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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Entertainment > Article Home Business & Finance News U.S. Politics International Technology Entertainment Film Music People Television Arts Industry Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Hollywood sees win in China WTO case as first step Fri Aug 14, 2009 5:04pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Sue Zeidler LOS ANGELES (Reuters) - Hollywood scored a win with the World Trade Organization as it seeks inroads into China, but rampant piracy in the market means the WTO ruling is just a first step in a long slog for the U.S. entertainment industry. The WTO said China broke international trade rules by restricting the imports of movies, music and books and other audiovisual content. The current system hinders studios, filmmakers, musicians, videogame makers and authors from marketing works at competitive prices, it said. China has said it will evaluate the decision and had not ruled out an appeal. Hollywood has sought for years to crack the world's third-largest economy, but has failed due to restrictions on getting films into theaters and a torrent of pirated media content, with DVDs going for $1 on most street corners. The ruling was a landmark decision 10 years in the making, said Greg Frazier, executive vice president of the Motion Picture Association of America, representing the world's largest studios like Walt Disney Co and Time Warner Inc's Warner Bros. But he said it was unlikely to yield quick results. "Nothing in China is right around the corner except for pirated DVDs," Frazier said in an interview. "This is a major change, but it will not change things overnight," said Richard Doherty, analyst with Envisioneering. "If you want to buy a copy of 'Harry Potter' in the U.S., it's $20, but if you buy it in China, it's only $1 or $2, because so many copies there are pirated," he said. Michael Pachter, analyst with Wedbush Morgan, said while the business atmosphere may improve, the studios may still face challenges in appealing to consumers, used to cheap DVDs. "This is a culture that has grown very comfortable in paying for pirated media," he said. Frazier said studios will now have the ability to distribute films more widely and more freely, whereas state-run distributors had previously taken cuts of box office receipts and charged hefty fees for movie prints and distribution. "The studios will now have the ability to come into China and distribute," the Motion Picture Association of America executive said. "Before this, they didn't have the choice," he said. "I know it's going to be better. This is a landmark. I can't tell you it's going to take place in the fourth, first or second quarter. But it's a positive development in one of the fastest growing theatrical markets," he said. Most broadcasters, entertainment corporations and studios, including Time Warner and Viacom, declined comment, referring queries to the MPAA. Others, including General Electric's NBC and Disney, were unavailable for comment. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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