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China Film Insider: China Box Office Slumping, Official Numbers Show

Discussion in 'China & Far East' started by Hamartia Antidote, Jul 29, 2016.

  1. Hamartia Antidote

    Hamartia Antidote ELITE MEMBER

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    http://chinafilminsider.com/china-box-office-slumping-official-numbers-show/

    • Second quarter earnings for China’s box office were down 4.6 percent over Q1 2016.
    • Year on year, Q2 2016 earnings are down 18.6 percent compared to 2015.
    • The decline is the first for the world’s second-largest cinema market in five years.
      [​IMG]
      China’s box office dropped in the second quarter, for the first time in five years.

    Box office takings in the world’s second-largest film market fell for the first time in half a decade, official figures released this week show.

    The country’s box office dropped 4.6 percent in the second quarter of 2016, according to statistics from the National Film Development Funds Management Committee.

    Total domestic box office takings between July 1 and Monday, July 25, amounted to RMB 3.76 billion, a drop of 18.6 percent from RMB 4.6 billion sales in the same period last year, according to Chinese box office site maoyan.com.

    The official figures line up with data released by Beijing-based Ent Group last week that showed the market contracting nearly five percent in the second quarter.

    The sudden slowdown follows a period of break-neck growth last year in which the country’s box office expanded 49 percent.

    That rapid growth had many analysts predicting China would surpass North America as the world’s largest theatrical market by the end of 2017.

    The drop, from a record 44 billion yuan ($6.6 billion) for the same period last year, is being blamed on a reduction in ticket subsidies made by film producers.

    “After the subsidy decreases, the audience will not buy as many tickets as they did before,” Wang Changtian, chairman of Enlight Media told state news outlet, China Daily.

    “This will show their real consuming capacity. In fact, the ticket price may be a little bit higher for them,” he said.

    The practice, whereby moviegoers buy tickets at a discount and producers subsidize the remainder of the full price, has come under closer scrutiny after a series of scandals.

    Domestic blockbusters such as Lost in Hong Kong, Monster Hunt, and Ip Man 3 were among a number of domestic movies suspected of inflating box office figures.

    In an unprecedented move in March, Chinese regulators took legal action against distributor Dayinmu Film for their involvement in the manipulation of ticket sales for the movie Ip Man 3.

    Legal Roundup: Ip Man 3 Distributor Punished for Box Office Fraud

    This summer, Chinese regulators responded to the box office slump by allowing Hollywood releases into the country during its traditional “blackout” period between late June and early August.

    If the trend for the second quarter results continue, it could be good news for Hollywood studios, as regulators are tempted to allow more foreign fare in to keep box office growth figures up.


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    http://en.people.cn/business/n3/2016/0727/c90778-9091625.html

    China box office falls after subsidy cuts
    (China Daily) 09:34, July 27, 2016

    [​IMG]

    Poster of the film Big Fish & Begonia.

    The country's box office dropped 4.6 percent in the second quarter of 2016, according to statistics from the National Film Development Funds Management Committee. This compared with a record 44 billion yuan ($6.6 billion) box office for the same period last year.

    The box office fall, the first in half a decade, is due to a subsidy reduction and therefore has weighed down the stock performance of the major listed film companies.

    Wang Changtian, CEO of Enlight Media Co Ltd, one of China's top film companies, said that the shrinking box office in China is in large part the result of the subsidy reduction.

    "After the subsidy decreases, the audience will not buy as many tickets as they did before. This will show their real consuming capacity. In fact, the ticket price may be a little bit higher for them," he said.

    In the period from July 1 to Monday, the total domestic box office was 3.76 billion yuan, dropping 18.6 percent compared with 4.62 billion yuan of sales in the same period last year, according to data from a Chinese real-time box-office data site called Maoyan.

    Industry sources said a few blockbuster Chinese films, such as Lost in Hong Kong and Monster Hunt, have been the subject of allegedly inflated reported box office sales.

    The phenomenon is a practice in the industry, where many film producers will reserve some costs for box office allowances.

    Moviegoers can usually buy film tickets at a discount, and producers will subsidize the remainder of the full price, which can be regarded as a promotional activity. However, if there is no real demand to see the film but producers buy the tickets in advance, this is considered illegal.

    Of last year's 44 billion yuan reported box office, about 3 billion yuan to 5 billion yuan came from such allowances.

    Industry sources said the illusion of a high box office actually harms China's film industry and will lead to market bubbles and disorders.
     
    Last edited: Jul 29, 2016
  2. Jlaw

    Jlaw ELITE MEMBER

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    But you can download movies, why do you need to go to movies anymore?