Why China's Exhibition Boom Could Be Trouble for Hollywood

6:00 AM PST 12/4/2012 by Clarence Tsui

The good news? The nation's theaters are expanding at breakneck pace. The bad news? The competition in local markets already is intensifying as homegrown fare grows in favor.

With an average of nine new screens opening every day, China's film-exhibition business is riding a surge nearly unparalleled in history. And as predictions point to all the country's cinemas becoming digitalized by next year, it's shaping up as a gold mine for Hollywood producers to exploit.