| The global box office has been stronger than expected this summer, with hits including Pixar’s Inside Out 2 and Marvel’s Deadpool & Wolverine each grossing over $1 billion. But not in China, a crucial market for US studios. The summer’s been a total washout there, with ticket sales from June through August down by about half from a year ago.
Since the first US picture was approved for release in China in 1994, studios had come to depend on that market for growth as the box office peaked in the West and streaming stole audiences. But in recent years, Chinese regulators have curbed access to their theaters, saying most American titles don’t align with Communist Party values.
The number of approved US releases in China peaked at more than 60 in 2018 and then headed down through 2021, according to data from the Chinese ticketing service Maoyan Entertainment. That coincides with escalating trade and political tensions between the two nations. Meanwhile, local-language films in China have soared in quality over the same period, possibly blunting demand for American films. Case in point: Deadpool & Wolverine, which opened at No. 1 in most countries in July. It opened at No. 2 in China, where the top grossing movie that weekend was the Chinese comedy Successor. After years of embracing Hollywood movies, more than 80% of China’s box office is now generated by homegrown pictures.
“Most, if not all, studios project zero revenue from China now at the green-light process,” said Chris Fenton, a producer and author of Feeding the Dragon, a book about the Chinese market. “If a film eventually makes money in China, it’s now viewed as gravy.” It’s a stark departure from the previous decade, when co-productions prospered and helped Chinese studios learn to produce US-style blockbusters. The Obama administration signed a deal with China to increase American film releases in the country, Beijing-based Wanda Group took over AMC Entertainment, the world’s largest cinema chain, and Walt Disney opened a resort in Shanghai.
Now, the Chinese audience for US blockbusters from Disney, Universal and Warner Bros. — once surefire exports — is contracting. “For China to regain its historical annual box office growth trendline, the exhibition industry would probably benefit from greater consistency of import film dates and releases,” said Rance Pow, cofounder and chief executive officer of Artisan Gateway, a firm that advises Hollywood studios on the Chinese cinema market. There have been exceptions. Inside Out 2 did better in China than the first film in 2015, and Marvel’s Guardians of the Galaxy Vol. 3 did about as well in the country last year as Vol. 2 did in 2017. Alien: Romulus, the sci-fi horror picture from Disney’s 20th Century Studios, is enjoying a breakout performance after opening at No. 1 in the country’s cinemas last weekend. And companies that rely heavily on China’s box office have also been quick to adapt to the shifting landscape. In recent months, Imax Corp., known for its giant screens, has signed agreements with Wanda, Hengdian Group and Bona Film Group to expand its presence in the country, its second largest market by sales. Imax used to get most of its revenue in China from US movies. That’s going to change. “Going forward, it’ll be a split between Hollywood and local language content, probably with local outperforming,” Imax CEO Rich Gelfond said. He expects more Hollywood films to be shown in China this year than the 41 screened last year, which was up from 25 in 2022. — Thomas Buckley and Sohee Kim The battle for Paramount should finally be decided in the next two weeks. Edgar Bronfman Jr., an heir to the Seagram Co. liquor fortune, is offering $6 billion for control of Paramount, the parent of CBS, MTV and other media businesses. He’s competing against technology heir David Ellison and his Skydance Media, which has already reached an agreement with the company. Bronfman’s sweetened bid, coming just ahead of a deadline for offers, led the special committee of Paramount’s board to extend the window to consider his proposal last week. Lawyers for Ellison fired off a letter saying Paramount is violating his merger agreement by talking to Bronfman. Bronfman must still deliver specific deal terms and financing commitments, according to people familiar with the process. The special committee will have to decide by Aug. 28 if Bronfman’s proposal is superior to Ellison’s, the people said. If Paramount concludes it isn’t, Bronfman is out and Ellison is the winner. If it’s deemed superior, Ellison, the son of Oracle Corp. co-founder Larry Ellison, will have four business days to respond. Bronfman will likely become chief executive officer of Paramount if his last-minute bid succeeds, a person familiar with his thinking said. Paramount is currently run by a trio of executives. Ellison plans to take over as CEO if his proposal wins. Los Angeles Dodgers fans knew the tab would come due for the team’s $700 million splurge last year for Shohei Ohtani, the home-run-slugging pitcher they signed to a 10-year deal. The bills starting arriving this month. The team sent out annual ticket renewal offers in the past couple weeks with price increases of 20% to 30%, according to reports I’ve received. My own bill, for two field-level tickets on the third-base side, rose 20% to about $193 per ticket. General parking, pretty much a must for Angelenos, is going up 10% to $22 a game for season-ticket holders. I tried to reach officials in the Dodgers media office to confirm these numbers and discuss the increases, but they didn’t respond to phone calls or emails. In the absence of hearing from the organization, I’ll speculate that the Dodgers are raising prices because they have to — and can. People want their sports – in person and on TV — and they’re willing to pay for it. The Dodgers are selling more than 48,000 tickets per game this season, leading Major League Baseball, and it’s pretty clear from this table that other teams are doing well, too. You can also see that demand in the ticket resale market. I unloaded a couple tickets on Seat Geek last week — a 1 p.m. Sunday game against the Tampa Bay Rays. It was one of the least desirable games on my schedule, an afternoon in 90-plus-degree heat. Yet my tickets and parking sold for a profit. You can’t really fault the Dodgers’ owners. Guggenheim Baseball Management and controlling partner Mark Walter have put their money on the field. While Ohtani’s deal captured the headlines, the team also paying $325 million over 12 years for pitcher Yoshinobu Yamamoto and $136.5 million over five years for Tyler Glasnow, another pitcher. That’s on top of the $365 million that the Dodgers agreed to pay outfielder Mookie Betts over 12 years in 2020 and the $162 million they agreed to pay first baseman Freddie Freeman in a six-year deal reached in March 2022. The owners have also delivered winners — three World Series appearances since 2017 and one victory in the Covid-shortened 2020 season. The team is in first place now, too. There are some signs that consumers are pulling back in the face of high prices. Walt Disney Co. said this month profit at its theme parks fell last quarter, hurt by rising costs and flat attendance. Fox News ran a segment recently on the high prices for opening day tickets to the Los Angeles Clippers in the new Intuit Dome arena built by team owner Steve Ballmer. My Dodgers partners and I are trying to find a fifth person to buy a share of our tickets. We’re happy go to fewer games to keep a lid on costs. But if we can’t find one or two new partners, we may say goodbye to our tickets after more than 25 years. What it comes down to is this: Premium entertainment is going up in price and will probably continue to do so. Whether you want to visit Disneyland for the day, see Taylor Swift in person or go to one of 81 Dodgers home games, it’s going to cost you. — Rob Golum The No. 1 movie in the world is…Walt Disney’s Alien: Romulus with $57.8 million in global ticket sales this weekend. What Sohee is watching/listening to... Lisa and Rosalia’s New Woman and season 2 of Pachinko on Apple TV+ | 
