While the Americans and British happily cling to their video cassettes, Shanghainese have discovered an even cheaper and more convenient way of spending their free time - watching video compact discs (VCDs).
So rapid has been the spread of the VCD craze in Shanghai and other southern Chinese cities that it has caught many foreign manufacturers unawares, allowing domestic manufacturers an opportunity to tap a fast-growing market and propel China to a rare position of global dominance in an area of hi-tech production.
Press reports say the mainland made 10 million VCD players last year, accounting for 82.4 per cent of the global output. This year, output is expected to rise to 15 million units.
In 1994, the mainland had only one domestic VCD producer. Today, there are about 300, most clustered along the coast.
However, despite the impressive rise in numbers, few are making a profit.
Of the 300, only 15 have annual capacity of at least 150,000 units. To reach economies of scale, a manufacturer is thought to need output of at least 500,000 units a year.