Reel potential for Chinese films abroad

Translation came next - 29.9 percent of respondents said poor subtitles made it difficult for them to fully understand the films.

The report suggested filmmakers and distributors are paying more attention to new media, which became the most frequent way for international audiences to watch Chinese films in 2012. According to the report, 58 percent of those surveyed found and watched Chinese films on the Internet.

The report also found that while State-owned enterprises such as China Film Group Corp used to be the leading player of Chinese film companies in the international market, in 2012 some private companies had shown their potential in winning over wider audiences.

Huayi Brothers, for example, contributed 24.2 percent of the total revenue of Chinese films overseas in 2012, by distributing films such as the epic Painted Skin 2, action comedy Tai Chi and urban romance Love.

Bona Film released six films in international theaters, grossing 120 million yuan, or 10.7 percent of the total revenue of all Chinese films overseas.

"The report shows that Chinese films have a long way to go before speaking to a global audience effectively," said Zeng Qingrui, professor of Communication University of China.

"Cultural differences and the language barrier are still major concerns. We need better storytelling techniques, deeper exploration of human-interest subjects and more diversified communication channels to overcome the obstacles."