In a world where entertainment options are endless, the cinema industry is facing a tough battle to keep audiences engaged. The numbers paint a worrying picture: PwC's media and entertainment outlook predicts a slow recovery for cinema revenue, with the US industry not expected to reach pre-pandemic highs until 2029. Global box office figures are also lagging behind, with a projected $37.7 billion in 2029 falling short of the $39.4 billion recorded in 2019.
But here's where it gets interesting: China's cinema industry is taking a bold approach to attract and retain younger audiences, who are more accustomed to streaming and mobile content. And this is where Wanda Film steps in, with a unique strategy to turn theaters into vibrant youth-culture playgrounds.
Li Jinlei, general manager of Mtime (acquired by Wanda Group), highlights the challenge of engaging young people. Wanda Film, with its 707 cinemas across China, is leading the way with co-branding initiatives that are resonating with audiences.
"We want to create a space where young people can come together, interact, and build emotional connections," Li explains. "It's not just about hosting events; we aim to break the traditional cinema mold and offer a vibrant new experience."
Wanda's strategy focuses on three key areas: customized content, co-branded merchandise, and exclusive experiences. By leveraging the natural environment of their cinemas, Wanda is creating social hubs tailored to different fan communities.
"We have the space and the content; the film is our content," Li says. "We want to gather young people and provide them with a community and a unique space to enjoy."
Wanda has successfully transformed its theaters into social hubs, offering more than just movies. "There are anime fans, collectors, and more. We've created a social space for them to gather and interact," Li adds. This approach has paid off, with significant growth in box office share for animated films and a substantial increase in new users.
One notable collaboration was with the game Genshin Impact during Golden Week in China, which generated an impressive $9 million in gross merchandise value and an additional $14 million in box office revenue. This success highlights the potential of Wanda's "Super Entertainment Verse" concept, which aims to offer a holistic entertainment experience beyond films.
Wanda Cinemas staff plays a crucial role in delivering an immersive experience, providing a level of service akin to theme parks. "They interact with customers and create immersive scenes," Li says. For example, the popular relationship simulation game Love and Deep Space had huge posters and co-branded videos in Wanda cinemas, with themed setups in the lobbies. This approach proved popular, especially with female audiences who dressed up and took selfies with their favorite characters.
Wanda Film's plans for the future include multi-category IP collaborations with K-pop and sports. These initiatives have transformed cinemas into cultural hubs for young people, offering a unique and engaging experience.
"People spend around four hours in our cinemas, exchanging ideas, buying products, and enjoying the setup," Li concludes. "It's become a playground for young people to connect and have fun."
So, what do you think? Is this a successful strategy to revive the cinema industry? Feel free to share your thoughts and opinions in the comments!
