Profits Slide at China’s Tencent as 2023 Revenues Hold Steady

Patrick Frater Asia Bureau Chief China’s video streamers, much like their counterparts in the west, have passed their peak growth phase and have been forced to refocus their efforts on achieving profitability. In the case of IQiyi, which is a subsidiary of tech giant Baidu but has its own stock market listing on the NASDAQ, that transition has meant reduced content spending and a more rigorous approach to quality and investment in winning shows. “To the Wonder,” which debuted on Sunday in competition at Canneseries, is a product of that less-is-more approach.

Patrick Frater Asia Bureau Chief Oscar-winning Japanese animation film “The Boy and the Heron” earned a chart-topping $34.9 million between Friday and Sunday at the mainland China box office. Over its full five-day opening run, it took an even more spectacular $73 million. China was the last major territory to play the Studio Ghibli-produced fantasy in cinemas – it released in its native Japan in July and is imminently headed to streaming in many other territories – but that did not stop Chinese audiences from lapping it up. While most films release in China on a Friday, “The Boy and the Heron” was given a Wednesday outing in order to capture momentum from the Thursday-to-Saturday Qingming public holiday. Consultancy firm Artisan reports that it earned RMB248 million ($34.9 million) over the conventional Friday-to-Sunday weekend.

Refresh for latest…: A busy holdover weekend for wide studio releases was led by the trio of Godzilla x Kong: The New Empire, Kung Fu Panda 4 and Dune: Part Two. And, in a soaring performance, Hayao Miyazaki’s Oscar winner The Boy and the Heron swooped into China helping the market set a new Qingming holiday record. 

Patrick Frater Asia Bureau Chief Oscar-winning Japanese animation “The Boy and the Heron” opened its wings in mainland Chinese theaters in midweek and soared to the top of the box office. Data from multiple local tracking sources show the Miyazaki Hayao-directed fantasy-adventure accounting for more than half of all cinema revenues on both Wednesday and Thursday. On Wednesday it garnered $13.8 million, according to estimates from Ent Group. By 6.30pm on Thursday, ticket sales firm Maoyan was showing the title as having grown its two-day running total to RMB254 million or $35.2 million. While films mostly open on Fridays in China, “The Boy and the Heron” was given a Wednesday outing in order to play into the three-day Qingming public holiday.

Patrick Frater Asia Bureau Chief Legendary Entertainment’s “Godzilla x Kong: The New Empire” had the best opening in China of any Hollywood film this year. It scored $44.6 million (RMB317 million) in mainland Chinese cinemas between Friday and Sunday, according to data from consultancy firm Artisan Gateway. That was a nearly 70% share of the country’s weekend box office. Nationwide, cinemas enjoyed $64.1 million of business, a significant leap from the $39.5 million they earned in the previous weekend.

Warner Bros/Legendary Entertainment’s Godzilla x Kong: The New Empire is out and roaring at the international box office, generating $15.9M from 49 markets through its first two days overseas (Wed/Thurs). Not included in that total is the strong China opening day today which came in at an estimated RMB 96.9M ($13.4M).

Elsa Keslassy International Correspondent “Dahomey,” the Berlinale Golden Bear-winning film helmed by French-Senegalese director Mati Diop, has been sold to a raft of international territories by Les Films du Losange. Along with being acquired by Mubi in key markets, “Dahomey” has been acquired in Australia & New Zealand (Rialto), China (Hugoeast), Spain (Filmin), Portugal (Nitrato Filmes), Greece (One From the Heart), Scandinavia (NonStop Entertainement), Benelux (Cinéart), Bulgaria (Beta Films), Ex-Yugoslavia (Discovery), Hungary (Mozinet), Czech Republic (Film Europe), Romania (Voodoo), Baltic Countries (Taip Toliau), Poland (New Horizons), Ukraine (Kyivmusicfilm), Taiwan (Joint Entertainment), Indonesia (PT Falcon) and Sudu Connexion in Africa.

Patrick Frater Asia Bureau Chief Universal’s “The Fall Guy” will open in mainland Chinese cinemas next month, ahead of its debut in the U.S. and star Ryan Gosling’s native Canada. The film is set to release officially in China on April 30.

Patrick Frater Asia Bureau Chief ‘Kung Fu Panda 4’ opened on top of the mainland China box office in its first official week of release. But its debut was soft and led the market to one of its quietest weekends of the year. The Universal-DreamWorks Animation picture earned $14.7 million (RMB105 million) between Friday and Sunday, according to data provided by consultancy firm Artisan Gateway.

Coming out of the weekend, and with Sunday’s actuals and Monday’s numbers included, there are new global milestones to celebrate for the two major Hollywood titles currently in release.

Patrick Frater Asia Bureau Chief Net profits at Tencent Music Entertainment, China’s largest digital music company, climbed 36% to reach $735 million (RMB5.22 billion) in 2023 – despite revenues declining by 2% to $3.91 billion. Fourth quarter profits were worth $198 million (RMB1.41 billion), earned from revenues 7% down at $971 million (RMB6.89 billion). The final figures cap a year in which the New York and Hong Kong listed subsidiary of Tencent saw monthly active user (MAU) numbers fall as it successfully organized the transition of a growing number of free users into paying subscribers. In the full year, revenues from music streaming subscriptions grew by 39% to $1.70 billion. That resulted from a 21% growth in the number of paying subscribers (from 88.5 million to 107 million) and a 20% increase in the average revenue per subscriber to RMB10.7 or $1.49.

Patrick Frater Asia Bureau Chief “The Boy and the Heron,” the Oscar-winning animated feature film by iconic Japanese director Miyazaki Hayao, is finally to be given a release in cinemas in mainland China. The picture is scheduled to release in China on April 3, 2024, according to Alibaba Pictures. Tickets are already available on booking sites such as Maoyan and Alibaba’s Taopiaopiao.

Patrick Frater Asia Bureau Chief Previews for Universal Pictures and Dreamworks Animation’s “Kung Fu Panda 4” put the Chinese-themed film in fourth place at the mainland China box office, a week ahead of its official theatrical debut. Over the March 15-17 weekend, however, first and second places remained with holdover titles “The Pig, The Snake and the Pigeon” and “Dune: Part Two.” Taiwanese crime film “The Pig, The Snake and the Pigeon,” already playing on Netflix in territories outside China, topped the mainland China chart for the third successive weekend. According to data from consultancy Artisan Gateway, it earned $11.1 million (RMB79.1 million), for a cumulative of $73.2 million (RMB520 million).

Patrick Frater Asia Bureau Chief Linmon Pictures, one of the most outward-looking mainland Chinese entertainment firms, is preparing premium series “Hate Coin.” The show is being produced in association with Jonathan Wong and Justina Shih’s production company Octagon Metatainment, a Hong Kong-based multimedia studio. “Hate Coin” is based on international best-selling novel “Second Sister,” by successful Hong Kong novelist Chan Ho Kei, whose previous book “The Borrowed” was a crime story that panned five-decades. The story follows the activities of a young woman whose school-age sister appeared to have committed suicide. Suspecting foul play, the woman trams up with a manipulative hacker and cybersecurity expert to try to dig deeper. “What follows is a cat and mouse game through the city of Hong Kong and its digital underground, especially an online gossip platform, where someone has been slandering Siu-Man.

Elsa Keslassy International Correspondent Memento International has closed a raft of deals on “Fremont,” a critically acclaimed film starring Anaita Wali Zada, an Afghan refugee and first-time actor, and featuring “The Bear” actor Jeremy Allen White. Directed by BAFTA-nominated Iranian-born director Babak Jalali, the black-and-white movie tells the story of Donya, a young woman working at a Chinese fortune cookie factory in the San Francisco bay. Formerly a translator for the U.S.

This year’s Filmart was definitely bigger and busier than last year, which was the first physical edition following the reopening of Hong Kong and mainland China’s borders after the pandemic. According to Filmart organizers, the Hong Kong Trade Development Council (HKTDC), more than 750 exhibitors and 7,500 visitors attended this year’s Filmart, compared to around 700 exhibitors and 7,300 visitors in 2023. But despite frenetic meeting activity, the market did little to dispel fears that international sales business in the region, already in decline before the pandemic, is not yet recovering. International sales agents under the IFTA and European Film Promotion (EFP) umbrellas had packed meeting schedules.

HCG AwardPresented by CAA ChinaTwo cash awards of $20,000 value each. CAA China may board the winning projects later by entering into script development agreements. “Call of Lobster” (Taiwan) Dir.

Michael Douglas, Kyle MacLachlan, Ella Purnell and Daniel Brühl are among the high-caliber stars who will take part in the 7th edition of Canneseries. The robust lineup, unveiled today by Canneseries’ artistic director Albin Lewi at a press conference in Paris, boasts the world premiere of Apple TV+’s “Franklin,” starring Michael Douglas as one of the Founding Fathers, and Disney +’s “Becoming Karl Lagerfeld” with Daniel Brühl as the acid-tongued designer.

Patrick Frater Asia Bureau Chief “Escaping Man,” a Chinese drama feature about a man dragged into a kidnap plot, heads the FilMart slate of Hong Kong-based sales agency Autumn Sun Company. The protagonist is a man who spent 20 years in jail after being falsely accused of rape. After his release, he intends to confront the woman, but instead falls for her again — to the point that she is able to manipulate him into kidnapping the child for which she is the nanny.

Patrick Frater Asia Bureau Chief Peter Chan Ho-sun has assembled a starry cast headed by Zhang Ziyi and box office sensation Lei Jiayin for his new feature film “She Has No Name.” The film, which recently completed principal photography, probes the progress of women’s rights in China. “One woman’s suffering gives rise to the revolution of women’s social rights in China,” reads a tagline.