In an age when audiences are spoiled for choice across countless entertainment platforms, it’s no secret that cinema operators worldwide are feeling the heat.
The numbers alone make for grim reading. When PwC released its annual media and entertainment outlook in July, the industry winced: U.S. cinema revenue, the firm predicted, would not return to its pre-pandemic peak of $11.7 billion until 2029. That same year, global box office was forecast to hit $37.7 billion — still shy of the $39.4 billion recorded in 2019.
In China, the industry has been eager to highlight signs of recovery. By early October, the country’s box office had already surpassed its full-year 2024 haul ($5.8 billion), reaching $6 billion. At the same time, there’s been growing attention on how cinema owners are expanding beyond movies, experimenting with new entertainment offerings designed to pull audiences back — particularly younger viewers more accustomed to streaming and watching content on their phones.
China’s film industry has been “challenged by the notion of how to attract and retain young people,” says Li Jinlei, general manager of movie e-commerce portal Mtime, which Wanda Group acquired in 2016.
Li also oversees the co-branding initiatives launched by Wanda Film — the operator of 707 Wanda Cinemas across China — and says these programs are being warmly embraced by audiences.
“Specifically, regarding Wanda Film, we have been focused on how to meet the needs of young people and how to provide more entertainment experiences for everyone,” explains Li. “What we want to do is not just to host events but to create a space for young people to get together, to interact and build emotional resonance. We aim to use the unique ‘dream-making ability’ of filmmakers to break the limitations of cinema settings and open up a more vibrant new path for cinema economics.”
An “Rtime Verse” set up in the lobby of one Wanda’s 707 movie theaters in China.
Courtesy of Wanda Cinema
These new initiatives include an emphasis in three areas: customized content, co-branded merchandise and exclusive experiences.
“With cinemas we have a natural environment [for these initiatives], because we have the space and we have the content. The film is the content,” explains Li. “We feel like this is a great place to gather young people so that they can enjoy the community, they can enjoy the space.”
Building on that idea, Li says Wanda has begun reshaping its theaters into social hubs tailored to different fan communities.
“We utilize the natural environment of this cinema to create social scenarios for the audience, providing them with opportunities to gather together. It’s not just about watching movies; there are those who enjoy anime, some who like collecting. We have created a social space for them. After the co-branding activities, we saw significant growth in our box office share from animated films.”
Wanda Film claims that through co-branding events their share of box office from animated films has grown by 137 percent this past year, while each nationwide promotional rollout has attracted between around 400,000 to 500,000 new users.
“Last October, during Golden Week [and extended public holiday in China], we started the first collaboration with the game Genshin Impact, and the GMV [Gross Merchandise Value] hit RMB64 million [$9 million],” says Li. “But what is more valuable to us is the number of people behind that figure because they have generated over 20 million in extra box office revenue. We received a report from the shopping malls where our 700-plus theaters are located, indicating that this segment of users has stimulated more than RMB100 million [$14 million] consumption in total. So the figure was huge.”
A Wanda Cinema decked out in Genshin Impact character seat covers.
Courtesy of Wanda Cinema
The initiatives hark back to Wanda Films’ concept of a “Super Entertainment Verse,” as explained by Chen Zhixi, chairwoman of Wanda Film, to THR back in June.
“In this super space, apart from the original departments of our company like movies, dramas and games, we will offer AI, and we will include our self-made brands, such as snacks, offline leisure activities, home furnishing and all these things that add value to life,” she said. “People can not only watch films, they can have great food, they can have fun, they can enjoy life.”
And Wanda Cinemas staff is in on the act, often providing the kind of immersive service consumers have become used to enjoying at theme parks like Disneyland and Universal Studios.
“They will interact with you,” says Li of Wanda Cinemas staff members. “We also set up some scenes that are particularly immersive. Take Love and Deep Space for example, a very popular relationship simulation game in China. There are huge posters and co-branding videos of the leading actors in the movie theater and its commercial buildings. Scenes are also set up in the lobbies of Wanda Cinemas, and each leading actor’s scenery has its own characteristics.”
Wanda Film reports these set-ups proved popular with female audience members, with many dressing up as brides and taking selfies with their favorite characters. Wanda also produces tailor-made, pre-movie messages featuring characters asking the audiences to stay quiet or to turn off their phones. “The audience can watch their favorite characters on the screen even before the movie they have come to see has started,” says Li.
Plans for the year ahead include multi-category IP collaborations with the world of K-pop and sports.
“This series of activities has gradually transformed the cinema into a cultural hub for young people,” says Li. “People tend to spend about four hours in the cinema. They exchange ideas, they talk and also they buy the products. They take the selfie and they enjoy the setup. It’s really become like a playground for young people. It’s a great venue for them to exchange ideas and to get together.”
