Total ticket revenue in China over the past 20 days has totaled just $3.9 million, compared to $1.52 billion during the same stretch last year. Local film players now believe drastic government action could be necessary to save many companies.
China has shut down virtually all Cinemas and cancelled the release of several blockbusters. Many major production and distribution companies are also hurting. Seven major Chinese films have had to be rescheduled, including a number of Big Hollywood releases. Some Chinese film studios, like Huanxi Media, have got permission to release films online instead of in cinema.
"The government will need to do something big to help many cinema companies stay alive," says Jimmy Wu, CEO of Lumiere Pavilions, an upscale cinema circuit with outlets in over two dozen Chinese cities.
The impact the Coronavirus has had on the Chinese Film Industry illustrates the need to adequately prepare for further shutdown should the Coronavirus continue to spread or another scenario arise. The good news is Cinemas are ideally positioned to launch their own streaming service to showcase Premium films inside the theatrical window to moviegoers at home. We have been working with Cinemas for 5+ years now, helping them future proof their cinema business by launching their own Cinema branded streaming services.
Regardless of the Coronavirus, there is a massive opportunity for cinemas to grow home entertainment revenue with TVOD sales and use their service as a marketing platform to boost cinema ticket sales. Find out more about our Cinema solutions here.
Contact us for more information on launching your own Cinema branded streaming service to future proof against potential risks.