Core Viewpoint - The article discusses the challenges faced by the Chinese film industry, particularly focusing on the revenue-sharing model between production companies and cinemas, highlighting the disparity in profit distribution and the impact on the sustainability of both parties [14][16][25]. Revenue Distribution - The total box office revenue for "Nezha" reached 154.46 billion yuan, but the production company only received 55.02 billion yuan, which is approximately 35.6% of the total box office [5][18]. - After deducting government fees (5% national film fund and 3.3% special business tax), the remaining revenue for distribution is 139.77 billion yuan [21]. - Cinemas typically take a significant portion of the revenue, often up to 57%, leaving production and distribution companies with a minimum of 43% [22][23]. - The overall revenue share for production companies in China is lower compared to other markets, such as North America (around 60%) and Europe (55%-65%) [26]. Industry Challenges - The article notes that the film market is shrinking, with a projected total box office of 425.02 billion yuan in 2024, a 22% decrease from 2023 [56]. - Cinema operators are struggling to maintain profitability, with some reporting significant declines in revenue and even resorting to unethical practices like ticket fraud to survive [50][54]. - The current economic environment makes it difficult to negotiate better revenue-sharing terms, as the overall market is under pressure [55]. Potential Solutions - The article suggests that production companies could explore alternative revenue streams, such as merchandise and IP derivatives, which can significantly boost income [61][62]. - Cinemas could diversify their offerings, such as hosting live events or sports broadcasts, to increase revenue [64]. - Adjusting the revenue-sharing model to allow production companies to retain a higher percentage during the initial release period could help them recover costs more effectively [68]. - Temporary reductions in government fees have been proposed as a way to alleviate financial pressure on the industry [70]. Audience Sentiment - Public sentiment appears divided, with some criticizing production companies for their complaints about revenue sharing, while others recognize the unsustainable nature of the current model [38][40]. - The success of "Nezha" indicates that audiences are still willing to support quality films, suggesting that improving content quality could help revitalize the industry [78].