Home » The Era of Branch Distribution: Breaking the Homogeneous Competition in China’s Film Industry

The Era of Branch Distribution: Breaking the Homogeneous Competition in China’s Film Industry

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The film and television industry in China has taken a significant step toward launching differentiated competition and branch distribution, aiming to break the homogeneous competition situation that has hindered the high-quality development of the industry. Currently, cinemas tend to show the same popular movies, leaving little room for other films to be scheduled, especially during prime time. This situation has led to the lack of screening opportunities for smaller films and the creative motivation of filmmakers.

To address this issue, the concept of branch distribution has emerged, which involves releasing different films in different theaters. Unlike the current unified distribution model, branch distribution allows film producers and theaters to tailor their screenings based on factors such as film characteristics, audience preferences, and theater attributes. This approach aims to achieve better screening effects and provide a wider variety of films to meet audience demands.

During the 24th National Film Promotion Conference and the First National Film Fair held in Hengdian, Zhejiang, on October 26, a total of 24 films were signed for branch distribution. These films, including “Reunion,” “No Problem,” and “Porco Rosso,” mark a substantial step toward exploring branch distribution in the Chinese film industry.

The current film distribution model in China is characterized by unified filming, unified investment, and centralized release. Large numbers of screens are often allocated to a few popular films, leaving little space for low-cost, small and medium-sized films. Many films never get a chance to appear on the big screen, and high-quality films may be buried. With branch distribution, more film studios will have the opportunity to release their movies in theaters, without having to compete for prime time slots with large-scale productions. This will encourage the production of diverse films and promote a more optimized distribution system.

The concept of branch distribution is not new and has already been successfully implemented in markets like North America and Japan. In China, attempts have been made, and the 14th Five-Year Plan for Chinese Film Development encourages the exploration of innovative distribution models, including branch issuance, multi-round issuance, regional issuance, and focused issuance.

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Leading cinema chains like Wanda Film and China Film Group have also shown interest in branch distribution. Wanda Cinemas and China Film Group launched an “appointment screening” mode in 2022, and China Film has expanded this concept to various theaters across the country. The new mode allows audiences to reserve movies, and once a certain number of reservations is reached, the theater can show the corresponding film. This approach offers a regionalized and differentiated film supply, distribution, and screening model, serving as a starting point for branch distribution.

The exploration of branch distribution is seen as a way to bring incremental growth to the industry. However, it also presents challenges for theater chains, which must enhance their content selection, judgment, and marketing capabilities to cater to different audience attributes and foster continuous innovation.

The era of branch distribution is dawning in China, promising a more diversified and optimized film industry. By liberating productivity and encouraging the release of more excellent works, the film and television industry will continue to undergo reforms and achieve higher standards of development.

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