Film distributors claim they have lost over $700 million in three years to video rental agencies which buy films overseas and import them to Hong Kong.
An industry survey carried out by the Hong Kong and Kowloon Motion Picture Association asked 400 members involved in videos, theatres and distribution associations to estimate their losses.
The results found $450 million had been lost in box office revenue and $268 million in laser disc and video distribution to 'parallel imports' between 1993 and 1995.
Parallel importers are firms which buy videos and laser discs from legitimate overseas sources and sometimes offer the film for rent or sale before the movie appears at the cinema.
Association chairman Crucindo Hung Cho-sing said participants were asked to compare previous revenue with sums collected after parallel importers began sidestepping distribution agreements.
It claimed up to 215 local films and 589 foreign films were affected.
