DECLINE AND FALL HONG KONG BOX OFFICE IN 2002

Everyone was worrying about the future of Hong Kong cinema at the end of 2002. But Andrew Lau and Alan Mak’s Infernal Affairs, with its top-notch script and excellent acting, seemed to win back audience confidence. It had taken over HK$55m by the end of the year to become the highest-grossing film in Hong Kong in 2002. Hong Kong’s economy continues to stagnate, and it’s affecting the movie industry. The total box office for the 293 films (domestic and foreign) released in Hong Kong last year dropped from HK$1,011m to HK$862.58m, a sharp drop of 14.7%. The 92 local films grossed only HK$347m. Compared with the HK$476m last year, that’s a drop of over 27%. As a result, the market share for Hong Kong films dropped from 47.1% in 2001 to 40.2% in 2002. The figures are not optimistic. The actual situation is even worse. Infernal Affairs, which grossed HK$55m, accounted for about 16% of the domestic box office. The second highest grossing film Marry a Rich Man grossed only HK$21.68m. In fact, there are only 12 films which grossed over HK$10m, the usual indicator for successful box office. Also, the figure of 92 local films includes both film productions and digital productions. Over one-third of local films last year were filmed on digital media. The actual amount of bona fide local films released in Hong Kong last year was only about 60. The DV films, mainly from B&S Productions and Universe, were released in one cinema for one week. They were seen by only a few hundred people and grossed below HK$35,000 in total. Psychedelic Cop, starring Danny Lee, grossed only HK$330 in 7 days – the lowest grossing film of the year. Film production in Hong Kong has been falling for years. But now it’s reaching a critical level. While the major local cinema circuit Newport-Empire managed to keep showing Hong Kong films continuously, the Golden Harvest circuit couldn’t, and filled in with foreign films. Exhibitors have become more flexible, switching between Hong Kong films, when the demand is there, and foreign films when it is not. This explains why there are 3 to 4 local films showing at the same time during prime seasons (like Chinese New Year) and only 1 during off-peak seasons. Production house China Star was the major winner last year. Three of its films grossed around HK$20m, namely My Left Eye Sees Ghosts (HK$20.4m), Fat Choi Spirit (HK$19.2m) and Mighty Baby (HK$19.0m). Those three productions are mid-budget films which were a hit with their target audiences. Due to the lack of willing investors, mid-budget productions have become fashionable. This is not new. It was the model for the Hong Kong film industry during its Golden Age of the Eighties, and is a way forward to some kind of recovery. There were few big-budget local blockbusters in 2002. Besides Infernal Affairs, the genre performed unsatisfactorily at the box office. Despite the huge promotion behind Peter Pau’s The Touch, it grossed only HK$11.2m – less than one-quarter of the production budget. Pan- Asian production So Close grouped three popular Hong Kong actresses with Korean actor Song Seung-heon, but grossed less than HK$1m in the end. These loss-making blockbusters made it tough to find investment for largescale productions. While the box office for Hollywood films in Hong Kong remains the same, the Asian scene has changed. Last year, Korean films beat Japanese films in terms of number (21 versus 19) and came in third overall, following Hollywood and Hong Kong films. After the success of My Sassy Girl at the start of the year (HK$14.1m), distribution companies continued their large-scale import of Korean films. However, they soon learnt their lesson, as most of them grossed less than HK$1m, no matter how big their promotion. But distributors have a backlog of Korean films, so there will still be numerous Korean films released over the next few years. As for mainland Chinese films, Hero was released at Christmas, and grossed over HK$25m, which is the best a Chinese film has ever done in Hong Kong. However, the fact that it features Hong Kong stars Tony Leung Chiu-wai and Maggie Cheung makes it a special case among mainland films. The start of 2003 was not good for Hong Kong films. None of the Chinese New Year films grossed over HK$30m. Producers are currently diversifying genres to find a new niche in the market. Although the results may not be apparent for some time, it’s the best move the industry could make.
Ryan Law