Will China Really Surpass The US?
Movie ticket sales are slowing in the US due to piracy and streaming services such as Netflix and Hulu. That said, China’s growing appetite for Hollywood products is helping to make up for the difference..
Experts predict that China will become the world’s largest film market by 2020, and box office revenues will grow from $ 9.9 billion in 2018 to $ 15.5 billion by 2023, according to a PwC report..
China surpasses U.S. box office revenue for the first time in Q1 2018.
In the same year, China grossed $ 9 billion at the box office, next to the United States and Canada. This netted the industry a total of $ 11.9 billion in 2018, according to the Film Association of America..
«You have to be very careful before filming a script – knowing how big the Chinese market is – to make sure you understand China correctly.», – Stanley Rosen, professor of political science at the University of Southern California told CNBC.
«About 70% or more of blockbusters’ box office grosses come from overseas, not North America, and China plays a big role in this.», – he said.
In the production process, Hollywood is increasingly reminiscing about the Chinese market. More than a third of the biggest grossing films in China in the past two years were filmed in the United States..
But China wants its own films to win the box office – both for financial reasons and for reasons of national prestige..
In 2018, the Dalian Wanda Group, which bought the famous American cinema chain AMC in 2012, opened the world’s largest movie studio, which was touted as China’s answer to Hollywood..
But these types of investments have yet to pay off as the Chinese film market struggles, but so far unsuccessfully, to compete with Hollywood productions..
According to the Financial Times, most leading Chinese film studios profit fell in 2018.
This trend has led to a surge in collaboration between Hollywood and China in recent years. Between 1997 and 2013, China helped fund only a dozen of the top 100 grossing films worldwide each year, according to a New York Times data analysis conducted by Box Office Mojo and IMDB. But that number rose to 41 films over the next five years..
Chinese tech giant Alibaba has invested and promoted Paramount Picture films «mission Impossible», «Fallout» and «Rogue nation». China’s Bona Film Group funded «Once Upon a Time in Hollywood», despite the fact that this picture has never appeared on Chinese screens.
«China wants to become the world’s largest film market as quickly as possible, Rosen said. – And Hollywood is absolutely essential for this».