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The case outlines the changing conditions of the film industry in East Asia by focusing on the challenges confronting Golden Harvest Entertainment, the leading producer and distributor of Chinese films. Although many critics charge that the global popularity of Hollywood cinema is a simple result of big budgets and market dominance, this case more carefully investigates the forces that led to the downfall of Chinese films in Taiwan, the most lucrative market for such products. Having lost ground to Hollywood competitors recently, Golden Harvest must re-examine its distribution strategies if it is to restore a key source of revenue and film financing. This case was sponsored by the Indiana University CIBER Case Collection.