China’s cinemas see promising recovery after reopening, despite threat from online streaming services

Box office earnings in China reached about US$15.6 million in a week after cinemas in most areas were allowed to reopen

Video streaming platforms have become popular during the pandemic, with some production companies releasing blockbusters online instead of in theatres

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Staff members conduct disinfection in a cinema in Wuhan, central China's Hubei Province, July 20, 2020. Photo: Xinhua

Published: 5:00pm, 28 Jul 2020Updated: 11:35pm, 28 Jul 2020

Just one week after most of China’s cinemas have been allowed to reopen box office earnings have reached about 109 million yuan (US$15.6 million) and the number of screenings has increased about tenfold, according to a new report, although streaming could still pose a longer term competitive threat to the industry.

Cinemas in low-risk areas were allowed to reopen on July 20 after nearly six months of closures due to the coronavirus. By the week after, there were nearly 10 times more screenings and 45 per cent more cinemas have resumed work, according to the report on Monday by Maoyan Entertainment.

“With cinemas offering low prices and high market demand, the film market will usher in recovery at a faster rate,” China’s largest movie tickets platform said in the report.

Most cinemas are offering steep discounts to try to attract audiences back to theatres, according to Maoyan’s report, which showed that 96 per cent of the reopened theatres are offering tickets lower than last year’s average ticket price of 37.1 yuan, with most charging between 20 yuan to 30 yuan.

They are not only competing with each other, but also with video streaming platforms which have gained a significant foothold with people staying home during the pandemic, threatening the future of the traditional film industry.

Amid the closures, some production companies have opted to skip cinematic releases entirely and release their films online instead. For example, the highly anticipated holiday film Lost in Russia got an online-exclusive premiere in late January after selling the streaming rights to ByteDance for 630 million yuan. It was made available for free for a limited time on China’s version of TikTok, Douyin, after the film’s theatre screenings were cancelled.