" 5G WILL BE THE NEXT GREAT THING IN THE MOVIE INDUSTRY" - POST-COVID WORLD SPECIAL
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POST-COVID WORLD SPECIAL
“ 5G WILL BE THE NEXT
GREAT THING IN THE
MOVIE INDUSTRY”
Interview with Alex Zhang,
independent film producer specialised
in China and Hollywood feature films
and television
F L X I
Alex Zhang is an independent packaging, distribution and production
film producer specialised in China oversight. Recent films he executive
and Hollywood feature films and produced include Greyhound (2020),
television. He was previously an starring Tom Hanks, Midway (2019)
executive at Alibaba Pictures where directed by Roland Emmerich, and
he was involved in its film financing the upcoming Resident Evil (2021)
and distribution business. During his franchise reboot film directed by
time there, the company invested in Johannes Roberts.
Mission Impossible 5: Rogue Nation
(Misión Imposible 5: Nación Secreta), In 2016, Alex Zhang took part in the
Teenage Mutant Ninja Turtles: Out of 10th edition of the Chinese Future
the Shadows (Las Tortugas Ninja II), Leaders Program (CFLP) about the
Star Trek Beyond (Star Trek: Más Allá), film industry, organized by the Spain
The BFG (El gran gigante Bonachón), China Council Foundation. The CFLP is
A Dog’s Purpose (Tu Mejor Amigo), a visiting program that once per year
and made a strategic investment into invites 5 to 6 brilliant experts to join in
Steven Spielberg’s company, Amblin a series of activities, such as seminars,
Partners. After he left Alibaba in late roundtables, and networking events,
2017, he started a private producing around a strategic topic for both China
business centered on my strong and Spain.
background of film finance, talent
F L X I
Why do you think China has
reopened its cinemas so much
faster than other countries?
homogenous implementation of
law. In addition, the accountabiliity
and responsibility placed on local
“ The reopening of
cinemas, and most
notably the speed at
officials to minimize Covid cases
China has implemented one of was taken to the extreme. You see which they reopened is
the strictest pandemic protection entire municipal and sometimes just another byproduct of
policies in the world, and both province-level administrations fired the general recovery of
public and private sectors, and the overnight for any mishandling of
China’s economy.
general public were deeply adherent protection measures. It also is worth
to this policy. This is why you see noting that China is one of the most
China recovering in the second internet and mobile-connected
quarter of 2020 with a net GDP countries in the world. Local
growth, which includes the fast- governments utilized the power It took China, now
reopening of Food & Beverages and of big data and location tracking the world’s second-
public entertainment venues such technologies to quickly create a
as cinemas. To give an example of national risk-assessment program largest film market,
the extreme measures used here that tracks each individual based less than 10 years to
prior to the recovery, me and my on their exposure risk. In short, we grow its box office
wife were stuck in our homes for sacrificed in the short term, and
almost 60 days without ever leaving made a bet for the long term. The
revenue from 1 billion
our immediate neighborhood reopening of cinemas, and most yuan (about $145.66
enclosure. Not even courier services notably the speed at which they million) to over 60
could enter our neighborhood reopened is just another byproduct
compound. The deeply centralized of the general recovery of China’s
billion yuan.
decision-making of the Chinese economy.
government allows for rapid and
massive logistical mobilization and
F L X I
“ In China however,
audiences remain
committed to supporting
How do you think the Covid crisis
has changed the cinema industry?
What are the main consequences
Millions of Chinese people have
enjoyed watching movies online
during cinema closures thanks
that the Coronavirus will have for to a wide range of streaming
the theatrical experience, the cinema industry in China? services. What movie platforms
with the recent 800, or streaming services have gained
directed by Guan Hu China is very different from the traction during the pandemic in
rest of the world. In general, Covid China? Is the future of cinema
earning more tan 3bn yuan
has shifted viewing habits to be online?
in theatrical box office. more online-centric. In terms of
film finance and production, Covid Ironically, streamers in China have
“ Ironically, streamers
in China have been
and are still struggling to
has created a new world order
centralized around the issue of Covid
and infectious disease insurance,
been and are still struggling to
become profitable despite the lift in
business they got from Covid, but
which has become crucial for closing that is for historical reasons around
become profitable despite completion bonds and acquiring the initial pricing of TV on Demand
the lift in business they bank financing. In China however, and Subscription Video on Demand
got from Covid, but that audiences remain committed to offerings, which were far too low.
supporting the theatrical experience, In a sense, the streaming business
is for historical reasons
with the recent 800, directed by model has never fully recovered
around the initial pricing Guan Hu earning more tan 3bn yuan from the huge discrepency in
of TV on Demand and in theatrical box office. This is truly consumer tolerence for paid content.
Subscription Video on shocking, to even local analysts We may see that change as local
who thought audiences would have content increases in quality, but that
Demand offerings, which
grown accustomed to watching from is a longterm process. Currently,
were far too low. home or on mobile devices. I believe Hunan Network and its
streaming service Mango TV are
F L X I
“ If the movie theatre experience were to disappear,
it would not be due to competition from streamers,
but rather the failure of filmmakers and film financiers to
supply the world with fresh, exciting and brilliant content.
by far ahead of iQiyi, Tencent Video Do you think the Coronavirus crisis
and Youku platforms, owned by the will trigger the disappearance of
so-called BAT (Baidu, Alibaba and the movie theatre experience?
Tencent). Bytedance made a surprise
move during Chinese New Year’s I firmly disagree with that
when Covid first hit by acquiring Xu hypothesis, and China has disproven
Zheng’s movie “Lost in Russia” for a that loudly. For the rest of the world,
huge price, but has yet to follow up the recovery of the cinema business
with a longterm business plan for will be directly linked to the general
scripted content (and I am skeptical recovery of the economy, and overall
if they ever will). That said, online health and safety conditions. People
platforms specializing in shortform have an inherent wish to consume
or medium-length content like great content, and the better
Douyin (Bytedance’s local version of the quality, the more demanding
TikTok), Kuaishou, and Bytedance’s they will be on the venue. If the
answer to Youtube, Xigua Video, movie theatre experience were to
have been doing great. I think there’s disappear, it would not be due to There are now more than 12,000
a bright future for user generated competition from streamers, but
and “pro-user generated content” in rather the failure of filmmakers and cinemas in China, according to
China. film financiers to supply the world market research firm IBISWorld.
with fresh, exciting and brilliant
content.
F L X I
Cooperation between Chinese I am already seeing things pick
and foreign filmmakers has up, because there will always be
greatly suffered because of the visionary individuals and companies
Covid-19 pandemic. Do you think who see market downturn as
cooperation between countries will opportunity rather a warning to run
pick up again next year? the other way.
This is what I am working day in Do you see specific opportunities
and day out on. In general, film of collaboration between China and
companies in China have been hit Spain in this area?
hard by Covid, and while theaters
are recovering, film distibuters are There are so many wonderful
still suffering from a range of issues Spanish filmmakers, storytellers,
from debt, lack of bank financing, animation artists, and beyond.
to a backed up catalogue of un- Me and my wife have been lovers
released films. So naturally, the of Spanish cinema for years, and
heavy hitters of the industry are not we particularly enjoyed catching
engaged in cross-border dealmaking, up (finally) on La Casa de Papel
so it’s more up to the individuals. during the Covid lockdown. I believe
According to Chinese media, the number
of coproductions between China and other
“ In general, film companies in China
have been hit hard by Covid, and while
theaters are recovering, film distibuters are
countries in 2020 will be far fewer than the 95 still suffering from a range of issues from
coproduction applications received in 2019. debt, lack of bank financing, to a backed up
catalogue of un-released films
F L X I
“ There are plenty of great opportunities
here, and learning how 1.3 billion of the
world’s population feel and react to story is
certainly a valuable proposition.
“ I believe there is quite a lot of
opportunity for filmmakers and
production companies in Spain to get
involved with China
there is quite a lot of opportunity a film financing company, I would Experts say that 5G technology
for filmmakers and production genuinely encourage you to take the is going to revolutionize the
companies in Spain to get involved bold move of exploring investing in whole film industry, with certain
with China. Chinese filmmakers are Chinese cinema. There are plenty aspects developing like cloud
always open to partnerships with of great opportunities here, and transmission, real-time rendering,
foreign filmmakers, and Chinese learning how 1.3 billion of the world’s intelligent distribution, efficient
companies are very open to cross- population feel and react to story is data capturing and collaborative
border partnerships. And if you are certainly a valuable proposition. production in different locations
F L X I“ 5G will be the key catalyst to the growth in quality of
content. Whether it will change viewing habits depends
on the creative excellence of the content creators who weild
around the world. Do you think 5G
will be the next great thing in the
movie industry?
this technology, and not the technology itself. It absolutely will, for all the
reasons you mentioned, and more.
Filmmakinig in a digital world
requires huge amounts of bandwith
and data transmision. And with the
growth of live streaming, and on the
other side of physical production,
the hugely probable scenario of
virtual sets (like what they used in
the production of The Mandalorian)
becoming widely used, the problems
of latency and packet loss become
critical. And whether it be the
application of native 3D production
or Virtual Reality technologies, to
live streaming of sports events at
4-8K, 5G will be the key catalyst
to the growth in quality of content.
Whether it will change viewing
habits depends on the creative
excellence of the content creators
who weild this technology, and not
the technology itself.
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