The State Council of China issued successively in 2010 a series of guidelines for film and cultural industries, giving strong support for the development of China’s film industry at the macro policy level. At the end of the same year, it also made a clear announcement that the cultural industry be developed as a pillar industry for the national economy. The politically favorable environment has made it possible for China’s film industry to develop rapidly.
Looking back at 2013, China’s film industry advanced exponentially, with box office gross exceeding RMB20 billion, starting a golden period of development. While this new phase witnessed a continued rising in the number of moviegoers with film screens approaching 20,000, statistics indicate a declining occupancy rate that told a real story of operations of the movie theaters.
Meanwhile, film technology renovations and rapid growth of its viewer‐base have been accompanied by significant changes in the constitution of moviegoers, their viewing preferences and ways to access information in comparison with previous years. On the other hand, a series of challenges the industry faces have surfaced: i.e. how to enhance the business of cinemas in the rapidly growing market; how to improve competitiveness of domestic films and how to understand accurately the tastes of audiences. To help industry players including investors get a comprehensive understanding about the status and features of China’s film industry, EntGroup presents China Film Industry Report 2013‐2014 based on interviews, in‐depth research and analysis. This is the 6th such annual report by EntGroup since 2009.
Numbers of China’s movie theaters and screens in 2013
2013 saw a continued and rapid expansion of the number of movie theaters in China. Theater chain companies across the country added 903 new cinema complexes, bringing the total number of theaters to 4,583. There were 5,077 new screens added, averaging 13.9 per day, bringing the total number of screens to 18,195. The growth rate of theater numbers was 27.3%, down 4.1% over 2012, while the growth rate of screen numbers dropped by 13% year‐over‐year. The number of screens in the newly added theaters averaged 5.6. The market is still flooded with many irrational investors, justifying a prediction that M&A will emerge in 2014.
Figure 4‐1: Growth in the Numbers of Movie Theaters & Screens in China in 2009‐2014
Current Status of E‐Commerce for Chinese Theaters in 2013
Data from Entgroup show that online group‐buying deals for film tickets grossed RMB3.64 billion in 2013, averaging RMB300 million per month, a 16.7% market share of the national box office revenue in 2013. The latter was RMB21.7 billion.
In 2013, the sales of group‐buying tickets totaled 129 million, averaging 10.82 million per month, a 21% national market share of 610 million admissions.
The market volume of online seat selection in 2013 will be more than RMB1.2 billion, about 5% of the year’s box office revenue. It is predicted that the percentage will increase to 10% for 2014, and more than 15% by 2015.
In 2013, nearly 30% of domestic theaters provided the option of online seat selection. It is predicted to reach 60% or more by 2015. By then, all the major movie theater chains in China will provide this option. Down the road, the potential for growth will lie with theaters in medium and small‐sized cities.
Figure 4‐2: Monthly Group‐buying Ticketing Volume in 2013
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About EntGroup
EntGroup Consulting is the leading research and consulting company focusing on China’s entertainment industry. A member of ComInsight Information Alliance Group, EntGroup focuses on providing data and information, conducting market research, industry research, consulting, and organizing media conferences. We serve a wide range of clients in areas of film, TV, new media, entertainment marketing and animation.
EntGroup also operates an online portal for the entertainment industry— http://english.entgroup.cn
About EBOT
EBOT EntGroup Box Office Tracker is a database focusing on the entertainment industry. Created and managed by China's leading entertainment industry research institute, EntGroup, it provides statistics and analysis on film and TV industries, as well as insight on market trends and consumer behaviors. It is an essential tool for entertainment investors, financiers, film production companies, distributors and advertisers. EBOT integrates Box Office data and analysis, moviegoer surveys, advertising insight, buzz tracking and industry research reports.
For more information, please visit: http://english.entgroup.com.cn/enbase.html or contact
Leon (President) Tel: 86-10-85899985-813 E-mail: leon@entgroup.cn;
Amy (Vice President) Tel: 86-10-85899985-847 E-mail: amy@entgroup.cn
Nancy Wu (Director of North America) Tel: 1(323)-723-2650, E-mail: nancy@entgroup.cn.
