I. Development Status and Challenges

　　(I) Development Status

　　1. The overall strength of the industry is enhanced steadily. In 2014, the value added of the cultural industry of Wuhan City reached CNY 38.909 billion, an increase of 13.5% over the last year, accounting for 3.86% of the GDP of the whole city. The value added of cultural service industry, trade industry and manufacturing industry reached CNY 27.045 billion, 2.363 billion, and 4.18 billion, accounting for 78.2%, 9.7%, and 12.1% respectively. The value added of cultural service industry takes the largest proportion in the cultural industry, and occupies the leading position.

　　2. The strength of cultural enterprises is improved significantly. By the end of 2014, in the cultural industry in Wuhan City, there were 14,148 legal entities with 219.4 thousand workers, and 422 cultural enterprises above a certain scale and designed size with 91.7 thousand workers, which realized the value added of CNY 19.598 billion, accounting for 50% of the value added of the cultural industry of the whole city.

　　3. Enterprise innovation ability appears preliminarily. Internet information service and digital service industries develop actively, achieving 50.3% increase of value added over the last year. Based on the opportunity of building East Lake National Cultural and Technological Integration Demonstration Base, Wuhan City formed the development pattern of one area with multiple parks, and cultivated 14 municipal cultural and technological integration demonstration parks and 35 demonstration enterprises.

　　4. Concentrated development begins to take shape. Cultural industry parks grow from small to large and from franchised service to characteristic development, and gradually achieve the scale effect. At present, there are 28 cultural industry parks in Wuhan, including about 8,000 cultural enterprises and more than 200 thousand innovation, creativity, and entrepreneurial talents.

　　5. The driving effect of projects is remarkable. Wuhan City vigorously implements the strategy of key projects driving small projects. A group of cultural projects with strong irradiation effects and demonstration effects have been planed and implemented, a number of new cultural landmarks, such as Hanxiu Theater, Movie Technology Paradise, Wuhan Living Room, have been completed, and Changjiang Publishing & Media Building, CBD Studio of Wuhan Radio and Television Bureau, and Wuhan Central Bok City are in construction.

　　6. The policy system is increasingly complete. In order to optimize the development environment and enhance the core competitiveness of the cultural industry, a series of policies and measures have been released, including Opinions on Facilitating Cultural and Technological Innovation and Accelerating Cultural and Technological Integration, Revitalization Plan of the Cultural Industry (2012-2016), Several Policies on Accelerating the Development of Cultural Industry, Construction and Implementation Program for National Cultural and Technological Integration Demonstration Base (2012-2015), and Implementation Program for the Integration of Traditional Media and Emerging Media.

　　7. The investment and financing mechanism is gradually improved. The loan risk pool fund for cultural enterprises and the investment fund of cultural industry have been established, the supporting mechanism of copyright pledge loans has been improved, and financial capital and social capital have been introduced into the cultural industry. Cultural enterprises are encouraged to develop through capital market. Shengtian Network and Daobo Stock have successfully come into the main board market, and Yitong Culture and Education and Yindu Media have gotten listed in National Equities Exchange and Quotations.

　　(II) Challenges

　　1. Cultural industry parks are not located clearly. At present, the development and construction of some cultural industry parks is not planned reasonably, the culture content low, and repeated construction exists. Such parks have no specific industrial development direction, the matching degree of cultural enterprises entering parks is low, there is superior resource complementarity at the upstream and downstream of the industry chain, and the significance of concentrated development of cultural industry is not realized.

　　2. Enterprise financing in the cultural industry is difficult. Limited by the financing system, a lot cultural enterprises are troubled by funds. Large output needs large input. The value of the cultural industry is embodied in intelligent and technological achievements. However, cultural creativity enterprises do not have a lot of properties which can be pledged, and loaning from financial institutions is restricted. Due to the high risk, some private funds invest a little in the cultural industry, and a fund bottleneck is formed.

　　3. Support to key projects, enterprises, and parks is insufficient. Although Wuhan City has issued a series of policies for the development of cultural industry, the policies have not been implemented completely, and the support to enterprises is insufficient.

　　II. Work Plan

　　1. Accelerate the implementation of major projects in the cultural industry. First, make full of various cultural expositions, trade fairs, and economic and cultural activities, and actively carry out multi-level, multi-channel, and multi-filed cultural investment promotion activities. Second, take full advantage of special funds for the development of cultural industry, and support and cultivate a group of projects with strong irradiation effect. Third, improve the long-term mechanism for facilitating the project management in the cultural industry, build a responsibility system for facilitating the construction of major projects in the cultural industry, and strengthen follow-up services and regular scheduling.

　　2. Accelerate the development of backbone cultural enterprises. First, cultivate a group of small- and medium-sized new, dedicated, focused, characteristics cultural enterprises, and build a number of back-up cultural enterprises with high growth opportunity. Second, select a group of mature enterprises that are ready to be listed, and increase support to them, and make efforts to get a group of cultural enterprises listed in National Equities Exchange and Quotations in 2016. Third, develop private cultural enterprises. Actively create a wide environment for the development of private cultural enterprises, relax control of private enterprises to enter the cultural market, improve financing method to support the development of private cultural enterprises, and comprehensively activate the potential of folk cultural industry.

　　3. Accelerate the construction of cultural industry parks and bases. First, strengthen scientific planning and layout. In the park planning, highlight resource advantages and regional characteristics as well as differentiation and supplementary development, and prevent repeated construction, homogeneous competition and wasting of resources. Second, build the industrial chain. According to the positioning of each park, guide cultural enterprises to concentrate in the park, facilitate the intensified, large-scale, professionalized, and branding development, promote the matching development of upstream and downstream products, extend and thicken industrial chains, create concentration advantages, and enhance the competitiveness of cultural products and services. Third, speed up the construction of cultural industry incubators, and develop them into important carriers for accelerating the construction of cultural industry bases and regional characteristic cultural industry clusters.

　　4. Accelerate the integration of cultural industry and other industries. First, promote cultural and financial integration. Explore effective channels and forms to support the development of cultural industry, and introduce more financial capital into the cultural fields, in order to strengthen the cultural capital market and better support the development of cultural enterprises and the construction of cultural projects. Second, facilitate the integration of culture and tourism. Vigorously develop cultural tourism projects, develop cultural tourism products, and build tourism performing art brands. Third, propel the integration of cultural industry and Internet industry. Build a sound development environment, and drive more competent entrepreneurs to devote themselves to the career of Internet + culture. Fourth, cultivate a number of cultural and technological integration demonstration parks, bases, and enterprises, bring the demonstration function of excellent parks, bases and enterprises into full play, and promote the cultural and technological integration to a higher level.