3 Reasons China Overtook Hollywood in 2020 (Other Than Coronavirus)
The two biggest movie markets in the world
Most of us tend to think about film in terms of a creative subject, rather than as an industry.
But students interested in film would gain a larger perspective by becoming aware of certain key insights about movie markets worldwide.
First (and this is no surprise), America has always been the largest movie market in the world, in terms of box office revenue.
But in 2020, China overtook Hollywood, bringing in 3.1 billion USD at the box office—nearly 1 billion more than the US.
A major reason for this is that China was able to reopen theaters much quicker than the US after the initial coronavirus outbreak.
Does that mean that once the US bounces back, it will regain its position as the top movie market? Possibly, but we have to keep in mind that coronavirus is not the only reason for China’s takeover.
Here are 3 other important reasons to consider:
Cast member Liu Yifei at the Los Angeles premiere of Disney’s Mulan. Photo: Reuters
1. Recent Hollywood blockbusters didn't do well in China
Both Warner Bros.’ Wonder Woman 1984 and Disney’s Mulan were disappointments at the Chinese box office. The latter film was a particular disappointment as it was an effort to target Chinese audiences.
The live-action remake of Mulan brought in a considerably smaller audience in China than the live-action remake of The Lion King. Mulan earned just 23.2 million on opening weekend in China against a 200 million budget.
2. Blockbuster productions in China are becoming successful
Some China blockbuster productions have success both domestically and worldwide. Last year’s action war movie, The Eight Hundred, produced by CMC Pictures in China, grossed more than 100 million domestically, and more than 470 million worldwide. This was against a budget of 80 million.
While some Hollywood titles haven’t done well in China lately, some films produced by Chinese studios have become large successes.
3. Increasing demand for local content in China
Other than the scale of film productions in China, the strong volume of local content being produced also reflects their increased demand.
Plus, rising geopolitical tensions between the US and China may have fuelled nationalistic sentiments, causing Chinese audiences to flock to domestic productions.
What this means for the future of Hollywood
These reasons may be cause for concern in Hollywood, as their current budgets are unsustainable without access to the China market.
By comparison, China's film market does not rely exclusively on Hollywood products, which means the current model of the US film industry may have to change.
Even though coronavirus may have precipitated China's takeover of Hollywood in 2020, there are other factors that come into play as we look towards the future of the two biggest movie industries in the world.
