The movie industry in China has always been a prominent force within world cinema, but recent figures show that their box office numbers are having an international impact, and will continue to soar.
China already boasts the world’s largest movie studio; the Hengdian World Studios covers an astonishing 7,000 acre plot in the eastern part of the country, and their industry keeps on expanding. As well as creating a vast range of lucrative titles, China also generates a significant chunk of the international box office for international films.
With a population of approximately 1.4 billion, it seems that Chinese movie fans can’t get enough, with cinema visits and home entertainment sales constantly skyrocketing. The Hollywood Reporter announced this week that in 2017, China will undoubtedly lead the way in terms of movie industry revenue.
The USA has a current population of 323 million and so it is inevitable that the Chinese movie industry will soon overshadow Hollywood, which is currently stuck in a rut of super hero franchises and reboots. World of Warcraft, a new film from Moon director Duncan Jones, took in a staggering $46 million on it’s first day of release in China; a number which shattered both the UK and US box office takings for the feature.
According to The Hollywood Reporter:
By 2020, China’s box office is projected to top $15 billion, while the U.S. will just hit $11 billion — courtesy of 19 percent annual growth, compared with 2 percent — according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook. China already has surpassed the U.S. as the largest market for 3D films. The country is adding 15 screens a day and could be primed for more because China has only 23 screens per 1 million people, compared with 125 per million in the U.S. There’s also room for ticket inflation: The average price in China is projected to be $6.04 in 2020, compared with $9.02 in the U.S.
Switching to television, the study reveals global growth would be anemic if not for strength in advertising, which is increasing at 4.7 percent annually. With competition from the internet, the U.S. TV industry — sans advertising — is projected to shrink in 2020 compared with 2019, a first during the 17 years PwC has published its annual report. Domestically, revenue from over-the-top services already has overtaken that from physical home video and is set to do so globally in 2017. An X-factor is virtual reality, which PwC’s Matt Lieberman says will begin having a small effect on TV in two years. The research firm is running focus groups for clients who have turned TV content into VR experiences. “They’re doing deep dives into which genres and demographics work best,” he says. “This is one to watch.”