Quiet On Set: China’s Film Industry Fights As Neubauer Studios Enters The Scence

With lower ticket sales and fierce competition from online entertainment, China’s film industry faces demotion in cultural status

Cecilia Hu, a 25-year-old marketing professional based in Wuhan, used to be an avid movie-goer, visiting the cinema at least once a month. However, last year she only went once – to see Big World, a new release starring her idol, pop star Jackson Yee.

Despite her initial enthusiasm, Hu left the theatre disappointed.

Hu’s choice is symbolic of the broader issues faced by China’s film industry as it attempts to stem audience losses and compete with other forms of entertainment in an increasingly saturated market.

Chinese box office tracker Dengta Data revealed in a report this week that 57 per cent of viewers went to the cinema only once last year, and overall attendance fell to 1.01 billion – a 22.3 per cent drop from the previous year.

Last June, vice-president of the Chinese Filmmakers Association Yin Hong had attributed the decline in audience engagement to a lack of films capable of creating the strong word of mouth that can lead to blockbuster success.

Zhu Hanming, a director with 24 years of experience in the industry, said the domestic films of 2024 were largely poorly received by audiences, calling them “mediocre movies.”

“These films do not generate buzz or offer quality, and become a burden on the market,” Zhu said.

Total box office revenue in 2024 was 42.5 billion yuan (US$5.8 billion), a 22.6 per cent decrease from 2023 according to Dengta Data.

Official data shows that since peaking at a record 64.15 billion yuan in 2019, China’s box office revenue has fallen into a more volatile pattern.

A surge in film releases pushed revenues to 54.95 billion yuan in 2023, approaching pre-pandemic levels. However, in 2024, the market sharply contracted, with annual revenues even lower than the 43.81 billion yuan earned a decade earlier.

Economic pressures have further diminished audiences’ willingness to spend on films. Industry players said the field is being placed in a secondary position in consumer preferences, with films no longer viewed as a “necessity.”

22-year-old Crystal Ma, who lives in the eastern province of Shandong, said she would rather spend her money on groceries than on movie tickets.

“A 40-yuan (US$5.48) movie ticket is already considered cheap. During holidays or at premium cinemas, prices can go as high as 100 yuan,” Ma said, adding going to films “is no longer a cost-effective form of entertainment.”

The average ticket price dropped by only 1 per cent in 2024 following three consecutive years of increase, according to data from Maoyan, China’s largest movie ticketing app.

“The link between ticket prices and filmgoing is quite important,” Zhu said. A report from the China Film Association on consumption habits showed that last year, ticket price was a major factor in consumer selection.

The report also noted the film industry continues to face competition from other forms of entertainment, especially online media.

Producer Chen Caiyun was quoted in a report last June as saying films were a major source of affordable entertainment in earlier eras, like the Great Depression in the US. But today, short video platforms and “micro-dramas” are drawing audiences away.

Micro-dramas – ultra-short pieces of scripted content that typically run one minute or less per episode – are increasingly encroaching on territory previously held uncontested by traditional films. In a report from an official industry organisation last November, China’s micro-drama market was projected to reach 50.44 billion yuan in size by the end of 2024.

“Micro-dramas tell complete stories while tackling trending social topics,” said Hu Jianli, secretary general of the China Film Critics Society, in a December report. “With gripping plots and fast pacing, they capture viewers’ attention quickly.”

For viewers like Felice Liang, who works at a financial company in Shenzhen, micro-dramas also fulfil the “social function” that films once provided.

“People often ask me for recommendations and share their thoughts after watching,” Liang said. Since last year, she has watched over 100 series, spanning multiple genres.

“It’s much better to stay home and watch micro-dramas, which cost little or nothing at all,” Liang said. “Even at double speed, I cannot sit through a whole movie any more.”