Beijing and Hollywood are decoupling as Chinese audiences favor domestic

Hollywood blockbusters have dominated international box offices for decades, but in recent years, they have lost luster in the largest movie market outside the U.S. — China. 

Walt Disney Co.’s latest film, “Deadpool & Wolverine,” has taken the world by storm since its release on July 22, becoming the highest-grossing R-rated film of all time. But it has failed to replicate that success among Chinese moviegoers.

While the Marvel superhero sequel made a respectable $57 million in its first 20 days in China, a locally produced comedy-drama, “Successor,” made six times as much in the time period, according to data from maoyan.com. 

Released on July 16, “Successor” continues to thrive in Chinese theaters. As of Monday, it had grossed over $439 million to cement itself as China’s third most-watched movie of the year. “Deadpool & Wolverine” languishes at number 15. 

A hit Hollywood franchise screened in China, especially one under Marvel, would be almost certain to rank higher in the box office prior to 2020. For instance, Avengers: End Game was China’s third most popular movie in 2019. 

However, things have changed dramatically since then. “Godzilla x Kong: The New Empire” is this year’s only Hollywood movie to rank among the top 10 highest-grossing movies in China, at number 8. 

Last year, no Hollywood movie made to the top 10 — a first since at least 2011 according to Maoyan’s records.

Though signs of Hollywood’s waning influence on China’s box office were evident even before 2020, the global pandemic helped solidify the trend, according to film experts. For roughly three years, Chinese theaters were closed, fewer films were made, and moviegoers turned to streaming for entertainment. 

By the time Hollywood movies returned to screens in China, they were met with a much more insular as well as developed home market, according to Stanely Rosen, a professor of political science at the University of Southern California. 

“China learned all they could from Hollywood. Now they make their own big-budget blockbuster films with good special effects, and even good animated films … They don’t need Hollywood anymore,” Rosen, who specializes in Chinese politics, society, and film, told CNBC. 

Meanwhile, Chinese films like “Successor” have a major home-field advantage. 

“The Chinese audience, mostly young people, want stories they can resonate with … films that relate to things happening in China in one way or another,” said Rosen.  

Successor matches that description, with the film touching upon themes of child-raising, education and upward mobility, tailored specifically…