China eCapital Corporation, a leading private investment bank in China, will release a comprehensive report on the Chinese film market on March 18, 2005.

According to the 117-page report, the Chinese film market has entered into a period of phenomenal growth. Standing at RMB4.1 billion ($495 million) in 2004, the market is forecasted to grow at a CAGR of 36% over the next three years, reaching RMB10.4 billion ($1.2 billion) by 2007.

The most visible investment opportunities in the Chinese film sector, according to the report, lie in the two ends of the industry's value chain, namely film production and exhibition. While box office remains the single most important revenue driver in the near term, the home entertainment markets and television broadcasting—particularly digital pay-TV and IPTV—offer the most growth potential for the film industry.

The report also made a number of policy recommendations including speeding up the rollout of a film rating system, relaxing quota for foreign imported films, allowing foreign and private Chinese companies to distribute foreign films in China, and stepping up the fight against piracy. In addition to providing a comprehensive overview on the landscape and the regulatory framework of the Chinese film industry, the report also profiled some 30 key players in the marketplace.

China eCapital Corporation, a leading privately held investment bank with a core focus on media and technology, also plans to release research reports on the Chinese music and IPTV markets in the near future. Prior to the film report, the firm has released reports on the Chinese television and newspaper markets. "The media and entertainment landscape will be redrawn as content and new distribution technologies and platforms come together," said Mr. Ran Wang, Chief Executive Officer of China eCapital. "We are striving to build the best research capabilities so that we can stay on top of the emerging trends and leverage our industry expertise to better serve our clients in this burgeoning sector."