The Animation Options Blog

Reuters’ Maggie Lee pans Shanghai Animation Film Studios’ “The Magic Aster” as “an animated Chinese fairy tale that’s devoid of fun or personality”. Read on.

Animated “Aster” Lacking In Magic

By Maggie Lee

SHANGHAI (Hollywood Reporter) - A battle between good and evil is waged for the sake of a wee petal in “The Magic Aster,” an animated Chinese fairy tale that’s devoid of fun or personality.

Shanghai Animation Film Studio, which jointly produced this with other Chinese partners, will find it tough to foist the $2.19 million project onto foreign shores except for the odd children’s channel. For Chinese-speaking viewers, the animation’s star-loaded vocal lineup that includes Houston Rockets center Yao Ming, pop star Leon Lai (”Forever Enthralled”) and supermodel-turned-actress Lin Chi-ling (”Red Cliff”) may be its biggest bonus. The film screened recently at the Shanghai International Film Festival.

The story is set in some indistinct ancient time in China. On an idyllic mountain blossoming with exotic flora and fauna lives Malang (Leon Lai), a kind of Chinese Tarzan. He is keeper of the magic aster, a lilac-like flower with legendary powers of bestowing happiness upon its owner.

Malang rescues an old man (Yao Ming) who strayed into the mountain and promptly falls in love with his daughter, Xiaolan (Chen Hao). He goes courting her with presents of melons and a choir of singing frogs. Dalan (Lin Chi-ling), Xiaolan’s materialistic twin sister, opens the door, and is unimpressed. Lin, who speaks with an insouciant sex-kitten drawl, imbues the improbable mistaken-identity farce with unexpected feminine allure.

Meanwhile, a witch threatens to destroy the wildlife balance by overrunning the area with vines and creepers. She uses trinkets to bribe Dalan into stealing the magic aster. Malang and his animal pals fight against the witch’s hydra-like killer vines in a drawn-out finale.

Although some 3-D technology has been integrated into the movements, the figures generally look flat. The art direction favors a pastel color palette and draws on Chinese ink-brush painting to create pretty, dreamy natural scenery. Overall the Asian aesthetic is not distinctive, and makes one nostalgic for the stylishly abstract early classics made by Shanghai Animation Film Studio, like “Uproar in Heaven.”

This fairy tale is an adaptation of a vintage children’s play from China’s revolutionary ’50s. The original’s socialist doctrinal indictment of materialistic greed is downplayed, and overshadowed by an environmentalist stance. But because the villainess is not invested with any allegorical attributes that represent concrete endangerment to the ecosystem, be it industrialization or deforestation, the message is ill defined.

P.S. - Happy Birthday, USA!

The 12th Shanghai International Film Festival and market wrapped this week. It goes without saying that many great films were screened. But what I found most intriguing was the festival’s FORUM program, which provided lively discussions on a range of topics related to Chinese film production and international co-production - including story development, financing, and IP protection.

Sunday’s keynote address, “Made In China: What Kind of Films Does the Chinese Market Want?”, provoked a lively debate among the directors and producers on the panel. Director Ning Hao provocatively declared, “Movie makers in China lag behind the U.S. and lack certain fundamentals. The American filmmakers plan much more in advance before shooting.” Most concurred that the next 5 years will be pivotal for the Chinese film industry as the attention of the world turns to the mainland. Yu Dong, CEO of the Polybona Film Company, forecast that it is only a matter of time before a mainland Chinese film turns in a $100 million USD box office. To put this in perspective, there are currently only a handful of Chinese directors in China’s “Million Dollar Club”, and that’s 100 million RMB, not USD (the exchange rate being about 6.84 RMB to 1 USD). Nevertheless, Yu Dong soundly observed, “You cannot force distributors to support you. You need to attend to your presentation.” Certainly, a dramatic increase in China’s 4,000 movie screens will be required to realize this prediction (the U.S. has 10 times as many screens with less than 1/4 of China’s population). As this blog observed in “My Forbidden Kingdom For A Screen!”, the mainland Chinese audience continues to be remarkably untapped. Chen Guowei, Vice General Manager of the Wanda Cinema Line Corporation, remarked that films must be entertaining and resonant in order to do well in the market. In other words, they should not only be tasty, but also nourishing. Director Wei Te-Sheng noted ruefully that, “Everything beautiful is being measured.” He blamed “market rules” for overwhelming producers and “killing” the creation and distribution of independent films. “And if you successfully break these rules, ” he laughed, “they call it an exception!” In China, as in Hollywood, some things never change.

Monday morning’s roundtable discussion on “Asian Regional Cooperation” covered the ins and outs of Chinese co-productions, including the importance of matching story to partner, and the pros & cons of written vs. oral agreements. Many on the roundtable concurred that while a good contract is essential to a successful co-production, not every contingency can be adequately covered on paper - mutual respect and trust are paramount. To this point, producer Wang Zhonglei candidly admitted, “When China began to collaborate with other countries, we didn’t take many things seriously.” Corona Pictures’ Julian Alcantara brought his experiences with the Indian film industry to bear, noting how the Indian government moved from recognizing film as an industry only 10 years ago, to quickly adopting a more Western style of planning, production and distribution - with multiple international co-production treaties. The remarkable example of “Slumdog Millionaire” was raised, where an Indian story, cast and crew combined with an English director (Danny Boyle) and production leadership. Yet Mr. Alcantara cautioned how close “Slumdog” came to never even making the theaters. He mused how many other wonderful films audiences will never see due to the vagaries of international co-productions and independent filmmaking in general. Polybona’s Yu Dong repeated that China’s cinema lines must be more productively arranged in order to capitalize on market potential and stated: “I think Chinese filmmakers should collaborate with overseas distributors before movies are made, to ensure a better product.” Julian Alcantara seconded this notion, which this blog has long advocated: “Distributors often complain that producers don’t come to talk to them sooner. The earlier producers and distributors correspond ensures the success of both sides.”

Monday afternoon featured a high-octane keynote entitled, “Soft Power: Financial Innovation & Cinema Expansion”, helmed by none other than MPAA Chairman and former Clinton cabinet member Dan Glickman. Mr. Glickman’s amusingly direct speech went straight after the issues of piracy and market access restrictions on the Chinese mainland - not only linking the two, but noting the negative impact to domestic Chinese filmmakers as well as foreign filmmakers. Said Glickman, “If you don’t give audiences the front door, they’ll take the back door.” IDG’s Patrick McGovern, the “father of venture capital in China”, revealed that almost all of his company’s VC is vested in Asia. Touting the focus and benefits of IDG’s China Media Fund, McGovern remarked, “This is an opportunity for us to work with young directors and producers in China.” IDG is a founding investor in China’s Sohu.com, among other “community-based” media enterprises that target shared experience. Wellington Fung of the Hong Kong Film Council commented on the advantages of Hong Kong’s status as a “free port city for creation and investment”, but cautioned, “Small and mid-sized movies with lesser actors and new directors are higher risk - they attract fewer investors and need more support.” Lawyer Stephen Saltzman of Loeb & Loeb (who will open a Beijing office soon), followed up on this point with the observation that film financing and insurance sources are drying up for independents in the face of the global economic crisis (tell me about it). In a nutshell for Hollywood, foreign money was replaced by Wall Street money, which then fell out. And while Chinese banks and distributors are beginning to get on board with their domestic films, U.S. banks and distributors are conversely pulling back. Said Saltzman, “You might get 20-40% of your funding without a presale, but how do you get the rest?” Responded Patrick McGovern, “Private equity.” IDG typically looks for an average annual rate of return of 30-40% on their investments (to the amusement of some Chinese executives on the panel), but McGovern confided his faith in the principle that “20% of your investments will make 80% of your returns” - hence the importance of a diversified portfolio of media investments. The necessity of completion bonds as a reassurance to investors was discussed, but this concept seemed foreign to most of the Chinese filmmakers, who typically create their domestic movies without them. On the topic of intellectual property protection Stephen Saltzman remarked, “If children grow up thinking that content is free, content providers will have to make their revenue through other streams”. (We’re already seeing this scenario come to pass.) One audience member raised the ominous question for filmmakers of what will happen when these self-entitled children grow up to be the next generation of lawmakers. In closing, the most encouraging observation with respect to co-productions is that the “passive” nature of these relationships has become an increasingly “active” partnership - to the creative and financial benefit of both sides.

The co-pro mojo continued on Tuesday with the “Chinese-Foreign Film Co-Production Forum” keynote panel. Director Han Sanping noted China’s 30 major-market cities and bravely predicted that box office on the mainland will be 30 billion RMB in 10 years time. Julian Alcantara continued his poignant mantra: “We need to appreciate how easy it is for a film the world knows to be a film the world has never seen.” Alcantara declared that co-productions must not only encompass the financial, but also the organizational, artistic and technical. Noting that many non-U.S. filmmakers must go outside of their country to achieve success, he asked provocatively, “Are you Chinese filmmakers… or are you filmmakers who happen to be Chinese?” Zhang Zhao, president of Enlight Pictures, commented that regional distribution systems are required to achieve the box office numbers hoped for in China. On the subject of the global appeal of Chinese film he remarked, “Animated characters may have an international appeal that exceeds that of live-action actors.” This led to the question of whether Chinese audiences themselves like to watch Chinese films. Legendary director John Woo declared (to the appreciative laughter of the room), “We used to have good films, but no audience. Now we have a huge audience, but no good films.” Woo continued: “Most Asian audiences are not interested in Chinese-made epic films. They are considered too heavy. Hollywood is considered ‘The Best’. People will watch Hollywood films in the theaters, and watch their own country’s films on DVD. So, how do we make films that bring audiences to the theaters?”

That’s the $100 million USD question.

Some late night observations on the Chinese animation market from my seat at the Library Cafe in Beijing…

China is the fast-growing animation market in the world. With a total population in excess of 1.3 billion individuals, potentially 500 million people in mainland China can be identified as animation consumers. Domestic Chinese box office returns have increased 20% between 2005-2007. Due to increased international demand, Chinese motion picture distributors generated more than $2 billion RMB in global revenue during 2007 - an increase of 5.7% from the year before. In 2007, the domestic Chinese box office totaled more than $3.3 billion RMB (over $482 million USD). Analysts project that the domestic Chinese box office will gross more than $4 billion RMB by the end of 2008 (almost $585 million USD), and more than $10 billion RMB annually by 2013.

It is estimated that 11% of the Chinese animation audience is under the age of 13, with 59% between the age of 14 to 17 and 30% over 18 years of age. China has 370 million children, more than the entire population of the United States. Today, approximately 18 billion RMB (almost $2.5 billion USD) is spent by animation consumers in China, but nearly 90% of that money flows straight out of the country to Japan, and to a lesser extent the United States and Europe. Despite its visual proficiency, recent Chinese animation content has demonstratively lacked domestic market appeal due to an emphasis on education over entertainment. Like most children around the world, the viewing preferences of Chinese youth seem to indicate that they relate better to entertaining stories that provide a vivid reflection of their feelings, problems and dreams. Rigid characters, and plot lines that lack the sense of fun and innocence that children hold so dear, are roundly ignored. Chinese animators in the 21st century face not so much a technological or artistic challenge as they do a challenge in compelling storytelling.

Despite this challenge, or perhaps because of it, the mainland market is uniquely poised for an innovative and profitable future. The gross earnings of China’s animation industry across all media have already exceeded those of its live-action film industry. Building on a remarkable animation history, the Chinese animation market has grown increasingly sophisticated since the pre-Cultural Revolution days, with an appetite for content that seeks to combine Chinese cultural traditions with Hollywood story structure for contemporary resonance. In recent years, provincial Chinese governments have rolled out substantial plans to develop the homegrown market for animation artists and companies, in keeping with the policies set forth by the central authorities. These developments follow the announcement made by Beijing’s State Administration of Radio, Film and Television (SARFT) in August 2004 to launch three new national children’s networks and more than 60 broadcast stations providing an increased volume of children’s programming. 2004 was set as China’s “Animation Year”, and the industry generated revenue amounting to tens of millions of RMB. In light of this evolving landscape, it is no surprise that domestic animation companies and foreign co-production partners alike are eager for a place at the table.

Domestic box office returns as reported for Chinese animated feature films in 2008 range from $1 million RMB for “The Legend of Countryside Hero”, to a record-breaking $30+ million RMB for “Storm Rider: Clash of Evils”, over a theatrical run of 4 weeks each. However, revenues from the domestic Chinese market alone are not sufficient to cover the costs associated with high-quality animation productions. Successful international distribution must be part of the equation. In fact, international co-production deals and distribution presales are vital to the support of Chinese feature films on the mainland. While U.S. cinema is “America first, global second,” Chinese cinema is by necessity “global first, Chinese second”. For the near future at least, earnings in the China market can only ever be a secondary source of income.

Live-action Chinese films such as “Farewell My Concubine”, “2046”, “Hero”, and “House of Flying Daggers” have enjoyed box office success and critical acclaim around the world. In 2000, the multi-national production “Crouching Tiger, Hidden Dragon” achieved massive success at the Western box office despite being dismissed by some Chinese film-goers as pandering to Western tastes. Nevertheless, it provided an introduction to Chinese cinema for many Americans and Europeans, and increased the popularity of many Chinese films that may have otherwise been unknown to Westerners. In 2002, “Hero” was made as a second attempt to produce a Chinese film with the international appeal of “Crouching Tiger, Hidden Dragon”. The film was a phenomenal success in most of Asia and topped the U.S. box office for two weeks, making enough in the U.S. alone to cover the production costs. The successes of these films blur the boundaries between mainland Chinese cinema and a more internationally-based “Chinese-language cinema”. The merging of talent and resources from China, Hong Kong, Taiwan and the West indicate that Chinese cinema is poised to compete with the best Hollywood films. While Chinese animation productions have yet to emulate the successful precedent of their live-action counterparts, it is only a matter of time before a Chinese animated feature enjoys breakout success on the world stage.

However, even international theatrical and broadcast success is not enough to maximize the animation industry’s profits (especially when broadcast revenues reimburse just 10% of production costs on average). In 1999, $21 million RMB (about $3 million USD) was spent to produce “Lotus Lantern”. The animated feature film nearly broke even at the box office, but failed to capitalize on any related ancillary products. However just two years later, the animated film “Crazy for Song” saw two-thirds of its profits come from the sale of related merchandise. And while the American cartoon “Transformers” was broadcast for free on Chinese television, subsequent profits from toy sales amounted to $5 billion RMB. Ancillary animation products occupy an increasingly large market space in China. The annual sales of related stationery products is more than $60 billion RMB (approximately $8.8 billion USD), while that of children’s toys, food and clothing is more than $20 billion RMB, $35 billion RMB and $90 billion RMB respectively. The annual sales of children’s DVDs and publications in China reach only $10 billion RMB annually, no doubt affected by the high degree of piracy on the mainland. The future development of these ancillary profit channels will depend upon effective regulation and enforcement at the state and provincial levels.

Piracy of Hollywood blockbusters is rampant in China, and also has a negative impact upon the theatrical profitability of Chinese films. However, the piracy of films on the mainland has resulted in an unconventional yet functional symbiosis between the Chinese film and television industries. While piracy makes most Chinese films unprofitable, television series and consumer products based upon pirated films are incredibly popular and profitable. Savvy Chinese film directors leverage upon this phenomenon by creating television series and ancillaries based upon the movie, which ironically receives free advertising through piracy.