Modern vs Ancient

When Luo suffers a bout of malaria, the narrator is called upon to tell a story: "I embarked on the strangest performance of my life. In that remote village tucked into a cleft in the mountain where my friend had fallen into a sort of stupor, I sat in the flickering light of an oil lamp and related the North Korean film for the benefit of a pretty girl and four ancient sorceresses" [p. 39]. Why are the rural Chinese so fascinated by film, or the stories they tell? What does this scene suggest about the convergence—and compatibility or incompatibility—of ancient and modern ways of life?