Title: China’s 2023 Summer Movie Box Office Expected to Exceed Pre-Pandemic Peak
Date: July 17, 2023
The box office of China’s 2023 summer movie has surpassed 8.7 billion yuan ($1.34 billion) as of July 16, according to industry data. This year’s summer period is projected to outshine the peak box office performance of 2019, marking a significant recovery for the film industry since the COVID-19 pandemic.
Traditionally, the summer season accounts for approximately 30% of the annual box office revenue in China’s film market. Over the past ten years, the summer box office consistently contributed more than 27% of the total annual revenue, except for the pandemic-affected years of 2020 and 2021.
From 2013 to 2019, the summer box office increased from 5.836 billion yuan to 17.778 billion yuan, with an average annual compound growth rate of 20%. This growth was supported by the release of several highly successful and acclaimed films during the summer period.
However, the film market experienced a downturn from 2020 to 2022 due to the impact of the pandemic. In these years, the summer box office revenue reached only 7.381 billion yuan and 9.135 billion yuan, respectively. This year, the box office has already reached nearly 9 billion yuan, surpassing the levels of the same period in 2019.
The increased revenue can be attributed to factors such as favorable policies, a diverse film lineup, and effective marketing strategies. In a joint announcement, the Ministry of Finance and the National Film Administration exempted special funds for the development of the film industry from May to October 2023. This policy alleviates financial burdens for producers, increases profitability prospects, and boosts cinema revenue during key periods like the summer vacation and National Day.
Furthermore, a significant number of new films are being released during this exemption period, including highly anticipated titles that were delayed due to the pandemic. With a sufficient supply of diverse films, the summer box office is expected to continue its upward trend.
Roadshow announcements in colleges and universities have also contributed to the increased popularity of the film market. By showcasing upcoming films on campus, movies like “The Wandering Earth 2” and “Chinese Ping Pong” were able to generate excitement and successfully attract audiences. “The Missing She” and “Thirty Thousand Miles in Chang’an” have also deployed roadshows in multiple cities, capitalizing on regional cultural characteristics and unique marketing approaches.
The positive trend in the film industry is reflected in the performance of listed companies in the sector. China Film, for example, reported a significant increase in net profit, with a year-on-year growth rate estimated to be between 1287.12% and 1782.52%. Wanda Films also expects a profit turnaround, with a projected net profit of approximately 380 million to 420 million yuan for the first half of the year.
According to PwC’s “2023-2027 Global Entertainment and Media Industry Outlook” report, China’s box office revenue is set to rebound to pre-pandemic levels by 2024. The Chinese film market is projected to surpass the United States‘ market by 2025 and constitute 27% of the global box office revenue by 2027, solidifying its position as the world‘s largest film market.
With the current success of the 2023 summer movie and positive industry performance, China’s film market is poised for continued growth and recovery.
[Responsible editor: Guo Xu]