Pandemic impacts on cinema industry and over-the-top platforms in China

Abstract

Over-the-top platforms are increasingly being accepted by the younger generation. This study examines the different modes of watching films that have emerged due to the proliferation of over-the-top platforms, smartphones, and 5G technologies during the pandemic period in China. Using survey data, we examine the perception and behavior of 592 respondents. The top five factors in increasing over-the-top platforms to watch movies include easy access, various genres, no time to visit a cinema, pandemic, and new films. Findings also show that users tend to use smartphones to access over-the-top platforms. Bilibili, Tencent Video, and iQIYI are China's most popular over-the-top platforms among viewers. Increasing cinema ticket prices, pandemics, lack of quality content, and film stories are significant challenges for the cinema industry in the near future. These results suggest that the film industry should maintain the quality of the movies, especially those released on the cinema screen. These findings also designate significant substitution between the over-the-top platform and cinema and recommend that competition authorities widen market definitions. The cinema environment and IMAX/3D appear to have little incentive to degrade over-the-top platforms, despite over-the-top's films contributing to declining box office revenue.