Nearly $2.7B US lost to Chinese movie piracy, says Hollywood trade group

Movie piracy in China cost local and international filmmakers nearly $2.7 billion US in 2005, according to a study commissioned by the Motion Picture Association.

The movie industry trade group, which represents major Hollywood studios such as Time Warner and Walt Disney Co., released data Monday from the new study, the latest it commissioned from LEK Consulting.

According to the information released Monday, 93 per cent of all movie sales in China in 2005 were pirated films.

According to the study, unauthorized downloading of films by Chinese internet users cost the film industry $1.04 billion US, while Chinese buyers purchasing pirated movies on disc accounted for $1.63 billion US in lost revenue.

"In terms of who's losing the most here in China, it's not the [Motion Picture Association's] member companies. It's the local industry," Mike Ellis, who heads the MPA's Asia Pacific division, told Reuters.

Among the group's criticismsare the facts that the Chinese government only allows a limited number of foreign films onto its screens each year and restricts the films that are approved for a theatrical run.

For instance, though The Da Vinci Code was approved for theatrical release last month, it was later pulled from theatres — despite strong ticket sales — purportedly to clear the way for more domestic productions.

China has developed the dubious reputation of having one of the world's largest film, music and software piracy industries. Bootleggers are often able to offer new movies, albums and computer programs just days after their official release.