China’s movie moguls see online video apps as complementary to cinemas

It may sound counter intuitive, but the rise of mobile video apps in China is not seen as a threat by movie executives.

The thriving market for online video apps has greatly enhanced content production which is crucial for the development of the Chinese movie industry because it helps nurture people’s movie watching habits, according to Nate Fan, president of distribution with Shanghai Bliss Media Ltd.

Although a large number of viewers may choose to watch content on mobile platforms, “watching movies in theatres is more of a social activity and people may want to eat popcorn or have a cocktail with their family and friends instead of watching a movie in their homes,” Fan said during a panel discussion on the topic “Box Office vs. Streaming” at the CES Asia show in Shanghai on Thursday.

China is currently the world’s No 2 box office after North America, with US$8.6 billion in ticket sales in 2017, up nearly 14 per cent compared to 2016, according to the State Administration of Press, Publication, Radio, Film and Television (SAPPRFT), adding that domestic-made movies contributed 54 per cent of the overall annual box office.

Chinese cinemas generated more than US$3 billion in ticket sales during the first quarter of this year, outstripped North America’s US$2.8 billion, and analysts believe China’s will emerge as No 1 globally by the end of the year.