Entertainment Slowdown Hits Filmmakers’ Bottom Lines

Three major filmed entertainment firms forecast big profit declines in the first quarter, with two saying they fell into the red, as the industry suffers under the weight of a broader slowdown after years of breakneck growth.The downbeat forecasts sparked a Wednesday selloff for the sector, following the release of forecasts by Beijing Enlight Media Co. Ltd., Huayi Brothers Media Corp. and Zhejiang Talent Television and Film Co. Ltd. after markets closed the previous day. All three firms were down by at least 4% during the trading day, with Enlight, Huayi and Zhejiang Talent ending down 3.7%, 4.1% and 0.12%, respectively.China has become one of the world’s most lucrative markets for filmed entertainment, propelled by a booming box office and vibrant online video sector. Both have flourished in recent years as the country’s economy boomed and an emerging middle class demanded high quality entertainment.