Entertainment booming

In contrast to the slowdown in economic growth, China's entertainment industry has been booming, according to a report released last week by the Chinese Academy of Social Sciences. Box office revenues for movies in 2008 grew by 35 percent over the prior year, but in the first two months of this year jumped to 110 percent. The video games industry is also on the fast track.

The entertainment industry usually develops faster during a sluggish economy as people seek to escape the harsh reality of economic hard times. The US film industry developed rapidly during the 1930s during the Great Depression. The Asian financial crisis boosted the cartoon and games industries in Japan, and soap operas and online games in South Korea.

The entertainment industry is also closely related to the level of economic development. There will be stronger demand for entertainment when a country's per capita GDP exceeded $3,000. China's per capita GDP topped $3,000 last year and the wealth accumulated in the past 30 years of reform is sure to boost the entertainment industry.

The government's monopoly on this sector has been broken and there is now a group of entertainment businesses that will add new vigor to the industry.

Guangming Daily

(China Daily 04/20/2009 page2)