Di Yi Cai Jing·2025-06-19 12:09Core Viewpoint - The Chinese film industry is facing a significant decline in audience numbers and profitability, prompting industry leaders to call for cost reduction and efficiency improvements to avoid a potential crisis [2][4][5]. Industry Challenges - The number of movie tickets sold in China has decreased from 17.28 billion in 2019 to an estimated 10.10 billion in 2024, representing a 40% decline [5]. - High production costs persist despite the shrinking market, with industry leaders emphasizing the need for a systemic change in production mechanisms and cost structures [2][4][5]. Cost Management - Industry leaders, including Damai Entertainment's president, advocate for lowering production costs in response to declining audience numbers [4]. - The current profit-sharing model is unfavorable for production companies, with only 38-39% of box office revenue going to them after taxes and distribution costs [5]. Industry Response - There is a push towards producing lower-budget films that focus on strong storytelling rather than relying on high production values [6][7]. - Companies are exploring new technologies, such as virtual filming and AI effects, to enhance efficiency and reduce costs [7]. Revenue Diversification - Companies like Wanda Film are shifting focus to diversify income sources beyond box office revenue, aiming to increase the share of non-box office income [7][8]. - Wanda Film's game business saw a revenue increase of over 50% year-on-year, indicating a successful strategy in expanding revenue streams [7]. Collaborative Efforts - Shanghai Film Group is partnering with various companies to explore cutting-edge technologies and interactive experiences, aiming to enhance the film industry's appeal and profitability [8].