Lai Lin Thomala
Research expert covering Greater China
Film industry in China - statistics & facts
China retained its position as the world’s second-largest film market in 2023, demonstrating a steady upward trajectory. The country's cinema ticket sales bounced back by 83 percent to about 55 billion yuan, yet still 15 percent lower than the pre-pandemic level. The industry has been hit severely by changing consumer behavior after the pandemic curbs, disruptions in movie production and releases, and competition from video streaming platforms.
Before the emergence of the pandemic, China had been neck and neck with Hollywood, collecting over nine billion U.S. dollars in box office with a strong market demand. In both 2020 and 2021, the country rose to be the largest cinema market in the world. In terms of production, the country was only second to India’s Bollywood, and is eager to make Chinese blockbuster hits. Nonetheless, recent consumer surveys have shown a clear preference shift from cinema experience to online video alternatives, which was expected to stay in the aftermath of the pandemic.
In terms of market demand, ticket sales volume had been growing steadily before 2020 but the trend has reversed since the pandemic. Lockdown measures, more affordable and accessible home cinema systems, as well as extensive content library of streaming platforms are the major factors making cinema visits less appealing. A 2022 survey revealed that Chinese consumers tended to prioritize other entertainment activities than going to cinemas. Visiting cinemas is not that much about the cinematic experience and more about dating or gathering with friends and families. Besides, Chinese filmgoers are accustomed to low ticket prices, which makes the average price of seeing a film in China much lower in comparison to the U.S. market.
In fact, Chinese filmmakers have enhanced their competitiveness, content quality, and variety. Many latest releases have been well-received among Chinese movie fans and generated over 100 million yuan in the box office. In the recent few years, the appeal of domestic productions focusing on national sentiment remained strong, with Full River Red being the blockbuster in 2023 while the first and second part of The Battle at Lake Changjin led the pack in 2021 and 2022. The historical war film raked in almost 5.8 billion yuan of revenue in 2021, breaking the record set by Wolf Warriors 2 in 2017. Other mega-hit domestic titles are the sci-fi movie The Wandering Earth, the animation film Ne Zha, the war film The Eight Hundred. Aiming to achieve international success, more funding has been invested in the Chinese film industry. With production costs over 100 million U.S. dollars, yet the Chinese blockbusters have been struggling to find footing in the global marketplace.
Before the emergence of the pandemic, China had been neck and neck with Hollywood, collecting over nine billion U.S. dollars in box office with a strong market demand. In both 2020 and 2021, the country rose to be the largest cinema market in the world. In terms of production, the country was only second to India’s Bollywood, and is eager to make Chinese blockbuster hits. Nonetheless, recent consumer surveys have shown a clear preference shift from cinema experience to online video alternatives, which was expected to stay in the aftermath of the pandemic.
Once shinning, now losing ground
China’s film industry has come a long way over the past decade. As of the time of writing, there are over 12,000 movie theaters with an average of 6.8 cinema screens, an exponential growth since 2012. Among the 52 cinema chains across the country, Wanda Cinema Line, Hengdian World Cinemas, and Guangdong Dadi Digital Cinemas operated the most theaters. Wanda Cinema Line also ranked first in terms of box office revenue. Under the pandemic effects, movie screenings, cinema visits, and seat occupancy rate all declined considerably in 2022. Many small and independent theaters could not survive the hardship and were acquired by big players. Even the famous cinema chain Emperor UA Cinema ceased operations of all seven cinemas in mainland China in December 2022, citing significant business losses during pandemic.In terms of market demand, ticket sales volume had been growing steadily before 2020 but the trend has reversed since the pandemic. Lockdown measures, more affordable and accessible home cinema systems, as well as extensive content library of streaming platforms are the major factors making cinema visits less appealing. A 2022 survey revealed that Chinese consumers tended to prioritize other entertainment activities than going to cinemas. Visiting cinemas is not that much about the cinematic experience and more about dating or gathering with friends and families. Besides, Chinese filmgoers are accustomed to low ticket prices, which makes the average price of seeing a film in China much lower in comparison to the U.S. market.
Big challenges to hold appeal
Hollywood studios are eager to grab a slice of China's lucrative box office market, but it has become increasingly difficult for foreign titles to expand their market share in China. The government is highly protective of domestic industries and the film industry is no different. Only a small number of slots for the distribution of foreign films are permitted and a renewed interest in homegrown movies is further strengthening the domestic market. Furthermore, there is a major shift of topic choices towards movies about national identity and sentiment, a theme that could be challenging for overseas filmmakers to replicate.In fact, Chinese filmmakers have enhanced their competitiveness, content quality, and variety. Many latest releases have been well-received among Chinese movie fans and generated over 100 million yuan in the box office. In the recent few years, the appeal of domestic productions focusing on national sentiment remained strong, with Full River Red being the blockbuster in 2023 while the first and second part of The Battle at Lake Changjin led the pack in 2021 and 2022. The historical war film raked in almost 5.8 billion yuan of revenue in 2021, breaking the record set by Wolf Warriors 2 in 2017. Other mega-hit domestic titles are the sci-fi movie The Wandering Earth, the animation film Ne Zha, the war film The Eight Hundred. Aiming to achieve international success, more funding has been invested in the Chinese film industry. With production costs over 100 million U.S. dollars, yet the Chinese blockbusters have been struggling to find footing in the global marketplace.
