This year was to mark a turning point for the world of cinema. After a decade which saw the explosion of the attendance in the rooms, China was on track to pass in 2020 before the United States and to become the first market for the 7th art in terms of receipts. These forecasts became obsolete with the epidemic of coronavirus which made nearly 1900 dead and paralyzes all the production and the exploitation of films in the Middle Empire.
While the epidemic is encouraging Chinese people to stay home anyway, most cinemas have been closed since January 24. In a trendy district of Beijing, not the shadow of a movie buff near the Megabox. No date has yet been set for the reopening of this eight-screen cinema.
The epidemic came at the worst time for the operators. The long holidays of the Lunar New Year, which fell this year on January 25, usually experience a peak in cinema attendance and many blockbusters come out on this occasion.
"In 2019, movie theater revenues during New Year's holidays represented between 20% and 30% of the total box office for the year, it's huge," said Wilson Chow, industry expert for PwC. On Lunar New Year's Day in 2019, movie theaters had grossed $ 240 million: revenue fell this year to $ 300,000, according to Wilson Chow.
The epidemic benefits video platforms
The public group China Film Group Corporation had made 8% of its annual revenues last year during this vacation. With its cinemas closed and the postponed release of films it co-produces, the epidemic "will have a definite impact" on its results, he warned. Operators of more fragile rooms could put the key under the door if the closure is prolonged, warns Wilson Chow.
The prospects are also gloomy for the biggest chains, which are panicking from internet competition. Huanxi Media, a large studio, has decided to broadcast its highly anticipated comedy "Lost in Russia" directly online, rather than delaying its release. He teamed up with internet giant Bytedance, which paid him $ 90 million to offer the film on its Douyin and Toutiao platforms.
Several major cinema chains, including Wanda, Bona, Dadi and Lumiere Pavilions, reacted furiously, threatening in a joint letter to boycott the next Huanxi films. For them, this precedent "amounts to deliberately destroying the film industry".
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Other studios have postponed their sine die releases and many shootings are suspended or slowed down. Producer Wanda Film's title fell 25% in one month on the Shenzhen Stock Exchange. Conversely, the online video platform iQiyi has advanced its film distribution program to meet the demand of Chinese confined to their homes.
"Mulan" should wait
The shock wave is felt far beyond the Chinese borders. A third of the revenue in China is generated by foreign films and this market has become vital for Hollywood blockbusters.
Disney could hope to achieve colossal success there in the spring with its new film "Mulan", a production of 200 million dollars telling the adventures of a young Chinese girl disguised as a soldier. But the American giant, already affected by the closure of its amusement parks in Hong Kong and Shanghai, admitted ignoring when it could finally broadcast "Mulan".
According to Deadline, the preview scheduled in April in Beijing of "Die Can Wait", the new James Bond, was also canceled, as was a tour of the film crew in several Chinese cities.
Another victim, the cinema operator and distributor Imax Corp., based in Canada: his shortfall could exceed $ 60 million. He assured in a press release betting on film releases postponed later in 2020 and on an "always high" demand for entertainment.
