Policy Optimization In The Cultural Industries Of Film And Television

As an important part of the tertiary industry,film and television industry in recent years has experienced an unstoppable rise. A wave of technology, talents and funds has poured into the industry thanks to massive economic potential and the country’s growing influence on the global stage, making China a TV and film production powerhouse and the world’s second largest box office grosser. An in-depth analysis of the contributing factors behind the rapid development of China’s film and television industry reveals that government policies and regulations remain to be the most essential force. Film and television industry policies not only helped accelerate the development of cultural industries of film and television and optimize the developmental structure of film and television cultural industry, they are also proven to be effective in regulating the market competition behaviors and in advancing structural reforms in film and television enterprises of small and medium-size. In addition, government policies helped expand China’s cultural influence and lift its standing in global film and television industry.However, the rapid rise of the film and television industry quickly exposed the delayed effects of industry-related policy. As long as the government makes a timely response to these problems, the healthy and sustainable development of the industry will be assured.This paper uses the methods of literature review, case study, comparative analysis,along with public choice theory and market failure theory, to discuss the issue. A review of industry-related policies separates policy tools that play the roles of subsidies and incentives in response to positive external effect generated by film and television productions from those tools that play the role of a regulator under circumstances of negative externalities brought forth by the productions. Based upon the research on the current states of television and film industry as well as on business development of Company A, this paper examines industry-related policies and their effects on improving economic efficiency of TV and film companies, the role these policies play in bridging the upstream and downstream entertainment industry chains as well as the financial and inventory impact regulatory measures have had on the development of the industry. This paper thus concludes that a combination of factors such as a centralized economy and its effect on public perception of the industry, imperfect policy mechanism and flaws in policy implementation have contributed to so much hindrance of the robust development of television and film industry. This paper also provides a summary of best practices and lessons with regard to industry policies from three TV and film powerhouses including the U.S., U.K and South Korea, which can be used to draw inspiration for policy optimization and development model suitable for domestic film and television industry.The author puts forward policy optimization recommendations on strengthening industry-related laws and regulations and policy support systems as well as on paving the way for cultural industries investment and financing activities.