US Movie 'Tenet' Box Office Flop Shocks... Film Releases Postponed One After Another
China Box Office Revenue $1.7 Billion... Only $200 Million Behind the US
[Asia Economy Reporter Jeong Hyunjin] The film industries of the two major powers (G2), the United States and China, are experiencing contrasting fortunes. While the U.S. film market, the largest film powerhouse based in Hollywood, is fighting for survival amid the COVID-19 pandemic, the Chinese film market is attempting to surpass North America, the world's number one.
According to Bloomberg and other sources on the 8th (local time), major U.S. films have been postponing their releases one after another. On the 3rd, the release of the 25th James Bond series, "007 No Time to Die," was postponed from November this year to April next year, and Walt Disney also delayed the release schedules of major works such as Marvel Studios' "Black Widow" and "Eternals." The sixth sequel to "Jurassic Park," "Jurassic World: Dominion," also decided to postpone its originally scheduled release date of June 10 next year by one year.
The reason Hollywood films are postponing their releases one after another is that they see a high possibility of box office failure. In fact, director Christopher Nolan's film "Tenet," which was released last August, performed below expectations, shocking the film industry. With expectations that economic activities are gradually reviving as COVID-19 lockdown measures are lifted, theaters that had suspended operations reopened for the release of Tenet but decided to close again due to disappointing results.
Generally, Hollywood films require a certain level of audience to break even because of their large budgets. However, with no COVID-19 vaccine developed yet and the situation prolonged, expectations that audiences will return even if theaters open have diminished. According to Box Office Mojo data, the number of viewers in the U.S. on the 3rd and 4th was 8.3 million, down 12% from the previous week and 93% compared to the same period last year.
As a result, concerns are growing in the U.S. film industry. Large theaters have decided to suspend operations, and it is not easy even for small and medium-sized companies to endure. The National Association of Theatre Owners of the U.S. warned, "If this situation continues, 69% of small and medium-sized theater operators will file for bankruptcy or permanently close."
On the other hand, Chinese media report that the Chinese film market is recovering. The state-run Global Times recently reported that the number of moviegoers in China is rapidly increasing, and China could emerge as the world's largest film market, surpassing North America. The box office revenue during the Chinese National Day holiday from the 1st to the 6th exceeded 3 billion yuan (approximately 520 billion KRW).
Film critic Suo Xue in Beijing predicted that box office revenue during the National Day holiday would account for 20% of the entire year's total. He also mentioned that films such as "Jin Gangcheon," which is based on the Korean War (the War to Resist U.S. Aggression and Aid Korea), will be released after the holiday. The film, depicting battles at Jin Gangcheon in Geumgangsan, is scheduled for release on the 25th of this month and had a production budget of 400 million yuan.
So far this year, China's box office revenue is 11.5 billion yuan (1.7 billion USD), showing little difference from North America's 1.9 billion USD. Shanghai film critic Xiao Puchu expressed hope that "due to the ongoing COVID-19 situation, China's film market will surpass North America and become the world's number one this year."
However, the global consulting firm PricewaterhouseCoopers (PwC) projected in a report last month that the Chinese film market has been hit by COVID-19 and that total revenue will decrease by an average of 4.8% annually until 2024. PwC also forecasted that the U.S. film market size will reach 10 billion USD in 2024, maintaining its position as the world's largest film market for at least the next five years. PwC's estimated size of the Chinese film market in 2024 was 8.1 billion USD.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
