China Wants Cinemas to Offer More Than Just Tickets
China’s cinemas are being told to stop relying solely on ticket sales. New guidelines from the National Film Administration and the State Administration for Market Regulation encourage theatres to incorporate AI concierge agents, karaoke booths, and coffee shops into their lobbies, as per Bloomberg.
The guidance also pushes operators towards movie-themed merchandise stores, licensed products, art exhibitions, and pop-up shops, transforming idle screening rooms and lobby spaces into retail and cultural venues.
This shift comes amid a significant dip in China’s box office revenue. In the first half of 2026, it reached roughly $2.56 billion, a 40.6% year-on-year decrease compared to the same period in 2025, according to Screen Daily (excluding pandemic years).
While 2025 saw China’s 93,187 cinemas generate approximately $7.45 billion, up nearly 22% from the previous year, according to the Hollywood Reporter, audiences have been absent in 2026 due to a thinner release slate and competition from short videos and AI-generated micro-dramas.
This new guidance formalizes an existing initiative described by Luo Yang, deputy head of the China Film Administration, who spoke of integrating cinema with tourism, dining, technology, gaming, and merchandise in a Xinhua report.
The goal is to replicate the success of Nezha-branded coffee drinks, which sold five million cups in three days, demonstrating the potential for revenue from non-ticket sales.
While Beijing has previously offered subsidies through initiatives like the "Film Consumption Year" (with reported funding of roughly $130 million), these new guidelines take a different approach by encouraging cinemas to create reasons for people to visit beyond film screenings.
However, implementing these changes may be challenging for smaller, independent cinemas already struggling with reduced attendance. National chains might have an easier time testing out new concepts in one flagship venue before committing to them across their network.