Slump in China’s box office is helping big cinema chains squeeze the air out of independent theatres, analysts say
- First-quarter box office income plunged by 8 per cent and looks set to slow further
- A spike in the number of new screens being installed intensifies competition between cinema chains
The growth of China’s film market is likely to slow down further this year after a disappointing first quarter. But that could be good news for big cinema chains, according to analysts.
China’s box office revenue plunged by 8 per cent year-on-year in the first three months to 18.6 billion yuan (US$2.8 billion), data compiled by movie ticketing platform Taopiaopiao shows.
That suggests the industry could be facing another tough year ahead after a decade of exponential expansion ended abruptly four years ago.
But big cinema chains are likely to do better and squeeze out smaller independent theatres, analysts said, with the industry set to consolidate amid a surge in the number of new movie screens.
“Intense competition will force small and medium-sized cinemas to phase out of the market and enhance the market share of top players,” analysts led by Gary Guo, head of A-share media and internet research at HSBC Qianhai Securities, wrote in a recent report.