American cinema association accuses Chinese cinemas of underreported box office fees

Almaty. October 4. Silkroadnews - American cinema association accuses Chinese cinemas of underreported box office fees, the Hong Kong Economic Journal reported.
“An audit conducted for the Motion Picture Association of America (MPAA) has determined that Hollywood is being shortchanged by millions of dollars at China’s box office, the Wall Street Journal reports. Auditors at PricewaterhouseCoopers concluded that ticket sales in China were underreported by about 9 percent last year, the report said, citing people familiar with the matter. That translates into at least US$40 million in lost revenue for the six Hollywood studios that make up the MPAA, according to a Journal analysis of last year’s box-office take,” the report said.
It is noted that data on box office shows that last year in China, the films of these six studios gathered at least $1.87 billion. According to the existing agreement, the share of studios is 25% of these revenues.
Reportedly, representatives of the American Film Association and auditors met with senior officials of the state-owned China Film Group, which distributes most of the movies in the country. Chinese film distributors said that only the government can ensure stricter control over the cinemas. Further discussion of this issue is planned for the end of the month.