The increasingly popular urban comedies and romance films enjoy better reputations. Word of mouth has been playing a critical role in their success.

The Beijing Normal University report found that one third of viewers surveyed went to see Lost in Thailand because their friends recommended it. Chat applications on mobile phones or tablets also helped spread the word about a film between friends.

"Today, the chances that a good film will be ignored is less than before," the report notes.

But producer Gao Jun says it might be too soon for local filmmakers to celebrate. "Go to any theater and you will find Iron Man 3 is still a huge hit," he says.

Critic Bi agrees. "The tough rivals, the real Hollywood blockbusters made with more than $150 million, will not arrive until the summer holiday season," he says.

Bi says the authorities try to protect the local film industry. The release date of imported films are decided by China Film Group, the State-owned company that has the exclusive rights to distribute the 34 imported revenue-sharing foreign films every year.

Last year, two Hollywood films The Dark Knight Rises and The Amazing Spider-Man were released on the same day to compete against each other. The release date of Iron Man 3 was not officially announced until late April.

"The uncertainties of release dates for imported films have a serious impact on their marketing schedule and strategy," he says. "If the Hollywood studios can choose when to release their films as their domestic counterparts do, things would be totally different."

Insiders say the rise of local films has given viewers more choices and made the film scene more dynamic.

The success of films such as Lost in Thailand is thanks to the strong narratives, which have set really good examples, says senior film industry researcher Bu Er. "But good stories are still rare and precious in our industry. Before we have enough of them local filmmakers have no reason to be too optimistic."

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