In China, around 15 theaters are being opened each day. (Photo : Getty Images)
China's most potent market is beginning to lose its shine as Chinese moviegoers begin to tighten on their budgets and cut back on consumptions that are considered luxuries, causing worry among policy-makers.
Ticket sales of Hollywood movies are beginning to slow as the box office tracking firm EntGroup confirms that the country saw in three months prior to June, BBC News reported.
Until the past few months, the Chinese box office maintained an impressive record, bringing home the title of the second biggest movie market around the world.
Recent Slowdown
According to BBC News, movie ticket sales in China has declined by about 15 percent in July and is continuing its current path downwards from previously being hailed as the world's second largest movie market next to North America.
Aside from that, ticket prices are also beginning to decrease as well as China is beginning to lose its luster from gaining momentum in the movie market in 2015.
Last year, the Middle Kingdom recorded a spectacular 50 percent increase in movie ticket sales as Chinese moviegoers give in to their craving for Hollywood and local films to ease the stresses of daily life.
Unfortunately, the country's movie market cannot hold on to such impressive state much longer as even cinema giants like the Wanda Cinema Line only saw an increase of a mere 12.8 percent in the second quarter which is a big drop compared to Q1's 61.4 percent growth.
The Reason
With 31,627 silver screens, China is supposed to be increasing in sales instead of losing them considering that it is almost as many as the United States' 39,000 screens.
One of the most obvious reasons for the decline in the movie market is China's economic slowdown which has affected nearly every industry in the land.
Aside from that, the Hollywood Reporter notes that other reasons for this slowdown is the weakness of local films released during the period in question.
"Usually, there are a few dark horse local hits in the spring, and this year there really were none," a Beijing film executive who requested for anonymity told THR.
Perfect World Pictures President Rong Chen thinks so too, explaining that the quality of the products the consumers are seeing is disappointing compared to preceding months.
"It's always about the product. And I think it's fair to say that both the Chinese and U.S. product hasn't been quite as strong this year," he explained.
A change is demographics might also be to blame in this slowdown with more Hollywood superheroes being shown in Chinese cinemas whereas audiences who are mostly from the countryside may want more locally made flicks.
