Film market sees revenue plunge

As the year approaches its midpoint, China's film market seems to be pausing for a brief "halftime" break — slowed by a recent sluggish performance but expected to be poised for a stronger comeback in the second half.

Combined with the May Day holiday receipts, this year's overall box office has reached 26.5 billion yuan ($3.67 billion), with more than half of the cumulative revenue contributed by Ne Zha 2 during its run since Spring Festival.

The animated hit has extended its theatrical release to May 31. Its highly anticipated sequel, Ne Zha 3, will take around five years to produce, reveals Wang Changtian, chairman of Beijing Enlight Media Co, the major investor of the Ne Zha franchise, during a recent conference organized by the China Film Administration.

Despite nine new movies being released during the five-day May Day holiday — a major box-office season — the holiday concluded with 747 million yuan in total box-office revenue, the lowest in eight years and decreasing 51.1 percent year-on-year, according to a report released by the Maoyan Research Institute.

Topping the holiday charts is actress Ma Li's biopic The Dumpling Queen, inspired by the touching story of Zang Jianhe — a divorced woman who raised two young daughters by selling dumplings on Hong Kong streets and eventually became a business legend as the founder of the popular food brand Wanchai Ferry. The film earned 192 million yuan during the festival.

Coming in second is Hong Kong megastar Andy Lau's A Gilded Game, a financial crime drama that sheds light on the shadowy corners of the investment banking industry and stock market. It grossed 134 million yuan.

Taking the third spot is Japanese master Hayao Miyazaki's award-winning anime feature Princess Mononoke, followed by director Yi Xiaoxing's comedy The Open Door in fourth place, with the two movies respectively bringing in 69 million yuan and 65 million yuan.

Originally released in Japan in 1997, Princess Mononoke is regarded as one of Miyazaki's greatest works, known for its profound allegory exploring the conflict between human civilization and the natural world. This marks the first time the classic — released in both Mandarin and Japanese versions, with actress Zhao Liying voicing the titular role in the Mandarin edition — has been screened across Chinese mainland theaters.

Marvel's latest superhero film, Thunderbolts*, which gathers an unconventional team of antiheroes for a dangerous mission, ranked as the fifth highest-grossing holiday film, followed by the comedies I Grass, I Love and Ne Zha 2, which placed sixth and seventh respectively on the festival box-office charts. Trapped, a crime thriller which won two Tiantan Awards at the 15th Beijing International Film Festival, somewhat disappointingly came in eighth.

Although the May Day holiday performed unsatisfactorily in ticket revenues, it still had some highlights, such as new movies being used to boost tourism in some areas, says Rao Shuguang, president of the China Film Critics Association.

For instance, I Grass, I Love — released on May 1 — has inspired locals to create themed travel routes titled "follow the movie to travel". As a road comedy, the film follows a veteran driver and an aspiring rapper on a 5,000-kilometer journey from the Inner Mongolia autonomous region to Hunan province. In Hunan's Qingxi village, where a picturesque spring farming scene was filmed, tourists with the movie's tickets receive discounts and can participate in activities that re-create memorable moments from the film.

"Chinese film market is currently undergoing profound and irreversible structural changes. Audiences are evolving, while micro-short dramas, concerts and tourism are competing for viewership in an unprecedented way. Meanwhile, artificial intelligence is reshaping every aspect of film production and the industry landscape," Rao says.

According to a report by Beacon, Alibaba Pictures' film data analytics arm, the proportion of theatergoers under 24 plummeted to just 17 percent during this year's May Day holiday — a dramatic drop from 38.4 percent during the same period in 2021.

Lai Li, a veteran analyst at Maoyan Research Institute, reveals that their report shows the under-20 demographic now accounts for less than 10 percent of movie audiences — the lowest ratio on record — while the share of audiences aged older than 35 has grown steadily for four consecutive years.

"The film market is losing its core young demographic," observes Beijing-based critic Yuan Yun'er, highlighting industry concerns as cinema celebrates its 130th anniversary while seeing its appeal wane among younger viewers.

"This shift stems from multiple factors, including pandemic-altered entertainment habits and declining film quality," she adds.

On the review platform Douban, the highest-grossing films during the May Day holiday have received comparatively lower ratings: The Dumpling Queen scored 6.6 points, A Gilded Game 6.3, and The Open Door 6.6.

In contrast, Princess Mononoke has maintained an impressive 8.9 points.

"No matter what, Chinese filmmakers must remain confident and stay true to their original aspirations. Domestic creators need to continuously enhance artistic capabilities, imagination and creativity, while better understanding the evolving preferences of audiences and market trends," says Rao.

Lai says the upcoming two major box-office seasons — Dragon Boat Festival and the summer vacation — have already scheduled multiple highly anticipated offerings, such as Chinese animated film Endless Journey of Love, American film How to Train Your Dragon and domestic costume comedy The Litchi Road.

"Overall, the upcoming film slate for the remainder of the year boasts a robust lineup with diverse genres and themes, including several tentpoles. We anticipate these forthcoming releases will achieve stronger market performance, drawing audiences back to theaters and delivering delightful cinematic surprises," says Lai.