Chinese Animation Powers Imax Growth as ‘Ne Zha 2’ Redefines Box Office Potential

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In a world post-pandemic that values high-quality theater performances, Imax is placing significant investments on the Asian market, particularly focusing on China’s growing animation sector. The success of “Ne Zha 2” has been staggering, earning over RMB14.8 billion ($2.06 billion) at Chinese box offices as reported by Maoyan Entertainment.

As a movie enthusiast, I’ve been thoroughly impressed by the success of the animated sequel, especially its impact on Imax. A whopping 55% of its screenings were presented in the immersive 3D format, making it a standout choice for viewers. “The film had everything you want in a great movie,” said Richard Gelfond, CEO of Imax. “It was funny, action-packed, visually stunning, and drew on an ancient Chinese story that resonates with many Chinese children.

As a cinephile, I’ve witnessed the remarkable triumph of this animated gem on the massive screens of Imax theaters. The secret behind its success lies in the exceptional technical prowess that brilliantly highlights the superior aspects of the premium format. To put it simply, the animation is nothing short of top-notch, and whether it’s 2D or 3D, the brilliance of Imax, combined with the spacious theater and the exceptional sound quality, elevates the movie experience to a whole new level. In essence, it’s like watching ‘Avatar,’ where the detailed animation is meticulously crafted in 3D, offering an immersive cinematic adventure.

Repeated watchings have greatly contributed to the success of the film at the box office. As Gelfond explains, “This is a movie that people seem to want to see more than once and still find enjoyment in each viewing.” This has indeed been a substantial factor in our box office earnings.

Imax’s strategy for Chinese New Year films involved partnerships for joint-marketing with studios and substantial investment in social media platforms, notably TikTok. Essentially, they combined some of their marketing initiatives and gave more emphasis to the movies collectively than either party could have done independently, as stated by Gelfond.

As per Lai Li, a market analyst at Maoyan Entertainment, the success of “Ne Zha 2” marks a revival in the Chinese film industry, which had been experiencing a slump. Lai Li commented that the Chinese film market lacked excitement last year due to the absence of major blockbuster films. Only three movies surpassed the RMB3 billion ($415 million) mark. However, the impressive box office collections of this year’s Chinese New Year releases have created a positive outlook for the film industry in 2025.

The exceptional success of “Ne Zha 2” mirrors a wider industry pattern focusing on franchise expansion. As Li explained, “Sequels and films based on franchises form the foundation of the film market, not just in China, but globally.” In fact, out of the top 10 highest-grossing Chinese films ever, only two haven’t been sequels or part of a series.

In China right now, seven movies destined for Imax screens are being made by local studios. Three of these films are set to be released in the year 2025. Companies like Alibaba, Maoyan, and Wanda have numerous big-budget films in production, with the upcoming action-adventure sequel “A Writer’s Odyssey 2” being one of them. For the future, Hollywood movies projected to do well in China include “Avatar: Fire and Ash,” a new installment of “How to Train Your Dragon,” “Zootopia 2,” and “Jurassic World.

Gelfond stated that he believes the IP (Intellectual Property) and local flavor will blend successfully this year. As a result, he anticipates that the Hollywood lineup will also improve, in addition to the stockpile of robust Chinese films.

In the past two years, both Gelfond and Li have observed a change in audience tastes. As Gelfond put it, “Since the pandemic, audiences are now prioritizing ‘time-efficiency’ and a truly cinematic experience when they go to the movies.” Li added that this shift is due to audiences wanting to make the most of their theater visits by seeking out unique experiences they can’t get anywhere else.

Since the pandemic, Imax has experienced a notable increase in its market share compared to before the pandemic. As Gelfond stated, “Consumers seem to be expressing, ‘After spending much time watching at home, I want something exceptional when I go out.’

As per data from Maoyan, there’s been a significant rise in the preference for comedies among Chinese cinema-goers lately. Notably, comedies held two of the top three positions at the box office in 2021 and 2022. Furthermore, the highest-grossing film of 2023, ‘Full River Red,’ falls under the suspenseful comedy genre, as stated by Li.

Imax consistently pushes the boundaries of technological progression. As per Gelfond, their latest enhancements involve a superior 12-channel sound system, currently leading the global market. Additionally, they’ve transitioned to laser-based projection technology, delivering brighter visuals and deeper blacks compared to previous methods.

In terms of production, Imax has unveiled the next generation of their film cameras, which are described as being slightly lighter and quieter. These cameras offer greater flexibility for filmmakers to capture various shots, as stated by Gelfond. Additionally, Imax has created technology capable of upscaling streaming content, enabling high-quality Imax images for live events. This tech has been successfully utilized in League of Legends esports events and NBA Finals broadcasts in China.

For Imax, Japan presents another promising avenue for expansion, as they’ve secured agreements for around ten new theaters by Q1 of 2025. Gelfond expressed optimism, stating, “We had our best year in Japan in 2012, and I believe this could be our best year yet.” The upcoming release of “Demon Slayer: Infinity Castle” – a sequel to Imax’s top-grossing Japanese film ever – on July 18 in Japan, adds to the market’s promising outlook. In 2023, Japan led the world with the highest per-screen averages, making it an enticing proposition for cinema chains. The success of domestic films, particularly anime productions, has fueled this growth.

As a movie enthusiast, I’m thrilled to share some fascinating insights about the global expansion of Imax theaters. In China, where it already boasts an impressive 796 locations, there are another 191 contracts waiting to be fulfilled. Across Asia, we see 185 active Imax locations.

Jumping outside China, Japan takes the lead with 52 operational Imax screens and 18 more in the pipeline. India follows closely with 33 open locations and 9 more on hold. South Korea isn’t far behind, boasting 27 open Imax theaters and just 3 more in development. Lastly, Indonesia has 18 active Imax locations and 2 more in the works.

This global growth of Imax is a testament to its enduring popularity and commitment to delivering an immersive cinematic experience for movie lovers worldwide!

With the theater industry gradually bouncing back from pandemic-related setbacks, high-end formats such as Imax are poised to claim a larger market share, especially in Asia, where the appetite for grand spectacles and top-quality shows remains robust and unabated.

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2025-03-19 02:19