The Hong Kong film industry, once ruler of the East Asian market, has slumped as a result of illegal downloading and piracy. In 2003, more than 70 Hong Kong-made movies were shown internationally, but in 2004, this number dropped to 60. It is predicted that this year will see another decline in the Hong Kong film industry. Small and medium budget films are most affected by this downturn; big budget films will suffer little impact.

This reduction in Hong Kong film productions is also due to a temporary shortage of young actors. TV is the normal cradle of movie stars, but in recent years Hong Kong’s various TV stations have been importing series, and the need to train young local actors has diminished. The Hong Kong Institute of Vocational Education offers a 3-month training course for young film actors, but as filmmaking has declined in recent years, its graduates are largely unemployed.

According to analyses, the best way to boost the development of film industry is through a healthy local market rather than government subsidy. When the ever-opening mainland market begins to supersede those of Taiwan and Southeast Asia, it will also revive the Hong Kong film industry’s local market.