Milking cinema crowds is risky business

I wouldn't be particularly annoyed about the supposed minimum prices for discounted cinema tickets that may be introduced in China, probably first in Beijing, if it meant I had to pay full price for good movies. But if meant sitting through that recent, hideously overblown piece of dross that paraded itself as China's most-expensive movie ever, I would be seriously annoyed.

On a more serious note, the real problem with demanding minimum prices for cinema tickets in Beijing and elsewhere in China is that they are probably already too expensive. Charging what is close to UK prices for full-price screenings of films for a population that earns significantly less per capita stops the development of the local film industry. Discounted prices are the only way to get people going to the movies regularly.

It is argued by some that keeping prices high is the only way for cinemas to profit, and that without high prices the film industry in China will struggle to make enough money. This seems like a short-sighted argument though, given the gap that currently exists between Chinese and foreign movies.

Although the Chinese movie industry is clearly growing, it still lags behind Hollywood and Bollywood. Bollywood in particular has benefited by appealing to the local market by charging affordable prices, then growing from there. Trying to compete with Hollywood films straight away is simply not possible, and with a minimum pricing policy this is only being confounded. Moviegoers may well pay extra for the latest Western 3D blockbuster, but charging 50 yuan ($7.95) or more for a local movie may prove more difficult.

Although cinemas have to spend a lot of money on the latest projection equipment, this is rewarded with high-ticket prices for the most modern films. However, most Chinese films are not $100 million effects-laden extravaganzas. Filling the smaller screens with cheaper tickets makes sense, and attracts a greater potential audience to movies on a regular basis. Raise ticket prices and the most interesting and independent Chinese movies will struggle even more.

It may be argued that the problem lays in a reduced profit margin for cinema owners, but in reality the reason why the movie industry struggles is a lack of post-cinema sales. Whereas many companies in the US and Europe can rely on gaining significant income through DVD sales, this simply isn't happening in China on account of widespread piracy. This forces distributors and moviemakers to try and squeeze more out of cinemas, however the more they squeeze, the more they may push people towards piracy.

If this situation is to be resolved and Chinese cinemas to flourish, then the legitimate DVD sales market needs to mature while cinema ticket prices remain relatively low. Also, if director Zhang Yimou could be restricted to opening ceremonies rather than anymore insanely dull "patriotic epics," that might help, too.