Beijing- China’s film industry is developing in the fast lane, with total box-office revenue reaching 2.6 billion yuan (US$340 million) in 2006, Han Sanping, president of the China Film Group Corporation, said during a visit to the Communication University of China in Beijing. Han pointed out that most of the earnings came from large cities as people in medium-sized cities and rural areas were not well served by cinemas. In response, the government has plans to improve the industry through a tripartite approach, individually targeting each market. New screens will be built in major cities, with Beijing, for example, getting an increase in the number of cinemas from 26 to 100 by the end of 2007, China Daily reported. Digital cinemas with smaller screens will be established in medium-sized cities. “Lower ticket prices will attract people in these places to the digital cinemas,” said Han. Those in rural areas used to watch films for free, in accordance with government policy. In the future, each film shown in rural areas will feature 10-minute ads.