A Foreign Affair

By: Jena McGregorWed Dec 19, 2007 at 8:00 AM

Global markets used to be an afterthought in Hollywood--not anymore.

Remaking Hollywood

Sony has been working with Chinese producers since Robinson established her office seven years ago. In that time, she has coproduced 12 Chinese-language films, taking a 30% to 40% share; several went on to become film-festival darlings. Robinson says that Sony benefits beyond its bigger slices of revenue. The company can start publicizing these films sooner and can suggest tweaks that might make the film more accessible to audiences abroad. Working alongside locals also means Sony gets around the vagaries of Chinese policies that set aside periods of the year for indigenous films. And of course, the company's long-term presence in China has paved the way for much smoother relationships with officials. "They love the fact that we have invested the time and money that we have," Robinson says.

But is China a long-term bonanza? Despite Sony's success with films like Kung Fu Hustle, which made about $100 million worldwide, one has to wonder how many more slow-motion flying warriors global audiences will turn out to see. (Wigan notes that Sony is planning a historical film for next year that will have "no flying.") Plus, with a scarcity of both theaters and Chinese who can afford a ticket, there's a long way to go before 1.3 billion pairs of eyeballs actually become an audience.

But with piracy in China costing most studios millions in lost revenues, making movies there could give Hollywood another benefit in the long run. "The issue of piracy--and controlling it--will be taken seriously by the Chinese when they have something on the street to protect," says UCLA's Rosen. "And so, obliquely, coproduction for [Chinese] audiences will have an impact on piracy as well. Protecting American films is not the highest priority. Protecting films that you have a stake in will be."