The old studio system, however, still exists in name. To survive in an increasingly unfavorable environment, the state-owned studios have to make concessions and rely on the following three channels to support the moribund system. Although independent film companies are allowed to make and distribute films, under the current laws and regulations, they are not permitted to release a film without a proper official banner. Buying a banner from the state-owned studios, therefore, becomes necessary in exhibiting an independently made film. But since then, television sales have skyrocketed.
Some families own two or more television sets.
To fill up the available time slots, China's state-owned television stations need to produce thousands of episodes. It is apparent that television stations alone are not capable of handling this huge demand, and the old film studios are more than happy to help fill the blank. The shadow of commercialization not only affects the state-owned film studios but also has an enduring impact on how filmmakers and audiences in general view film as a medium. When the Fifth Generation started to make films, their inspiration came from Western European works. Films by the high modernist European auteurs, such as Francois Truffaut, Jean-Luc Godard, and Michelangelo Antonioni, were in vogue among these young artists who were determined to reinvent the language of Chinese cinema.