Tencent Holdings is investing in films, using its online games and other assets to gain an edge in the film industry. (Photo : Reuters)
Following the lead of successful movies from the mainland, like Tencent-backed "Monster Hunt," the film industry is being restructured by domestic Internet firms with their technology and online platforms, leading some to predict a future wherein Internet companies take over movie companies altogether.
"Filmmaking will be new-media oriented and characterized by the Internet," said Feng Jun, senior analyst at EntGroup, an organization that researches the mainland entertainment industry. "It's possible all movie companies in China will work for Chinese Internet companies in the future."
According to industry observers, Tencent's financial and marketing support made "Monster Hunt" as successful as it is.
Cheng Dai-wai, secretary-general of the Guangdong Film Industry Association, said that the future of filmmaking is in producing films with an assurance that moviegoers want to watch it.
"In the future, the model will be: we find out what you want to watch, then we make it for you," Cheng said. "Only those investors who understand the Internet and mobile users will be able to turn a handsome profit from filmmaking."
Cheng added that the success of "Monster Hunt" highlights the power of the big Internet companies of the mainland over the film industry.
In recent years, Internet companies have been dabbling in the film industry and thriving. Among the largest Internet companies to invest in films include Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Baidu Inc.
Tencent is using its online gaming and literature resources to gain an edge over the competition. Its "Movie Plus" project is dedicated to bringing its most popular online games, cartoon and novels to China's cinemas, with its relationship with Hollywood studios and Chinese Nobel Prize-winning writer Mo Yan among the company's assets.
Alibaba is also using its online platform to revolutionize how films are financed, allowing people to invest in the production of a film for as little as 100 yuan ($16).
