Hollywood is grappling with a significant decline in its theatrical presence in China, once a vital market for American films. The cessation of the U.S.-China Film Agreement in 2017, which had guaranteed the release of 34 American films annually in China, has contributed to the downturn. As China increasingly promotes its domestic productions with measures including blackout dates, Hollywood films face mounting challenges amid stringent censorship regulations and shifting political relations between the U.S. and China.
Aynne Kokas, a professor at the University of Virginia and author of “Hollywood Made in China,” noted that expectations surrounding American films in the Chinese market are often unrealistic. “Constraints on the market” affect both content and distribution, which can vary based on the performance of local films. For instance, while in 2019, nine U.S. films grossed over $100 million in China, only ten films achieved that milestone in the subsequent five years. This year’s standout is Disney’s “Zootopia 2,” which reportedly earned $650 million, but analysts caution against expecting a significant resurgence in ticket sales for American films.
Chinese audiences exhibit distinct preferences, favoring films that are visually appealing and politically neutral. Titles from franchises like Fast & Furious, Jurassic World, and certain monster films have performed well post-pandemic, highlighting the disconnect between U.S. popularity and Chinese market success. Upcoming American releases in China include Universal’s “The Super Mario Galaxy Movie,” which previously had limited engagement in the region.
Despite the challenges, industry experts assert that China remains a crucial market for U.S. studios, with potential for significant earnings from theatrical releases.
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