As an economist, I am interested in the way how movies companies maximum their profit?

One of most surprising result is that large revenue of Hollywood movies industry do not come from
domestic market, instead of that the greater revenue comes from overseas market. China is the largest
oversea market, accounting nearly 20%.

Some reasons explain Why Chinese market account for high proportion of revenue?

First, the average income of china has been increasing. People tend to spend more money on entertaining
themselves.

Second, the growing market films from young people.

The question is how Hollywood companies can promote their films?

Firstly, these foreign companies have to make sure that no political contents in their movies. Chinese
government does not allow you to present controversial topic related to political issues.

Secondly, Hollywood companies need to co-operate with Chinese companies. As China want to increase
global presence, So one of requirement is to mention culture, technology or successful in China.

Take transformer, the hottest film in the last summer as an example, although in US, “the last knight” –
name of this movie – half scenarios have been recorded in China. After all, this film gained $16.7 million
dollars, including 12 million from china. It implies that approximately 70% of the worldwide gross came
from 3D tickets sales.

Thirdly, Hollywood companies tend to hire more famous Chinese actors in their film. In this way,