China’s Box Office Plummets Amid Economic Downturn
China’s box office receipts plummeted by 23% last year, to just 42.5 billion yuan ($5.8 billion), according to official numbers released by the China Film Administration. This marks a 34% decline from 2019, a record year for the movie industry before the pandemic and economic challenges emerged.
The top box office draw last year was “Yolo,” a feminist film starring and directed by Jia Ling, which sold 3.5 billion yuan ($474 million) worth of tickets. Comedy films continued to be the most popular genre, accounting for 36% of the annual box office.
However, the overall box office was soft due to a decline in the number of films produced. Only 612 films were made in 2024, compared to 792 the year before. This trend is not unique to China, as the number of projects actively filming globally fell by 17% in July to September 2024 compared to the same period in 2022.
China’s economic downturn was a surprise to experts, as movie theaters had done well in 2023. The industry had been a rare bright spot in China’s economy, which had lost momentum after an initial rebound from the pandemic.
Despite the decline in box office revenue, cinemas are not typically expected to thrive during economic downturns. In fact, the phenomenon of consumers spending on small luxuries during tough times is often referred to as the “lipstick effect.” However, economic sentiment has improved in recent months, and officials have introduced measures to boost the box office, including a subsidy program to offer discounted tickets and lucky draw competitions.
China is facing a number of challenges, including a property crisis, debt problems, and high youth unemployment. The government has not introduced major stimulus measures that involve putting money directly into the hands of consumers, but has begun “cash-for-clunkers” programs to boost sales of passenger cars and home appliances.
