden (1953), Caminhos Longos (1955), Love is a Many Splendorous Thing (1955), A Ferry to Hong Kong (1959), A night in Hong Kong (1961), Out of the Tigers Mouth (1962), Operao Estupefacientes (1966), Via Macau (1966), The Corrupt (1967), Fist of Fury (1971), The Man with the Golden Gun (1974), Cleopatra Jones and the Gold Casino (1975), Spearhead the Macau Connection (1981), A Ilha dos Amores (1982), A ilha de Moraes

(1984), Shangri-la (1985), Shanghai Surprise (1986), Zegen (1987), Macau - die ruckseite des Meeres (1988), O Regresso (1988), Dragon the Bruce Lee Story (1993), Anjos da Guarda (1994), Exlio dourado em Macau (1995), The Bewitching Braid (1996), O Homem da Bicicleta (1997), Drago de Fumo (1999 A famed Portuguese TV Series), Histria de Macau (1999 A Chinese TV Series), As duas faces de Cludia (1999), Macau entre dois Mundos (1999), should be added In terms of local production, the city usually provides more often than not, short-films rather than feature length ones, this is mostly due to its inability to finance and/or maintain a full film production and due to the lack of man-power and knowledge in the field of motion picture creation. Nevertheless, such recent projects (documentary, fiction, experimental, etc.) as Macau Stories, Macau Love in the City, Taste Macau, The Making of, Another Home, Learning from Macau 1/2, Voyage in Time, Island of Thieves, Macau in the Limit, The Letter, 10 years, All = One, Road Warriors, Time Travel, Aim vs Peep, Before Dawn Cracks, Diago, Red Market, Once Upon a time in Ka-Ho, The Last Time I Saw Macau from such ethnically diverse directors as Vincent Hoi, Fei Ho, Joo Rui Guerra da Mata, Joo Pedro Rodrigues, Antnio Caetano Faria, Ricardo Pinto, Chang Chi Hin, Kuok Lei Cheng, Jeffrey

Where, what and who is creating storytelling in Macau There is a selective list of international films shot in and around Macau, most, productions from outside the city that ended up being shot in Macau due to its beauty and cultural appeal, but, also, due to its closeness to Hong Kong (some of the films are from acclaimed film director Jonnie To, that periodically sets one of his films in Macau). Such films as The Thieves (a recent Korean production), Vengeance (2009), Look for a Star (2008),

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Sou, Vivaldi Ho, Kidonis Ng, Emily Chan, Hlder Beja, Fernando Eloy, Elisabela Larrea, Antnio Conceio, Thomas Lim and several others indicate a rise in film making, even though some of these projects are mere experiments in the field (exhibits, installation work, internet marketing videos, etc). This rise in production seems to be mostly connected to a decrease in production costs and easier access to production equipment, something that has been mimicked around the world due to the Digital Single Lens Reflex Revolution, the evolution of internet platforms for distribution and the digitalization of film production - from writing to editing and delivering.

Findings over what exists and what can be changed in Macau

General Conclusion First, Macau should create a Film Commission and/ or a Quality Governmental Service to dictate what, where and who films in Macau (much like the Hong Kong Film Services Office and SARFT in China). This entity should work under the management of the Cultural Bureau, but with enough independence to dictate its own mandates and rules. The creation of the Commission, would implement a strategic and developed plan to allocate and capture international productions to be fostered inside the city, by way of creating tax refunds, local investment possibilities (in film businesses and/or production companies) and contacts with the big gaming conglomerates (the American gaming companies have a lot of influence in the American entertainment industry as seen through their financing of several films/series in the area) and of price reductions (discount schemes) and/or adjustments for rentals of space for the companies to reside in the city. This service (the Commission) should be created in the center of the city, preferably in the UNESCO (World Heritage Program) protected buildings so as to diversify the type of attention that the tourist

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path generates for outside tourists and ultimately outside investments (the implementation of creative companies in the citys oldest districts in San Francisco, Barcelona, London and Portugal, not only have given new life into those districts, but they have become beacons for cultural advertising of those countries to the outside Macau already having the World Heritage path, would greatly improve its outside image by using it to transmit a lively, creative and worldly image). The service/Commission should have has its strategic partners, the aforementioned governmental entities from HK and China, but also the ICA in Portugal and all other government divisions of film producing countries that should choose to work in Macau. Macau should advertise scouting services for the city (labeling and location managing so as to showcase the beauty and filmic interest of the city), it should create weekly if not daily showings of local talent creations, implement a standing quality service of selection of projects, as also international showcases of outside talent by means of financing or promotion services so as to educate the people of Macau of what is done outside of the city (and maybe use what is shown as examples for future creations/productions). Currently the city is only serviced by 4

(one is largely decaying) film theaters, this number should be augmented and the locations of such should be diversified so as to allocate tourist and local visitors from/to all around the city (a decentralizing of the entertainment hubs like the Cotai and the city center of Macau) so as to not be overly dependent and influenced by the appeal of the gambling centers (if it is necessary to pull people out of the gambling floor and into different local businesses, what better way to do this than to diversify the routes/ locations that tourists usually use in their visits to the city) Macau should be seen as a services hub for productions (some as described in the Commissions obligations and others like for example, the ones provided by companies like LivingFilms in Thailand6 or the coordination done by the tourism department of the Thailand Film Office centralizing all of a productions needs into a One Stop Service) and not as a creator of productions, as to reach a level of high quality for export, means that high quality products need to imported first so as to teach the local people as to what they can create in the future. A script doctoring service should also be created in the Commission, so as to augment the capabilities and possible R.O.I. to the city of its stories a service not to censor the projects but also to augment the feasibility of

such projects in the market. Finally, Macau should garner firstly to the Hong Kong film market by reducing all costs pertaining to production (like Macau, Hong Kong suffers from inflation and rising mortgage/rental prices, this consequently increases the price of services and has gradually shifted productions from the city, to find port in Mainland China), while garnering to a Chinese audience, so as to seriously compete with other South East Asian countries (Hong Kong should be seen as a strategic partner and not as competition).

services), and with creative ideas that would further establish Macaus standing in the region and inside Chinas economic re-structuring of the Pearl River Delta area. These subsidies should meet international standards of competition (much like the Hong Kong Governments funding of CreateHKs program CSI CreateSmart Initiative) and should be directed solely in flourishing the Macanese industry/ production complex. As a selection process, only possibly profitable projects (as with everything, the creation of the companies that would service these international productions, some initial investment would be necessary to create the structures and or programs necessary to produce people that would follow the outside productions) would be accepted, with all being highly evaluated on their ability to establish a R.O.I. that would make the local economy subvert some of its GDP away from the Gaming Industry.

Structuring of a creative and fruitful industry

Necessary government subsidies, incentives As a trade mandate and bearing in mind the necessity of diversification of local economic structuring, the Macau government should create a bi-annual government incentive program for local production houses/ hubs, via selection process and/or competition, with the intent to invest in local production companies that would meet an international exposure target (like the film guarantee and the film development fund presently in Hong Kong, not only investing in film, but film business and film related

Education Motion-pictured story-centric education should be implemented in all local schools, with variations in the students creative endeavors, encompassing all modern forms of storytelling, from video and music

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production, to photography, painting and advanced story writing. Some local institutions already have this as an optional part of their curricula but, with the creation of diversified but highly specific classes for a specific strata of students (between the ages of 6 to 16 of English, Chinese and Portuguese descent, and possibly with more than one language of instruction), but these education mandates are not constantly supervised and most do not meet a level of acceptance like other form of education (art as education has been largely floundered in modern day education, specifically in Latin/American based education systems something that currently is being addressed in America as a governmental mandate7 so as to increase creativity and arts in education). Local student competitions should be advertised and incentivized to students, and in some cases mandatory participation should be met. Creativity should be encouraged in class and outside of it, while certain quality standards should be met by a creation of either a governmental educational creativity regulatory system like the Design, Creativity and Technology Domain inside the DEECD in the US - or by restructuring or sectioning of the local DSEJ service local education bureau.

Distribution channels The internet service providers and quality of service should be augmented, breaking with the now present monopoly of the CTM Company, so as to create a more connected, and technologically savvy city. Macau as of 2011 has 200,000 connected differentiated users, a number that does not even reach the 50% mark set by most evolved economically self-sufficient countries. This creation of a better internet service would also be complemented by the creation of a market for film import/export, as well as national database of local films and/or external selections, either in a physical state, or as a web based service (under the Creative Commons license system), that should be advertised and free to all local students and/or creative personnel. Government benefits should also be distributed to companies that wish to import art and cultural artifacts, and most importantly, to companies and/ or people that wish to open cultural or entertainment subsidiaries of Hong Kong and Chinese companies (this select group of companies would therefore be strategically positioned to negotiate future trade/production negotiations with outside countries with the Pearl River Delta ring and China) as a knowledge of art can foment creativity.

Exposure Macaus STDM, the Cultural Services and/or local creative companies, should seriously consider advertising Macau as a services hub and creative service provider, by way of cooperation with already strong outside companies (Hong Kong, Singapore, Indonesia, Malaysia, China, etc), visiting and communicating with already established film businesses, markets, festivals, around the world and to advertise changes in policy outside of the city so as to augment Macaus positioning in a global scale and demonstrate how the city is enticing for foreign productions. The local film festivals and exhibitions should be monitored by a quality service (entity), commanded by world renowned professionals (here the previously mentioned Film Commission would come into play) and advertised in worldwide channels for the provided type of entertainment and/or trade publications exposure in places like Hong Kongs Filmart, Tokios Film Festival, MIPTV, are vital for the possibility of enticing foreign investment in the city, as local investment can only be mostly done by the government. A further cooperation with Hong Kong should be met as to bring to the city sections of the local film festivals and/or entertainment cycles, so as to connect both cities and flourish

communications between the future umbilically connected cities.

Notes: 6 7 Reinvesting_4web.pdf

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All information Questionnaire - was carefully selected from governmental websites and brochures, as well as by interviews with local talent, as follows: (Several pre-selected people where contacted for interview, bellow follow 2 selected questionnaires from some of those who took part in this study they were interviewed physically and through email/ telephone contact others, some of the information was carefully selected for the paper) 1) Mr. Campbell Mclean

Macau based location manager and General Manager / Executive Producer of AomenTV & Prism Productions.
Q: Tell me a little bit about yourself. Where are you from, where did you study, what made you become involved in the entertainment industry? A: Refer attached CV and Q: How did you come to be in the city - Macau? A: First visited in 1970 with my parents and returned frequently over the years. Then in 2006 when I was working with the publisher of Destination Macau magazine I suggested producing online video reports similar to E! to report on the new Macau entertainment scene. This became the basis for starting Q: What is your perspective over the city and its people? A: Macau is one of the most unique and historically significant of all coastal cities in Asia. There is a special mix of people here, assimilated over the course of nearly 500 years of contact between East and West. The city is sometimes said to have two faces. It is also one of the few locations anywhere in the world where two vastly different cultures have co- existed without military conflict. Q: Do you think Macau has any potential in being/ becoming a center for creativity in regards to storytelling in image form? A: The potential is for developing creative skills

as storytellers, directors and producers. Leave the bulk of the labor intensive work (such as animation) to resources available in China. Macau should take lead as a creative center for financing and development of ideas for film and TV. Q: What do you think is lacking in the city for it to happen? A: The government should develop a Film Finance Fund, tax incentives, and a film TV liaison office. Q: Are the casinos atrophying the citys creativity? A: No. This is a myth. The concessionaires have the ability to enhance the value of Macau as a location and should help with some forms of financing and incentives. It is up to individuals to be creative not the casinos. Most are trying to encourage and foster an interest in Arts and Culture. Q: Is the dependency in the economy a factor in diversifying the culture? A: Not sure of the question. Q: Should the government subsidize periodically, production houses and applicants for creative Endeavors? A: Yes definitely. Q: Is the creation of an International Film Festival worthwhile if the city itself seldom has exposure outside of its borders? A: Film Festivals offer encouragement and disseminate ideas. The issue is not whether Macau has exposure for its film industry it should be about whether it encourages the business at home by nurturing talent and funding good viable production

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business ideas / scripts / productions. (These do not have to be Macau stories). Q: Why is it that with such a long history of communication between different countries and continents, Macau is now becoming more and more distant from the West? A: It is not distant. It is central to both, but at the end of the day it is and will increasingly become a Chinese city with European characteristics. This will become more evident over the next 20 years. Q: Are you staying/not staying for the future in the city and why? A: I would be happy to stay but the government needs to make it easier to accept and process skilled creative workers and entrepreneurs. The future potential lies in the ongoing development of Cotai and Hengqin and the impact this will have on funding and production resources for Film and TV. Q:. Macau, like Hong Kong, was once in the forefront of telecommunications in the region, why do you think the city lagged behind after the handover and do you think that has conditioned the evolution of the city in terms of non-casino based entertainment? A: I do not agree with the first part of the above statement, but it was special and yes it did lag behind after the handover. There seems to be a slow heavy bureaucratic process that delays progress (connected with the MGTO). There is a disconnect between needs of today versus ways of yesterday, even though the interest and will is there. Cut through the red tape and encourage an entrepreneurial spirit (as in Hong Kong).

Q: Being that Macau is so close to Hong Kong and China, why is it that so few productions are shot in Macau? Is it the lack of support for the productions or is it something else? A: It is relatively more expensive to bring large (experienced) technical crews (and equipment) here. Few people are aware of the locations and fewer still develop ideas that utilize the locations (wither historic locations or modern resort locations). The city needs to develop more technical skilled crew and production companies need to be able to afford to invest in more equipment and facilities. Q: Should Macau focus on a creative industry to implement a profit base system of communication (stories) or is it impossible for such a small city to project itself as a player in the story-centric industry? A: Yes it should focus on creative + profit + storytelling. As I suggested the stories do not need to be Macau-centric as long as they are commercially viable. Q: Even though there are some production houses around the city, is the small production scale dependent on the city or is it dependent on the quality of people that are running the productions? A: Even though there are some production houses around the city, is the small production scale dependent on the city or is it dependent on the quality of people that are running the productions? Both, it is a small city but every once in a while someone will come along who is a film genius or an auteur director who will make a difference. I draw the parallel with Wellington in New Zealand. Much the same. Success does not rest with the city alone but the individual talent that shines through.

Q: Should Macau invest in creative education? Bachelor/Master programs in film/television, media communication etc? If so, why? A: To my knowledge it does already. It needs more production companies or outlets for production including the local broadcasters taking independent film and TV productions for broadcast. It needs a Film Commission to encourage and fund TV and film work. It does not need MORE education. The value is in the experience offered. Q: Should the youth of Macau have subjects in motion-image based storytelling? A: Animation? If so no. Become the storyteller and producer not the animator. Q: What is your favorite memory from the city and if you can, tell me a story you would like to tell about Macau? A: Having breakfast on the balcony at Hotel Bela Vista in 1970 overlooking Praia Grande before the Nam Van reclamation took place and arriving by ferry at Coloane pier and walking around the market. Also attending all the opening events for the major resorts. Two faces of Macau. Q: Should Macaus World Heritage status by UNESCO be better taken advantage of? A : Yes, I am developing one TV project along these lines as well as a Chinese feature film that (if green-lit) will incorporate the historic center of Macau into the storyline.

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2) Mr. Thomas Lim

Former Macau based Actor & Filmmaker

Q: Tell me a little bit about yourself. Where are you from, where did you study, what made you become involved in the entertainment industry? A: My name is Thomas Lim, from Singapore. I was an actor for theatre, film and TV in Singapore, China and Hong Kong from 1999 - 2011. I was most active from 1999 - 2008, then I became a director for films. I studied theatre in London in 2002 and 2003. I lived in Macau for two years from 20082010 and made my first feature film Roulette City there. Q: How did you come to be in the city - Macau? A: It is a very long story but I will cut it short. Basically, I had friends in Macau and they are active in the theatre circle there. I got to know them when I was doing theatre in Singapore. Also, I was ready to move away from Beijing after living there for four years between 2004- 2008 as a TV actor. I met my wife in Beijing when I lived there, and we wanted to find a place that is in South China so that I can continue to do acting work in the mainland and Hong Kong. We considered living in HK, but Macau was much cheaper in terms of living costs. Also, nobody really makes films in Macau, and I saw that as an opportunity (though I do not anymore). I also opened a Japanese cake shop for my wife to run while we lived in Macau. Q: What is your perspective over the city and its people? A: The people in Macau make the best friends

in the world. They are genuine and kind hearted. However, a lot of determination and sacrifices are necessary to make a low budget feature film production possible in any place, and it is important for film enthusiasts to understand that. With the right mindset, it is possible to make feature films happen in Macau. Q: Do you think Macau has any potential in being/ becoming a center for creativity in regards to storytelling in image form? A: I do not know. But I will say that Macau is naturally scenic. Q: What do you think is lacking in the city for it to happen? A: If you are talking about making feature film projects, I think film makers need to be willing to make more sacrifices and always try a little beyond what they think their limits are. Q: Are the casinos atrophying the citys creativity? A: I do not think so. Why would it be? I think the casinos make everyone richer in Macau, which should allow them more space and freedom to do more creative work. Q: Is the dependency in the economy a factor in diversifying the culture? A: I am not sure if I understand your question. Dependency in the economy? Q: Should the government subsidize periodically, production houses and applicants for creative Endeavors? A: Maybe. I am not sure. I think though that it

is the duty of the filmmakers to convince the government that they have the talent and are worth the government investing on them. It should be that, instead of saying the government is not investing in them, thus they are not making work happen. These days, we can make movies with our iPhones and edit them on our computers. So, there are no excuses. Q: Is the creation of an International Film Festival worthwhile if the city itself seldom has exposure outside of its borders? A: Any kind of platforms to showcase their work should encourage filmmakers to create more project. So yes, I think it is helpful. Q: Why is it that with such a long history of communication between different countries and continents, Macau is now becoming more and more distant from the West? A: I do not know. In fact, I did not know that Macau is becoming more and more distant from the West. Q: Are you staying/not staying for the future in the city and why? A: I live in Tokyo now, and hopefully my new adopted home allows me access to new film crews which I have a lot to learn from, just like I learnt a lot from making a film in Macau. Q: Macau, like Hong Kong, was once in the forefront of telecommunications in the region, why do you think the city lagged behind after the handover and do you think that has conditioned the evolution of the city in terms of non-casino based entertainment? A: I am not sure. I do not know much about what

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Macau was before the handover, and what it became after. Q: Being that Macau is so close to Hong Kong and China, why is it that so few productions are shot in Macau? Is it the lack of support for the productions or is it something else? A: There are a bunch of films set in Macau, like Johnnie Tos films. But I think they do not involve much Macau crew as it is easy and convenient to ship Hong Kong crew to work in Macau. Thus, Macau film crew will have to step forward and prove themselves more worthy of being hired through action. Q: Should Macau focus on a creative industry to implement a profit base system of communication (stories) or is it impossible for such a small city to project itself as a player in the story-centric industry? A: I am not very sure. But in terms of size versus possibilities, I tend to think that size is not the core problem though I know that Macau is extremely small. HK is not big either, and they ruled the Chinese/East Asia movie world for many decades. The same can be said for Taiwan in terms of Chinese pop music. Korea is not that big too, and they are the current kings of Asia movies. Size is important, but not to be used as an excuse all the time. Q: Even though there are some production houses around the city, is the small production scale dependent on the city or is it dependent on the quality of people that are running the productions? A: I think it is all about the people in any place. It is all about attitude.

Q: Should Macau invest in creative education? Bachelor/Master programs in film/television, media communication etc? If so, why? A: I am not sure, but I do hope that there are enough jobs for potential graduates. If that would be the case, then yes. Q: Should the youth of Macau have subjects in motion-image based storytelling? A: Not sure really. Q: What is your favorite memory from the city and if you can, tell me a story you would like to tell about Macau? A: It will have to be making my film the rough way, while my wife runs the small cake shop we owned to keep our finances alive. It was a rough and somewhat dark time, but I am glad we went through it because since then, everything in our lives seemed a lot easier. Q: Should Macaus World Heritage status by UNESCO be better taken advantage of? A: I do not really know. Sorry.

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Macau on film a short contemporary overview

Macau has seen a rapid expansion of its gaming industry in recent years. The establishment of new expensive resorts has turned the small city into a flashy town of lights, glitz and glamour, providing a striking contrast between the classical European dcor of the old Macau and the polished appearance of Asias gambling hub. Both aspects of the city have attracted great interest in filmmakers and production companies. Director Johnnie To and his Milkyway Films have been regular visitors of the city as early as 1999 with Where a Good Man Goes. Since then, Milkyway films like Vengeance, Fulltime Killer, Exiled and its most recent film Blind Detective have been partly shot there. To and his crew like to highlight different parts of the city in his films, from the neighborhood streets in Where a Good Man Goes to the foot chase through downtown Macau in Vengeance to a public square in Coloane in Fulltime Killer, many sides of Macau can be seen in these films if audiences pay close attention. The most unique thing about Macau is that despite its size, it offers very different worlds for filmmakers. Pang Ho-cheungs Isabella highlighted the classical European dcor of the city, including the narrow streets near the Ruins of St. Pauls, the old apartment buildings and even the electric cables that hang above the streets. Its Wong Kar-waiesque visuals dubbed by some film critics as such certainly appeared to have been influenced by existing landmarks rather than created from Pang and his art directors imaginations. Pang also returned to Macau in 2013 as the producer of SDU: Sex Duties Unit. The crude comedy is about a group of incompetent tactical unit officers who decide to sneak over to Macau for a night of debauchery to raise team spirit. The film mainly plays into outside perception of Macau as a city of vices (gambling, prostitution, smuggling). Though the film is mostly set in Macau, a majority of the film - including indoor locations supposedly set in Macau - was actually shot in Hong Kong. A big-budget actioner about a high-stakes heist, Choi Dong-hoons South Korean blockbuster The Thieves showed a much different side of Macau. Setting the central heist of the film involving a valuable diamond in the city, Choi mostly highlighted Macaus luxury hotels and casinos. Only until the end of the second act does the audience finally get to see more of the city in a brief car chase. Dante Lams Unbeatable goes with a third approach. The film is mostly set in a typical Macanese working class neighborhood a place that would go unrecognized by tourists. Lam mostly stays away from giving an exotic or tourists view of the city, only showing the casinos and the stone-paved streets when necessary. The filmmaker makes great use of the citys landmarks (one of the two old cinemas can be seen clearly) and its population (a scene involving

a Cantonese-speaking electronic salesman always get big laughs). Similarly, comedy-drama Poker King takes an effort to show that the city is more than just casinos and exotic European decors. About a gambler who loses everything and has to start anew to take back his family fortune, the film covers both the luxurious casinos and the working class neighborhoods of the city. Naturally, the HK$20 million film had a major endorsement deal with Macaus Galaxy Entertainment at the time of its release. Unbeatable (and Poker King to an extent) has one of the more interesting portrayals of Macau because it presents a multi-layered version of the city. Its a city filled with people from various walks of life (though interestingly enough, none of the characters in Unbeatable works in the gaming industry) just living normal lives. Its a side of the city that identifies with locals, but yet, completely new to most of its target base of Hong Kong/China audiences. Seeing this side of the city shows that this city of 700,000 people must have a lot more stories to tell. The key, therefore, is to find stories that can speak to audiences everywhere but can only be told in Macau. With the financial success of Unbeatable attracting interest in the city, it seems like the golden age of Macau as a film location is just beginning.

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The gradual emergence of transmedia for casinos

While the previous articles focused primarily on the film industry and affiliate society, political and geographic areas, this article will provide further insight into aspects of new media and digital marketing in correspondence with the gambling industry and its gradual adaptation of transmedia tools. In this respect, definition of transmedia slightly differentiates from commonly known interpretations and therefore needs to be stretched when it comes to Asia due to the early stage of the industrys evolution.
In Asia, China in particular, the imminent transmedia revolution will be led by brands and advertising rather than entertainment (TV and film) like in the West. Soon, we will see a targeted adaptation of storytelling tools into the means of marketing. Eventually, the line between marketing and entertainment will blur or even fade away, but only if marketers and ad agencies start to understand the direct connection between transmedia and digital content marketing. Once infrastructure and mindset are aligned for transmedia properties, the industry needs to find a commonly accepted digital currency standard in order to be able to produce the supporting numbers that make such transmedia properties a hot sell to traditional brand executives. This evolution, like every evolution in business, will be market-driven, only with one big difference. The impulse does not come from other businesses, but the audience/consumer/user. Macau as a gamblingdependent industry can adapt to this philosophy easily as it was always consumer-oriented in the first place. Even though gambling brings in about 85% of the casinos revenues, they are bound and willing to diversify their assets in order to keep the streams of gambling tourists running. Families have become a crucial factor in the complex equation of Macau casino marketers. All new casino resorts already offer a all-around entertainment experience along with the tradition gambling tables. The replica of Venice including gondolas amidst designer outlets at The Venetian (Sands China) or the acclaimed House of Dancing Water show (Melco Crown Entertainment) are tailored for Mainland Chinese tourists that cannot afford or are not willing to travel abroad. With about 60% of the gambling tourists being families, the demands of this very audience have changed drastically during the past years. Casinos need to address the specific youth and tech-oriented aspects of a demographic that is not allowed to gamble in Macau but still should be able to spend money. By the end of 2012, casino marketing toward the transmedia age took its first baby steps. The Galaxy Macau (Galaxy Entertainment Group) dispatched a microfilm production that should utilize storytelling for brand building via social media. Another one promoting the casino as dream wedding location followed in early summer this year. But the Galaxy went further, partnering with Skype to run a multiscreen ad campaign at all the messenger services platforms, desktop and mobile.

Efforts of the Galaxy marketing team to combine elements of the experiential marketing with social media proved to be right when one of the characters from the Winter in Venice event went viral. Quickly, the Gingerbread Man was given his daily marketing stunt and had to deal with real-life issues like finding his way between the casinos. The Gingerbread Man made other casinos think. This summer, Sands China struck a license deal with Dreamworks to incorporate popular characters from Dreamworks Shrek, Madagascar and Kung Fun Panda throughout their resorts in Macau. From parades to Shrekfast (Shrek-themed breakfast), the Dreamworks Experience further augments the casino resorts transition into a theme park. Obviously, this is designed to counterbalance the Disney/Marvel force thats being built up in Hong Kong. When it comes to character-driven marketing and event experience that the audience can interact with, the possibilities are limitless. This trend will continue and grow. It will not be long till we see webseries and other new mobile entertainment formats coming from Macau once the production infrastructure and the marketing mindset are in place.

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The long-term trend is clear and should evolve quickly: Once casinos have served their own internal market with entertainment formats, they will soon find a viable revenue stream in selling them, when such formats perform well outside of Macau.

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Books: East Asian cinema and cultural heritage : from China, Hong Kong, Taiwan to Japan and South Korea / edited by Yau Shuk-ting, Kinnia 791.43095 Ea771C 2011 Film festivals and East Asia 791.43079 F487F 2011 East Asian cinemas : regional flows and global transformations 791.43 Ea77 2011 Japanese and Hong Kong film industries : understanding the origins of East Asian film networks 791.430952 Y28Jx 2010 East Asian cinemas : exploring transnational connections on film - 791.43095 Ea771 2008 Hong Kong film, Hollywood and the new global cinema: no film is an island 791.43095125 H757K 2007 Negotiating values in the creative industries : fairs, festivals and competitive events / edited by Brian Moeran and Jesper Strandgaard Pedersen 381.18 N312 2011 The international film business : a market guide beyond Hollywood 791.430688 F497i 2010 Cinema at the citys edge: Film and urban Networks in East Asia How East Asian Films are reshaping National identities: Essays on the cinemas of China, Japan, South Korea and Hong Kong China, Hong Kong and Taiwan: the Convergence and interaction of Chinese Film Asian Cinema: A film guide From Iran to Thailand, India and Japan Internet Web-sites: Newspapers Cultural Entities

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Internet Web-sites (cont.): Government Entities php?DataUcn=53712&PageLang=P Encyclopedia Entries Video Exploring site Trade Publications and Blogs htm view&gid=907&Itemid=69 do10_10.html html Video Exploring site Trade Publications and Blogs macau+closer/ view&gid=907&Itemid=69 do10_10.html html Casino Marketing

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Report Lead: Diogo Martins Supporting Analysts: Kevin Ma Marco Sparmberg Illustration photos:
pages 1-11,13-20: by Marco Sparmberg 2011 page 12: Johnathan Van Smit 2008 (

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